FCL hosts its second Contract Management Forum at the FIDIC GIC 2024
A week ago, FIDIC Credentialing held its second Contract Management Forum at the FIDIC Global Infrastructure Conference which took place in Geneva.
The Forum was well attended and lively, with most participants coming from various countries across the globe.
Along with Martina Hess, a FIDIC Board member, Thanos Totsikas, FCL’s General Manager moderated the event, the speakers included Andrea Chao, Michael Earp, Ajit Mishra, Stephane Giraud, Cagdas E. Bayrak, Edulo Batalha and Firuza Bobolkulova.
Each shared experiences and insights into some of the challenges faced by those involved with managing construction projects, best practices and issues that may arise when managing the contractual aspects of construction and engineering projects in different regions.
The discussion covered many topics but some of the key takeaways included:
- The importance of engaging a certified Engineer to exercise the contract.
- Employing staff that are competent to assist the Engineer in fulfilling the contract.
- It was advisable to ensure the site Engineer reads the contract terms and not only focus on the technical specs.
- Recording all the information shared, either by physical means or in a digital format.
- Insurance coverage is vital, but it was also noted that the typical PI does not cover cyber-security nor is it affordable. Additionally, only the company’s data falls under cyber security, while technical services and products are excluded.
- It is vital to learn from other contracts which were implemented in the past.
- Consideration should be given to any cultural factors and linguistic issues that may be faced in the local environment.
It was also generally agreed that the parties to the contract should learn and understand the FIDIC contract terms and provisions. For instance, negligence is a required if the insurance coverage is to kick in. If there is no fault in the contract, insurance does not apply.
From the local perspective, it was mentioned that the international companies hired do not give work to the local consultancy company. This is a problem for the local stakeholders. In addition, issues such as interest rates, currency fluctuations and price adjustments can be overlooked but they remain big challenges in some region such as Africa and Asia.
Other concerns raised included the challenges of finding arbitrators, settling disputes effectively and handling claims. These are problematic in some countries as contractors are not aware of the contract peculiarities and some consider that the conflicts should be resolved in the meeting or via email.
In the end, it was suggested that the best way forward would be that from the start, the parties should expect that there will be surprises in the project’s management and it should be accepted a common occurrence. Plus, problems leave room for people to resolve issues, and this is certainly a good thing.
