| Title |
Risk Assessment Model for the Delay Protocol in the Conditions of Contract of International Construction Projects |
| Authors |
Lee Hwangku ; Shin Dongwoo ; Kim Kyungrai ; Cha Heesung ; Kim Youngjae |
| DOI |
http://dx.doi.org/10.6106/KJCEM.2017.18.6.065 |
| Keywords |
Overseas Projects ; Delay ; Extension of Time ; Condition of Contract ; Risk Assessment Model ; Construction Company |
| Abstract |
Recently, many Korean major construction companies are suffering from profit loss mainly due to a direct impact from delays in their overseas projects. In general, changes are inevitable in a large-scale project, and most of changes are directly linked to construction delay. Therefore, in the event that an extension of time is necessary due to a change, the contractor must manage the delay based on the condition of the contract to effectively manage risks from delay to the completion date. Thus it is important to understand delay protocol defined in the condition of the contract early in the project, but there have been few or no study to propose methodology or tool to support this effort. This paper presents a review on the project planning and controling practices of major Korean construction companies along with the issues on delay claims and disputes in mega-international projects and suggests a tool to assess delay risk in the condition of the contract. To propose a delay risk assessment model for international construction projects, major standard conditions of contract have been reviewed including FIDIC Red Book(1999), PSSCOC(2014) and SIA 9th Edition(2010). To reflect recent trend of major international owners, standard conditions which they are utilizing for their projects also have been reviewed including those of ARAMCO and QP. The model provides a categories of risks to be reviewed on the condition of the contract along with standard level of the risk which is common in the international standard form of the contracts. This study also performed a case study on an actual international project to confirm the effectiveness of proposed model to identify and respond to a delay risk of a project. |