The Reality Of The Modern Construction Industry

The Reality Of The Modern Construction Industry

There is a significant number of concluded construction contracts based on international financial assistance and characterized by various aspects and conditions: sector profile, regional and geographical location, complexity and specific features of construction, requirements for financing and supply, etc. this, especially in the context of globalization and widespread internalization, requires the development of common standards of contract conditions. The aim is adequate regulation of relationships between the participants of international investment construction activity, beginning from tender documentation to the acceptance certificate.

 International Federation of Consulting Engineers – FIDIC created more than a century ago is just the most active international structure, which over the last few decades is engaged in development and realization of typical contracts based on the unified conditions of international finance for the construction of various facilities – from residential buildings to infrastructure facilities and roads.

 In my opinion, the growing demand for FIDIC contracts is due to their balanced equation – the responsibility for risk is on that side which competence includes the control of threats, the trust during the making of appropriate decisions. Even though all typical forms of FIDIC have a completed appearance and create a specific system of relationships between participants of the construction process, they are characterized by boundary flexibility – each way, reflecting the primary requirements is quickly changed when it is needed for sides of the contract. Besides, the long-standing best practice of using FIDIC contracts in different jurisdictions all around the world is another sufficient reason for the acceptance of these typical forms by the experts.

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