FIDIC conditions of subcontract as a model for general conditions of subcontract in Pakistan

Abstract

Fair allocation of risks in conditions of contract is pivotal for coordination, unhindered execution, dispute resolution and maintenance of positive relationship among the parties executing the contract. Pakistani construction industry despite subcontracting a large percentage of construction projects lacks standard conditions of subcontract and they are primarily based on the will of the prime contractor that is onerous for the subcontractor. Therefore in order to develop a model for the general conditions of subcontract in Pakistan the conditions proposed by Associated General Contractors of California, FIDIC in 1994 and 2011, Construction Industry Development Board Malaysia, American Institute of Architects and by the Government of Hong Kong were compared to determine the similarities and differences among them. Afterwards a questionnaire based on the significant provisions of these subcontracts was conducted in the construction industry of Pakistan to determine the appropriate conditions for model subcontract. The results of the survey were further subjected to discussions with the legal experts. Out of 35 suggestions made for the general conditions of subcontract 23 originated from FIDIC in which 20 are recommended by its 2011's version. It can therefore be implemented in Pakistan with certain amendments and additions as proposed in light of conditions of other subcontracts and the results of the survey and discussions with legal experts.