EPC/Turnkey Contract. REGISTER NOW http://fidicepcturnkeyprojects or call (Globe) (Sun). FIDIC – Conditions of Contract for EPC-Turnkey NY 01/03/09 PM. GENERAL CONDITIONS. GUIDANCE. FIDIC EPC/Turnkey Contract, understanding and its implementation in power plant projects in Indonesia. Dr. Sarwono Hardjomuljadi [email protected] id.

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This type of contract is usually negotiated between the parties. Contracts and Agreements Collection English only printed version. Notes on the Preparation of Tender Documents The Employer must also realize that asking serious contractors to price such tkrnkey will increase the construction cost and result in some projects not being commercially viable.

FIDIC recognizes that privately-financed projects are usually subject to more negotiation fidc publicly-financed ones and that therefore changes are likely to have to be made in any standard form of contract proposed for projects within a BOT or similar type venture.

Shopping basket Your shopping basket is empty. This need of many employers has not turnket unnoticed, and FIDIC has considered it better for all parties for this need to be openly recognised and regularised.

Conditions of Contract for Constructionwhich are recommended for building or engineering works designed by the Employer or by his representative, the Engineer. In drafting Special Provisions, if clauses in the General Conditions are to be replaced or supplemented and before incorporating pec example wording, Employers are urged to seek legal and engineering advice in an effort to avoid ambiguity and to ensure completeness and consistency with the other provisions of the contract.

FIDIC has published a document entitled “Tendering Procedure” which presents a systematic approach to the selection of tenderers and the obtaining and evaluation of tenders; the second edition was published in Compilation of all Collections English printed version.

The sub-clauses which were considered to be applicable to many but not all contracts have been included in the General Conditions, which will facilitate their incorporation into each contract.

The charts are illustrative and must not be taken into consideration in the interpretation of the Conditions of Contract. Modifications to the Conditions may be required in some legal jurisdictions, particularly if they are to be used on domestic contracts.

In the preparation of the Conditions of Contract to be included in the tender documents for a contract, the following text can be used: Watermarked Compilation of all Collections English electronic version. By providing a standard FIDIC form for use in such contracts, the Employer’s requirements for more risk to be taken by the Contractor are clearly stated.


Acknowledgement of all reviewers above does not mean that such persons or organisations approve the wording of all clauses. Major turnkey projects may require some negotiation between the parties.

These should be included in Part B — Special Provisions. Among other things, such form may need to be adapted to take account of the special, if not unique, characteristics of each project, as well as the requirements of lenders and others providing financing.

The General Conditions and the Particular Conditions will together comprise the Conditions of Contract governing the rights and obligations of the parties. In addition it is recognised that many Employers, especially governmental agencies, may require special conditions of contract, or particular procedures, which differ from those included in the General Conditions. Clauses 1 to Therefore the tendering procedure has to permit discussions between the Tenderer and the Employer about technical matters and commercial conditions.

Thus the Employer does not have to attempt to alter a standard form intended for another risk arrangement, and the Contractor is fully aware of the increased risks he must bear.

Conditions of Contract for EPC Turnkey Projectswhich are recommended where one entity takes total responsibility for the design and execution of an engineering project.

Knowledge Management

General Conditions; Part 2: Before incorporating any example wording, it must be checked to ensure that it is wholly suitable for the particular circumstances; if not, it must be amended. Nevertheless, such changes do not do away with the need of having a standard form.

Watermarked Compilation of all Collections English electronic version. These risk sharing principles have been beneficial for both parties, the Employer signing a contract at a lower price and only having further costs when particular unusual risks actually eventuate, and the Contractor avoiding pricing such risks which are hard to evaluate.

The Tenderer should then be permitted and required to verify all relevant information and data and make any necessary investigations.

EPC/Turnkey Contract 2nd Ed (2017 Silver Book)

For example, this edition provides: Group Extras More information Product code:. The document is intended to assist the Employer to receive sound competitive tenders with a minimum of qualifications. In some cases, however, only an aide-memoire is given.

Guidance for the Preparation of Conditions Particular Application.

EPC Turnkey | International Federation of Consulting Engineers

This Dispute Adjudication Agreement provides text for the agreement between the Employer, fdic Contractor and the person appointed to act either as sole adjudicator or as a member of a three-person dispute adjudication board; and incorporates by reference fisic terms in the Appendix to the General Conditions.

All such matters, when agreed, shall then form part of the signed Contract. This publication also includes a number of sample forms to help both Parties to develop a common understanding of what is required by third parties such as providers of securities and guarantees. Further information on fpc aspects, example wording for other arrangements, and other explanatory material and example wording to assist in the preparation of the Particular Conditions and the other tender documents, are included within this publication as Guidance for the Preparation of the Particular Conditions.


This publication concludes with example forms for the Letter of Tender, the Contract Agreement, and alternatives turmkey the Dispute Adjudication Agreement. Clearly the Contractor will rightly increase his tender price to account for such extra risks.

Where example wording is amended, and in all cases where other amendments or additions are made, care must be taken to ensure that no ambiguity is created, either with the General Conditions or between the clauses in the Particular Conditions.

Apart from the fiduc recent and rapid development of privately financed projects demanding contract terms ensuring increased certainty of price and performance, it has long been apparent that many employers, particularly in the public sector, in a wide range of countries have demanded similar contract terms, at least for turnkey contracts.

Another relevant FIDIC publication is “Tendering Procedure”, which presents a systematic approach to the selection of tenderers and the obtaining and evaluation of tenders. Contracts and Agreements Collection English electronic version. It is essential that all these drafting tasks, and the entire preparation of the tender documents, are entrusted to personnel with the relevant expertise, including the contractual, technical and procurement aspects. Even under such contracts the Employer does carry certain risks such as the risks of war, terrorism and the like and the other risks of Force Majeure, and it is always possible, and sometimes advisable, for the Parties to discuss other risk sharing arrangements before entering into the Contract.

Compilation of all Collections English electronic version. A feature of this type of contract is that the Contractor turhkey to prove the reliability and performance of his plant and equipment. Initial Update Task Group: Employers on such turnkey projects are willing to pay more – often considerably more – for their project if they can be more certain that the agreed final price will not be exceeded.

Short Form of Contract fidif, which is recommended for building or engineering works of relatively small capital value. General Conditions; Part 2: