…and why they might cost you more than the variation itself 💸.
📄 FIDIC contracts are present in almost every serious 🏗️ project in the region, but that doesn’t mean people actually understand them 🤯. What are the most common misconceptions?
Every month 📅 I hear the same sentences from 🧑💼 Employers, 🧱 Contractors, and even some “experienced” Consultants 🤷♂️. Below is a list of the most common misconceptions that circulate as truth, while in reality they show just how dangerous ⚠️ it is to work on a FIDIC project without proper preparation 📉. If you recognize yourself in this text, it’s better to realize it now than in front of the dispute board (DAB / DAAB) or worse — an arbitration panel.
1️⃣ “FIDIC is just a template 📑. We work according to our contract.”
❌ No, you don’t. That is the biggest misconception. If you initially accepted “FIDIC as a base,” and then rewrote it to your liking ✍️ — you created a hybrid monster, Frankenstein 🧟, that no one will know how to defend when a dispute ⚔️ starts. Every amendment to the standard clauses must have logic and consistency, otherwise it leads to conflict over even the most basic terms. Heavily altered FIDIC contracts are often colloquially referred to as “fidic-like” contracts. They resemble FIDIC, but essentially aren’t, because they violate one of the 5 golden FIDIC principles.
2️⃣ “We didn’t submit that through a Variation ⚙️, so we don’t have to pay 💶.”
FIDIC doesn’t excuse ignoring actual executed works 🚧. If the Engineer approved the works, and later you say “this wasn’t done through VO procedure,” — prepare your arbitration budget ⚖️. Even when the form is not followed, facts on the ground play a crucial role in resolving claims. The Engineer is obliged to monitor works and stop them if they are contrary to contract documents. On the other hand, it’s in the Contractor’s best interest to have all works documented. The Site Diary is one of the documents often neglected in contractual correspondence. All entries in the Site Diary serve as serious evidence in eventual arbitration and are records created contemporaneously, without the possibility of later alteration.
3️⃣ “There are no deadlines 🕒, we can do things when we get around to them.”
Almost every deadline in FIDIC carries consequences ⏳. Missed notices 📬, late decisions, ignoring the Dispute Board ⚖️ — it all counts. And not in days, but in thousands of euros 💰. Older FIDIC editions placed more time pressure on Contractors. The newer editions impose similar time limitations on both parties. So, keep your head on straight. Precision in deadlines often makes the difference between a successful project and a contractual disaster.
4️⃣ “So what if we were late 🐌 — no EOT was submitted.”
If an objective obstacle 🧱 existed, and you didn’t grant an extension of time 📆, you signed your own defeat 😬. Denying an extension without justification often results in a lost case 🧨. And when the dispute comes, all eyes are on the communication and documentation — not the project manager’s memory.
5️⃣ “We don’t need an Engineer 🧑🔧, we’ll deal directly with the Contractor.”
FIDIC without an Engineer is like tennis 🎾 without a net — possible, but it looks more like ping-pong 🏓 and the result isn’t credible. The Engineer’s role is key 🔑 to ensuring neutrality ⚖️. Removing this figure disrupts the balance and opens the door to abuse or one-sided decisions. A particularly regional practice is for the Employer to appoint someone from their own team as the Engineer — not temporarily, but as a permanent solution. It is big misconception that the Employer is protected that way.
6️⃣ “Variations must be accepted before execution.”
❌ No, they don’t. In practice, works are often executed based on verbal instructions 🗣️ or informal direction 📢, with VO coming later. FIDIC recognizes this 👀, but only if you left a written trail ✍️. The timing of acceptance is important, but even more so is the existence of records and a correct assessment of time and cost impact.
7️⃣ “We don’t need a Dispute Board 🧑⚖️ — we’ll agree everything 🤝.”
Then you don’t. And then you realize you signed a contract without a DAB/DAAB ❌ and lost your best chance for peaceful resolution 🕊️. After that comes arbitration, which lasts three years 📆⚖️. The DAB/DAAB won’t solve every issue, but it’s a filter that often saves relationships and bank accounts. The fact that 90% of DAB/DAAB decisions are upheld in arbitration gives this institution serious credibility.
8️⃣ “Who reads all those clauses 📚…”
The one who wins the case 🏆. The one who ignores them — usually pays 💸. It’s no coincidence that key FIDIC provisions are buried in footnotes 📌, comments, and time limits ⏰. Superficial contract reading leads to misinterpretation, and every misinterpretation costs dearly in a dispute.
9️⃣ “Even the Subcontractor hasn’t submitted anything 🤐, so there’s no claim.”
If you didn’t cover your subcontract with a back-to-back 🧩 contract 🧑🔨, their silence doesn’t mean your safety 🚨. Damage can reach you directly 🎯. The Main Contractor’s liability doesn’t stop at the site gate — it transfers through all contract chains.
🔟 “It’s fine, we’ll fix it later with an addendum 📝.”
Maybe. But you’ll be writing that addendum based on what was done or missed ⏪. And if there’s no documentation 📂, reports 📄 or letters ✉️ — then the addendum becomes a spin 🔄, not a solution. Late fixes without a solid basis often complicate more than they help, and an addendum that comes too late doesn’t undo the damage.
📌 Conclusion:
FIDIC is not a magic wand 🪄. It’s a tool 🧰. Bikers have a saying: “The moment you stop fearing your bike is the moment it decides to kill you.” Same with FIDIC. The moment you think you know it all and stop learning, it turns against you with full force ⚠️.
Like any sophisticated tool, FIDIC demands a trained operator, a clear plan, and constant attention. That’s why the only thing more dangerous than not knowing FIDIC — is thinking you know it perfectly 🧠➡️😵.
If you’re smart, learning FIDIC never stops — because mistakes in projects never stop; they just put on a different suit.
If you need consulting services, feel free to contact us.
