FIDIC Guidance Memorandum – A Half Baked Solution?

This article discusses whether the recently issued FIDIC Guidance Memorandum really does provide the answer to the vexed question of enforcement of binding, but not yet final DAB decisions. On 1 April 2013 the FIDIC Contracts Committee issued a Guidance Memorandum to users which is intended to be used with the Conditions of Contract for Construction (the ‘Red Book’), the Conditions of Contract for Plant and Design-Build (the ‘Yellow Book’), and the Conditions of Contract for EPC/Turnkey Projects (the ‘Silver Book’). The FIDIC Contracts Committee have stated that compliance with the guidance is highly recommended when using the 1999 FIDIC Red, Yellow or Silver Books. This article considers briefly whether the Guidance Memorandum is either necessary or useful.