When it comes to international construction contracts, one of the most prominent agreements used is the FIDIC (Fédération Internationale des Ingénieurs-Conseils) contract. This contract has been adopted by many countries around the world as a means of standardising construction contracts to protect both parties involved in the project.
One essential clause in the FIDIC contract is the «Entire Agreement» clause. This clause, also known as the «No Oral Modification» clause, ensures that the written agreement is the entire agreement between the parties involved. This means that any prior negotiation or discussions that do not appear in the written contract are not binding.
The importance of this clause lies in the fact that it helps prevent disputes from arising in the future due to misunderstandings or misleading statements. It also protects the parties from any liability that may arise from verbal agreements that are not included in the written contract.
The FIDIC entire agreement clause is typically used to provide clarity and certainty to the terms and conditions agreed between parties involved in construction contracts. It ensures that any negotiations are reflected in writing and that both parties understand the terms and obligations of the contract.
It is important to note that the entire agreement clause can only be modified in writing. This means that any modifications or changes to the contract must be made in writing and signed by both parties. This ensures that both parties are aware of the modifications and that the changes are legally binding.
In conclusion, the FIDIC entire agreement clause is a crucial provision in international construction contracts. It helps to prevent disputes, protects the parties involved, and ensures that both parties are aware of the obligations and terms of the contract. As such, it is essential that parties take note of this and ensure that any modifications or changes to the contract are made in writing and signed by both parties.