Design Risk in Construction Contracts: The FIDIC Contracts and Civil law perspective
Authors/Creators
- 1. M.Sc, PRINCE2®, Civil Engineer and Site Manager.
- 2. Construction Management, B.Sc. Student, BUE Egypt
- 3. CFCC™, FCIOB. MCIArb., Contracts and Claims Consultant, KSA, NEOM Region
Description
Abstract: Design Risk-sharing is a crucial element in the construction project contract. The Design responsibility is associated with liability for the errors, omissions, and deficiencies. The duration of the design liability varies from a short term of the project duration, the defect notification period, and up to the decennial liability for ten years starting from the Taking over of the work.Various design issues arise in the contract execution phase, requiring a consistent contract document to manage the design issues. It is not uncommon that significant numbers of construction claims and disputed projects are due to design issues.
This paper discusses the design risk in construction projects from the perspective of the FIDIC suite of Contracts and civil law. The paper provides a comprehensive overview of the aspects and risks inherent with the design risk and the proper risk-sharing approach.
The author provides a Design Risk Management Matrix that guides the practitioners during the contract drafting process to consider the criticality of the design risk-sharing requirements.
Keywords: Design Risk-sharing, crucial element, construction project.
Title: Design Risk in Construction Contracts: The FIDIC Contracts and Civil law perspective
Author: Ahmed Elsayed, Amira Metwally, Dr. Moustafa Abu Dief
International Journal of Civil and Structural Engineering Research
ISSN 2348-7607 (Online)
Vol. 10, Issue 1, April 2022 - September 2022
Page No: 28-37
Research Publish Journals
Website: www.researchpublish.com
Published date: 18-April-2022
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Design Risk-18042022-2.pdf
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- Other: https://www.researchpublish.com/papers/design-risk-in-construction-contracts-the-fidic-contracts-and-civil-law-perspective (URL)
- Is published in
- Journal article: 2348-7607 (ISSN)
References
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- [2] Löwit, H. & Dostálová, M. (2014). Defining of decision-making criteria for optimum construction procurement system selection for public works.
- [3] Oteifa, S. and Abu Dief, M. (2016), Application of FIDIC Contracts in Construction Claims and Arbitration. IntJRecentSci Res. 7(9), pp. 13351-13356.
- [4] Scott Lambert 'Fit for Purpose' or 'Reasonable Care'? Dealing with Design Liability in the New FIDIC Yellow Book
- [5] Seppälä, C. (2005) Contractor's Claims Under the FIDIC Contracts for Major Works. In: International Construction Contracts and Dispute Resolution Co-Hosted by ICC and FIDIC in partnership with The Cairo Regional Centre for International Commercial Arbitration. Semiramis Intercontinental Hotel, Cairo, Egypt April 9 – 10, 2005
- [6] Totterdill, B. (2006) FIDIC users' guide a practical guide to the 1999 Red and Yellow Books 2nd ed. London: Thomas Telford Publishing.
- [7] Walker, B. M. (2015). Collaborative project procurement arrangements, PMI. Williams, T., Williams, M. & Ryall, P. (2013). Target cost contracts: adopting innovative incentive mechanisms to improve the project delivery process. Management, 759, 768.
- [8] Ince, Decennial Liability in the UAE: https://www.incegd.com/en/news-insights/construction-engineeringinsurance-decennial-liability-uae#:~:text=Article %208 80,-If%20the%20subject&text=The%20said%20obligation%20to% 20make,the %20 defective%20buildings%20or%20installations.