The FIDIC Green Book – What’s New in the 2021 Edition?
FIDIC have recently launched a new edition of the Green Book. We’ve taken a look at the 2021 edition and summarised the key similarities and differences with the earlier 1999 version.
What’s the Same in FIDIC Green Book 2021?
- FIDIC recommends that the Green Book is used for low-value projects (less than US$ 10M) and larger projects that are either straight forward, involve repetitive work and/or have a low-risk profile.
- It is a relatively short form of contract and requires less contract administration than the other main FIDIC contracts.
- The risk profile remains balanced.
- The provisions remain relatively uncomplex with simple contractual concepts.
- Design may be provided by the Employer or the Contractor.
- Options exist for pricing and evaluation of the Works.
What Are The Changes?
- Additional clarity introduced to some of the conditions.
- New provisions.
- Inclusion of flow charts.
- Inclusion of pro-formas for notices, requests, and similar administrative procedures.
- Risks are clarified.
- Some additional obligations exist for both parties.
- The inclusion of more express rights and obligations.
- The introduction of an “Engineer” to administer the project.
- The addition of a ‘Contract Data’ proforma, to cover information particular to the project.
- The inclusion of a formula for calculating prolongation costs.
- Intention to claim must be notified within 28 days. There is a requirement to submit claims within 56 days.
- The adjudicator is to be appointed within 28 days of the Contract being effected. The adjudicator also provides dispute avoidance advice.
In 2017 the Red, Yellow and Silver Books became more complex in terms of contract administration. As a result, we see the improved version of the Green Book as a viable alternative for many projects.
As always, however, give careful consideration to the nature of the project, the likely risks and the Employer’s goals before selecting the most suitable form of contract. And as always, if you need any help, don’t hesitate to get in touch today.