Comparison Study Between FIDIC Mode And Chinese Mode

International Engineering Contracting means a contractor signs a contract with a project owner from another country to provide technical service, capital, labor, management to finish the design, build the project and get payment from the project owner.China Start its International Engineering Contracting business from end of 70's and have made many progress. But overall, China is far behind the developed countries in this area. With the access to WTO, the international market is more and more open to China. China must study the problem existing in this area to promote the development of Engineering Contracting. The studying method in this dissertation is to compare the FIDIC Mode with Chinese Mode.According to Chinese relevant regulation, the business license is monopolized by China Wai Jing Company. The other enterprises are not entitled to being involved directly into International Engineering. This monopolized mode is called Window Mode. Under this window mode, China Wai Jing Company subcontract all the project to the subcontractor. After access to WTO, window mode will be removed .FIDIC Contract is compiled by Federation Ingternational e des Ingesieurs Conseils. It is a general engineering contract. The Engineer has play a key role in FIDIC contract. FIDIC has 65 association members of countries and 560,000 Engineers over the world. FIDIC is the most commonly used contract in international engineering market.The main parties of FIDIC contract include the Employer, the Contractor, the Engineer and the Subcontract. The legal relationship among the Employer, the Contractor, the Engineer is the main legal relationship in FIDIC contract. After tendering procedure, the Employer entrusts the Engineer to manage the project. The Contractor is responsible for all the construction work of Contract. The Contractor shall be bear the responsibility for the subcontractor. The FIDIC contract term can minimize the risk for all the parties.After comparison between FIDIC Mode and Window mode, it is found that Window mode has three problems:1.the qualification problem ,2. the Engineer problem, 3. the problem of subcontracting.The counter-measurements are as follows: 1, in general, China shall improve its legislation on this issue and Chinese Wai Jing company shall follow a right development strategy.2, specifically, China shall improve the window mode and subcontracting contact; the risk shall be allocated fairly.Any way, the window mode will lose its main status in future. China Wai Jing Company shall develop toward the target of real contractor.