Design Liability under FIDIC Red Book and Some Civil Law Jurisdictions

Abstract

The construction industry has enormous supply and decision-making chains. Disruptions within these chains can have significant adverse impacts on countries’ economies. There are several methodologies for construction project delivery; among them is the traditional methodology, design–bid–build, in which the design is prepared by or on behalf of an employer and procurement and construction activities are carried out by the awarded contractor. Hence, proper contract terms are drafted in a way that respects this allocation of responsibilities. In addition, it is crucial for contracting parties to be aware of their legal and contractual responsibilities with regard to the correctness of the design under different circumstances and to recognize that any ambiguous allocation of such responsibilities will hinder the determination of the party liable for design defects and may, accordingly, result in disputes. Egyptian law imposes some responsibilities related to design in private works contracts and public works contracts. This paper addresses the application of the frequently used contract conditions for design-bid-build, prepared by the International Federation of Consulting Engineers (FIDIC), and commonly known by “FIDIC Red Book” under the umbrella of the Egyptian law in terms of the provisions related to the allocation of design responsibilities in order to assess the degree of compatibility between them, then recommends procedures promoting for effective contract management. This research has a wide range of applications to several Arab countries, the laws of which are heavily influenced by Egyptian law.