Fidic 1994

[Adele Strecker]

BelowCNC clarifies the two above-mentioned issues from various angles and provides some instructions when applying FIDIC Subcontract templates for Main Contractors, Subcontractors, Employers, or Engineers. Up to the present time, FIDIC has introduced a total of three FIDIC Subcontract templates, in 1994, 2011, and most recently in 2019. To be specific:

After a long 20-year wait (20 years since the release of the FIDIC Subcontract 1999), FIDIC introduced the highly anticipated FIDIC Subcontract template in 2019, which is meant to be used in conjunction with the Conditions of Contract for Design-Build and Turnkey, 1st Edition (FIDIC Gold Book 1999).

In other words, whether it is a project or a specific package, the Employer, the Main Contractor, the Engineer, and supporting units must take into account (consider) the following prior to commencement of the project or package: (1) What are the bidding and project management strategies; (2) Are there subcontractors involved, and (3) Which FIDIC Subcontract template will be used to manage the Main Contractors and Subcontractors?

For example, it is not plausible to use the FIDIC Subcontract 2011 template to apply to the FIDIC Yellow Book 1999, and vice versa, it is not plausible to use the FIDIC Subcontract 2019 template to apply to the FIDIC Red Book 1999.

The cohesion between the FIDIC Main Contract and the FIDIC Subcontract. Once an appropriate FIDIC Sub-contract template has been chosen, it is necessary to make adjustments to the FIDIC Sub-contract to ensure alignment with the provisions of the FIDIC Main Contract.

Failure to achieve consistency, synchronization, and coherence between the provisions of the FIDIC Main Contract and the FIDIC Sub-contract, can and most likely will, lead to serious legal ramifications. Here are some elements to consider in the application of the FIDIC Sub-contract.

These notions are not consistent with how the FIDIC Subcontract operates. Specifically, the FIDIC Subcontract 2011 template stipulates in Clause 1.10 [No separate contract with the Employer] describing the independence, no connection between the Employer and the Nominated Subcontractor.

Simultaneously, CNC has the capability to meet various requirements of businesses on all relative issues, such as subcontractor appointment management under the FIDIC contract, management and review of Extensions of Time (EOT), review and assessment of Variations (VO), drafting and contract management according to FIDIC standards, v.v

To date, CNC has successfully provided FIDIC contract training to companies such as Hoa Binh, Cofico, Maeda Vietnam, Kurihara, Nam Khang, Boho Dcor, Eurowindow, BKAsia Pacific, AltusGroup, Fico-Corea Construction, Lecade, Sinh Nam, CentralCons, AA Corp, v.v

CNC is grateful to receive any requests from potential and existing customers in support of drafting and reviewing of construction contracts according to FIDIC contract models for subcontractors in Vietnam in an effective and efficient manner.

The information contained in this article has been prepared, used, and provided for the purpose of introducing or inform clients on information about matters and/or the developments of legal perspectives in Vietnam. The information contained within this article does NOT constitute advice of any kind and may be subjected to changes without prior notice.

a boutique law firm specialising in construction, real estate, infrastructure, business law and dispute resolution sectors. This allows us to focus on our collective experience and knowledge to deliver exceptional service to our clients.

Hợp đồng FIDIC 1994 dnh cho thầu phụ được FIDIC soạn thảo để sử dụng chung với Hợp đồng FIDIC Red Book 1987. Hợp đồng FIDIC 1994 dnh cho thầu phụ ny bao gồm 22 điều khoản, thường được sử dụng trong cc trường hợp bổ nhiệm Nh thầu phụ chỉ định. Cụ thể như sau (dịch từ tiếng Anh):

Hợp đồng FIDIC 1994 dnh cho thầu phụ ny bao gồm 22 điều khoản, thường được sử dụng trong cc trường hợp bổ nhiệm Nh thầu phụ chỉ định. Cụ thể như sau (dịch từ tiếng Anh):

Hans-Peter Jrgensen advises Gorrissen Federspiel's Danish and foreign clients on all aspects of conveyancing and lease of real property, construction and consultancy law, project development and procurement law. Hans-Peter renders assistance on a current basis in significant transactions as well as in relation to building and construction projects.

Moreover, Hans-Peter Jrgensen is a frequent lecturer at for instance the University of Copenhagen, Aarhus University, the Association of Danish Law Firms as well as the Building and Construction Arbitration Board, and he has issued a number of legal publications. In 1992, Hans-Peter was on secondment to Pinsent Masons in London.

