FIDIC stands for International Federation of Consulting Engineers. It is among the most widely used standard forms of contract in the construction and engineering industries worldwide. Established in 1913, FIDIC was founded by national associations of consulting engineers from Belgium, France, and Switzerland. The organisation’s primary aim was to standardise consulting engineering practices and provide a forum for collaboration. Over the years, FIDIC has played a pivotal role in developing model forms of contracts to facilitate international construction projects. This is especially true of those involving parties from different legal, linguistic, and cultural backgrounds.
Red Book
The first FIDIC contract, the “Red Book”, was published in 1957. It was intended for civil engineering works where the design responsibility primarily rested with the employer. The Red Book was modelled after the UK’s ICE conditions of contract but adapted for international use. It quickly became a benchmark for international projects, renowned for its balanced allocation of risks between employers and contractors.
Yellow Book
In 1963, FIDIC released the “Yellow Book”, specifically tailored for mechanical and electrical works. Unlike the Red Book, the Yellow Book catered to projects where contractors typically bore design responsibilities. This marked a significant shift in addressing the varied needs of construction procurement and contract management.
Orange Book
Throughout the 20th century, FIDIC contracts expanded their scope to accommodate the complexities of modern infrastructure projects. In 1987, the “Orange Book” was introduced for Design-Build and Turnkey projects. This was an early acknowledgment of the growing demand for contractor-led procurement methods and where the contractor undertakes both design and construction responsibilities under a single contract.
Silver Book
A major milestone in the evolution of FIDIC contracts came in 1999 with the release of the “Rainbow Suite,” which included updated versions of the Red Book, Yellow Book, and a new Silver Book. The Silver Book was designed for Engineering, Procurement, and Construction and Turnkey contracts, transferring more risks to the contractor to provide greater price certainty for employers. This suite also introduced a standardised approach to dispute resolution through Dispute Adjudication Boards which reflects the growing emphasis on efficient conflict management in international projects.
FIDIC continued its efforts to refine its contracts, releasing the second edition of the Rainbow Suite in 2017. These updates addressed criticisms of earlier editions, such as lack of clarity and complexity, and incorporated modern principles such as risk management, dispute avoidance, and collaborative approaches.
Today, FIDIC contracts are globally recognised as industry standards for fairness and adaptability. They are used extensively in projects funded by international financial institutions like the World Bank and the Asian Development Bank. The widespread adoption is attributed to their ability to balance risk allocation and accommodate the diverse needs of global stakeholders.
From its inception in 1913 to its current status as a leader in standard form contracts, FIDIC has continually adapted to the changing demands of the construction and engineering sectors. This has helped to cement its reputation as a cornerstone of international project delivery.
