Common FIDIC Contract Management Mistakes

Many problems are not caused by a complete lack of contractual knowledge. They arise because obligations are unclear, responsibilities are fragmented or procedures are followed too late.

1. Managing the standard form instead of the signed contract

The Yellow Book’s General Conditions may have been heavily amended through the Particular Conditions and other project documents.

Teams that rely on general FIDIC knowledge without reviewing the signed contract risk applying the wrong:

• Deadlines

• Approval procedures

• Notice requirements

• Risk allocation

• Claim mechanisms

• Authority levels

FIDIC’s Golden Principles highlight the importance of clear Particular Conditions and maintaining the intended structure of the contract.

2. Keeping the contract inside the legal department

Legal and commercial teams cannot identify every event occurring on site or within design, planning and procurement.

The operational team must understand:

• Which events may have contractual consequences

• Who must be informed

• What evidence must be retained

• How quickly escalation must occur

3. Submitting notices too late

Project teams sometimes wait until the full impact of an event is known before issuing a notice.

This can be dangerous. A notice often communicates the occurrence or potential effect of an event; detailed substantiation may follow later depending on the relevant contractual mechanism.

The precise requirements must always be checked against the signed contract.

4. Treating informal communication as contractual communication

A discussion in a meeting, phone call or informal email may not satisfy the contract’s communication requirements.

Formal communications should be:

• Clearly identified

• Sent through the correct channel

• Addressed to the correct recipient

• Submitted by an authorised person

• Recorded in the correspondence system

5. Poor record keeping

A claim is difficult to establish without contemporary evidence.

Relevant records may include:

• Programmes and updates

• Daily reports

• Correspondence

• Instructions

• Labour and equipment records

• Design submissions

• Photographs

• Cost records

• Meeting minutes

• Progress documentation

Record keeping should begin when the event occurs—not months later.

6. Unclear ownership of contractual processes

When everyone is partly responsible, nobody is fully responsible.

Each important process should have a named owner, backup, approval route and escalation procedure.

7. Managing changes informally

Teams often proceed with changed work to maintain progress while postponing the contractual and commercial documentation.

This creates uncertainty around scope, price, time and authority. Operational urgency should not eliminate change control.

8. Waiting until the end to prepare for completion

Testing, documentation, handover and taking-over requirements may require substantial preparation.

A completion strategy should be developed early and connected to the programme.

9. Treating contract management as claims management

Good contract management is not merely the preparation of claims. It supports communication, governance, risk management, payment, change control and project delivery throughout the lifecycle.

10. Failing to operationalise the contract

The biggest mistake is assuming that employees will read, interpret and apply a lengthy contract consistently without practical support.

VIXCO turns complex FIDIC contracts into visual playbooks that clarify responsibilities, procedures and actions—helping the project team use the contract before problems become disputes.