International Federation of Consulting Engineers

1. International Federation of Consulting Engineers • Evgeny Smirnov • European Bank for Reconstruction and Development

2. FIDIC MDB Harmonised Construction Contract Conference Regional IssuesPros and Cons of using FIDIC Contracts Background EBRD 3,374 projects for EUR 210.7 billion EUR 71.1 billion invested by EBRD: EUR 55.7 billion – private sector EUR 15.4billion – public sector

3. FIDIC MDB Harmonised Construction Contract Conference Regional IssuesPros and Cons of using FIDIC Contracts “There is nothing either good or bad, but thinking makes it so…” Hamlet, William Shakespeare Questionnaire, April 2012 • 20 questions about FIDIC contracts • Section A; General Information • Section B; Overall experience with FIDIC contracts • Section C; Specific issues (anti-corruption, social and environmental provisions, Engineer’s role, DAB) Responses • 12 countries in Eastern Europe, Turkey and FSU countries • Power, Transport, Municipal and Nuclear Safety sectors • 38 respondents • Contracts range: EUR 3 million to EUR 991 million

4. FIDIC MDB Harmonised Construction Contract Conference Regional IssuesPros and Cons of using FIDIC Contracts “Beauty is bought by judgement of the eye, Not utter'd by base sale of chapmen's tongues…” Love's Labours Lost, William Shakespeare View of EBRD • Well balanced contracts • Easily adoptable to specific country conditions • Specific MDB provisions included • Suitable for a wide range of projects • Well known on the market • Aimed at timely completion within the original cost • Presence of a professional engineering support • Efficient dispute resolution mechanism

5. FIDIC MDB Harmonised Construction Contract Conference Regional IssuesPros and Cons of using FIDIC Contracts “What's in a name? That which we call a rose…” Romeo and Juliet, William Shakespeare View of Respondents • Users are generally satisfied • Well balanced risks of the parties • Fair and complete • Well known throughout the industry • Simple, but covering main contractual issues well, being based on vast experience • Standardisation and availability of the documents for different type of projects

6. FIDIC MDB Harmonised Construction Contract Conference Regional IssuesPros and Cons of using FIDIC Contracts “Oft expectation fails, and most oft there Where most it promises…” All’s well that ends well, William Shakespeare Some Other Findings • Needs to be localised, as there are some conflicts with national regulations • Not well known by local contractors • Lack of experience and gaps with understanding on the Employer’s side • Open to claims • No control over delays during implementation • Cost and time over-runs are relatively common • Requires a comprehensive delay and disruption protocol • Engineers are biased and often act reactively • DAB is rarely used and inefficient • Sometimes forms of FIDIC contract used are inadequate to a project

7. International Federation of ConsultingEngineers PresidentGeoff French, UK Vice-PresidentPablo Bueno, Spain SecretariatFIDIC World Trade Center 2 Geneva Airport Box 311 CH-1215 Geneva 15 Switzerland Tel: +41 22 799 49 00 Fax: +41 22 799 49 01 fidic@fidic.org www.fidic.org Managing DirectorEnrico Vink