Understanding FIDIC Contract management and Procurement services

What is a FIDIC Contract?

FIDIC Contracts were first developed over 50 years ago. They apply a balanced approach to the roles and responsibilities of the main parties, as well as to the allocation and management of risk.

The contracts cover general conditions of contract, which are tried and tested, and based on thousands of successful projects completed around the world, and which have been deemed to be suitable in all cases.

FIDIC Contracts are widely considered to provide the international standard or blueprint for construction or engineering contracts used in the consulting industry. They are also internationally recognised and used in many jurisdictions and on all types of projects.

Aside from the FIDIC Body of Knowledge (FBOK), the collection of FIDIC Contracts consist of a body of publications more commonly known as the “Rainbow Suite”. This comprises of the three standard contracts documents (Red, Yellow and Silver books) which can be used to help engineers, contractors and other service providers working in the infrastructure industry to plan, implement and maintain their construction projects in an orderly, fair and timely manner.

FIDIC’s principal aim has been to maintain and uphold industry standards. It has been publishing and updating information and resources to help those working in the industry to better execute their contracts and provide services that are equitable to both parties’ interests. Projects using the FIDIC Contracts will be quality-driven, sustainable and able to stand the test of time.

What is procurement?

Procurement is the process which creates, manages and fulfils contracts.

Procurement commences once a need for services or construction work(s) has been identified and ends when the services or construction works are completed. This covers the processes from the identification of a project up to receipt of tenders and award of contracts for its implementation, i.e., up to the point of commitment to start the supply of consulting services. This for instance could be the design and/or manufacture of the works.

There are various forms of procurement, including aspects which cover the award of the contract and what happens thereafter, such as the construction, operational and maintenance aspects, or even the eventual refurbishment or dismantling of the project.

The procurement of projects for construction works of all sizes and complexities can be variable and may require specific expertise to understand and manage the process(es) efficiently.

What is contract management?

Contract management in the FIDIC sense is about effectively administering and managing FIDIC contracts. In its application or in the actualisation of a project, the person should demonstrate that they have expertise in FIDIC’s major contract forms and best practices. This includes the 1999 Conditions of Contracts and the new 2017 FIDIC Forms of Contract, as well an understanding of the main differences between the two.

What is the linkage between procurement and contract management?

When it comes to FIDIC Contracts, the Project Manager or Contractor should understand these two steps. Procurement is the start while contract management is the next step. Contract management can be considered as the implementation of the agreement while procurement is the preparatory step to start and obtain the service.

Why should you get certified by FCL?

FIDIC Credentialing Ltd. (FCL) was mandated by FIDIC to provide an international certification to all the professionals it certifies. This means that the qualification gained from FCL will be recognised globally. Additional advantages include that it increases your career prospects, boosts your professional profile and provides you with a rubber stamp of excellence from a global world leader, FIDIC. This in turn would make you stand out in a crowd of others working in the same field of expertise. In some instances, it can have an added advantage when you are bidding for projects with MDBs and IFIs.

In the context of this article, FCL offers certification to those with experience in contract management and administration. This a unique qualification which is new in the industry. This certification is offered three times in a year to those discerning enough to apply.

To find out more about this certification programme, click on the link and apply for our March 2022 session.

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