FIDIC

The Federation Internationale des Ingeniuers-Conseils (FIDIC) has since 1957 produced standard forms of contract, which today arguably is the most used international standard contract within the energy, infrastructure and construction sector, e.g. as basis for construction work for both wind park projects, solar projects, transport infrastructure, power plants and even oil and gas plants.

In particular, the success of the FIDIC forms of contract derives from the fact that they are suited for use across a diverse range of legal systems; that they are well-known to the market participants, including financiers; and that they have proactively been updated over time to serve its market.

The pre-eminent standard-form of contract is the so-called FIDIC "Rainbow Suite", which was launched in 1999 and later in 2017 updated to the current second version. The "Rainbow Suite" includes a Red, Yellow and Silver Book, whereas each individual book comprises of the following:

Red Book (Construction), which is used for general construction projects, where the employer is responsible for the design.
Yellow Book (Plant and Design/Build), which is most widely used for electrical and mechanical plant and also for design and build work more generally, where the contractor is responsible for the design.
Silver Book (EPC/Turnkey), which is a lump sum EPC (Engineering, Procurement and Construction) contract, used for projects, where the contractor assumes full responsibility for the engineering, procurement and construction of the works.

It is important to note that these books constitute a starting point for the preparation of a specific construction contract and that they are often modified to reflect particular circumstances of the individual project.

Over the past years, Plesner's Energy and Infrastructure team and Construction team have assisted various of our clients with the application of the FIDIC forms of contract, both in regard to the negotiation and formation of contracts subject to FIDIC; contract management of FIDIC based contracts, as well as in connection with any arisen disputes. Some of these projects include the:

Establishment of the Fehmarn Belt, which is a fixed link from Denmark to Germany
Baltic Pipe project, which is a gas pipeline from Poland to Norway through Danish territory
Development of a large compressor station in Everdrup
Development of the Sprogø Wind Park
Construction of roads in Tanzania, Zambia and Jamaica
Development of airports in Bahamas and Mozambique
Construction of port facilities in Poland
Construction of embankment in Central America