FIDIC in the technology industry

FIDIC contracts are increasingly used for long-term technology projects, where the technology system to be delivered needs to be customised to the customer’s needs

Why should technology companies use FIDIC contracts?

The FIDIC contracts are primarily known and used in international construction projects. But there are also obvious advantages of using the FIDIC Yellow Book and the FIDIC Silver Book in technology projects. These contracts regulate the supplier’s design, delivery, acceptance test and performance test and are intended for complex projects that require continuous customisation to the customer’s needs.

As international model contracts with a relatively balanced risk profile, the FIDIC contracts are therefore suitable for technology projects. Once your organisation has become familiar with the FIDIC contract, there are significant advantages to using it, including as regards negotiation and contract management.

Pitfalls of using FIDIC contracts in the technology industry

FIDIC contracts include detailed regulation that reflects an “international” approach to a range of topics. The length and complexity of the contracts can be a barrier and make them less suitable for smaller projects (except for the Green Book).

Furthermore, the FIDIC contracts - although claiming to be balanced - are clearly more “customer friendly” than other templates commonly used in the technology industry. As an example, Orgalim (general conditions for the supply of mechanical, electrical and electronic products) is relatively “supplier friendly”.

Since the FIDIC contracts are primarily known and used in international construction projects, more detailed regulation of some issues is advisable where they are used in technology projects, including in relation to:

software: right of use, right to source code, licence models, etc.
cybersecurity: especially if the system is to operate in an online environment
ongoing service and maintenance, typically dealt with in a separate service agreement

How can we assist your organisation?

Our FIDIC team has extensive experience in customising and negotiating all types of FIDIC contracts across sectors, including contracts (Yellow Book and Silver Book) for the procurement of:

logistics systems in the automotive industry
logistics systems in the fashion industry
facilities for the production of food and retail products
test facilities

We draw on our experience from other technology standards, including Orgalim, and large-scale IT projects, which - like technology projects - are characterised by being long-term and complex projects with a strong focus on acceptance and performance testing.

Please reach out to us if you and your organisation want to know more about the use of FIDIC in technology projects.