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International Contract

Cahyono Bintang Nurcahyo, ST, MT cbintangn@yahoo.com bintang@ce.its.ac.id

International Contract

| cahyono bintang nurcahyo| 04 10 2011 |

CONSTRUCTION
CONTRACT DOCUMENTATION
Construction contract documents generally include: The agreement General conditions Supplementary conditions Drawings Specifications Addenda issued before submittal Notice to proceed Performance and payment bonds Change orders or contract modifications

INDUSTRY STANDARD CONTRACT DOCUMENTS

Several components of the construction contract documents may be available as standard forms to define the agreement for a particular project. These standard forms typically include the agreement form, general condition and survey bond forms. The benefit is to include efficiency in preparation as well as efficiency in bidding. AIA, AGC, DBIA, and EJCDC have developed high quality standard forms, agreements, general conditions, and other documents.

INTERNATIONAL CONSTRUCTION CONTRACTS

International construction documents are also often based on industry-prepared standard forms. A number of organizations prepare recommended standard general conditions and associated forms. Such as:
ENAA (Engineering Advancement Association of Japan) FIDIC (International Federation of Consulting Engineers) ICE (Institute of Civil Engineers, United Kingdom)

INTERNATIONAL CONSTRUCTION CONTRACTS

Such as:
AIA (American Institute of Architects) AIA General Conditions, 1987 ed SIA (Singapore Institute of Architects) SIA 80 CONTRACT JCT (Joint Contracts Tribunal) : Commonwealth RIBA NFBTE RICS ACC AMA ADC ASEC GLC FASSACE SBCC

Federation Internationale des Ingenieurs-Conseils International Federation of Consulting Engineers Internationale Vereinigug Beratender Inginieure Federacion Internacional de Ingenieros Consultores

What is FIDIC?
Management is a kind of science which needs continuous summarizing, to experience development and innovations through practice.

In the contract for international engineering projects, the function of Conditions of Contract is of greatest importance providing the rights, obligation and responsibility for the parties concerned in the Contract execution.

 During the past half century, the International Federation of Consulting Engineers (FIDIC) has devoted itself to the compilation of management documents for all kinds of projects, among which the FIDIC Conditions of Contract are of the highest influence and are the most popular application.

FIDIC the Organisation

FIDIC is the international federation of national associations of independent consulting engineers Founded in 1913 by the national associations of three European countries, now with membership from over 60 countries
Most growth outside Europe has taken place since the Second World War, with developing countries particularly being encouraged to join FIDIC now represents most of the private practice consulting engineers in the world

FIDIC the Organisation

FIDIC the Organisation (2)

Members comply with a code of ethics guiding their professional standards FIDIC works to promote the common interests of consulting engineers through seminars, conferences and regular discussions with the national associations and international financial institutions (such as the World Bank) Preparation of standard forms of contract and other documents is a major activity All publications are available direct from the Secretariat in Geneva, Switzerland, or, for example, from Thomas Telford at the ICE in London

The Traditional FIDIC Forms of Contract

Conditions of Contract for Works of Civil Engineering Construction: The Red Book (1987) Conditions of Contract for Electrical and Mechanical Works including Erection on Site: The Yellow Book (1987) Conditions of Contract for Design-Build and Turnkey: The Orange Book (1995)

September 1999 - four new Standard Forms of Contract which are suitable for the great majority of construction and plant installation projects around the world.
Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer: The Construction Contract Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer (MDB Harmonised Edition) - for bank financed projects only: The MDB Construction Contract Conditions of Contract for Plant and Design-Build for Electrical and Mechanical Plant and for Building and Engineering Works Designed by the Contractor: The Plant and Design-Build Contract Conditions of Contract for EPC/Turnkey Projects: The EPC/Turnkey Contract Short Form of Contract: The Short Form Dredgers Contract (based on the Short Form of Contract): Dredgers Contract

