An administrative contract is a type of contract that the administrative body enters in order to achieve a public interest. In Egypt, administrative contracts are governed by Law No. 182 of the year 2018 for Regulating Contracts concluded by Public Entities, which has been promulgated in October 2018. This Law includes several mandatory rules, which will govern over any conditions in the construction contract.
The FIDIC Red Book 1999 is widely used in Egypt and the Middle East in private sector and is currently also being utilized by governmental bodies. However, some contractors are not aware of the major deviations and limitations for the implementation of FIDIC Red Book 1999 when governed by Law No. 182 of the year 2018 in public works, which may lead to several unforeseeable obligations and risks to the contractor during the execution of such types of projects.
This study aims to identify the risks and limitations for the implementation of FIDIC Red book 1999 form of contracts under Law No. 182 of year 2018 followed by creating a framework for the applicability of aforementioned form of contract under such Law. This aim was achieved through, first, conducting interviews with experts to identify the risky differences in Law No. 182 of year 2018 in comparison to FIDIC Red Book 1999 from the contractor’s perspective for specific conditions; for the following points of research: priority of tender, contractor’s design liability for the works, variations, modifications of prices under the contract, consequences/remedies for delayed payment, suspension of work, exceptional events and force majeure, delay damages, termination of contract, extension of time for completion and additional costs, and dispute resolution mechanism. Then, the risky articles of Law No. 182 of year 2018 in comparison to FIDIC Red Book 1999 for such conditions are categorized into high, medium, and low risks, by means of disseminating surveys. After that, certain clauses have been proposed in the conditions of an administrative contract for the points of research of high risks in such Law to reduce such uncertainties from a contractor’s perspective in addition to identification of the mandatory provisions of the aforementioned Law that has the highest risks for the contractors to mitigate; for the following points: remedies for delayed payment, termination by contractor, contractor’s liability for guaranteeing the works, priority of tender, omission, arbitration, extension of time for completion and additional costs, limit of delay damages, and notice requirements for delay damages. Lastly, semi-structured interviews have been conducted to validate the proposed clauses followed by implementation of the valuable feedback in the final proposed clauses.
School of Sciences and Engineering
Construction Engineering Department
MS in Construction Engineering
A. Samer Ezeldin
Committee Member 1
Committee Member 2
Institutional Review Board (IRB) Approval
Approval has been obtained for this item
(2023).Framework for Applicability of FIDIC Red Book (1999) for Contracts Governed by Law No. 182 of the Year 2018 for Regulating Contracts Concluded by Public Entities [Master's Thesis, the American University in Cairo]. AUC Knowledge Fountain.
Ayad, Fredy. Framework for Applicability of FIDIC Red Book (1999) for Contracts Governed by Law No. 182 of the Year 2018 for Regulating Contracts Concluded by Public Entities. 2023. American University in Cairo, Master's Thesis. AUC Knowledge Fountain.
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