Golden Principles

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Questions and Answers

What does FIDIC aim to achieve with its General Conditions of Contract?

Maximizing profit for the Employer

Creating advantageous conditions for the public

Minimizing risk for the Contractor

Fair and balanced risk/reward allocation between the Employer and the Contractor (correct)

What is the consequence of making substantial changes to the General Conditions through the Particular Conditions (PCs)?

The final contract no longer represents the FIDIC principles (correct)

The contract becomes more aligned with FIDIC principles

The FIDIC brand becomes stronger

The contract becomes more appealing to the public

What led to the formation of a special Task Group (TG15) by the Contracts Committee?

To eliminate the use of Particular Conditions

To increase the flexibility of the General Conditions

To identify inviolable and sacrosanct contractual principles of each form of FIDIC contract (correct)

To promote the application of significant changes to the General Conditions

What is the commercial value of a FIDIC Contract to both the Employer and the Contractor?

Real commercial value both at the tendering stage and during execution of the Contract Signup and view all the answers

What is the primary intention behind FIDIC's General Conditions of Contract?

To represent fair, balanced and well-recognized forms of construction and engineering contract and agreement forms Signup and view all the answers

What is the significance of FIDIC's brand in relation to its General Conditions of Contract?

Represents fair, balanced and well-recognized forms of construction and engineering contract and agreement forms Signup and view all the answers

What is the purpose of the FIDIC Golden Principles?

To prevent misuses of FIDIC conditions of contracts Signup and view all the answers

What is the role of Particular Conditions (PCs) in FIDIC contracts?

To address specific project requirements and comply with mandatory laws Signup and view all the answers

How are parties allowed to agree on terms in FIDIC contracts?

They can agree on terms provided they comply with the law and public policy Signup and view all the answers

What is the focus of TG15 in relation to Particular Conditions (PCs)?

Limiting amendments in PCs to ensure compliance with the Golden Principles Signup and view all the answers

What do the FIDIC Golden Principles provide guidance on?

Modifying General Conditions (GCs) in the PCs to comply with FIDIC standards Signup and view all the answers

What do the Golden Principles promote between contracting parties?

Cooperation and trust Signup and view all the answers

Which of the following is true about FIDIC's Golden Principle 3 (GP3)?

The Employer is responsible for providing all relevant data on sub-surface and hydrological conditions at the Site Signup and view all the answers

What does FIDIC's Golden Principle 4 (GP4) mandate regarding time periods specified in the Contract for obligations?

Time periods specified in the Contract must be of reasonable duration Signup and view all the answers

What is required by FIDIC's Golden Principle 5 (GP5) regarding formal disputes?

All formal disputes must be referred to a Dispute Avoidance/Adjudication Board as a condition precedent to arbitration Signup and view all the answers

What is required by FIDIC's Golden Principle 1 (GP1) regarding the duties, rights, obligations, roles, and responsibilities of all Contract Participants?

All Contract Participants have clearly defined roles, duties, and obligations important for the efficient administration and proper functioning of the Contract Signup and view all the answers

What is included in non-compliance with FIDIC's Golden Principle 3 (GP3)?

Requiring the Contractor to design the majority of the Works under a Red or Pink Book contract Signup and view all the answers

What does compliance with FIDIC's Golden Principle 4 (GP4) include?

Allowing for changes in time periods if they are reasonable and proportionate to the performance of the corresponding obligation Signup and view all the answers

What is fundamental to FIDIC Contracts and minimizes dispute prospects?

Fair and balanced risk/reward allocation Signup and view all the answers

Who must have appropriate authority and fulfill their duties as defined in the Contract in the Red, Pink, and Yellow Books?

The Engineer Signup and view all the answers

What must be drafted clearly and unambiguously to ensure understanding of roles and duties by all Contract Participants?

Particular Conditions (PCs) Signup and view all the answers

What is based on the Employer and Contractor undertaking their roles, duties, and obligations as defined in the General Conditions (GCs)?

FIDIC Contract Signup and view all the answers

What is equally important for efficiently delivering the contractual objectives?

Roles, duties, and obligations of other Contract Participants Signup and view all the answers

What may have adverse consequences on the rights and entitlements of the Parties?

Reducing or extending time periods specified in the GCs Signup and view all the answers

Which principle emphasizes the appropriate selection of the FIDIC Contract based on project features?

General Principle 1 (GP1) Signup and view all the answers

What is an example of proper application of GP1?

The Employer's payment obligations Signup and view all the answers

What does GP2 mandate?

Clear and unambiguous drafting of Particular Conditions Signup and view all the answers

What must be recorded and incorporated into the Contract by Addenda according to GP2?

Agreements and understandings between the Employer and the Contractor during the Tender period Signup and view all the answers

What does GP3 mandate regarding the Particular Conditions?

Must not change the balance of risk/reward allocation provided for in the General Conditions Signup and view all the answers

What is the consequence of significant changes to the roles, duties, obligations, and rights defined in the General Conditions according to GP3?

Alter the fair and balanced risk/reward allocation Signup and view all the answers

Study Notes

FIDIC Golden Principles for Drafting Contracts

General Principle 1 (GP1) emphasizes that the roles, duties, obligations, and rights of all Contract Participants should align with the General Conditions and be suitable for the project's requirements.
It requires appropriate selection of the FIDIC Contract based on project features, such as the inappropriateness of the Silver Book for projects with insufficient time or information for tenderers.
Examples of proper application of GP1 include the Employer's payment obligations and the Engineer's role in fairly determining the Contractor's entitlements.
Modifications that don't comply with GP1 include the Engineer needing the Employer's approval for determinations and the transfer of unforeseeable physical conditions risk to the Contractor under a Yellow Book Contract.
General Principle 2 (GP2) mandates clear and unambiguous drafting of Particular Conditions, including well-organized clarifications of tender documents and clear identification of changes to the General Conditions.
It requires clear indication of the relationship between newly introduced text in the Particular Conditions and the corresponding General Conditions' original text.
Agreements and understandings between the Employer and the Contractor during the Tender period must be recorded and incorporated into the Contract by Addenda.
Non-compliance with GP2 includes deleting a provision of the General Conditions and replacing it with "not used" or failing to provide clear instructions on how the Particular Conditions relate to the General Conditions.
General Principle 3 (GP3) mandates that the Particular Conditions must not change the balance of risk/reward allocation provided for in the General Conditions.
It is closely linked with GP1, as significant changes to the roles, duties, obligations, and rights defined in the General Conditions will alter the fair and balanced risk/reward allocation.

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Description

Test your understanding of the FIDIC Golden Principles for drafting contracts with this quiz. Explore key concepts such as aligning roles, obligations, and rights with project requirements, clear and unambiguous drafting of Particular Conditions, and maintaining the balance of risk/reward allocation.