The 1999 Suite of Standard Conditions of Contract

Conditions of Contract for Construction - design by Employer: The Construction Contract (The New Red Book) Conditions of Contract for Plant and Design-Build - design by Contractor: The Plant and Design/Build Contract (The New Yellow Book) Conditions of Contract for EPC Turnkey Projects: The EPC/Turnkey Contract (The Silver Book) Short Form of Contract: The Short Form (The Green Book)
The FIDIC Contracts Guide (2000)

some of FIDIC books

International Federation of Consulting Engineers FIDIC Bookshop- Box 311 - CH-1215 Geneva 15 - Switzerland Tl +41-22-799 49 05 - Fx +41-22-799 49 01 - fidic.pub@fidic.org - FIDIC Bookshop

The Green Book

[ Short Form of Contract ]

< US$ 500,000 and < 6 months duration Simple and repetitive works All provisions necessary in 15 clauses Language uncomplicated and simple Incorporated in World Bank Standard Bidding Documents for Simple Works. Balanced risk sharing - no Engineer Design by either party - all types of construction Payment on lump sum or any other basis.

The New Red Book

[ Construction Contract ]
For building and engineering works designed by the Employer Needs of modern multi-discipline contracts recognised for first time Partial Contractor design possible Valuation and payment based on remeasurement of quantities, but lump sum or cost plus could be used

The New Yellow Book

[ Plant & Design-Build Contract ]

For E&M plant, and for building and engineering works, designed by the Contractor Needs of modern multi-discipline contracts recognised Partial Employer design: include in Employers Requirements Valuation and payment based on lump sum with payment plan, but remeasurement possible

The Silver Book

[ EPC / Turnkey Contract ]
More certain final price and time required - balance of risk being changed
- privately financed BOT type - Contractor asked to cover extra risks

Employer will have to pay more Completely new Book - unbalanced risk BUT full open acceptance of risk picture Starting point for BOT type projects The EPCT Contract is suitable for:
particularly E&M and process plant projects all types of Employers civil law jurisdictions where government employer or private developer wants a fixed price turnkey basis and two-party approach

There is an Introductory Note of explanation

New development of FIDIC conditions of contract

Design, Build, & Operate Contract

It was published on September 2007 the Gold Book

buku terjemahan
Persyaratan Kontrak untuk Pelaksanaan Konstruksi
Multilateral Development Bank (MDB) Harmonised Edition ISBN 978 - 979 - 26 - 5739 - 5 LPJK Indonesia - INKINDO (Ikatan Nasional Konsultan Indonesia) - FIDIC Switzerland

buku : Persyaratan Kontrak untuk Pelaksanaan Konstruksi

Kontrak berarti Perjanjian Kontrak (Contract

Agreement), Surat Penunjukan (Letter of Acceptance), Surat Penawaran (Letter of Tender), Persyaratan (Conditions), Spesifikasi (Spesification), Gambar (Drawings), Jadwal/Daftar (Schedules), dan dokumen lain (bila ada) yg tercantum dlm Perjanjian Kontrak atau dlm Surat Penunjukan.

buku : Persyaratan Kontrak untuk Pelaksanaan Konstruksi

1. 2. 3. 4. 5. 6. 7. Ketentuan Umum Pengguna Jasa Enjinir Kontraktor Subkontraktor yang dinominasikan Staf dan Buruh Peralatan, Bahan, dan Tenaga Kerja

buku : Persyaratan Kontrak untuk Pelaksanaan Konstruksi

8. Mulai Pekerjaan, Keterlambatan, dan Penghentian 9. Pengujian pada Akhir Pekerjaan 10. Serah Terima kepada Pengguna Jasa 11. Tanggung Jawab atas Cacat Mutu 12. Pengukuran dan Elevasi 13. Variasi dan Penyesuaian 14. Harga Kontrak dan Pembayaran

buku : Persyaratan Kontrak untuk Pelaksanaan Konstruksi

15. Pemutusan oleh Pengguna 16. Penghentian dan Pemutusan oleh Kontraktor 17. Resiko dan Tanggung Jawab 18. Asuransi 19. Keadaan Kahar 20. Klaim, Sengketa, dan Arbitrase

Selesai
TERIMA KASIH

| cahyono bintang nurcahyo| 09 03 2010 |