FIDIC — common questions

Where you’ll meet it: International, donor / development-finance-funded, and large infrastructure projects. Multilateral lenders (World Bank, AfDB) reference FIDIC forms, so cross-border or publicly-financed works often run on FIDIC rather than the local GCC or JBCC forms.

What are the Red, Yellow and Silver books?

FIDIC publishes contracts known by cover colour. The Red Book is Employer-designed, build-only work, usually remeasured. The Yellow Book is Contractor-designed ('plant and design-build'), typically lump sum. The Silver Book is EPC/turnkey, where the Contractor carries most of the design and delivery risk at a fixed lump-sum price. First editions came out in 1999 and second editions in 2017 — both are still in use, so confirm which edition your contract adopts.

Where is FIDIC used in South Africa?

Mainly on large infrastructure and donor / development-finance-funded projects. Multilateral lenders such as the World Bank and African Development Bank reference FIDIC forms in their bidding documents (there's a dedicated 'Pink Book' MDB edition of the Red Book), so cross-border, publicly-financed or internationally-procured works often run on FIDIC rather than the local GCC or JBCC forms.

What is the role of the Engineer, and how does the Silver Book differ?

In the Red and Yellow books the Engineer administers the contract — issuing instructions and variations, certifying payment, and making determinations — and under the 2017 editions must act 'neutrally' between the parties when determining claims (Sub-Clause 3.7), even though engaged by the Employer. The Silver Book has no Engineer: the Employer administers directly through an Employer's Representative, who acts for the Employer rather than as an impartial certifier.

How does the claims process work — the 28-day notice?

Under the 2017 forms, Clause 20 governs claims and Clause 21 disputes. A party wanting extra time or money must give a Notice of Claim within 28 days of becoming aware of the event — a strict condition precedent, so a late notice can be time-barred. A fully-detailed claim then follows within a further period (commonly cited as 84 days), after which the Engineer makes a determination. Note the 1999 editions number these clauses differently.

What is the DAAB and how are disputes resolved?

The DAAB — Dispute Avoidance/Adjudication Board — is FIDIC 2017's standing dispute mechanism (the 1999 forms used a 'DAB'), ideally appointed at contract start. A dispute is referred to the DAAB, which gives a decision (typically within 84 days). The decision is binding but not final: a dissatisfied party issues a Notice of Dissatisfaction within 28 days, opening the way to international arbitration under Clause 21. If no notice is served, the decision becomes final and binding.

Which book should apply — Red, Yellow or Silver?

Match the book to the design and risk arrangement. Use the Red Book when the Employer provides the design and quantities are remeasured — typical civil works. Use the Yellow Book when the Contractor designs to the Employer's performance requirements — plant, process and design-build. Use the Silver Book for EPC/turnkey delivery where the Employer wants price and completion-date certainty and accepts paying a premium for the Contractor carrying design and ground-condition risk.

Setout doesn’t supply the FIDIC contract itself — that comes from its publisher. We answer questions about it and offer editable administration templates that work alongside the official form.

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General guidance on how the FIDIC contract works — not legal advice, and no substitute for reading the contract and its amendments on your specific project.