Application of FIDIC EPC/turnkey contract under the Egyptian public works contracts law

Abstract

This study focuses on the application of FIDIC Conditions of Contract for EPC Turnkey Projects—Silver Book 1999, (FIDIC (EPC&T)), when governed by the Egyptian Law of Contracts concluded by public bodies No. 182 of 2018 (ELC) due to the conflicts that may arise from such application. Hence, this study identifies specific FIDIC (EPC&T) 1999 clauses that have the potential for conflicts with ELC, shows the similarities and disparities between these clauses and the relevant ELC articles, and provides recommendations to ensure the successful application of FIDIC (EPC&T) 1999 under ELC. This was achieved through a multistep research methodology in which a survey was undertaken to explore the perspectives of a selected group of construction contracts’ experts about the conflicting clauses of FIDIC (EPC&T) 1999 with ELC’s articles. Next, based on the survey results, the clauses related to delay damages, adjustment for changes in cost, and contract termination were analyzed under the ELC articles and, consequently, some amendments are recommended for some of these FIDIC (EPC&T) 1999 clauses to make them more suitable for use under ELC. Accordingly, through applying these amendments, this study will contribute to the wider application of FIDIC (EPC&T) 1999 in Egypt as it helps in reducing the possibilities of legal conflicts and enhances the contractual certainty in public EPC projects. In addition, the findings of this study contribute to the body of knowledge related to construction contracts by offering a framework for assessing the application of international forms of contracts under national procurement laws.