Why FIDIC Contracts Rule Globally

What That Means for Projects in Kenya

Introduction

In construction and infrastructure development, the choice of contract is as important as the design or budget. The contract governs risk allocation, defines roles and responsibilities, and ensures that projects are executed in a legally sound and commercially viable manner. Globally, FIDIC contracts have emerged as the leading standard for international projects. But what is a “suite contract,” and how do options like FIDIC compare with local forms such as those issued by Kenya’s Ministry of Public Works?

In this article, the authors explain the concept of suite contracts, the reasons behind FIDIC’s global dominance, and how FIDIC compares to Kenyan-standard forms of contract.

What is a Suite Contract?

A suite contract refers to a set of standardised construction contracts created by a recognised institution, designed to cater to different project types, procurement methods, and relationships. Each form within the suite maintains a consistent structure, terminology, and approach—offering predictability and ease of use across projects.

Contract suites provide variations for:

1. Design-bid-build (employer designs)
2. Design and build (contractor designs)
3. Turnkey or EPC (single point of responsibility)
4. Short form or small works contracts
5. Subcontracts and consultancy agreements

Globally Recognised Contract Suites

Several internationally recognised contract suites are used across various jurisdictions including:

1. FIDIC Suite – Widely used for infrastructure and engineering projects.
2. NEC Suite – Popular in the UK and Commonwealth countries, known for promoting collaboration.
3. JCT Contracts – Common in UK building projects.
4. AIA Contract Documents – Widely used in the United States.
5. ConsensusDocs – US-based, focused on collaborative delivery.
6. Australian Standards (AS), GC21 – Widely adopted in Australia and New Zealand.

Why FIDIC Leads Globally

The FIDIC (Fédération Internationale des Ingénieurs-Conseils) suite of contracts is considered the gold standard in international construction for several reasons. These include:

1. Global Recognition: Used in over 100 countries, and endorsed by the World Bank, AfDB, ADB, and others.
2. Balanced Risk Allocation: Ensures a fair sharing of risk between the employer and contractor.
3. Adaptability: Suitable for diverse legal systems, with optional clauses and flexible provisions.
4. Comprehensive Guidance: Includes explanatory notes for application and interpretation.
5. Neutral Terminology: Free from jurisdiction-specific legal jargon, enhancing cross-border use.

Among FIDIC’s suite, the Red Book (1999 edition) is commonly used for employer-designed construction. For donor-funded projects, especially those backed by multilateral development banks (MDBs), the FIDIC Red Book MDB Harmonised Edition is typically required.

Construction Contract Suites in Kenya

In Kenya, both international and local standard forms are used. The FIDIC suite is widely adopted, especially for infrastructure projects funded by international financiers. Locally, the Ministry of Public Works provides standard forms tailored for government-funded projects.

The commonly used construction contracts in Kenya are:

1. FIDIC Suite: this is used for roads, dams, energy, and donor-funded infrastructure. The forms used are Red Book (Design-Bid-Build), Yellow Book (Design & Build), Silver Book (Turnkey), and MDB Harmonised Edition.
2. Kenyan Ministry of Public Works Forms: This is used for government-funded schools, clinics and buildings. The form used is General conditions for building works, civil works, and nominated subcontractors.
3. Joint Building Contracts Committee of Kenya (JBCC) Contracts (adapted from South Africa): Occasionally used by private developers for commercial projects.

Comparison between FIDIC and JBCC Kenya Contracts

If you are looking at choosing between FIDIC and JBCC Contracts for a project in Kenya, the nature, scale, funding source, and stakeholders involved are key factors. For donor-funded or infrastructure-heavy works, FIDIC is often preferred. For smaller-scale, domestic building projects, JBCC Kenya is more practical. Other comparisons between the two include:

Summary

Comparison between FIDIC Red Book and Kenyan Public Works Form

In summary, the Kenyan Public Works Form is suitable for smaller, locally funded public projects, while FIDIC is the contract of choice for larger, more complex, or donor-funded infrastructure projects—offering stronger risk management and dispute mechanisms.

Conclusion

For clients, contractors, consultants, and developers, understanding the right form of contract is essential to managing risk, ensuring compliance, and securing project success. Globally, FIDIC has earned its place as the preferred contract suite for good reason—clarity, balance, and international usability. However, in the Kenyan context, familiarity with both FIDIC and local forms such as those issued by the Ministry of Public Works is crucial.

Need Help Choosing or Customising a Construction Contract?

At MMC ASAFO, our Construction & Infrastructure team advises public and private sector clients on contract drafting, negotiation, and dispute resolution. Whether you’re undertaking a local project or navigating a donor-funded infrastructure contract, we can help ensure your contracts are aligned with your objectives and compliant with both local and international standards.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Parties should seek specific legal counsel tailored to their project before entering into any contract.

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