Will FAC-1 Resolve Issues In FIDIC Multiparty Contracts In The Eastern Balkans?

In recent years we have seen major infrastructure projects in the Eastern Balkans, ordinarily based on International Federation of Consulting Engineers (FIDIC) standards, face significant delays and impediments due to complex decision-making processes. Such projects have for a long time exceeded a structure that encompasses only the contractor, employer and engineer. They now include financiers (international institutions or other funds), beneficiaries and authorities, so the project structure and procurement have become even more challenging.

This is especially the case when projects are financed through foreign governmental loans and based on international agreements, such as highways, power plants and similar projects of natural interest. But those major and most surveyed projects commonly face delays and escalating costs that exceed more than 30 % of the original values. One of the reasons for this escalation is the unregulated structure from the outset, which