Contract Administration Guidelines for U.S. Contractors Working under World Bank–Funded Projects

Abstract

Today’s globalized construction industry requires more integration and collaboration between various multinational and multicultural stakeholders. Many U.S. contractors are involved in large-scale projects that are funded in whole or in part by the World Bank. These projects are managed through the Standard Bidding Documents for Procurement of Works (SBDW). The Conditions of Contract included in the SBDW (i.e., WB contract) are based extensively on the Conditions of Contract for Construction published by the International Federation of Consulting Engineers (FIDIC). Most of the U.S. contractors are more familiar with the families of contracts issued by the American Institute of Architects Conditions of Contract (namely, the A201) and are less familiar with the FIDIC Conditions of Contract. This paper presents contract administration guidelines for U.S. contractors working under World Bank–funded projects. The authors highlight the WB contract’s fundamental administrative issues, including the role of the Bank, the responsibilities of the engineer, commencement, instructions, approvals, delays and extension of time, acceleration, and payment provisions. For each guideline, the authors compare the associated SBDW provisions with their respective ones under the FIDIC’s editions issued in 1987 and 1999. It is perceived that such in-depth analysis will help U.S. contractors better understand the evolution of the philosophy governing the development of SBDW contracts and consequently help them better manage their associated projects.