Barrier and Countermeasure of The FIDIC Condition’s Application in China.doc

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1、1Barrier and Countermeasure of The FIDIC Conditions Application in ChinaAbstract. The FIDIC Condition have been widely applied in the international engineering. The practice applying in foreign-invested projects in China indicates it can speed up the process of standardization of construction projec

2、t management and improve the level of construction project management. However, because of constraints of various factors, the application of the FIDIC Conditions is limited in China. This paper describes the questions of application and the measures to be taken currently. Key words: the FIDIC Condi

3、tion; Application; Measure 1. Introduction FIDIC contract conditions made by the international federation of consulting engineers of civil engineering construction is widely applied in the international engineering. Project by international financial organizations or a foreign government loans and f

4、oreign investment also most used FIDIC contract conditions for the international competitive bidding contract in China. engineering management practice of opening 2to the outside and participating in international economic cooperation technology in China shows that using the FIDIC contract condition

5、s, which speeds up our engineering construction project management standardization process, improve the project management level, make our project management ideas gradually with the international practice. But because of political, economic, social and cultural environment, and contract law awarene

6、ss, etc, IDIC contract terms is applied in China by some limitations, and also exists some problems. How to make the advanced international project management experience and combined with the reality of our country, is worth of discussion. 2. Barrier 2.1 Social environment of the contract At present

7、, there still exists place protection to the competent administrative department of construction, integration of government administration with enterprise in China. Unity open, competitive and orderly construction market is not established. Owner construction fund does not reach the designated posit

8、ion timely, No legal procedure on the project. Due to the buyers market, the contractor, material equipment suppliers, supervision unit to turn around the owner, exists 3the phenomenon of insufficient supervision fees, crude equipment configuration. 2.2 Legal system Chinas legal system is to belong

9、to the civil law, and FIDIC contract is common law, these two kinds of legal system is not the same as the way of thinking. The civil law system regards enacting law as the main origin , law is to be understood as an abstract norms. While Common law regards case law as the main origin, its purpose i

10、s to resolve the litigation. 2.3 Determine the contractor FIDIC conditions of contract requires that the determination of the contractor must be through the fair competition produces, While is still lack of open, fair bidding market in China. There are government departments to protect local enterpr

11、ise, to reject a strength of the bidding units and care no competitive relationship unit. The contractor often has not the ability to complete the project nor Bidding qualification, but gets contract by affiliated qualification, bribing the judges and the construction unit. 2.4 Tender offer The prem

12、ise of FIDIC conditions of contract is preparing the tender documents according to fixed unit price. The 4contractor determines the unit price according to enterprises production costs, profits, taxes and risk fee, then determines the total price. The discretion of the quotation reflects the enterpr

13、ises comprehensive quality, management level and credit strength. While the contractor is accustomed to offering according to the national quota, rate in China, but quota, rate only reflect the average society labor productivity in that industry, and can not accurately reflect the real individual en

14、terprise competitiveness, so the contractor may not have the corresponding strength, it may be caused the difficulties of the execution of the contract. 2.5 Engineers power and position Engineer is core position of project management in the FIDIC contract conditions, has legal power for the engineer

15、ing quality, progress, investment control, the parties of cooperated-builing should consciously maintenance engineers position. While now supervision engineer can only work be in the owners authorizes, and some owners think supervision engineer power is too big, worry about power to slip and not dec

16、entralization, so supervision engineers work is unavoidably contained everywhere, not to implement the legal supervision duties. 52.6 Engineers quality FIDIC institutions have high requirements to engineers code of conduct, also has a set of strict procedures for the engineers training. but supervis

17、ion industry exists the problem of low supervision personnel quality in China. At present, Chinas supervision engineer it is mostly by the design, construction personnel turned, and personnel is uneven, can not solve the problem, not good at using contract to rights, the sense of responsibility is n

18、ot strong, the sense of honor is not enough strong phenomenon more serious, the business level should be enhanced urgently and the minority supervision engineers and contractors, material suppliers have not normal of the interest relations, the abuse power for personal gains. 2.7 The owners behavior

19、 Because of buyers market present, the owner often forced the contractor, material suppliers, supervision company to sign unequal clause. It will be bound to cause the contractor, material suppliers jerry-build, carpetbag behavior. It will be caused that supervision engineer cant work fair and just.

