Contracts for Construction and Engineering Projects
Design and construct contracts and final design cost risk
Design and construct contracts and final design cost risk1
This chapter considers the critical issues in final design cost risk in design and construct contracts where there is a single independent design subcontractor with responsibility for tender and final design. The factors that influence final design cost risk are identified from several cases that have been before Australian courts, and the difficulties usually faced by a Contractor in passing risk to a designer assessed by considerations of tender and final design contracts. Suggestions are made as to what actions a Contractor could take to manage the identified risks better.
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