In terms of global practice, EPC and FIDIC contracts are the preferred form for construction projects. However, Kazakhstan practice demonstrates that application of the forms of these contracts is complicated due to inconsistency of contract provisions with national legislation.
Unicase presents an analytical article on the application of FIDIC forms
of contracts in Kazakhstan.
Other FIDIC contracts include the FIDIC
subcontracting agreements :
- The Blue Book; and
- The White Book.
Although there are several types of FIDIC contracts, almost 99% of projects use the following
types of FIDIC contracts:
1) The Red Book;
2) The Yellow Book;
3) The Silver Book.
The features of each contract are briefly
In general, FIDIC forms are adapted depending on the project, taking into account national legislation,
commercial conditions, cost of construction of the facility, management and maintenance of the
facility, time frame, project phases, fees, etc.
It must be taken into account that FIDIC contracts are characterised by the application of the principle
of reasonableness, admissibility and justification to the actions of the parties to the contract.
However, these principles are not regulated by the Kazakhstan legislation. Therefore, they may be
unpredictably interpreted both by the court and the parties to the contract. In practice, it is necessary
to clarify what a particular term means in each particular context. However, as mentioned above, it is
important to keep in mind which law governs the contract and which bodies deal with disputes
between the parties.
The above are only some aspects of the difference between FIDIC contracts and the current
Kazakhstan law. Overall, in order to fully implement and adapt the FIDIC forms in Kazakhstan without
compromising their integrity and the risk of breach of legislation, it will take time to analyse in detail
and implement amendments to construction legislation with regard to the procurement of
construction services and related financing.