International Federation of Consulting Engineers Evgeny Smirnov European Bank for Reconstruction and Development

Pros and Cons of using FIDIC Contracts Regional Issues Pros and Cons of using FIDIC Contracts FIDIC MDB Harmonised Construction Contract Conference BackgroundEBRD 3,374 projects for EUR billion EUR 71.1 billion invested by EBRD: EUR 55.7 billion – private sector EUR 55.7 billion – private sector EUR 15.4 billion – public sector EUR 15.4 billion – public sector

Regional Issues Pros and Cons of using FIDIC Contracts “There is nothing either good or bad, but thinking makes it so…” Hamlet, William Shakespeare Questionnaire, April questions about FIDIC contracts –Section A; General Information –Section B; Overall experience with FIDIC contracts –Section C; Specific issues (anti-corruption, social and environmental provisions, Engineer’s role, DAB) Responses 12 countries in Eastern Europe, Turkey and FSU countries Power, Transport, Municipal and Nuclear Safety sectors 38 respondents Contracts range: EUR 3 million to EUR 991 million FIDIC MDB Harmonised Construction Contract Conference

Regional Issues Pros and Cons of using FIDIC Contracts “Beauty is bought by judgement of the eye, Not utter'd by base sale of chapmen's tongues…” Love's Labours Lost, William Shakespeare View of EBRD Well balanced contracts Easily adoptable to specific country conditions Specific MDB provisions included Suitable for a wide range of projects Well known on the market Aimed at timely completion within the original cost Presence of a professional engineering support Efficient dispute resolution mechanism FIDIC MDB Harmonised Construction Contract Conference

Regional Issues Pros and Cons of using FIDIC Contracts “What's in a name? That which we call a rose…” Romeo and Juliet, William Shakespeare View of Respondents Users are generally satisfied Well balanced risks of the parties Fair and complete Well known throughout the industry Simple, but covering main contractual issues well, being based on vast experience Standardisation and availability of the documents for different type of projects FIDIC MDB Harmonised Construction Contract Conference

Regional Issues Pros and Cons of using FIDIC Contracts “Oft expectation fails, and most oft there Where most it promises…” All’s well that ends well, William Shakespeare Some Other Findings Needs to be localised, as there are some conflicts with national regulations Not well known by local contractors Lack of experience and gaps with understanding on the Employer’s side Open to claims No control over delays during implementation Cost and time over-runs are relatively common Requires a comprehensive delay and disruption protocol Engineers are biased and often act reactively DAB is rarely used and inefficient Sometimes forms of FIDIC contract used are inadequate to a project FIDIC MDB Harmonised Construction Contract Conference

International Federation of Consulting Engineers PresidentGeoff French, UK Vice-PresidentPablo Bueno, Spain SecretariatFIDIC World Trade Center 2 Geneva Airport Box 311 CH-1215 Geneva 15 Switzerland Tel: Fax: Managing DirectorEnrico Vink