Category: Construction Relationships

Is There Another System For Construction Relationships, Different From The Traditional “Customer-Contractor”?

FIDIC significantly expands the boundaries of system for construction relationships. Unlike the traditional construction process characterized by the relationships between the customer-developer and the designer-builder, from territorial planning to almost commissioning of the facility, the typical forms of FIDIC are functional from the moment of thinking about business-idea by the investor. The contracts developed by the federation manage the relationships between the investor and profile engineers already at the stage of an assessment of potential technical, environmental, logistical, cost features, the forecast of future expenses, which will be reflected in the investment plan undoubtedly.

 FIDIC contracts cover the engineers’ tasks consisting not only from construction and commissioning of the facility but also from provision to the investor of professional services for the formation of the most comprehensible variant of investments, which guarantee payback of investments. In other words, the engineer is responsible not only for the construction with the completion at the stage of commissioning but also for the specific period of operation – till the payback of investments and transfer to the scene of getting the profit.

 Not less imperative – it is realized that the dynamic presentation of imaginative advances and irreversible modernization of construction process make the process more universal and uniform that is equally recognized in all countries. The essential difference is mainly in the features of the regulation process, which reflected in FIDIC contracts and not affects the primary requirements of the document.

 I would like you to pay attention that in FIDIC contracts it is specified that the leading party in the construction process is not the customer-developer but the investor.  That is very important – In close cooperation with the civil engineer and engineer-consultant.

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