Ulaanbaatar to Implement 24 Mega Projects Under International FIDIC Contract Standards www.montsame.mn
Officials from the government and administrative organizations of the Capital City participated in a training session dedicated to the contract frameworks of the International Federation of Consulting Engineers (FIDIC) on April 2, 2025.
The training session offered in-depth insights into how FIDIC Contracts align with the legal framework of Mongolia, while also covering the key features and categories of these internationally recognized agreements. In accordance with Ulaanbaatar City's strategic objectives to reduce air and environmental pollution, alleviate traffic congestion, and enhance the quality of life for residents, 24 Mega Projects in Ulaanbaatar City are set to be implemented in accordance with FIDIC Contract standards.
Established in 1913 by engineers from the French Republic and the Kingdom of Belgium, FIDIC today comprises 102 member countries. The FIDIC introduced its first standard contract in 1957, and these model agreements remain widely used across the globe. FIDIC Contracts are structured to equitably allocate the rights, responsibilities, and liabilities of all key stakeholders in a project, ensuring risk mitigation and the avoidance of delays and financial losses through clearly defined, internationally accepted procedures.
First Deputy Governor of the Capital City in Charge of Economic Development and Infrastructure Davaadalai Tumendalai, noted: “By employing internationally recognized contractual frameworks that account for the interests of all stakeholders and provide built-in risk mitigation, we can ensure that infrastructure projects are delivered on time and without financial disruption. FIDIC represents the universal language of engineering.”
The 2023 Top Certified Trainer of the FIDIC and Consulting Engineer, Markus Thiel, mentioned: “When applying or drafting a FIDIC Contract, it is essential that all parties fully understand the methodology. This knowledge should not be limited to engineers but must also extend to employers and contractors. Without such understanding, there is a significant risk of misinterpretation and contractual disputes.”
Founder and Managing Partner at "Batbayar and Partners LLP" Batbayar Ganbayar said: “During the course of project implementation, disagreements or conflicts may arise. Under the standard conditions of FIDIC Contracts, it is possible to rapidly engage a neutral consulting engineer from the global network of FIDIC-affiliated experts to resolve such issues. This represents a practical advantage over local contracts bound strictly by domestic legal systems.”
FIDIC Contract models vary based on the nature and requirements of each project. For road and general construction initiatives, the Red Book and Yellow Book are commonly utilized. The Silver Book is employed for design-build projects under turnkey conditions, while the White Book serves as the standard model for consultancy service agreements.
Published Date:2025-04-03