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Cairo Regional Center for International Commercial Arbitration

CRCICA-FIDIC-ESCONE Regional ConferenceFIDIC Contracts – Latest Developments

9-10 January 2011

International Federation of Consulting Engineers

CRCICA Conferences Annex

CRCICA-FIDIC-ESCONE Regional Conference

FIDIC Contracts � Latest Developments 9-10 January 2011

CRCICA, Cairo

Agenda Guidelines

Updates to the FIDIC 1999 Suite of Contracts Future editions will both adopt innovations introduced in the MDB Harmonised Construction Contract and in the new DBO Contract as well as take into account extensive feedback. Latest concepts and issues being taken up in the updating of the FIDIC 1999 suite of contracts include:

- Increased challenges to the engineer’s role

- Design requirements and the contractor’s proposal

- Programme requirements and commencement of work

- Advance warning and exceptional risks

- Communications and manuals

Operating Under the FIDIC DBO Contract The DBO approach to contracting combines design, construction and long-term operation and maintenance of a facility into one single contract awarded to a single contractor.

- The main provisions of the Design-Build-Operate Contract

- Application to brown field projects

- Recent experience of using the DBO contract

- Review of elements of the contract that will bear upon the future development of other FIDIC contracts

MDB Harmonised Construction Contract The Multilateral Development Banks and an increasing number of development agencies have adopted the MDB Harmonised Edition of the FIDIC Conditions of Contract for Construction for their projects.

- Differences between the 1999 Edition of the FIDIC Construction Contract and the MDB edition

- The scope of clarifications introduced in June 2010

- Rational behind key modifications

Introduction to FIDIC Contracts A summary of FIDIC’s works contracts that are widely used industry standards.

- The FIDIC suite of contracts and agreements

- Review of the principles behind the major works contracts

- The growing influence of FIDIC’s suite of contracts in establishing world-class industry standards

- How FIDIC’s major works contracts are being used worldwide

- Emerging FIDIC user’s regions and hot spots

- On-going projects and future outlook

The Roles of the Parties in FIDIC Contracts:

Project Management and Programme Perspectives The Engineer as central to the FIDIC approach

- Successfully integrating third parties in projects with a single construction contract

- What happens in the case of multiple contracts and contractors?

- How an “engineer-centred” FIDIC system can help minimise conflict and disputes

FIDIC first became active in 1957 when it published its FIDIC Conditions of Contract for Works of Civil Engineering Construction. In 1995, the conditions were extended to include mechanical and electrical works, as well as design-build and turnkey projects.

The World Bank and other international funding institutions adopted the 1987 Conditions of Contract for Works of Civil Engineering Construction with some amendments to produce their own version.

Based mainly on risk allocation , FIDIC introduced in 1999 a completely new set of four contracts known as the FIDIC CONSTRUCTION, PLANT and DESIGN BUILD, EPC / TURNKEY and SHORT FORM conditions of contract. As before, the World Bank and other international funding institutions adopted the 1999 Conditions of Contract for CONSTRUCTION with some amendments to produce the FIDIC MDB HARMONISED EDITION to be used on MDB-financed projects.



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The Role of Mediation The role of mediation if resolving disputes in the construction sector.

- The role the International Finance Corporation (IFC) in promoting mediation

- Amicable settlement – what are the options?

- How mediation relates to adjudication and arbitration

Navigating the Dispute Adjudication Process Dispute Adjudication Boards (DAB) have been intro-duced as FIDIC’s method for primary dispute resolu-tion and has been made mandatory by the MDBs for the MDB Harmonised Construction Contract.

- Construction industry trends affecting disputes and claims

- Benefits and the perceived barriers to DABs

- Enforcement of DAB decisions

- Procedural developments

- An update on new procedures

- Issues concerning the use of DABs in various types of projects

- Strategies for forming a DAB and reinforcing its role

Arbitrating Construction Disputes A review of the increased use of arbitration, including changes in the supporting procedural law.