20、 Because of long-term plan economy, the owner is poor of contract consciousness and the concept of legal, the owners often supervision work for all interference, and intervene in 6supervision personnel responsibilities within the scope of the specific work, do not award granted power, scientific man

21、agement project consciousness is poor, brings a lot of difficulties to carry out the contract. 3.Countermeasures FIDIC contract condition is appropriate for the projiect of large-scale,complex technology, long construction cycle. Using FIDIC contract condition can improve project management level. I

22、t is Important way to ensure the quality of projects, control engineering progress and improve the benefit of investment. Also is the development direction realized the connection with international practice in project management. But due to the above problems, it is difficult to completely FIDIC co

23、ntract condition in China at present. For example the Beijing west railway station using FIDIC contract conditions management arises a serious quality problem. Although not completely forming FIDIC conditions of contract, but we can choose some terms, some regulations, some program among the FIDIC c

24、ontract conditions to prepare contract documents combined with actual situation in China. In the project implementation process, also can draw lessons from FIDIC conditions of contract have to ideas and program to solve 7and deal with the problem. 4. Successful case- civil engineering of Xiaolangdi

25、dam 4.1 Measurement Measurement in the contract execution process is directly related to the owner and the contractors direct interests, the engineer and the contractor will inevitably encounter all kinds of questions in the actual operation process, it will caused disagreement. FIDIC clause require

26、s the integrity of the engineer, it seems to be especially important In the measurement of quantities. Common problem and the corresponding solution as follows: 4.1.1 Delayed combined measurement To the quantities which need for joint measurement, the contractor in pursuit of progress, always want t

27、o earlier joint measurement, because some work only joint measurement can only be carried out after the procedure.Because quality does not meet the requirements,while can not carry out joint measurement. The contractors production progress is not according to what he expects of speed, that is the co

28、ntractor is not willing to meet.Whether a regional can conduct joint measurement, it seems that the contractor and engineers can not come to an agreement, but it is actually the region 8whether meet the quality standard, and the result is that the two sides failed to in this area of combined measure

29、ment. Meeting this kind of situation, the engineer must inform the contractor that the quality problems, Part of the problem, quality requirements which to achieve after the improvement, and that to make afterward inspections. The processing method is that the contractor is willing to accept. 4.1.2

30、The contractors measurement is different form engineers measuring This kind of situation often occurs, and the reason is various. The main reason is, some quantities can be determined through the joint measurement, some quantities can only through the drawing calculation, but the actual output often

31、 does little mending in the site due to the change of topographic and geological conditions, it caused actual situation and drawing discrepancy. In this case, verifiying the contractor application quantities often expendes a lot of energy of engineer, it requires that the engineer has higher profess

32、ional technology and contract management level. Engineer measures reasonably which must be combined with the engineer and the contractor on the site common sign recognition records, remove contract documents defined not measured 9quantities. the situation which often appeared is that the quantity me

33、asured by contractor has double counting, so engineer must know fairly well to the construction situation, complete material of the past measurement, then he can identify the authenticity in the various quantities of project, that can provide complete and accurate data base materia to payment for th

34、e next step work. 4.2 payment The clause of payment in the contract documents which is easier to cause the dispute the project which is not be regulated, or not very clear in the contract. This situation in the whole construction process is often met. For this kind of payments processing appropriate

35、 or not, it will affect the economic interests of the two parties of the contract , engineers prestige as well as cooperation in the future on the surface, in fact, may affect whether the engineering can smoothiy progress. For example, in pouring foundation of parapet wall in dam crest, it must have

36、 made the basic shape by using equipment excavation, artificial refit which has already be made and through the test,While this project contract did not make clear a regulation to pay. The contractor requirements excavation cost referenced “ test pits and 10excavation of instrument groove “ in BQ ta

37、ble to pay. But engineer consider that the difficulty and technical requirements are simpler and easier than “ test pits and excavation of instrument groove“, decided to use BQ table “ excavation of dam and 15 highway foundation “ payment, the former rate is higher than the latter rate. After clarif

38、ying reasones, the contractor accept engineers payment advice. Another example, in the tender drawings, the pedestrian step ladder in the downstream slope of dam is builded by cast-in-place concrete, while design change happened in actual construction, the cast-in-situ concrete is replace by precast

39、 concrete. Because the precast work continues more than half a year, the contractor applied fee according to the rate corresponding BQ table monthly, and ever intended to calculate additional cost by the new rate, then claim to the owner. Through the argumentation and field survey, the engineer thin

40、k that precast concrete is simple, cost savings than cast-in-situ concrete in the construction process and cost, using BQ rate to pay this work is appropriate. But BQ rate is unit price including all expenses, so can not pay 100% for the precast workload when prefabricate is not installed in place. Only when all the prefabricated parts is be installed, step ladder is

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