FIDIC has launched the new FIDIC Consultancy Agreements, 2017 Edition

by | 23. February 2017 | Commercial Law

On the occasion of the annual Middle East FIDIC Users´ Conference 2017 in Abu Dhabi FIDIC has launched three new Agreements:

  • The FIDIC White Book – Client/Consultant Services´ Agreement, 5thEdition 2017
  • The FIDIC Consortium / Joint Venture Agreement, 2nd Edition 2017
  • The FIDIC Sub-Consultancy Agreement, 2nd Edition 2017

Dr. Hök, having been a member of the Joint Venture Task Group, had the honour to present the three new FIDIC Agreements to the public. The three new Agreements are aimed at updating the three pre-existing forms of Agreement and adapting them to current best practice.

When presenting the new forms Dr. Hök emphasized that a balanced relationship between client and consultant –as suggested by best practice requirements- will presumably achieve better results because also consultants need plannable and predictable basis for the provision of their services. New claims clauses, new dispute clauses and new remuneration wording shall help to achieve this. On the other hand the forms update the well-known and appreciated principles of trust, good faith and responsibility for skill and care which at the same time assures the insurability of the services.

What is new in the White Book?

  1. The former distinction by classes of services (Normal Services, Additional Services and Exceptional Services) has been abandoned. The 5th Edition adopts new wording and distinguishes by costs (Exceptional Event and Exceptional Costs).
  2. Clear “order of precedence” regarding the documents forming part of the Agreement is now stated in Form of Agreement, and Sub-Clausel 1.15.
  3. Consultant´s obligations are linked with Consultant´s Programme (now defined term). « Reasonable » – stays in, FIDIC considers it not being practicable to define it further
  4. Fit for purpose is neither a desired nor an internationally recognized standard for professional services in the client-Consultant relationship. Undeniably existing local legal particularities (like the decennial liability, the duty to achieve a result) may have to be considered in Particular Conditions or apply subject to the governing law
  5. Client’s termination for convenience admissible – SC 6.4.1(d) bearing mind that anyway most civil law jurisdictions allow such termination of contract
  6. Immediate termination for corruption possible – Client Sub-Clause 6.4.1(c)/ Consultant Sub-Clause 6.4.2(d) No f
  7. Consultant and Client liable reciprocally liable for breach of any duty under the Agreement

Dr. Hök has been involved in the drafting of the FIDIC JV Agreement. He is also member of FIDIC Task Groups 9 [Design and Build Subcontract] and 11 [ODB]. Dr. Hök is a fully accredited FIDIC Trainer and has provided FIDIC trainings on consultancy agreements woldwide and has been involved in the management of consultancy and JV agreements. Moroever he has acted as mediator under the FIDIC White Book, 4th Edition, 2006.