✅ Very short and readable (approx. 20-30 pages). ✅ Lower legal and administrative costs. ✅ No need for a separate Engineer (reduces supervision fees). ✅ Flexible payment and variation mechanisms. ✅ Suitable for small contractors unfamiliar with complex FIDIC forms.
If a party disagrees with the Engineer, they can refer the dispute to a standing or ad-hoc adjudicator for a binding decision before proceeding to arbitration. 4. Liquidated Damages and Caps on Liability
The Green Book 2021 is structured into 14 main clauses. It uses simple, direct language to ensure accessibility for non-native English speakers.
: Parties are now required to provide "Advance Warning" for events that could affect time, cost, or quality. Flexible Pricing : The form supports multiple valuation options, including Lump Sum, Re-measurement, and Cost Plus Summary of Contract Structure FIDIC Green Book Overview – 1999 & 2021
: It allows for various valuation options, including lump sum, re-measurement, and cost-plus models. Structure and Content
– A formalized procedure with defined time limits, but notably without a strict time bar that would automatically forfeit a claim.
Clause 6.2 allows a percentage limit on variations without new agreement. If you set this too high (e.g., 30%), the Contractor may overbuild. Too low (e.g., 1%) and progress stalls. A typical value is 10-15%.
The first edition of the Green Book was notably concise—just 15 clauses across roughly 10 pages. Over time, however, the construction industry began using it on projects far exceeding FIDIC's original expectations, including works with capital values exceeding USD 10 million and durations beyond two years. Market feedback revealed that the Green Book had proven itself more versatile than its creators had initially imagined.
Yes. The 2021 version is internationally balanced. However, you must fill in the governing law and specify a dispute arbitration body (e.g., ICC, SIAC, LCIA) in Appendix B.
Understanding the FIDIC Short Form of Contract 2021 (Green Book)
It was printing slowly. Agonizingly slowly. Page 1. Page 2.