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Understanding FIDIC: Red Book vs. Yellow Book

Published in FIDIC Contracts 3 mins read

FIDIC, the International Federation of Consulting Engineers, is not exclusively "red" or "yellow"; rather, it publishes a widely recognized suite of contracts, among which the Red Book and the Yellow Book are two of the most prominent and distinct. Each book is designed for different types of construction and engineering projects, primarily differing in the allocation of design responsibility.

The FIDIC Contract Suite: A Brief Overview

The FIDIC contract forms are globally recognized for their balanced allocation of risk between the parties involved in a construction project. They provide a standardized framework that can be adapted to various jurisdictions and project complexities.

The FIDIC Red Book: Employer-Designed Works

The FIDIC Red Book, officially known as "Conditions of Contract for Construction," is typically used for general building and engineering works where the Employer is responsible for the design. Under this model:

  • The Employer or their engineer provides the detailed design.
  • The Contractor builds the project according to the Employer's specifications and drawings.
  • It's commonly associated with traditional design-bid-build procurement routes.

The FIDIC Yellow Book: Contractor-Designed Works

In contrast, the FIDIC Yellow Book, formally titled "Conditions of Contract for Plant and Design-Build," is suited for mechanical, electrical, building, and engineering works where the Contractor undertakes the design. Key characteristics include:

  • The Employer specifies the functional requirements or performance criteria.
  • The Contractor is responsible for both the design and the construction (design-build).
  • This model is often used for process plants, power projects, or infrastructure where the contractor's specialized expertise in design is crucial.

Key Differences at a Glance

The fundamental difference between the Red and Yellow Books lies in the party responsible for the design. This distinction significantly impacts project risk allocation, management, and the overall contractual framework.

Feature FIDIC Red Book (Conditions of Contract for Construction) FIDIC Yellow Book (Conditions of Contract for Plant and Design-Build)
Design Party Employer-designed works Contractor-designed works
Project Type Typically general building and engineering works Mechanical, electrical, building, and engineering works (often involving plant and equipment)
Procurement Traditional design-bid-build (Employer provides design, Contractor builds) Design-build (Contractor designs and builds to Employer's performance specifications)
Risk Allocation More design risk generally borne by the Employer More design risk generally borne by the Contractor
Contractor Role Primarily construction based on detailed designs provided Responsible for both design and construction to achieve specified performance

Understanding these distinctions is crucial for selecting the appropriate FIDIC contract form for a given project, ensuring that responsibilities and risks are allocated effectively between the parties involved.

For more information on the full suite of FIDIC contracts, you can visit the official FIDIC website: FIDIC.org