Basics of Drafting contracts Updated Daily

Chapter 1

Basics of Drafting Contracts

UNDERSTANDING of FIDIC(standard for drafting contracts)

1.1 Introduction Let’s understand the basics of Contracts. In this chapter we will discuss basics concepts of FIDIC and some basic terminology which are extensively used in Contractual letter writing.

1.1.1 What does Employer, Contractor and Engineer stands for Employer:
Employer means a person, firm or corporate body who or which engages a person or firm to execute particular work under certain terms and conditions.

Contractor means a person, firm or corporate body which provides goods or services to another entity i.e. Employer under terms specified in a contract. Engineer:
A person or firm which although not being a party to the contract, but executes powers under the contract. Commonly referred to as the Engineer, this person is paid by the Employer and is nominated prior to the contract being awarded. The Engineer therefore is part of the Contractor’s calculation. Although the Engineer is both appointed and paid by the Employer, he carries out a role which presupposes a certain degree of impartiality and fairness imposed on him.

1.1.2 What does “FIDIC” stand for

Fédération Internationale Des Ingénieurs – Conseils (from French, the International Federation of Consulting Engineers)

1.1.3 The History of FIDIC

Founded in 1913 by three countries, each wholly or partly, specifically Belgium, France and Switzerland. There are now 86 Member Associations from all over the world.

1.1.4 What does FIDIC do?

FIDIC is a global representative for the consulting engineering industry, promoting the business interests of firms supplying technology-based intellectual services for built and natural environments alike. FIDIC is well known for its work drafting standard form Conditions of Contract industry, particularly in international construction projects, and is endorsed by many multilateral development banks (“MDBs”). Companies and organizations belong to FIDIC national member associations which now represent other professionals, such as Architects. FIDIC also has affiliate members interested in its work, such as lawyers and insurers.
for the worldwide construction the context of higher value

1.2. Why FIDIC Contracts?

• The only true international standard
• Tried and tested over 50 years – thousands sold
• Trusted by thousands of Clients, Contractors, Consultants, financiers (and lawyers)– balanced conditions
• Designed for Practical use – by practitioners
• Flexible, and reflect market demand
• Good risk management tool
• Simple risk management processes
• Cost effective
• Reflect international best practice – for local application.


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