Differing site conditions risks: a FIDIC/engineering and construction contract comparison

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.Abstract A new edition of the FIDIC Red Book is under discussion. It is an issue whether this edition should be based on the current edition or there should be a complete break with tradition in favour of a contract based on a new philosophy such as that of the NEC, which is reported to be used in many countries in circumstances in which the Red Book would otherwise have been used. This article compares the two contracts on the way they deal with site conditions issues. The comparison is on equity and clarity in risk allocation, adequacy of contractual procedures for dealing with unforeseeable conditions encountered, effectiveness of contractual machinery for dispute resolution, and compliance with reported new developments in successful contractual practices in underground construction. Studies highlighting the recurring frequency of claims for unforeseen ground conditions suggest a need for such particular attention to this aspect of construction. Although a desire for some equity in risk sharing is discernible in both contracts, there is room for improvement in the clarity of both contracts. Each contract has commendable features which are not present in the other. However, a better approach involves a combination of these features with full compliance of the reported modern developments in successful contracting practices.

ÖNORM B 2203-1 as a Supplement to FIDIC Emerald Book in Conventional Tunnel Construction

“…Regardless of which FIDIC contract is used, the Contractor should manage items subject to varying field conditions (primary drilling and primary support) under a singleprice contract system [2]. This allows the application of various site condition clauses [69] to reduce costs, determine their impact and evaluate time. According to [70], the unit price structure should be organised to distinguish fixed, time-dependent, and quantity-related costs easily.…”