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    KEY ASPECTS OF FIDIC DBOCONTRACTS 23/09/2011

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    Content

    1. INTRODUCTION : THE NGRBA AND THE FRENCHSUPPORT

    2. HO TO CHOOSE THE BEST FIDIC CONSTRUCTION CONTRACT FOR A ASTE/ATERINFRASTRUCTURE PRO!ECT IN PPP "

    3. #AIN PITFA$$S IN CONSTRUCTION CONTRACTBEFORE CO##ERCIA$ OPERATIONS

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     THE NGRBA AND THE FRENCHSUPPORT

     THE NGRBA AND THE FRENCH SUPPORT

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     THE NGRBA AND THE FRENCHSUPPORT

     Te%&n'%() A**'*t(n%e to NGRBA +o, -,oe%t-,e-(,(t'on FASEP te( (*e 'n De)&' e4-e,t* +,o F,(n%e 5 Con*o,t'6 E7'* / SCE /E7'* In'(8

    D6,(t'on o+ t&e *e,'%e* '* 1 ont&*

    Oe%t'e* :

    ;< $(6n%& Te( to +(%')'t(te t&e -,oe%t*'-)eent(t'on 'n t&e *t(te* ()on7 G(n7( ,'e,

    ;< #oe (&e( ,(-')= >'t& t&e o,) B(n?

    P,o7,(;< S6--o,t NGRBA 'n N#CG e4@P#G8o-e,(t'on*

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    FRENCH EPERIENCE IN ATER #ANAGE#ENT

    #(o, +e(t6,e* o+ >(te, *e%to, 'n F,(n%e :

    C,e(t'on o+ Water agencies *'n%e 19 +o, t&e ('n&=,o7,(-&'%() (*'n*

    t&e= %o))e%t >(te, %on*6-t'on +ee* (n -o))6t'ont(4e* &o6*e&o)* 'n6*t,'e* -e*t'%'e* 6*e,*8

     T&e= 6*e t&e to 'ne*t 'n >(te, 'n+,(*t,6%t6,e* (nen',onent() (%t'on* >'t&'n t&e ,'e, (*'n *6*''e*

    to )o%() (6t&o,'t'e*8.

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    #(o, +e(t6,e* o+ >(te, *e%to, 'n F,(n%e :

    Water Parliaments (t t&e (*'n )ee) -,o'e t&eeo%,(t'% (*'* +o, e(te (n %on*6)t(t'on 'n >(te,

    (n(7eent '**6e*. T&e,e (,e >(te, (n(7eent -)(n* (t (*'n (n *6@(*'n )ee)*.

     T&e= e*t()'*& *oe ,6)e* ,e)(te to >(te, 6*e)'%en*'n7 (n -6)'% -(,t'%'-(t'on.

    FRENCH EPERIENCE IN ATER #ANAGE#ENT

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    #(o, +e(t6,e* o+ >(te, *e%to, 'n F,(n%e :

    Private participation t&,o67& e)e7(t'on o+ -6)'%*e,'%e

    #('n)= CONCESSION BOT8 o, $EASE CONTRACT 'n>(te, *6--)= (n *(n't(t'on.

     T&e -6)'% (6t&o,'t= '* *t')) -,e*ent regulatory ,o)e8(n *&(,e* t&e e4-)o't(t'on n(n%'() ,'*? >'t& t&e-,'(te (%to,

     T&e Cont,(%to, *&()) -,o6%e (n annual reports *&o>'n7 'n%oe* (n e4-en*e* 'n ( t,(n*-(,ent >(='n%)6'n7 ,e'ne*tent o+ *('n7* 'n 'n+,(*t,6%t6,e*.

    FRENCH EPERIENCE IN ATER #ANAGE#ENT

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    #EASURING RESU$TS

    200

    1990 200

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    !

    FIDIC DBO CONTRACT

     HO TO CHOOSE THE BEST FIDIC CONSTRUCTION CONTRACT FOR A ASTE/ATERINFRASTRUCTURE PRO!ECT IN PPP "

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    FIDIC PRESENTATION

    FIDIC +o6ne = F,en%& en7'nee,* 'n 1913 (*F,(t'on Inte,n(t'on()e e* In7n'e6,* Con*e')*Inte,n(t'on() Fee,(t'on o+ Con*6)t'n7 En7'nee,*8

    19 ; 0 En7'nee,* A**o%'(t'on* J 2009 ; 0En7'nee,* A**o%'(t'on* 'n%)6'n7 In'(

    19 ; 1*t Re Boo? (* L Con't'on* o+ Cont,(%t+o, Con*t,6%t'on +o, B6')'n7 o,?* e*'7ne =

    t&e E-)o=e, 200 ; 1*t Go) Boo?

    >>>.'%.o,7  HO 'n Gene( S>'te,)(n.

    http://www.fidic.org/http://www.fidic.org/

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    FIDIC CONTRACTS / PARTIES INO$ED

    The Employer 

    The Contractor 

    The Engineer

    or Employer’s

    representative

    SERVICESERVICE

    CONTRACT CONTRACT 

    FIDIC contractFIDIC contract

     Administration Administration

    DESIGN DESIGN 

    BUILDBUILD

     CONTRACT CONTRACT Disputes(Adjudication

    Board)

    Lenders

    Auditing Body

    OPERATION OPERATION 

    SERVICE SERVICE 

    CONTRACT CONTRACT 

     TAKING@OERCERTIFICATE

    No %ont,(%t6() )'n? Q

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    H'*to,'% B(%?7,o6n o+ FIDIC %ont,(%t*

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    H'*to,'% B(%?7,o6n o+ FIDIC%ont,(%t*

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    Be*t %&o'%e +o, FIDIC CONTRACT

    Small project (small amounts, small risks)

    yes no

    The Engineer

    underta!es

    the design yes

    The Contractor underta!es

    the design

    no

    The project is a plant and incldes a!alanced ris" allocation # 

    no

    yes

    Operations$DBO%

    yes no

    &i'ed Cost 

    Ris"s !orne (ainl) !) the

    Contractor 

    yes

    no

    Discuss in details

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    P,'n%'-)e* FIDIC : R'*?* ())o%(t'on

    "ncrease cost o#$roject

    "ncrease design

    control %y the

    Employer 

    "ncrease ris! #or

    the Employer 

    "ncrease ris!

