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

Risk Allocation of Interfaces between Construction and Core System Contracts: A Case Study on Taiwan High Speed Railroad Project

Tsung-Chieh Tsai, Chia-Cheng Yen
Pages 394-399 (2006 Proceedings of the 23rd ISARC, Tokyo, Japan, ISBN 9784990271718, ISSN 2413-5844)
Abstract:

Normally, the owner must contract with construction contractors and core system contractor at the same time in the public projects. Especially, for an infrastructure project, the core system contractor and construction contractor may sometimes pass their requests concerning with ambiguous conditions of interfaces to the owner by changing the design, or by modifying the works. In spite of reasonable or unreasonable requests, this situation always mutually causes both parties to face unexpected happenings and to suffer unknown risks. Also, for the both parties, it is not likely to exactly estimate the extra cost and time brought by the interface risks. Nevertheless, there are lots of problems concerning with the risk allocation in the engineering interfaces between construction and core system contracts, but not any contract relationship between both of these parties. This study tried to identify risk factors of interface between construction and core system contractors by comparing the contract conditions in the FIDIC, AIA, NEC, and ENAA etc. Taiwan High Speed Railroad Project was used as a case study by questionnaire to examine the differences between the findings of the above mention and realities of the project execution.

Keywords: Risk Allocation, Contract Comparison, THSRP, Construction Contract, Core System Contract