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Contract Risk Allocation and Cost Effectiveness

Publication No
RS5-3
Type
Research & Development Product
Publication Date
Nov 02, 1988
Pages
18
Research Team
RT-005
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DOCUMENT DETAILS
Abstract
Key Findings
Filters & Tags
Abstract
Risk allocation in construction contracts has been the subject of considerable debate in the construction industry for many years. Careful attention to the design of contracts was recommended by The Business Roundtable Construction Industry Cost Effec
Key Findings
Contract risk allocation is influential to project success. Each aspect, including indemnity, consequential damage, differing conditions, and delay, must be carefully considered and balanced by both the owner and the contractor. (RS5-3, p. v)
Filters & Tags
Knowledge Area
Construction Execution, Procurement & Contracts, Risk Management
Project Phase
Feasibility, Concept, Detailed Scope, Detailed Design (Engineering), Procurement, Construction, Commissioning & Startup, Handover & Closeout
Project Function
Project Management, Procurement & Contracts, Construction, Risk Management
Industry Group
Light Industrial, Heavy Industrial, Buildings, Infrastructure
Research Topic
Contracts
Keywords
Fixed-cost contract, Cost-reimbursable contract, Contract clauses, Allocation of risk, Incentive plans, Work scope definition clause, Change clause, Project control clause, Cost effectiveness, Indemnity, Consequential damages, Differing conditions, Delay

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