Everything You Need to Know About FIDIC Contracts
The global construction industry is looking for ways of addressing problems in litigation and conflict resolution. One way of doing this is by creating universal standards for construction contracts. Having a set of standards eliminates many of the problems that arise in the development of contracts, specifically the differences caused by international operations. Companies are adopting the standards created by the International Federation of Consulting Engineers (FIDIC) and using FIDIC contracts even when not working in international construction operations. In this article, a Charlotte construction attorney discusses what you need to know about FIDIC contracts.
What Are FIDIC Contracts?
FIDIC contracts are built using a framework developed by the International Federation of Consulting Engineers designed to help companies avoid excessive liability in their contracts. Companies are adopting the FIDIC contract framework because it’s not only better for them in terms of protection, but it also focuses heavily on conflict resolution and mitigating potentially serious issues with other companies.
FIDIC is most known for creating the contract templates that many companies use today. If you want your construction contract to be easy to understand and adhered to by both you and your contractor, then the introduction of a standard contract like that provided by the FIDIC is likely to help.
What Do FIDIC Contracts Do?
FIDIC contracts are used by construction companies around the world to standardize contracts and avoid some of the biggest pitfalls. FIDIC maintains a collection of contract templates that companies can use and modify to fit their needs. In the construction industry, this means that the companies, investors, architects, surveyors, and others involved in any construction project are protected from third parties with fraudulent claims.
The laws that cover these contracts help keep the project alive and moving forward. There are many important details that go into these contracts; one of the most important is the title or deed issue. If the other party does not honor their end of the bargain, then legal consequences are sure to follow.
The primary purpose of a FIDIC contract is to help keep the public’s interest in mind when dealing with construction projects that involve home construction and ownership. These contracts are also used to help with title issues and prevent any potential problems with legal ownership and contract disputes.
Another great detail of these contracts is that there is no down payment required. These contracts have been known to be used in any type of construction project and can be beneficial in the long run. The title issue in the construction business has always been one of the biggest stumbling blocks for home construction and investors. However, through the years, it has been made much more secure, and the result has been the increase of construction activity around the country.
Related: How to Avoid Contract Disputes
How to Resolve Disputes Under FIDIC Contracts
Figuring out how to resolve disputes under FIDIC contracts is a big concern for many people working in the construction field today. The world we live in has seen a huge increase in the number of construction projects over the past decade or so and, thus, has seen an increase in the number of disputes between contractors and other individuals and companies.
One of the biggest problems that arise in any construction dispute is how to prove that a contract was completely intended by the parties involved. If you go into a construction dispute with no knowledge of contract law, it’s unlikely that you will have much success in obtaining a court ruling to your advantage unless you are representing yourself. In this case, hiring an attorney may be a good idea. Not only will they be able to properly represent you in court but, due to their vast experience with these types of cases, they will also know what questions to ask in order to help your case.
One way of resolving disputes under FIDIC contracts is through what is called an oral contract dispute. This refers to a case where there is a question of whether one party intentionally or unintentionally signed a contract. If either party can prove that there was an oral contract, then the court will have no choice but to find in favor of the contracting parties. However, an oral contract dispute can be hard to prove as sometimes an offer is given in good faith but not followed through. Oral contract disputes often lead to an out-of-court settlement, although in some construction disputes, the construction parties may find themselves needing to go to court.
Another way of resolving disputes under FIDIC contracts is through mediation. Mediation is when one party hires an independent professional who assists them in the process of finding an agreement between them, and any necessary documents are provided to the mediator. In order for this to work, it’s vital that both parties have legal representation and accurate documentation.
Working within a FIDIC contract can present challenges that your company must be prepared to address. One of the best options is to work with a Charlotte construction defect lawyer to fully understand any FIDIC contracts that you have. If you have any further questions about FIDIC contracts, contact a Charlotte construction defect attorney from Cotney Attorneys & Consultants.
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Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.