The identification of inherent risks in design-build contracts | |
| Author | Pitch Sutheerawatthana |
| Call Number | AIT Thesis no. ST-98-33 |
| Subject(s) | Construction contracts Risk assessment |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering |
| Publisher | Asian Institute of Technology |
| Abstract | Design-Build contracts are widely used in the construction industry. Much research has been undertaken and concluded that su9h a contract provides many advantages which strengthen the project performance. In contrast, this research investigates risk factors which weaken the project performance. Risk factors are identified throughout the literature as a phenomenon of the industry. In such risk factors, liability is selected for deep investigation because of its unique nature. Edwards (1995) explained, "liability exposures are different from most exposures because maximum liability is usually not ascertainable in advance. Its cost is determined by court or at least by the threat of court action." This thesis is an investigation of the liability issue and its· impact on project. Liability was defined by Powell-Smith and Chappell (1985) as, "the situation when a person is under a legal obligation to act or to suffer an action of another." This research prepared a checklist of legal obligations which reflects potential liability. Seven obligation relationships among project parties were introduced. From the checklist and obligation relationship, a systematic obligation-allocation table was developed. The table was used for the comparison of the obligation-allocation between two contracts, traditional and design build. The comparison indicates that design-build contractor owes the owner wider scope of obligation. The wider the scope of obligation, the wider the scope of potential liability. Finally the study also examines the tender price elements increased due to the wider scope of potential liability. |
| Year | 1998 |
| Type | Thesis |
| School | School of Civil Engineering |
| Department | Department of Civil and Infrastucture Engineering (DCIE) |
| Academic Program/FoS | Structural Engineering (STE) /Former Name = Structural Engineering and Construction (ST) |
| Chairperson(s) | Minato, Takayuki; |
| Examination Committee(s) | Ogunlana, Stephen O.;Kishi, Toshiharu; |
| Scholarship Donor(s) | Asian Institute of Technology Partial Scholarship; |
| Degree | Thesis (M.Eng.) - Asian Institute of Technology, 1998 |