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LEGAL INSIGHT

In 1999, alongside other contract templates, the International Federation of Consulting Engineers (originally in French: Fédération Internationale Des Ingénieurs-Conseils, abbreviated as FIDIC) updated the 1999 Red Book—Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer (hereinafter referred to as the "1999 Red Book").

After 18 years of application, FIDIC released the second edition of the Red Book in December 2017 (hereinafter referred to as the "2017 Red Book"), marking a significant milestone after more than 18 years since the publication of the 1999 Red Book. According to FIDIC’s statement, the 2017 Red Book maintains the fundamental principles of the 1999 Red Book regarding risk allocation while incorporating revisions and additions based on practical experience gained over 18 years of implementation.

Some key amendments and additions include:

(1)   More detailed and explicit provisions on the "Notice of Claim."

(2)   Addition of the Contractor's entitlement to profit in the event of an exemption.

(3)   Replacement of the term "Force Majeure Event" with "Exceptional Event."

(4)   Addition of the Employer's obligation for "Advance Warning."

(5)   Revisions regarding Extension of Time (EOT).

(6)   Modifications to issues related to Claims.

(7)   Amendments concerning the Dispute Avoidance and Adjudication Board.