A comparison of the suitability of FIDIC and NEC conditions of contract in Palestine

Abstract

Purpose: The standard forms of construction contract are receiving greater attention in the management of projects scholarship as they probably influence the project success and project disputes. The extant literature suggests that the standard forms of construction contract are one of the top sources of disputes. The purpose of this paper is to examine the effectiveness of the standard forms of construction contract, FIDIC and NEC, in reducing disputes in the Palestinian construction industry. Design/methodology/approach: The researchers have used qualitative methods to collect data and more specifically have undertaken 12 semi-structured interviews. Findings: The study reveals that the standard forms of construction contract can be a tool to minimise disputes, but certainly not to eradicate them, and NEC appears to be more capable than FIDIC to do so. Originality/value: This study contributes to knowledge by bringing an industrial perspective into the role of standard forms of contract in disputes creation and avoidance. The interviewees, recurrent users of FIDIC contract, criticised certain features and expressions and proposed some solutions.