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Top Down Construction

Top Down Construction Sample Pic

Let’s pause on the Contract Management & FIDIC for a while and “get our hands in dirt”; talk about Top Down Construction Method. The time I have worked in Moscow, I had chance to see/work on a project within top down construction method on site. As per my observations Russian construction industry is well aware of this methodology and it is also known as Hi-Tech Method.

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FIDIC Silver Book & FIDIC Gold Book

FIDIC SIlver Book & FIDIC Gold Book

Within the EPC/Turnkey Based projects FIDIC Silver Book will be your guide.

As my last two projects were EPC based and the last one is PPP (Public-Private Partnership) Infrastructure-Highway project within a multinational joint venture private partnership side on the other hand and if you have in the same kind of project (These days most of the Gulf projects based on PPP) you will see that your project is differentiated between sides of the projects like as below.

PPP —> PVT – Authority —> PVT – EPC Contractor –> EPC Contractor – Subcontractors ( Design & Execution)

That  kind of structures could be really tough as a result of different needs of the parties in the different phases of the project and for this kind of  situations New FIDIC DBO (aka FIDIC Gold Book) could be your solution.

FIDIC DBO Similarities with other FIDIC Contracts

FIDIC DBO adopts the same format of existing FIDIC contracts (RED,Yellow, Silver, White Books) and further retains the style and most of the common definitions, paragraphs and structures that make FIDIC unique.
It’s function is found in clause 9 entitled ‘Design – Build’ which specially provides for necessary elements to administrate the design and build component.
New definitions specific to DBO projects have been included in the new form.
As an example; the definition of the ‘License Agreement’ to regulate the operation component of the agreement and corresponding authority of the Contractor. Another noteworthy definition is that of ‘Cost plus Profit’, although FIDIC provides for such a definition, we suspect that in its practical application, we would define parties amending such definitions to account for project specific definitions and exhaustive itemisation of the costs component to avoid doubt or miscommunication deficiencies.  Read More