Allocates design liability clearly based on who originates the documentation.
The international construction landscape demands contracts that balance robust risk allocation with administrative efficiency. In December 2021, the International Federation of Consulting Engineers (FIDIC) officially released the , heavily revamping the classic 1999 edition. This contract serves as a highly structured, simpler alternative to the heavyweight 2017 Red and Yellow Books, explicitly built for projects where the perceived level of risk is relatively low and parties wish to conserve administrative resources.
This expansion wasn't done lightly. FIDIC added provisions to address key contracting concerns that were omitted from the 1999 version. Here are the most important changes:
When adopting the FIDIC Green Book 2021, employers and contractors must ensure they configure the dynamic schedules correctly. Because the text is abbreviated, the clarity of the and the accuracy of the filled-in Contract Data determine the smooth execution of the project. When to Choose the Green Book Over the Red/Yellow Books short form of contract 2nd ed -2021 green book- pdf
regarding site access and permits.
| Clause | Title | What It Covers | | :--- | :--- | :--- | | 1 | Definitions | Contract documents, Employer, Contractor, Subcontractor, Day, etc. | | 2 | Contract Documents | Priority of documents (Agreement → Special Conditions → Green Book clauses → Drawings) | | 3 | Employer’s Obligations | Provide site access, permits, and pay on time. | | 4 | Contractor’s Obligations | Execute works, provide supervision, comply with laws. | | 5 | Subcontracting | No subcontracting without consent. Contractor remains liable. | | 6 | Works by Employer | Employer may do separate work—coordination clause. | | 7 | Contractor’s Documents | Submittals (schedules, method statements). | | 8 | Commencement & Completion | Time for completion, possession of site. | | 9 | Variations | Changes to scope—must be in writing. | | 10 | Payment | Application for payment, due dates, interest on late payment. | | 11 | Retention | Usually 5% retention, released 50% at completion, 50% after defects period. | | 12 | Delay Damages | Liquidated damages for late completion (cap often 10% of contract price). | | 13 | Completion & Taking Over | Certificate of completion, transfer of risk. | | 14 | Defects Liability | Usually 12 months to fix defects. | | 15 | Suspension | Contractor can suspend if non-payment. | | 16 | Termination | Either party can terminate for material breach. | | 17 | Risk & Indemnity | Who bears loss/damage to works. | | 18 | Insurance | Required: liability, works, contractor’s equipment. | | 19 | Exceptional Events | Force majeure, pandemic, war—extends time, no damages. | | 20 | Claims & Disputes | Notice of claim within 28 days. | | 21 | Dispute Resolution | Adjudication (fast, binding temporarily) then arbitration. |
In the fast-paced world of procurement and civil engineering, not every project warrants a 50-page legal tome. For small-scale works, simple supply agreements, or minor building maintenance, a heavy contract can be a liability rather than a safeguard. This is where the , widely known as the "Green Book," becomes the industry standard. Allocates design liability clearly based on who originates
Will the be provided entirely by the employer, or will the contractor have design-build responsibilities?
The 2021 Green Book has removed the strict "time bar" from its predecessor. While the 1999 edition could bar a claim if notice wasn't given within a specific timeframe, the new clause (Sub-Clause 13.2.2) takes a more lenient approach. If a party fails to provide notice within the required 28 days (or a fully detailed claim within 56 days), their entitlement will be assessed based on how much the failure prejudiced the proper investigation of the claim. This is a significant departure from the strict approach in the 2017 FIDIC suite.
For contractors, employers, and legal professionals seeking to understand this contract framework, this comprehensive guide breaks down the core features, key updates, and risk allocation mechanisms of the 2021 Green Book. Overview of the FIDIC Green Book This contract serves as a highly structured, simpler
Can be used for Employer-designed or Contractor-designed works.
if the project involves highly technical, proprietary industrial processes, underground tunneling, or multi-party infrastructure integration where customized legal drafting is required. Summary of Benefits
The Short Form of Contract is suitable for a wide range of construction projects, including:
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