International engineering federation FIDIC has renewed a major agreement with the World Bank that will see the global funding organisation use nine key FIDIC contracts for a further five years.
The World Bank has renewed and expanded a landmark agreement with FIDIC (the International Federation of Consulting Engineers) that will see the international funding organisation adopt the use of nine FIDIC standard contracts for a further five years.
Under the terms of the agreement, FIDIC has granted the World Bank a non-exclusive licence to refer to the nine major FIDIC contracts (see list in notes below) for projects they finance and the documents will be used as part of the bank’s standard bidding documents. The contracts include the 2017 Second edition FIDIC contracts, as reprinted in 2022, which cover a wide range of international construction and infrastructure work. The World Bank’s move represents a key endorsement for the contracts from a major international funding organisation.
FIDIC chief executive Dr Nelson Ogunshakin said: “We really value the strong relationship that has been forged between FIDIC and the World Bank over a number of years and we are delighted that the bank has agreed to adopt our FIDIC ‘rainbow’ suite of contracts and use them as a key part of their standard bidding documents. The use of these contracts creates more certainty in the market as by adopting the FIDIC contacts on major projects the World Bank is providing an endorsement of the fair and balanced approach that these documents offer to parties on major construction contracts.
“The bank’s move represents further major international market buy-in for our contracts – which includes our recent contract reprints and new editions – and is something that we hope will also influence the supply chain to adopt FIDIC contracts thereby creating even more certainty in the planning and delivery of major international construction and infrastructure projects. I look forward to the opportunity of continuing to build a stronger collaborative relationship with the World Bank team in the months and years ahead.”
Commenting on the renewal of the bank’s agreement with FIDIC, Enzo De Laurentiis, chief procurement officer at the World Bank, said: “We look forward to continuing to build on the successful implementation thus far of the licence agreement for the 2017 Rainbow Suite and the very productive partnership with FIDIC over many years including in key areas such as sustainable procurement, contract management and capacity building.”
The nine FIDIC contract documents covered by the FIDIC/World Bank agreement are as follows: –
- Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer (“Red Book”), Second edition 2017, Reprinted 2022 with amendments.
- Conditions of Contract for Plant & Design-Build for Electrical & Mechanical Plant & for Building & Engineering Works Designed by the Contractor (“Yellow Book”), Second edition 2017, Reprinted 2022 with amendments.
- Conditions of Contract for EPC Turnkey Projects (Silver Book), Second Edition, 2O17, Reprinted 2022 with amendments.
- Client/Consultant Model Services Agreement (“White Book”), Fifth Edition 2017.
- Conditions of Contract for Design, Build and Operate Projects (“Gold Book”) First Edition 2008.
- The Short Form of Contract (“Green Book”), First Edition 1999.
- The Short Form of Contract (“Green Book”), Second Edition, 2021.
- Conditions of Contract for Underground Works (Emerald Book), First Edition, 2019, including its Reprint 2023 with amendments when published.
- Form of Contract for Dredging and Reclamation Works, Second Edition, 2016.