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Course Description

Commercial Management with FIDIC is a practical and structured program designed to help professionals understand how to effectively manage contracts, cost, risk, claims, and project commercial obligations using the internationally recognized FIDIC contract forms. This course focuses on real-life contract administration, commercial decision-making, dispute avoidance, and protecting project profitability while ensuring compliance with FIDIC procedures and timelines.

Course Objectives

Upon the successful completion of this course, each participant will be able to:

  • Understand the key principles and structure of FIDIC contract forms (Red, Yellow, Silver Books)
  • Apply FIDIC clauses in commercial and contractual decision-making
  • Manage contract administration processes such as notices, approvals, and certifications
  • Control project cost, variations, payments, and financial obligations under FIDIC
  • Identify and mitigate contractual and commercial risks
  • Prepare and evaluate claims for time and cost under FIDIC procedures
  • Handle disputes and apply dispute resolution mechanisms including DAAB and arbitration
  • Improve project profitability through proactive commercial management techniques

Who Should Attend?

This course is designed for contract managers, commercial managers, project managers, engineers, quantity surveyors, procurement staff, and anyone involved in contract administration and project commercial control under FIDIC contracts.

Course Agenda

Registration

Welcome & Introduction

Pre-Test

Day 1: Introduction to FIDIC and Commercial Management Fundamentals

  • Introduction to Commercial Management in Construction Projects
  • Overview of FIDIC: Purpose, Global Usage, and Contract Philosophy
  • Structure of FIDIC Contracts: General Conditions & Particular Conditions
  • Roles and Responsibilities under FIDIC:

          Employer

         Contractor

         Engineer (or Employer’s Representative)

  • Key Commercial Clauses and their Business Impact
  • Understanding Contract Documents and Order of Priority
  • Risk Allocation in FIDIC Contracts
  • Contractual Definitions and Interpretation Rules

Day 2: Contract Administration and Financial Management under FIDIC

  • Managing Contractual Obligations and Compliance
  • Project Cost Control under FIDIC
  • Payment Provisions:

          Interim payment applications

          Payment certificates

          Retention

           Advance payment and guarantees

  • Engineer’s determinations and certification process
  • Managing subcontractors and supplier obligations
  • Key Commercial Records and Documentation Requirements
  • Managing Delays in Payment and Contractor entitlements
  • Suspension and termination clauses: commercial impacts

Day 3: Variations, Change Management, and Time Control

  • Understanding Variations under FIDIC Clause 13
  • Variation process and required documentation
  • Commercial evaluation of variations:

           Measurement methods

           New rates

           Adjustments to contract price

  • Time control and FIDIC time-related clauses
  • Extension of Time (EOT) principles under FIDIC Clause 8
  • Programme requirements and progress monitoring
  • Delay analysis overview (baseline vs actual)
  • Liquidated damages / delay damages and commercial impact
  • Proactive change control strategies to avoid disputes
  • Case Study: Managing a variation and preparing time/cost impact assessment

Day 4: Claims Management and Contractual Entitlements

  • Claims culture in construction projects: prevention vs reaction
  • FIDIC Claims Procedure:

          Notice requirements (Clause 20 / Clause 21 depending on edition)

          Time-bar provisions and consequences

  • Contractor’s claims vs Employer’s claims
  • Common claims under FIDIC:

           Delay and disruption

           Acceleration

           Unforeseen physical conditions

           Late drawings / approvals

           Changes in law

           Force majeure / exceptional events

  • Claim structure and essential supporting documents
  • Evaluating claims: entitlement, causation, and quantum
  • Best practices for preparing claim submissions

Day 5: Dispute Avoidance, Commercial Risk Strategy, and Closing Out Contracts

  • Dispute avoidance strategies through effective commercial management
  • Engineer’s role in determination and dispute prevention
  • Dispute resolution mechanisms under FIDIC:

          DAAB / DAB procedures

          Amicable settlement

          Arbitration process overview

  • Managing contract close-out:

          Taking-over certificate

          Defects notification period obligations

          Final payment certificate

  • Final account settlement and release
  • Managing termination scenarios:

          Contractor default

          Employer default

          Convenience termination (where applicable)

  • Commercial reporting and contract performance measurement
  • Lessons learned and improving future FIDIC contract execution

Post Test

End of the Course

Assessment Methodology

All courses conducted by EdTech will begin with a Pre-evaluation and end with a Post-evaluation. The instructor will evaluate the knowledge and skills of the participants according to the feedback given by participants. This will help to recognize the benefits and the level of knowledge gained by participants through the course.

Training Methodology

Facilitated by a highly qualified specialist, who has extensive knowledge and experience; this program will be conducted using extensively interactive methods, encouraging participants to share their own experiences and apply the program material to real-life work situations in order to stimulate group discussions and improve the efficiency of the subject coverage.

Percentages of the total course hour classification are:

  • ​40% Theoretical lectures, Concepts and approach
  • 20% Motivation to develop individual skill and Techniques
  • 20% Case Studies and Practical Exercises
  • 20% Topic General Discussions and interaction

Course Manual

Participants will be provided with comprehensive presentation material as reference manual. This presentation material is a compilation of core valuable information, references, presentation methods and inspiring reading which will be used as a part of the material guide.

Course Certificate

At the completion of the course, all participants who successfully accomplished the required contact hours will receive an EdTech Training Participation Certificate as a testimony to their commitment to professional development and further education.

Why Edtech ?

  • Industry Experienced; Internationally Qualified Trainers
  • Hands-on Practical Sessions & Assignments
  • Intensive Study materials
  • Flexible Schedules
  • Realistic training methodology
  • High-Quality Training in Affordable Course Fees
  • Achievement Certificate, as approved by the Ministry of Education (Abu Dhabi Center for Technical and Vocational Education Training - ACTVET), HABC, AWS, IAOSHE, SHRM, etc.