International Journal of Civil and Structural Engineering Research ISSN 2348-7607 (Online) Vol. 10, Issue 1, pp: (28-37), Month: April 2022 - September 2022, Available at: www.researchpublish.com
Design Risk in Construction Contracts: The FIDIC Contracts and Civil law perspective 1
Ahmed Elsayed, 2Amira Metwally, 3Dr. Moustafa Abu Dief 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
DOI: https://doi.org/10.5281/zenodo.6467342 Published date: 18-April-2022
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.
1. INTRODUCTION The design risk is the prospective for a design to fail to satisfy the project/facility requirements. The subject of design risk in the construction industry includes various aspects and areas of study. The design risk may be generally classified under two types, including the following: a) The design deficiencies that result in the design deliverables fail to comply with the related facility requirement stated by the statutes, safety, environmental requirements, the applicable standards, and the law. The work done in this case may need to be rectified, and as it is common practice in the projects, such rework causes cost overrun and delays to the project date of completion. b) Design deficiencies produce a project that fails to fulfill and comply with requirements of the project's intended purpose. It may fall behind the contractual requirements or similar service standards, or it may need additional costs to operate and maintain the facility than the planned cost. These designs include flawed, inefficient, unsafe, and infeasible designs.
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