In the construction industry, FIDIC, or the Fédération Internationale des Ingénieurs-Conseils, is a widely recognized set of construction contract models. The regulation of FIDIC contracts in Iran is anchored on the principle of General Contract Terms, which provide a framework for defining the rights and obligations of the parties involved. These general conditions often draw inspiration from international standards, such as the FIDIC suite of contracts.

What is FIDIC?

FIDIC is a non-profit organization that develops and publishes standard contract forms for international engineering and construction projects. These forms are used in projects in over 170 countries.

FIDIC’s contract forms are based on the principle of fair and equitable risk allocation between the parties to the contract. This means that the risks are allocated in a way that is fair to both the contractor and the employer.

Types of FIDIC Contracts

FIDIC offers a range of contract forms for different types of projects. Some of the most commonly used FIDIC contract forms in Iran include:

  • Red Book: The Red Book is the most widely used FIDIC contract form. It is used for engineering, procurement, and construction (EPC) projects.
  • Yellow Book: The Yellow Book is used for civil engineering construction projects.
  • Silver Book: The Silver Book is used for turnkey projects.
  • Green Book: The Green Book is used for consulting services contracts.

FIDIC in Iran

FIDIC contracts are widely used in Iran for international construction projects. The Iranian government and many Iranian companies prefer to use FIDIC contracts because they are seen as fair and equitable.

The FIDIC contracts, developed by a non-governmental organization, offer a widely adopted set of standard forms for international construction projects. While the FIDIC organization plays a key role in establishing the framework, the parties to a construction contract in Iran retain the flexibility to tailor the general conditions to suit the specific requirements of their project. This adaptability reflects the principle of freedom of contract, a fundamental tenet in Iranian law.

However, the freedom to modify or adjust the general conditions is not without limitations. The principle of good faith execution, enshrined in Iranian contract law, dictates that any changes or alterations must be made in a fair and reasonable manner. The parties must maintain a genuine commitment to upholding the spirit of the contract and respecting the agreed-upon terms.

Benefits of Using FIDIC Contracts in Iran

There are several benefits to using FIDIC contracts in Iran:

  • Fair and equitable risk allocation: FIDIC contracts allocate risks in a way that is fair to both the contractor and the employer. This can help to reduce disputes.
  • Internationally recognized: FIDIC contracts are recognized and used all over the world. This can make it easier to attract international contractors to projects in Iran.
  • Standardized documents: FIDIC contracts are standardized documents. This can help to reduce the time and cost of preparing contracts.

MJK Law Firm and FIDIC Contracts

MJK Law Firm is a leading law firm in Iran that specializes in international construction law. We have extensive experience in advising clients on FIDIC contracts. We can help you to:

If you are involved in an international construction project in Iran, please contact us to discuss how we can help you with your FIDIC contract.

If you are looking for legal advice on FIDIC contracts in Iran, please contact MJK Law Firm today. We are here to help you achieve your business goals.