Enliven: International Journal of Advances in Civil Engineering

Construction Contracts. An Evaluation of the Effectiveness of Fidic Conditions and Nec Contract in Reducing Construction Disputes within the Middle East
Author(s): Shady Abdelhady

This research was set out to evaluate the effectiveness of FIDIC conditions and NEC contract in reducing construction disputes within the Middle East.
The reason for selecting this topic was the desire to know why the NEC contract is not used in this region, where FIDIC dominates the construction
market — knowing that the Gulf region holds the highest value of construction disputes in the world. NEC adopts a proactive approach in the construction
process, it contributes to collaborative risk management, and it was recommended by Sir Michael Latham in his report. However, still, NEC did not find
its way in this region.

This Study was based on the hypothesis that both contracts can be used anywhere. However, the greater emphasis on risk management in the NEC form
would lead to reducing disputes in the construction process. The research mainly concentrates on NEC4 ECC and FIDIC Red Book 2017.

The research was prepared using the qualitative strategy. The used methods are Desk research and Case study. FIDIC and NEC were evaluated by
conducting a comparison between them, besides considering a case study to assess the performance of NEC outside the UK.

The main findings suggest that the research hypothesis appears to be true. Despite the significant changes that were incorporated in the FIDIC 2017
edition, NEC still has more advantages in terms of clarity, flexibility, partnering, risk management, and change management.

The research recommends further researches on the nature of amendments that usually made to FIDIC conditions by the parties in the Gulf region, and
how the practitioners in this region have received the latest edition of FIDIC 2017.