In large-scale industrial, infrastructure, civil, and energy projects, the type of contract plays a decisive role in the project’s success, risk allocation, scheduling, and cost control. Especially in international projects, choosing the appropriate contractual model is a strategic decision made by project consultants.
This article explores two widely used modern contractual models—FIDIC and BOT—and examines the role of consulting firms such as Aras Consultant, the specialized advisory arm of Aras Holding, in professionally managing these contracts in Dubai and other global regions.
Why Is the Contractual Model Important?
A contract serves as the roadmap for collaboration between the employer, consultant, and contractor. In large projects, an inappropriate contract can lead to:
- Significant cost overruns
- Long delays
- Legal disputes
- And even project failure
Introduction to FIDIC
What Is FIDIC?
FIDIC (International Federation of Consulting Engineers) refers to a set of internationally recognized standard contracts designed for executing global projects in engineering, construction, roadworks, and power plants.
Types of FIDIC Contracts
- Red Book – for traditional contracts where the employer provides the design
- Yellow Book – for design and build contracts
- Silver Book – for EPC and Turnkey projects
- Green Book – for small or short-term projects
- Gold Book – for O&M contracts with design and build
Advantages of Using FIDIC
- Global standard structure
- Balance between employer and contractor rights
- Suitable for multinational contracts
- Allows for international arbitration in case of disputes
- Supports transparency and professional change management
Introduction to BOT
What Is BOT?
BOT stands for Build – Operate – Transfer. In this model, a company or consortium undertakes a project—such as a power plant, refinery, highway, or port—to:
- Design and finance the project
- Construct and operate it for a specific time period
- Then transfer ownership to the government or employer
Key Features of BOT
- Suitable for long-term revenue-generating projects
- The private sector takes on the financial and construction risk
- Operational revenue during the agreed period ensures return on investment
- Ownership is transferred to the client after the operation period ends
Advantages
✅ Reduces government financial burden
✅ Speeds up project implementation
✅ Attracts foreign technology and expertise
Disadvantages
❌ Complex contract structures
❌ Long payback period before profitability
❌ High sensitivity to political and economic risks
Role of Consultants in FIDIC and BOT Contracts
Consulting firms like Aras Consultant play an essential role in all phases of drafting, managing, and executing these models:
- Preparing RFPs and proposing the suitable contractual model
- Conducting feasibility studies (technical, economic, legal)
- Participating in contract negotiations with international parties
- Assessing risk and designing the project’s financial structure
- Overseeing accurate implementation of contractual provisions
- Managing disputes and arbitration processes if needed
Aras Consultant, the specialized consulting subsidiary of Aras Holding, has extensive experience in drafting and managing FIDIC and BOT contracts for industrial and infrastructure projects in Dubai, Qatar, Oman, and other countries.
Example projects (hypothetical for website):
- 100 MW Solar Power Plant in Dubai (BOT model with EPC contract based on FIDIC Silver Book)
- Construction Management Contract for a Mini Refinery in Oman (FIDIC Yellow Book)
Why Are FIDIC and BOT Strategic Tools?
In the complex world of international projects, mastering modern contractual models like FIDIC and BOT is a professional necessity for success.
Having experienced consultants such as Aras Consultant alongside the employer not only reduces risk but also enhances transparency, accelerates execution, and ensures project profitability.
Aras Holding, through its subsidiary Aras Consultant, leads the implementation of modern contract models in major projects across Dubai and other international markets.
With international experience, the company offers comprehensive consulting services including contract analysis, financial structuring, and legal evaluation.
In BOT-based projects, Aras Consultant manages the entire design–build–operate–transfer process to ensure the interests of both investors and clients are fully protected.
By 2025, companies seeking to successfully implement FIDIC and BOT contracts will find a reliable partner in Aras Holding and its subsidiary Aras Consultant. In the competitive infrastructure landscape of Dubai and global markets, working with a seasoned consulting team is key to growth and success.