The International Federation of Consulting Engineers (FIDIC) is globally recognized as the standard-bearer for international construction contracts. In 2021, FIDIC released the second edition of the Short Form of Contract , updating the "Green Book" for the first time since 1999. This revision was necessitated by the evolving landscape of the construction industry, the demand for greater clarity in contractual terms, and the need to align the short form with the updated suite of FIDIC contracts (the 2017 Red, Yellow, and Silver Books).
Reflecting the 2017 updates, the 2021 Green Book introduces a tiered dispute resolution mechanism. It typically involves:
: Works typically completed within a short duration. Key New Features in the 2nd Edition
Parties can choose from various valuation methods, including lump sum, re-measurement, or cost-plus Where to Access the 2021 Green Book Official digital and physical copies are sold through the FIDIC Bookshop , where a standard practitioner PDF is priced around For educational summaries and official guides: Detailed Introduction: International Construction Knowledge Hub provides a practice note on the 2021 changes. Practical Guide: short form of contract 2nd ed 2021 green book pdf hot
In a notable departure from the strict time bar rules in the 2017 suite, the Green Book introduces a more pragmatic approach. While it maintains a 28-day notice period for claims, failure to comply does not automatically result in a forfeiture of rights. Instead, "any entitlement shall take account of the extent to which that failure has prejudiced proper investigation of the claim or a mitigation of the effects of the claim". This change was made to reflect the lower level of management resources available on projects for which the Green Book is intended.
Originally intended for projects valued under USD $500,000, the Green Book is now marketed for a much broader range of small-to-medium scale works, including those with a capital value up to approximately . It is primarily used for:
: Unlike the more rigid 2017 books, the Green Book includes time limits for claims (e.g., 28-day notice) but omits strict "time bars" . Instead, failure to notify is taken into account only to the extent it prejudices the investigation or mitigation of the claim. Reflecting the 2017 updates, the 2021 Green Book
Official digital copies in PDF format can be purchased directly from the FIDIC Bookshop for approximately . Free versions found on third-party sites are often incomplete or unauthorized; the official version includes a watermark and digital security for practitioner use. Short Form of Contract 2nd Ed (2021 Green Book) - FIDIC
, allowing parties to tailor the contract to their specific needs. Dispute Avoidance : Requires the early appointment of an Adjudicator
: It mandates the appointment of an Adjudicator within 28 days of the contract's start for early dispute avoidance. If matters escalate, it specifies ICC Expedited Procedure for arbitration. Structure and Documentation Practical Guide: In a notable departure from the
The 2021 edition has expanded from 10 pages of general conditions to roughly , reflecting new mechanisms designed for better risk management.
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Evaluating financial damages caused by project delays is typically a major source of construction disputes. The 2021 Green Book solves this via . Instead of proving actual losses on a granular level, the contract data includes a pre-agreed formula or daily rate. If the Employer causes a delay, the Contractor’s compensation is calculated instantly using this mechanism. Streamlined Claims and Variations
Clause 4.1 (Simplified): “The Contractor shall carry out the Works with due care and in accordance with the Contract.” No tangled legal prose. No hidden traps. Just clear duty – that’s the Green Book difference.
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