    #or The

    Contractor 

    &ED&ED

    B''B''

    'LD'LD

    B'' *B'' *

     +ELL', +ELL',

    B''B''

    S"L-E&S"L-E&

    B''B''

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    CO#PARISON FIDIC / F,en%& )(>

    $.S /.EED

         &     R     A     N     C     E

    DTL DES"0

    1 YEAR 

    C'0ST&1CT"'0

    2 YEARS < 20 YEARS  

    '$E&AT"'0SC'0CE$T

    CCAG

    TRAVAU* 

    LA+ 

    CCAG P,I,

    Red !oo" 

    -ello. !oo" 

    Sil/er !oo"      &     I     D     I     C

    Gold !oo" 

    +hite !oo" 

    CONTRACTS GOVERNED B- LOCAL LA+S O& T0E COUNTR- 

    &RENC0 CONSTRUCTION LA+ 

    1 YEAR 1 YEAR 

    IDEA 12 DEGREE O& PRECISION 

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    FIDIC DBO CONTRACTS : KEY POINTS

    E-)o=e,* ,e6',eent* :• Careful technical investigations of site• Risk assessments (technical, commercial, financial)• Infrastructure to be fit for !ur!ose "• #ender !rocedure $ith !re%ualification

    De*'7n ,e*-on*'')'t'e* :• &trict definition of design criteria• 'nforeseable difficulties to be foreseen ()• Interfaces management (net$orks s* treatment !lant)

    C)(' (n(7eent :• &!ecial care for drafting the Contract (+articular

    Conditions of contract to be fit $ith the a$s)• Contem!orary records to be ke!t• -echanisms to avoid dis!utes

    93 "

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    D E L A+  S 

    CLA"2S

                    C                '

                    S                 T                S                3

      0  '   T  "  C

      E  S

    CLA1SE 4 Commencement5

    Completion and $rogramme

    CLA1SE 6 Design/Build

    CLA1SE 78 'peration Service

    CLA1SE 7 eneral $rovisions

    CLA1SE 79 &is! allocation

    CLA1SE 74 E:ceptionnal &is!s

    CLA1SE 76 "nsurance

    C. /

    0'AI#1 #I-2

    CLA1SE ; The Employer CLA1SE < The Contractor  

    CLA1SE = The Employer’s representative

    CLA1SE 7= -ariation and Adjustements

    CLA1SE 7< Contract $rice and $ayment

    CLA1SE 7> Termination %y Employer 

    CLA1SE 7? Termination %y Contractor 

    CLA1SE 76 .orce 2ajeure

    CLA1SE ;8 Claims

    CLA1SE ;8@9 Amica%le Settlement (DAB)

    CLA1SE > Design

    CLA1SE ? Sta## and La%our 

    CLA1SE 9 $lant5 2aterials5 ,or!m

    CLA1SE 77 Testing

    CLA1SE 7; De#ects

    ."D"C

    'LD

    B''

    C'0T&ACT

    20C$AUSES

    93 "#$%C&'#"("

    SO#E PITFA$$S IN CONSTRUCTION

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     3. #AIN PITFA$$S IN CONSTRUCTION CONTRACTBEFORE CO##ERCIA$ OPERATIONS

    SO#E PITFA$$S IN CONSTRUCTIONCONTRACT

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    SO#E PITFA$$S IN CONSTRUCTION

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    De*'7n

    C'') >o,?*

    P,o%6,eent

    E,e%t'on

    Co'**'on'n7

    OPERATIONS

    CUSTO# DUTIES NOT SO$EDIN TI#E DUE TO #INISTRIES

    DE$AYS SC 9.8

    NO RA ATER IN TI#E

    AS NETORKS ORKSARE DE$AYED SC 11.28

    FORCE #A!EUREEARTHUAKE

    STRIKE AR8 SC18

    ADERSE SUB@SOI$CONDITIONS ;<COST 0 SC

    .128

     T'e o+ Co-)et'on

    Ne> C,'t'%()

    P(t&

    ACCESS TO SITEDE$AYEDFOR SITE

    INESTIGATIONS

     TOPOGRAPHY ANDGEOTECHNICS SC 2.18

    HO PAYS FOR DE$AY " SC9.138

     YEAR 1 YEAR 2 UP TO 20 YEARSV

    SO#E PITFA$$S IN CONSTRUCTIONCONTRACT

    Cut%)*Date

    In't'() C,'t'%()P(t&

    CONC$USION

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    CONC$USION

    INTERNATIONA$ FIDIC DBO CONTRACT L GO$D BOOK IS

    PARTICU$AR$Y FIT FOR THE PURPOSE OF PPP ATER TREAT#ENTJ IT IS V

    • C.-+2#2

    • C.-.31 &4AR2D 51 A I3#2R3A#I.3A +AR#I2&

    • DRAF#2D #. A.ID A3D #R2A# +I#FA&

    V BUT HO IS PROIDING THE FINANCE " FRO# DBO

    ADD AN L F VTHERE CO#ES THE L DB F O CONTRACT

     @ THANK YOU FOR YOUR ATTENTION @

     THINK ABOUT FRENCH EPERTISE ON FIDIC AND ON ATER PROCESS Q