Take S Company’s Standard Contract As Benchmarking Case

Basis the contract, “Production Equipment and Design – Construction Contract”( the Yellow Book), issued by FIDIC and through researching and thorough understanding the background of FIDIC Yellow Book and our county’s standard contract for construction and building industry, this thesis is to do cross-comparing and analysing of both contracts. This paper is also trying to understand the external factors such as politics, economic, legal and culture, that affects the formation of both contracts, and how they shape the contracts. The key purposes are:firstly, it helps to understand the difference in the theory of drafting the contract and management ideas between those two contracts, and then basis on this, it helps to guide the large domestic companies to better hedge the risks and avoid unnecessary losses when dealing international construction contracts.Through comparing the actual contracts of S company and FIDIC Yellow Book, this paper is trying to show the differences in the two kinds of contact in actual working situation. It also reflects the principal differences in the application of FIDIC Yellow Book in our country’s construction and building projects and managements due to the environmental factor.The result of this paper helps Chinese developer and contractor to better digest and understand the FIDIC contract. It also serves as a good and valuable references when it comes to actual deal and business, boosting domestic companies’ ability in terms of applying suitable contract terms and contractual management.