Delivery Methods Under FIDIC Forms of Contract
The Lawyer Quarterly - Vol 3, No 2 (2013)
5 Pages Posted: 3 Mar 2014
Date Written: March 3, 2014
Construction and Engineering industry is a high risk industry. Management of the risks has overriding importance and every risk must be allocated to one or other party. Practice over many years has shown that sensible and balanced risk allocation results in the lowest overall total cost for completed projects. Common delivery methods such as General Contracting or Design-Bid-Build (often abbreviated as D/B/B), Design-Build (often abbreviated as D/B) including EPC (Engineer-Procure-Construct), and Construction Management (often abbreviated as CM), including CM At-Risk and EPCM (Engineer-Procure-Construction Management) and their key aspects such as Contract Price, Design Responsibility and Contract Administration create a basis of Risk Allocation. Claim Management is a system for early solution of problems, obstructions and complications that helps reflect realized risk in Contract price and in Time for Completion. The Fédération Internationale des Ingénieurs-Conseils (International Federation of Consulting Engineers) was founded in 1913 and the number of FIDIC associations worldwide is nearing to almost 100. FIDIC publish different best practise documents including sample forms of contracts for works that are known for balanced risk allocation and efficient Claim management system.
Keywords: Risk, Risk Allocation, Claim, Claim Management, FIDIC
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