Associate professor, contract law, Univeristy of Aarhus 2001 - 2003

Graduate teaching assistant, transfer of ownership of companies, University of Aalborg 1994

Graduate teaching assistant, transfer of ownership of companies, University of Copenhagen 1990 - 1992

Tutor, construction law and legal aspects of councelling, The Danish Bar Association 1990 - 1994

External lecturer in ranking of mortgages over real estate, guarantee and sale and purchase of real estate, Univerity of Aarhus 1987 - 1989

This Standard Conditions of Contract for Construction of Civil Work Projects was authored by the Ministry of Works and Urban Development (MoWUD) in May 1994. It is being widely put in use in government construction contracts both at the federal and state levels.

In short the subcontract is intended to operate in the usual back-to-back basis, and, unsurprisingly, the subcontract provides for a direct total pass down of risk, with the subcontractor assuming the duties and obligations of the contractor under the main contractor for the subcontract works. This includes a fitness for purpose obligation in respect of any design work, something which is not in the 1994 version.

This principle also applies to payment and one thing that will be of particular note to those operating in the UK market is inclusion of pay-when-paid conditions. This of course conflicts with the payment requirements of the Housing Grants Act. FIDIC has included guidance notes and particular sample conditions to assist parties working in the UK1 and other jurisdictions with similar legislation. However, subcontractors used to practising in the UK market will need to take especial care to see what the main contract says about payment.

There are a number of new provisions, including at sub-clause 8.4 additional programming obligations, and at 15.3 the right of a subcontractor to recover loss of profit, if the Contractor is entitled to recover loss of profit under the Red Book termination provisions. Whilst under clause 16, the subcontractor can suspend performance and ultimately terminate in the event of persistent non-payment.

This new subcontract is a further step along the FIDIC road to standardisation and as such it is a welcome addition as it has been specifically drafted to comply with the Red and Pink Books. Of course, to fully understand the risks and liabilities, as with every subcontract, the onus will be on all parties to read the subcontract together with the applicable main contract.

Olawale Nelson Ogunshakin OBE (known as "Nelson Ogunshakin") is a British engineer and businessman. He is currently chief executive officer of the International Federation of Consulting Engineers (FIDIC)[1] based in Geneva, Switzerland.[2] He was appointed to the board of Transport for London in September 2016.[3]

Nelson Ogunshakin graduated from Aston University[4] in 1985 with a BSc (Hons) in Civil Engineering and obtained a master's degree in Construction & Programme Management at the University of Birmingham. He also completed an MBA in Strategic Management and Corporate Finance from Aston University in 1994. Nelson also gained certifications from the Harvard Business School and INSEAD Business School executive programmes.

Ogunshakin's first position after university was with civil engineering firm Tarmac, later known as Carillion, in 1981.[5] He then moved to Warwickshire County Council, where he became a transport planner. Moving back into consultancy, he joined Rendel Palmer & Tritton consulting engineers and worked on the construction of new motorways in the area, including the M6 toll.

He also held senior positions at WSP Global, AEO Group and in 2004, he became chief executive of the Association for Consultancy and Engineering. At ACE, he oversaw the acquisition and integration of the Environmental Industries Commission into the group and the establishment of the infrastructure industry magazine Infrastructure Intelligence.

As FIDIC CEO, Ogunshakin has repositioned and reinvigorated the organisation to represent the global consulting engineering sector. He concluded the FIDIC strategic negotiations with most multi-lateral and bi-lateral Development Banks (MDBs) to adopt FIDIC standard form of Contract 2017 to be included in their Standard Procurement Documents used for the delivery in excess of $170 billion infrastructure investment funded by the following MDBs:

In October 2012, Ogunshakin became co-chair of the National Infrastructure Plan Strategic Engagement Forum, providing strategic direction to the execution of the 350 billion plan, working in collaboration with the then Chief Secretary to the Treasury, Rt Hon Danny Alexander MP and Chief Commercial Secretary to the Treasury, Lord Deighton KBE.[14]

In September 2016, Ogunshakin was appointed to the Transport for London (TfL) board by the Mayor of London, Sadiq Khan, on an initial four-year tenure and then extended to 2024.[16] In June 2018, Ogunshakin was appointed to the board of Crossrail Limited. Ogunshakin is the Chair of the TfL Programmed and Investment Committee (PIC),[17] member of the Audit & Assurance Committee and the Elizabeth Line Committee responsible for commissioning and onboarding the 18 billion Cross Rail investment project into the London Underground operational asset portfolio.

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