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FIDIC intends to release a 5th edition of the FIDIC Client/Consultant Model Services Agreement, known to many as the White Book, this year. A pre-release version of the 5th Edition was provided to delegates at the FIDIC International Contract Users Conference in London late last year.The 5th Edition contains some important changes being made from the current 4th Edition of the White Book, which was released in 2006.Form of AgreementThe 4th Edition Form of Agreement sets out the documents that should be deemed to form and be construed as part of the Agreement. However, it failed to state a specific order of precedence.
In particular, while it stated the ‘this Client/Consultant Model Services Agreement’ was to form part of the Agreement, it failed to specify whether the general or particular conditions should take precedence.The 5th Edition rectifies this problem with an order of precedence both under the Form of Agreement and within Clause 1.15 of the General Conditions.ServicesServices under the 4th Edition were divided into Normal, Additional and Exceptional Services. Normal and Additional Services were expressed in Appendix 1 of the Particular Conditions, while Exceptional Services were defined in Sub-Clause 3.2.2 as:‘those which are not Normal or Additional Services but which are necessarily performed by the Consultant in accordance with Clause 4.8’This is a confused approach which does not conform to normal industry use of how the scope of services is described. There is also inconsistent use of ‘varied Services’ and ‘Additional Services’. Further, there was no mention in the Agreement of how or when the client would be informed of the impact or costs of any Exceptional Service.The 5th edition has adopted a more usual industry position in that the Scope of Services shall be defined and any changes will be variations under the new clause 5.Exceptional EventsThe 4th Edition managed force majeure – or the similar the concept of changed circumstances – under clause 4.2. “I find the articles on the Lexology newsfeed very relevant and up to date on a variety of topics of interest to my areas of practice.
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