Course Details

Understanding the FIDIC Silver Book (EPC/Turnkey Projects) Training Course

INTRODUCTION

This essential training course provides comprehensive knowledge and practical skills for an in-depth understanding and effective application of the FIDIC Silver Book (Conditions of Contract for EPC/Turnkey Projects). Designed for projects where the Employer requires a lump-sum price and higher certainty of cost and time, transferring maximum risk to the Contractor, the Silver Book is critical for high-value, complex infrastructure, power, and industrial projects. This program equips participants with a systematic understanding of its clauses, the rigorous risk allocation, and the procedures for design, procurement, construction, testing, and operation. Participants will gain deep insights into the unique responsibilities of the Employer and Contractor in an EPC/Turnkey scenario, ensuring they can navigate these high-risk, high-reward projects with precision and competence.

This course is specifically designed for professionals actively involved in, or preparing to be involved in, EPC or Turnkey projects where the Contractor assumes significant responsibility for the entire project lifecycle, from design to commissioning. It empowers participants to interpret the unique contractual obligations of the Silver Book, manage significant risks proactively, handle variations and claims efficiently, and ensure successful project completion with minimal Employer involvement in day-to-day execution.

DURATION

10 day

TARGET AUDIENCE

This course is specifically designed for professionals involved in large-scale, high-risk EPC/Turnkey projects where the Contractor assumes significant responsibility for design, procurement, and construction, particularly those operating under the FIDIC Silver Book, including:

• Project Owners and Developers (Employer's side).
• Main Contractors and EPC Contractors.
• Legal Counsel and Commercial Managers.
• Project Finance Specialists.
• Risk Managers and Insurance Professionals in large infrastructure projects.

OBJECTIVES

Upon completion of this course, participants will be able to:

• Understand the structure and unique philosophy of the FIDIC Silver Book for EPC/Turnkey projects.
• Clearly define the enhanced responsibilities and risks allocated to the Contractor.
• Effectively manage design, procurement, construction, and commissioning under a lump-sum model.
• Identify and administer variations and claims under the strict Silver Book procedures.
• Navigate the testing, performance guarantees, and dispute resolution mechanisms specific to EPC.

MODULES

Module 1: The FIDIC Silver Book: Structure and Philosophy

• Understand the specific application and characteristics of the FIDIC Silver Book (1999 and 2017 editions, noting key differences).
• Explore the fundamental principles of maximum risk allocation to the Contractor in the Silver Book.
• Discuss the concept of "Employer's Requirements" and the Contractor's full responsibility for design and execution.
• Examine the overall structure and interrelation of the Silver Book Clauses, emphasizing its "no-excuses" approach.
• Learn about its suitability for private sector financing and high-certainty projects.

Module 2: Enhanced Roles and Responsibilities of the Contractor

• Understand the comprehensive obligations and duties of the Employer (Clause 2), primarily providing requirements and payments.
• Discuss the significantly reduced role of the Engineer (Clause 3), primarily acting as Employer's representative for monitoring.
• Explore the Contractor's comprehensive responsibilities for design, execution, and completion (Clause 4).
• Examine the Contractor's strict liability for unforeseen ground conditions and other site data risks.
• Learn about the criticality of the Contractor's due diligence during tender.

Module 3: Design, Execution, and Contractor's Documents

• Understand the Contractor's full responsibility for design, engineering, procurement, and construction.
• Discuss the process of Contractor's Documents (design submissions) and their review by the Employer.
• Explore the limited scope of Employer's review and its implications for Contractor's liability.
• Examine the requirements for workmanship, materials, and compliance with Employer's Requirements.
• Learn about intellectual property rights related to the Contractor's design.

Module 4: Testing, Completion, and Performance Guarantees

• Understand the crucial role of Tests on Completion and Tests after Completion (Clauses 9 & 10).
• Discuss the procedures for taking over the works and the Taking-Over Certificate.
• Explore the management of the Defects Notification Period and remedying defects (Clause 11).
• Examine the significance of performance guarantees and liquidated damages for failure to achieve performance targets.
• Learn about the consequences of failure to pass tests and the associated liabilities.

Module 5: Payment and Financial Provisions

• Understand the lump-sum payment mechanism and its implications for cost certainty.
• Discuss the basis for valuation of variations (Clause 13) in a Silver Book context.
• Explore the Contractor's entitlement to payment and the Employer's payment certification process (Clause 14).
• Examine provisions for advance payment, interim payments, and retention money.
• Learn about the Final Payment Certificate and discharge from liability.

Module 6: Time, Delays, and Suspension

• Understand the Contractor's stringent obligations for Time for Completion (Clause 8).
• Discuss the limited grounds for Extension of Time (EOT) (Clause 8), primarily Employer's risks.
• Explore the Contractor's strict notification requirements for delays.
• Examine the high threshold for demonstrating entitlement to EOT in the Silver Book.
• Learn about the Employer's powers to suspend work and their financial implications (Clause 8).

Module 7: Variations and Claims under the Silver Book

• Define a "Variation" under the Silver Book and the Employer's restricted power to instruct them (Clause 13).
• Discuss the challenges of valuing variations in a lump-sum, full-risk contract.
• Explore the Contractor's entitlement to claims for additional payment or EOT (Clause 20.1).
• Examine the strict notification requirements and timelines for claims.
• Learn about the Employer's and Contractor's strategies for managing claims in a high-risk environment.

Module 8: Risk Management and Dispute Resolution

• Understand the comprehensive risk allocation matrix of the Silver Book and its consequences.
• Discuss provisions for Force Majeure and its limited impact on Contractor's obligations (Clause 19).
• Explore the Employer's and Contractor's rights to terminate the contract (Clauses 15 & 16).
• Examine the structure and role of the Dispute Adjudication Board (DAB) or DAAB (Clause 21).
• Learn about the process for referral to international arbitration for unresolved disputes.

• CERTIFICATION
• Upon successful completion of this training, participants will be issued with a Macskills Training and Development Institute Certificate
• TRAINING VENUE
• Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.
• AIRPORT PICK UP AND ACCOMMODATION
• Airport pick up and accommodation is arranged upon request
• TERMS OF PAYMENT
• Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com