In case you don’t know this story is part of a serial of stories, you can visit previous stories through the links below

1| How to fail in a construction project

2| How to fail in a construction project

3| How to fail in a construction project

Now let’s continue

Contract is the most important part of success or failure of any construction projects, because of that you will find below a brief about this part

5- Contract type & Crafting

Deciding the contract type is very important and it is an important subject while studying for many certificates,

Each type of contract has it Advantages and disadvantages, All the company members shall be aware about the type of contracts and need to be oriented if it is required, but the project will not sail if all of the project member weren’t in knowledge about the type of the project contract and what are their obligations.

It is not a good practice to create a big contract for a small project, because of that there are a lot of contract types available, The selection of which type to use is another subject,

But you need to understand before the selection that according the type of contract there will be a cost to pay to manage each type of contract

here is a list of FIDIC contract type of contracts “According FIDIC suite of contracts by Turner & Towensend” for knowledge and we may discuss it in another story

A — Green Book “Short Form of Contract”, First Edition 1999

— Contents of Contract Book
* Agreement
* General Conditions
* Rules for Adjudication
* Notes for Guidance
The Short Form of Contract is recommended for engineering and building work of relatively small capital value. The Guidance Notes for
the Green Book recommended that generally it should not be used on projects with a contact value greater than US$500,000.

B — Red Book “Conditions of Contract for Construction For Building and Engineering works designed by the Employer”, First Edition 1999

— Contents of Contract Book
* General Conditions
* Particular Conditions
* Forms of Tender and Contract Agreement
* Dispute Adjudication Agreement

The Red Book provides conditions of contract for construction works where the design is carried out by the Employer. The current Red Book bears little resemblance to its predecessors. Earlier versions of the Red Book were drafted for use on civil engineering projects. The current edition drops the words “civil engineering” from the title and this signifies a move away from the Red Book only being applicable to civil engineering works.

B1 — Red Book (MDB edition) “Conditions of Contract for Construction For Building and Engineering works designed by the Employer”, MDB Edition 2005

As part of their standard bidding documents the Multilateral Development Banks (MDBs) have for a number of years required their borrowers or aid recipients to adopt the FIDIC Conditions of Contract.
The FIDIC MDB edition of the Red Book simplifies the use of the FIDIC contract for the MDBs, their borrowers and others involved with project procurement, such as consulting engineers, contractors and contract lawyers.

C — Yellow Book “Conditions of Contract for Plant and Design-Build For electrical and mechanical plant, and for building works, designed by the Contractor”, First Edition 1999

— Contents of Contract Book
* General Conditions
* Particular Conditions
* Forms of Tender and Contract Agreement
* Dispute Adjudication Agreement
The Yellow Book provides conditions of contract for construction works where the design is carried out by the Contractor. The current Yellow Book bears little resemblance to its predecessors. The current edition drops the words “electrical and mechanical works” from the title and in line with the rest of the FIDIC suite the focus is now more on type of procurement rather than the nature of the works

D — Orange Book “Conditions of Contract for Design-Build and Turnkey”, First Edition 1995

— Contents of Contract Book
* General Conditions
* Particular Conditions
* Forms of Tender and Agreement
The Orange book was published in 1995 to provide a design and build option to the then current FIDIC suite. The Orange Book was the first FIDIC contract to adopt the now current FIDIC style of drafting and was a template for the drafting teams when preparing the 1999 suite of contracts.

E — Silver Book “Conditions of Contract for EPC/Turnkey Projects”, First Edition 1999

— Contents of Contract Book
* General Conditions
* Particular Conditions
* Forms of Tender and Contract Agreement
* Dispute Adjudication Agreement
The Silver Book is suitable for use on process, power and private-infrastructure projects where a Contractor is to take on full responsibility for the design and execution of a project. Risks for completion to time, cost and quality are transferred to the Contractor and so the Silver Book is only suitable for use with experienced Contractors familiar with sophisticated risk management techniques.

F — DBO Contract “Conditions of Contract for Design, Build and Operate Projects”, First Edition 2008

— Contents of Contract Book
* General Conditions
* Particular Conditions
* Sample Forms
Following publication of the Orange Book in 1995 and the Red, Yellow and Green Books in 1999 it became clear that there was a growing need for a contract combining a design-build obligation with a long-term
operation commitment.
The approach and layout of the DBO contract is more similar to the FIDIC Silver book than any other contract within the FIDIC suite.

The DBO contract adopts a “green-field” DBO scenario with a 20 year operation period and a single contract awarded to a single contracting entity (which will almost certainly be a consortium or joint venture) to optimise the coordination of innovation, quality and performance, rather than award separate contracts for design-build and for operation.