Publications / 2006 Proceedings of the 23rd ISARC, Tokyo, Japan

Risk-Sharing Rule in Project Contracts

Kiyoshi Kobayashi, Toshihiko Omoto, Masamitsu Onishi,
Pages 381-387 (2006 Proceedings of the 23rd ISARC, Tokyo, Japan, ISBN 9784990271718, ISSN 2413-5844)
Abstract:

In this paper, the risk sharing rules are investigated to characterize the contractual structure of the project contracts.The authors exclusively focus upon theGCWand the FIDICforms,which can be regarded as typical examples of incomplete contract forms.Risks involved in construction works are classified into exogenous and endogenous ones. The paper claims that cleardifferences in both contract forms in coping with endogenous risks can be found, while there are no essential differences in dealing with exogenous ones. The paper concludes by summarizing the remaining research issues to be scrutinized in the future.

Keywords: Risk sharing, Project Contracts, Incomplete Contracts, Renegotiation