FIDIC and Chinese contractors group ink MoU on contract forms

Chinese contractors, including the world’s biggest by revenue and the most active in global infrastructure projects, will be encouraged to use FIDIC contracts following an agreement announced 18 July.

Billed a "communication bridge" between Chinese contractors and international consultants, the International Federation of Consulting Engineers (FIDIC is the acronym of its French title) has signed a memorandum of understanding with the China International Contractors Association (CHINCA), which parties are calling "ground-breaking".

CHINCA members include global contracting giants such as China Communications Construction Company, China State Construction Engineering Corp, PowerChina, and Beijing Construction Engineering Group.

The two-year MoU pledges parties to improve collaboration between international and Chinese businesses, share skills and knowledge, and increase the use of FIDIC contracts.

Goals include encouraging Chines contractors to use quality-based selection, and working together on China’s gargantuan, global Belt and Road infrastructure initiative.

"This is a landmark moment for FIDIC and the construction and infrastructure industry in China," said FIDIC chief executive Dr Nelson Ogunshakin.

"Both FIDIC and CHINCA represent businesses whose activities create a legacy that citizens experience for generations and the social and economic impacts of that work influence wellbeing, culture and societal structures for decades, so it is essential that we work together for the common good. I look forward to both organisations learning from each other and to a fruitful collaboration to ensure that we create better outcomes for our world and its citizens."

CHINCA chairman Fang Qiuchen said: "FIDIC contracts are one of the most popular templates used in international infrastructure projects. Chinese contractors are one of the largest application groups for FIDIC contracts and the MoU between FIDIC and CHINCA creates a communication bridge between Chinese contractors and international consultants. CHINCA also looks forward to strengthening cooperation with FIDIC’s newly established Beijing Office in the areas of training, standard contracts and in developing subcontract templates."

FIDIC president Alain Bentéjac said: "FIDIC is delighted to be working in partnership with CHINCA to promote overseas project contracting. I look forward to both organisations working together in collaboration to benefit, not just companies working in the construction sector, but also infrastructure professionals in China and overseas. Promoting mutual understanding and increasing collaborative working is a key role of FIDIC on the global stage and I am sure that this MoU will lead to better links and mutual cooperation across the entire construction sector in China."

Image: FIDIC president Alain Bentejac (FIDIC)

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