Insurance issues and design and build construction contracts

Akbiyikli, R; Dikmen, SU; Eaton, D

Abstract

One of the primary functions of a construction contract is to
allocate certain risks to one or other of the parties. One of the
parties is liable to the other if a particular kind of loss or damage
occurs placing all the risk of that loss or damage on the other party.
Some risks have enormous size in financial terms and the party to whom
a risk is allocated may want to cover it by means of insurance.
According to many construction contracts the contractor shall upon and
subject to the conditions carry out and complete the Works in
compliance with the Contract Documents, using materials and
workmanship of the quality and standards therein specified. The aim of
this study is to examine the insurance issues in Design and Build (D &
B) construction projects constructed in accordance with FIDIC Red
Book, I.C.E. (Institution of Civil Engineers) Conditions of Contract
and JCT (Joint Contracts Tribunal) 05 Design and Build Contract DB and
explain what Force Majeure is within the context of Construction
Contracts.

• Journal Article Type: Article
• Publication Date: Jan 1, 2012
• Deposit Date: Jan 16, 2012
• Journal: NWSA Engineering Sciences
• Electronic ISSN: 1308-7231
• Peer Reviewed: Peer Reviewed
• Volume: 7
• Issue: 1