The intersection between contract management and dispute avoidance
Since the 1950s, FIDIC has developed contracts which have over the decades become the global standard for managing construction, engineering and infrastructure projects globally.
Published in 1999, the FIDIC General Conditions of Contracts are internationally recognised and standardised terms which define the core risk allocation, as well as the rights and obligations of the parties in the construction and engineering projects. They are well respected because they provide a balanced approach to the roles and responsibilities of the main parties and offer an equitable allocation of risk, thereby enabling the parties to better manage their responsibilities.
Having the terminology and parameters for mapping out a project is great. Indeed, it is fundamental. However, practitioners working in the built and natural environment are only too aware that no two projects are the same. This means that the type of contract selected must be adapted to the needs of that specific project. For instance, the FIDIC Red book is better for some projects e.g., where the Employer provides the design, whereas the Yellow Book should only be used for certain other projects, e.g., the Contractor is responsible for both the design and construction.
Thankfully, all FIDIC contracts contain guidance on the preparation of the Particular Conditions. They also provide examples of the areas where special provisions may be required for a specific project. To diverge significantly from these guidelines is to increase the risk of shifting the balanced nature of the contract and putting the successful implementation of the project into jeopardy.
This is also why it is important to have a contracts specialist who understands the contractual terms and is able to manage the implementation of the project in a hands-on manner. A Contract Manager assigned to a construction or engineering project is necessary as projects can often be cumbersome and hard to manage. This specialist should have the expertise to use FIDIC contracts to provide guidance on project-specific requirements, including where Particular Conditions may be used. In addition, they should understand risk management, and be able to put in place good strategies for budgetary planning and time allocation.
The DAAB provisions have existed in FIDIC Contracts since the 2017 editions. This addition allows parties to have a standing board which could proactively prevent disputes which may arise during the project.
Some of the reasons disputes may arise include the following:
- An incorrect or skewered interpretation of the contractual terms and could include the substantive or procedural provisions of the contract.
- Failure to properly evaluate the additional issues which may arise.
If the parties fail to agree, it is equally important to develop solutions if the parties want to avoid litigation.
How can a dispute board or adjudicator help? They can:
- Provide informal guidance to help the parties better understand the parameters of their respective responsibilities and this is important for pre-empting possible conflicts.
- Evaluate and delineate the responsibility and the liability of the parties.
- Review the legal merits of the claim.
- Consider how to deal with a particular event which took place on Site could be dealt with under the contract.
These are only examples and by no means exhaustive. What is vital is that the parties should at best possible, always endeavour to find solutions and to effectively identify and resolve disagreements as they arise.
In the ideal world, these disputes can be avoided if the right contract is selected, if a Contract Manager is engaged at the start of the project and fully understands how the contractual terms applies and how to apply them both in a technical and hands-on manner to the project and if the contract selected includes the DAAB provisions.
As part of its capacity building initiatives and its QIS values, FIDIC offers certification for professionals working as contract management experts, as well as to mediators or dispute avoidance specialists. This means that those working in their sectors can get their expertise validated by FIDIC through its assessment protocols and then showcase this international qualification across the industry.
For more information about these two certification programmes, as well as the application information and opening dates, check out our webpages:
FIDIC Certified Contract Manager: https://fcl.fidic.org/our-programmes/contract-managers
Application window: February – 13 March 2026
FIDIC Certified Adjudicator: https://fcl.fidic.org/our-programmes/adjudicators
Application window: 9 March – April 2026
