'Form of Contract for Dredging and Reclamation Works' Published
01 Jan 2002
The International Association of Dredging Companies (IADC) reports that the Federation Internationale des Ingenieurs-Conseils (the International Federation of Consulting Engineers or FIDIC), has produced a new Form of Contract for Dredging and Reclamation Works.
FIDIC has a long history in publishing standard forms of contract for engineering construction. Its first standard forms were published in 1957, with new editions (the so-called 'Red Book') in 1969 and 1979, which included explicit provisions for dredging and reclamation works.
The Fourth Edition of the Red Book in 1987 did not, however, include these dredging provisions and so to meet the specific requirements of dredging projects, in 1990 in co-operation with FIDIC, the International Association of Dredging Companies (IADC) published a 'Users' Guide to the Fourth Edition'.
In 1999 FIDIC published four new standard forms of contract: the Conditions of Contract for EPC Turnkey Projects, for Plant and Design-Build designed by the Contractor, for Construction designed by the Employer and the Short Form of Contract.
When no special attention was given to the different circumstances in dredging and reclamation works, the IADC contacted FIDIC about the possibility of a separate FIDIC dredging contract and a Task Group was formed. The result is the Form of Contract for Dredging and Reclamation Works.
The draft of the 'dredging contract' was published in June 2001, however the formal first edition is only now about to be published, taking into consideration the comments that may arise from the draft.
In developing the dredging contract, FIDIC says its aim has been to produce a fair, balanced and straightforward document, which includes all essential commercial provisions.
The new publication can be used for all types of dredging and reclamation work and ancillary construction with a variety of administrative arrangements.
Under the usual arrangements for this type of contract, the Contractor constructs the Works in accordance with design provided by the Employer or by his Engineer.
As in the construction industry in general, more and more works are contractor-designed, and this being the case, the FIDIC form can easily be altered into a contract that includes, or wholly comprises, contractor-designed works.
The most essential part of a dredging contract is the description of the activity itself, the specifications, drawings and design of the work, and the FIDIC Form of Contract for Dredging and Reclamation Works provides a legal framework to this, governing the general obligations and responsibilities of the contracting parties.
The document starts with an Agreement; a simple document that incorporates the tenderer's offer and its acceptance. All necessary information is included in the Appendix to the Agreement.
References to documents forming part of the contract such as the specification and the drawings are also made in the Appendix. The General Conditions cover all essential elements of the legal framework.
The FIDIC Form of Contract for Dredging is a two-party contract between the Employer and the Contractor. Unlike FIDIC's Short Form, provision is made for an Engineer as usual for dredging and reclamation works. Although the Engineer is not a party to the contract, the Engineer may have an important role in the execution of the work.
The FIDIC Dredging Form gives the Engineer several duties and authorities such as approval of contractors design, the authority to instruct variations to the Contractor, the issuing of Taking Over Certificates and the certification of payments. This important role - especially when executed by an experienced engineer - is for the benefit of both Employer and Contractor. The Employer is ensured of expert advice whereas the Contractor has an experienced partner to work with.
FIDIC says that, if required by specific circumstances, the Dredging Form can easily be adjusted and particular conditions can be added.
Further information can be obtained from FIDIC, PO Box 86 (Chailly), CH-1000 Lausanne 12, Switzerland, e-mail: fidic@pobox. com or the IADC Secretariat in The Netherlands.
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