The Pitfalls of FIDIC Contracts: A Critical Legal Analysis of Risk Allocation in Construction Projects

This paper is a critical analysis of the development of risk allocation as per the FIDIC red, yellow, and silver books (1999 and 2017 editions) in the UK legal landscape. It takes a qualitative doctrinal and comparative approach. Also, it examines clauses in contracts, UK court decisions, and arbitral commentaries to determine the impact of drafting changes on the allocation and discharge of construction risks. The results indicate that although the 2017 revisions brought greater clarity to the procedures, particularly those governing the requirement to be fit for purpose, the deadline for claims, and warning obligations, they also introduced administrative burdens and the risk of forfeiture of procedure. Comparative tables show that judicial interpretation of English law consistently follows strict outcome liabilities and condition precedent, highlighting the importance of disciplined contract administration. The paper finds that the 2017 updates to FIDIC made the text more precise but not necessarily more practically fair, which supports the relevance of aligning contractual allocation with the realities of the project, insurability, and effective risk management.