20 years together

FAC-1 Framework Alliance Contract with Bulgarian edition

14 February 2019

A working group led by att. Boyana Milcheva, partner at Dimitrov, Petrov & Co. Law Firm and head of Construction and Tax Law Practice Groups, is the author of the Bulgarian version of the Framework Alliance Contract, known as FAC-1.

What is FAC-1?

The Framework Alliance Contract FAC-1 is a versatile standardcontract which can be used in different jurisdictions by both private investors and for the purposes of public procurement. It combines the scope of a framework contract with the relationships of cooperation among members of an alliance, by introducing new mechanisms for creating added value.

FAC-1 is intended to combine all forms of bilateral works contracts, supply and service contracts, such as FIDIC contractual terms, other standard construction contracts, consulting contracts, etc.

The Bulgarian edition was officially presented during a panel discussion on International Strategies for Excellence in Construction held on February 8, 2019 in the central office of the Bulgarian Construction Chamber. A special guest at the event was Prof. David Mosey, Director of the Centre of Construction Law, King’s College London and author of FAC-1. Prof. Mosey expressed appreciation for the work of the group regarding the adaptation of the Framework Alliance Contract to the Bulgarian legislation.

What are thebenefits of FAC-1?

FAC-1 can be used to facilitate:

  • Procurement of complex projects by combining bilateral contracts for design, construction, services and supplies;
  • Award of public procurement contracts under framework agreements;
  • Integration of related contracts, part of a common project or programme.

FAC-1 allows the implementation of international partnership standards in the supply chain in Bulgaria:

•       Early Contractor Involvement during the design process in order to optimize the project, reduce costs and successfully manage risk prior to the beginning of the construction;

•       Two Stage Open Book – open pricing and selection of subcontractors leading to lower construction costs, shorter deadlines and quality improvement;

Smooth transition from the construction to the operation phase (Soft Landings).

The Bulgarian version of FAC-1 developed by the working group led by Boyana Milcheva includes Annex 6 – Part 1 ‘Legal requirements’ with the amendments necessary to adopt the original 2016 Framework Alliance Contract English edition to the Bulgarian legislation. The copyright holder of the Bulgarian edition is the Bulgarian Society of Construction Law (BSCL) which is a full member of the European Society of Construction Law. Atty. Milcheva is an active member of the Management Board of the association which has set itself the ambitious goal to engage the Bulgarian legal community member to cooperate in a common endeavor for the purposes of developing and elaborating the construction legislation by promoting the achievements in other countries, establishing a legal framework for digital development and making the construction industry more profitable, sustainable and attractive to young people.

The Bulgarian edition of the Framework Alliance Contract can be purchased from the BOSP, the SIBI publishing house and the bookstores.

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