⚠️ 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.
The Short Form of Contract (2nd ed., 2021) — the Green Book — is a pragmatic, plain‑language standard form tailored for small, low‑complexity construction works. It speeds procurement and reduces administration but needs careful tailoring for any non‑routine risks.
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FIDIC Short Form of Contract 2nd Edition (2021) , commonly known as the Green Book
, is widely regarded by legal experts and industry practitioners as a successful "bridge" between informal agreements and the high-complexity 2017 "Rainbow Suite" (Red, Yellow, and Silver Books). short form of contract 2nd ed -2021 green book- pdf
While the original 1999 edition was strictly for projects under USD $500,000, the 2021 update is recognized as an "intermediate" form suitable for projects up to $10 million $25–30 million depending on complexity. Key Performance Highlights FIDIC gives green light on new edition - Fenwick Elliott
The FIDIC Short Form of Contract, 2nd Edition (2021 Green Book)
is a streamlined alternative to the more complex 2017 "Rainbow Suite" (Red and Yellow Books). While originally designed for projects under $500,000, the 2021 update acknowledges its real-world use on projects exceeding $10 million and durations over two years. Key Features & Innovations
The 2nd Edition introduces several mechanisms to improve clarity and reduce administrative burden: ⚠️ Lack of Administration: Without a neutral Engineer,
Introduction of the "Engineer": Replacing the "Employer’s Representative," an Engineer now administers the contract. They must act neutrally when making determinations or certifications.
Prolongation Cost (PGC) Mechanism: A major novelty where the Contractor’s overheads for compensable delays are pre-calculated using a formula in the Contract Data. This acts as liquidated damages, avoiding the need for complex expert assessments after a delay occurs.
Simplified Claims Procedure: Unlike the strict "time bars" in other FIDIC forms, a failure to meet notice deadlines (28 days for notice, 56 days for full claim) does not automatically result in loss of rights. Instead, entitlements are adjusted based on any prejudice caused to the investigation or mitigation of the claim.
Tabulated Risk Allocation: A user-friendly table (Clause 11) summarizes the Contractor’s entitlements (Time and/or Cost) for various Employer Risks, making the contract easier to navigate at a glance. FIDIC Short Form of Contract 2nd Edition (2021)
Limitation of Liability: For the first time, the Green Book includes a cap on total liability and an exclusion for indirect/consequential losses, aligning it with modern risk management standards. Contract Structure & Suitability
The document has grown from 10 pages in the 1999 edition to 26 pages of General Conditions, totaling 155 pages including guidance and 40 sample communication forms. FIDIC contracts—introduction to the FIDIC Green Book 2021
This contract excels in scenarios such as:
Do NOT use the Green Book for:
| Feature | Details | | :--- | :--- | | Full Title | Short Form of Contract (2nd Edition) | | Year | 2021 | | Nickname | The Green Book | | Publisher | Usually associated with FIDIC (International Federation of Consulting Engineers) or national engineering bodies (e.g., ICE in the UK). Verify which institution’s Green Book you need—most commonly FIDIC. | | Purpose | For small-value or simple construction, building, or engineering works where risk is low. | | Typical Project Size | Under $500,000 USD (or equivalent local currency). | | Key Features | Short clauses (under 20 pages), minimal administration, no Engineer/Contractor hierarchy—just simple promises between two parties. |
If you need a simple contract without purchasing: