Introduction To FIDIC Silver Book

FIDIC Contracts are widely used in the international construction industry and their purpose is to define the contractual relationship between the parties and to allocate the risks between the Contractor and the Employer.

The main forms of FIDIC Contracts are known as:

the Red Book which refers to Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer. If the Red Book has been intended to be used for works designed by the Employer, it can be used also in case the Contractor is in charge for the design of some elements (civil, mechanical, electrical and/or construction works); the Yellow Book which refers to Conditions of Contract for Plant and Design-Build. This form is recommended for construction of electrical and/or mechanical, building and engineering works where the Contractor designs and provides plants or other works or any combination of civil, mechanical, electrical and/or construction works; the Silver Book which refers to Conditions of Contract for EPC/Turnkey Projects. The Silver Book is recommended for turnkey provision of process or power plants, factories and/or infrastructure when the Employer wishes the maximum degree of certainty in terms of costs and time of the works and intends to have the Contractors entirely responsible (and liable) for the design and execution of the Works; the Gold Book which refers to FIDIC Design, Build and Operate Projects where the project os also operated generally via and operational and management contract. The FIDIC Contracts are composed of General Conditions which can be amended through Particular Conditions to adapt them to the characteristics of the specific project. One thing that should be avoided to the maximum extent is to modify the General Conditions without due care since the modifications of the General Conditions may bring to material inconsistencies and/or pitfalls.

The following note aims at providing a brief introduction to the main features of the Silver Book.

Main features.

The Silver Book deals with turn-key projects ie those projects for which the Contractor takes care and is responsible for the engineering, the procurement and the construction. The Contractor will then deliver to the Employer a plant, a factory or an infrastructure ready to be used by the Employer.

The introductory note of the Silver Book states that the aim of the Book is to give certainty as to the time and costs of the works.

The main features of the Silver...