Terms of Contract

Case: Main Contractor
A main contractor was asked to tender for a project and instructed us to review the complex FIDIC based tender documentation which had been amended.

We carried out the review concluding that:

• Standard FIDIC levels of risk had been significantly amended in favour of the client.
• Contractor risk levels were very high.
• Milestone payment basis meant that no activity could be charged until completion, leading to massive cash flow difficulties.

As a result of our review the main contractor had a number of meetings with the client and, reluctantly, withdrew from the tender despite having spent a considerable sum in tendering.