In the world of construction and engineering, FIDIC contracts are the global standard. They define how projects are delivered, managed, and protected from risk allocation to dispute resolution.
Yet, even experienced professionals often fall into the trap of misinterpreting or misusing FIDIC clauses, leading to delays, disputes, and financial losses.
Understanding FIDIC is not just about reading clauses it’s about applying them with clarity, confidence, and context.
Let’s explore the most common FIDIC mistakes professionals make and how you can avoid them.
1. Misunderstanding the Role of Each Party
The mistake:
Many project managers, contractors, and consultants assume overlapping responsibilities under FIDIC particularly between the Engineer, Employer, and Contractor. This confusion can lead to conflict in approvals, claims, and decision-making.
How to avoid it:
– Understand that FIDIC clearly defines each party’s authority and obligations.
– Always refer to the correct clauses before making or requesting decisions.
– Establish a clear communication protocol early in the project to prevent scope creep or authority conflicts.
2. Poor Record-Keeping and Documentation
The mistake:
FIDIC contracts rely heavily on timely and accurate documentation yet many professionals fail to keep proper records of notices, instructions, or claims. When disputes arise, missing records become the biggest risk.
How to avoid it:
– Maintain organized digital records of all communications, site instructions, and progress updates.
– Always issue formal notices as required under FIDIC verbal updates are not enough.
– Red Learning Tip: Create a simple “FIDIC Project Diary” to log key contract events daily.
3. Delayed Claim Notifications
The mistake:
Clause 20.1 (FIDIC 1999) and Clause 20.2 (FIDIC 2017) clearly require claims to be notified within a specific time frame.
Missing this window often means losing the right to claim even when the issue is valid.
How to avoid it:
– Educate your project team about FIDIC notice periods.
– Set up an internal reminder system for claims and variation events.
– Remember: FIDIC is a contract of procedure timing is everything.
4. Overlooking the Importance of the Engineer’s Determination
The mistake:
Many contractors bypass or underestimate the Engineer’s determination step when raising claims or disputes. This can invalidate the entire process under FIDIC procedures.
How to avoid it:
– Follow the step-by-step process outlined in FIDIC for submitting and evaluating claims.
– Treat the Engineer’s role as an independent adjudicator not just an administrative authority.
– If you disagree, escalate after the determination, not before.
5. Ignoring the Latest Updates – 1999 vs 2017
The mistake:
Some professionals still rely on outdated knowledge from FIDIC 1999 when newer versions (like FIDIC 2017) contain significant procedural updates especially around claims, risk sharing, and dispute resolution.
How to avoid it:
– Familiarize yourself with both versions and understand what has changed.
– Attend a professional FIDIC training course that highlights the practical differences.
– Red Learning’s FIDIC 1999 vs 2017 sessions are designed to clarify these key shifts through case studies and real-world examples.
6. Treating FIDIC as “Legal Jargon” Instead of a Project Tool
The mistake:
FIDIC often intimidates professionals who see it as a purely legal document. In reality, it’s a management and communication framework that helps prevent disputes if understood correctly.
How to avoid it:
– Approach FIDIC as a practical guide, not a legal textbook.
– Engage in workshops that decode FIDIC through real project examples.
– Red Learning Tip: Apply one FIDIC clause every week on your current project learning by doing.
Conclusion: Building Confidence, Not Confusion
Every clause in FIDIC serves a purpose to protect the interests of all parties and create a fair, transparent process.
The more you understand its structure, the more confidently you can lead your projects and prevent disputes before they start.
If you’re ready to turn confusion into clarity, Red Learning’s expert-led FIDIC Training Programs are designed just for you.
Learn directly from industry professionals with years of construction experience and gain the knowledge to apply FIDIC effectively on real projects.
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🌐 www.redlearning.org
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