Conditions of contract

FIDIC-MDB harmonised general conditions of contract for construction

The EBRD has entered into a licence agreement with the International Federation of Consulting Engineers (FIDIC). This gives entities involved in the development, tendering and implementation of EBRD-financed projects free access to the FIDIC-MDB Harmonised General Conditions of Contract for Construction (the General Conditions).

EBRD participated actively in the discussions with other multilateral development banks (MDBs) and FIDIC in order to harmonise the text of these General Conditions and to reflect best industry practice.

On the 2nd of May 2007, the Bank's Board of Directors approved amendments to paragraph 2.9 of the Bank's Procurement Policies and Rules. The amendments reflect the IFI's "Uniform Framework for Preventing and combating Fraud and Corruption" and provides as set of definitions for corrupt, fraudulent, coercive and collusive practices.

Until such time that the harmonised version of the General Conditions of Contract clause 15.6 has been amended to reflect the new paragraph 2.9 the following definitions should be included in the Particular Conditions to supersede the definitions in GCC 15.6.

For the purpose of this sub-clause

(i) "corrupt practice" means the offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the actions of another party.

(ii) "fraudulent practice" means any act or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation.

(iii) “coercive practice” means impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party.

(iv) “collusive practice” means an arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party.

Although the EBRD supports the use of the General Conditions, this form of contract is not mandatory for EBRD financed projects. The EBRD continues to accept other internationally recognised forms of contracts. The use of EBRD's standard tender documents continues, however, to be mandatory.