- General developments

- How the FIDIC contract is viewed under national law

- Enforcement

- Making international arbitration work: good practice and good decisions

- The impact of revised arbitration provisions

Agenda Guidelines - FIDIC’s experience of using the contract

- MDB perspective

- Updated financial requirements

- New and strengthened social provisions

- Mitigation of contractor’s risk

FIDIC Construction Subcontract The FIDIC Construction Subcontract has been published for use with the FIDIC Construction Contract, both the 1999 Edition and the MDB Harmonised Edition.

- Scope, main features and the main provisions

- Key issues

- Feedback to the Test Edition

- Using the subcontract alongside FIDIC’s Construction Contract – recent experiences

- Possible features of a new subcontract for FIDIC’s Plant and Design-Build Contract

Design-Build Contracts: Key Aspects The key aspects of the FIDIC Plant and Design-Build Contract which is widely used in both the private and public sectors:

- A review of key issues (Measurement and Payment; Role of the Engineer and Variations; Performance certificate liability in accordance with the governing law; Unforeseeability; Provisional Sums)

- Acceptance in different legal jurisdictions

- Challenges in establishing a programme

- Impact of works remeasurement

- Performance certificate liability in accordance with the governing law

- Review of suggested amendments

Claims under FIDIC Contracts Developments in presenting and pursuing a claim under a FIDIC contract with particular reference to:

- Time bars

- Documentation

- Expectations of the Dispute Adjudication Board



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SPEAKERS

Dr. Ahmed Fathy Waly, Managing Partner, Waly Arbitration and Contract Administration Firm (Egypt) Ms. Aisha Nadar, Nadar Consulting, UK; Member, FIDIC Updates Task Group (UK) Dr. Christoph Theune, Senior Vice President, Pöyry Environment GmbH, Member, FIDIC Contracts Committee (Germany) Eng. Daud Khalaf, Former Minister of Water and Irrigation (Jordan) Eng.Emhemmed Ghula, Executive Board Member, Senwan Engineering & Real Estate Development Consultancy, (Lybia) Eng. Fawzi Abu Moghli, Arabtech Jardaneh AJ Group (Jordan) Dr. Gamal Nassar, Secretary-General, The Egyptian Society of Consultative Engineers, ESCONE (Egypt) Eng. Dr. Kamal Malas, Director, TAKAMOL Consulting, Owner at Dr. Kamal Malas & Associates (Syria) Eng. Maged Kholosy, Chairman of the Chamber of Arbitration, the Federation of Engineering Organizations in Islamic Countries (Egypt) Prof. Dr. Mohamed Badran, International Arbitrator and Lawyer, Professor of Public Law, Faculty of Law, Cairo University (Egypt) Eng. Mohamed Said Fatha, Deputy Secretary General for Eastern Arab Region in the Arab Federation of Arab Engineers (Jordan) Dr. Munther Saket, Contracts Consultant, Allied Planning & Engineering Corporation (Jordan) Dr. Nabil Abbas, General Manager, Abbas Architects and Construction Consultants (Saudi Arabia) Dr. Nabil Elaraby, Director, The Cairo Regional Centre for International Commercial Arbitration, CRCICA (Egypt)

Dr. Peter Boswell, General Manager, International Federation of Consulting Engineers, FIDIC (Switzerland) Eng. Sami Ahmad Furuqi, Divisional Manager, Operations, Policy & Procurement, Islamic Development Bank (Saudi Arabia) Eng. Dr. Sherif El Haggan, Partner, Contract Administration & Arbitration Bureau (Egypt) Eng. Sherif El-Nazer, Consultative Engineer and International Arbitrator (Egypt) Eng. Waleed M. Migdadi, owner and General Manager of Migdadi Center for Contract Administration and Arbitration. (Jordan)

For further details, please contact Conferences and External Relations Department,

Cairo Regional Centre for International Commercial Arbitration

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Tel. (00202) 27351333/5/7 - 27373691/3 Fax (00202) 27351336

Email Address: [email protected]

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