EPCM / FIDIC contracts
A contract is not a formality at the start but the instrument the project is run with until it closes. We set the contracting strategy, run the tenders and administer the contracts, FIDIC included.
The contract was written to be signed rather than to be used: when something is disputed, the answer is not in it.
The contractor submits a claim and there is nothing to base a rejection on — the correspondence went through a messaging app instead of the contract's procedure.
A foreign contractor or the lending bank requires FIDIC, and no one on the team has worked under those conditions.
The tender comes down to comparing headline prices, although the bidders priced different quantities and different risks.
Contracting strategy
How the project is split into packages, which contract type suits each, and how risk is allocated between the parties. Decided before the tender, not during it.
Tender documents
Scope, bill of quantities, draft contract and evaluation criteria. Bidders price the same thing, which is what makes the offers comparable.
Running the tender
Receipt and opening of bids, technical and commercial evaluation, negotiation, and a documented basis for the award.
Contract with its annexes
Quantities, programme, payment terms, quality requirements and the change procedure — as annexes the contract refers to, not as a statement of intent.
FIDIC administration
Notices within the stated periods, correspondence run to procedure, determinations made under the contract. A missed notice period usually costs more than the dispute itself.
Claims handling
Contractor claims for time and money examined: entitlement, quantification, and the client's position with the records to support it.
Contract close-out
Final account, settlement of open claims, defects liability and release of securities.
- 1
Packaging and contract type
We define the work packages and the contract form for each. This is also where it is decided which risks the client keeps and which are transferred, and at what price.
- 2
Tender preparation
The document set, evaluation criteria and bidder list are assembled. The draft contract is issued with the enquiry, not after the winner is chosen.
- 3
Tender and negotiation
Technical and commercial evaluation, clarifications, negotiation, and a reasoned award.
- 4
Award
Terms and annexes finalised, securities and insurances verified, contract signed.
- 5
Administration
The contract run through to close-out: dates, notices, variations, claims, payments.
Contracts and claims next to the schedule and the budget
Commitments, variations and open claims are visible where time and money already are. The effect of a claim on the completion date and the budget is not a separate note but a consequence of the same data.
See what it looks like- What is FIDIC and why use it when an ordinary contract exists?
- FIDIC is a set of internationally recognised standard conditions for construction contracts. The value is less in the wording than in the worked-out procedures: how a claim is notified, within what period, who determines it, and what happens if a party disagrees. An ordinary contract usually describes what the parties must do, but not what to do once something has gone wrong.
- How does EPCM differ from EPC?
- Under EPC the contractor takes on design, procurement and construction for a fixed price and carries the risk. Under EPCM the provider manages that work on the client's behalf, while the client holds the contracts with the trade contractors directly. EPC costs more but is more predictable on price; EPCM is more flexible and more transparent on cost, but demands a client capable of managing.
- The contract is already signed. Can you still step in?
- Yes. We start by reading what was signed: which procedures it provides for, which notice periods apply, where the client's position is weak. Then we build the administration inside those limits. A signed contract cannot be rewritten, but it can nearly always be used properly.
- Who is the "Engineer" under FIDIC, and can that be you?
- It is a named role in the contract: administering the contract, determining claims and certifying payment, acting under a defined procedure. Yes, we can carry out that function, provided it is written into the contract with the corresponding authority.
We run the whole project, but any single task can be taken on its own.
Ready to take your project under control?
Tell us about the task — within 1–2 days we will prepare a team structure, a roadmap and a commercial proposal.