The allocation of risk in FIDIC (part II)
In continuation of the allocation of risk under FIDIC (part I) this article provides an introduction to the allocation of risk under FIDIC from a Danish perspective.
In part I we assessed the allocation of risk between contractor and employer relating to force majeure, change in law and unforeseen ground conditions whereas part II will assess the following four questions:
- Which party bear the risk for delays?
- What kind of performance must the Contractor demonstrate before and after hand over?
- What kind of indemnities must each party undertake?
- What kind of insurance must each party take out?
In part II we will assess how the Fédération Internationale Des Ingénieurs-Conseils (FIDIC) have decided to allocate the risk between contractor and employer relating to delays, performance, indemnities and insurance. Focus is primarily placed on the most recent editions of FIDIC Red (Construction Contract), Yellow (Design and Build) and Silver Turnkey/EPC) books.
The full short paper on the allocation of risk in FIDIC (part I and II combined) can be found here.