The 2nd Edition has 21 clauses (compare to 15 in 1999). Below is the simplified structure:
| Clause | Title | What It Covers | | :--- | :--- | :--- | | 1 | Definitions | Contract documents, Employer, Contractor, Subcontractor, Day, etc. | | 2 | Contract Documents | Priority of documents (Agreement → Special Conditions → Green Book clauses → Drawings) | | 3 | Employer’s Obligations | Provide site access, permits, and pay on time. | | 4 | Contractor’s Obligations | Execute works, provide supervision, comply with laws. | | 5 | Subcontracting | No subcontracting without consent. Contractor remains liable. | | 6 | Works by Employer | Employer may do separate work—coordination clause. | | 7 | Contractor’s Documents | Submittals (schedules, method statements). | | 8 | Commencement & Completion | Time for completion, possession of site. | | 9 | Variations | Changes to scope—must be in writing. | | 10 | Payment | Application for payment, due dates, interest on late payment. | | 11 | Retention | Usually 5% retention, released 50% at completion, 50% after defects period. | | 12 | Delay Damages | Liquidated damages for late completion (cap often 10% of contract price). | | 13 | Completion & Taking Over | Certificate of completion, transfer of risk. | | 14 | Defects Liability | Usually 12 months to fix defects. | | 15 | Suspension | Contractor can suspend if non-payment. | | 16 | Termination | Either party can terminate for material breach. | | 17 | Risk & Indemnity | Who bears loss/damage to works. | | 18 | Insurance | Required: liability, works, contractor’s equipment. | | 19 | Exceptional Events | Force majeure, pandemic, war—extends time, no damages. | | 20 | Claims & Disputes | Notice of claim within 28 days. | | 21 | Dispute Resolution | Adjudication (fast, binding temporarily) then arbitration. |
The FIDIC Short Form of Contract, 2nd Edition (2021), commonly known as the "Green Book," is a standardized contract template published by the International Federation of Consulting Engineers (FIDIC). It is designed for relatively simple and repetitive engineering and construction projects. short form of contract 2nd ed -2021 green book- pdf
Released in 2021, this edition replaces the 1st Edition (1999). It reflects modern construction practices, addressing contemporary issues regarding risk allocation, sustainability, and project management, while maintaining the brevity that defines the "Short Form" series.
The "Green Book" is a publication by the Institution of Civil Engineers (ICE) . While the ICE is a UK-based body, the influence of its contract forms—specifically the Engineering and Construction Contract (ECC)—is global. However, the "Short Form" fills a specific niche. The 2nd Edition has 21 clauses (compare to 15 in 1999)
The "Green Book" nickname comes from the distinct color of its physical cover. Despite the digital age, the industry still refers to it by this color code, similar to the JCT's "Red Book" or "Yellow Book."
The Green Book is a concise, fully-interactive contract designed for minor works, small maintenance tasks, simple service orders, or equipment supply with limited installation. It is intended for projects where the complexity does not warrant the detailed mechanisms of the IChemE Red, Burgundy, or Yellow Books. The FIDIC Short Form of Contract, 2nd Edition
The 2nd Edition (2021) replaces the original 2000 edition, bringing the contract in line with modern procurement practices and legal standards.
⚠️ Lack of Administration: Without a neutral Engineer, disagreements over quality or time can become “he said, she said.” Keep good records. ⚠️ Not for Design Responsibility: If the Contractor must produce detailed design (not just build to spec), consider a more robust contract (e.g., IChemE Red Book). ⚠️ Liability Cap: The cap is often set at the contract price, which may be insufficient if the Contractor’s negligence causes injury or major plant damage. Review insurance requirements carefully. ⚠️ No Subcontractor Flow-Down: If the Contractor uses subs, you must ensure those subs are bound by equivalent terms – the Green Book assumes a single responsible Contractor.