Volume 6, Issue 2, December 2016 Juridical Tribune
Construction projects are characterized by a high level of risk and
uncertainty, due to their complexity. Risk management is an important tool in
making decisions involving the identification and reduction, avoidance or transfer
risk and uncertainties consequences of events that occurs during project
implementation. For this reason, the objective of the contract between the
beneficiary and the contractor is the allocation of risk.
The distribution of risk in contracts for the execution of construction works
was and is an ongoing challenge faced by the contracting parties having a
significant impact on the type of contract that will be used. On the one hand, the
beneficiaries tend to transfer to the contractors as many of the project risks and
uncertainties, on the other hand, contractors look to exploit any weakness contract,
so as to reduce their impact on the expected profit.
Projects risks can be classified on the basis of two factors: natural risks and
hazards due to human factor. Natural risks may be due to exceptional adverse
weather conditions, unpredictable forces of nature and unforeseeable physical
conditions. Risks due to human factor causes are determined, above all, the main
actors involved in the contract (employer, contractor, engineer or third parties), the
social or political events, economic dynamics and regulatory changes.
The authors analyze risks and contractual clauses 8:14 influence of FIDIC
contract conditions on the financial relationship between the beneficiary and
entrepreneur focusing on the effects of special conditions have on the financial
management of the contractor. Continuing a series of previous work
authors propose a practical approach to quantify risk by defining a model for
analyzing the impact FIDIC contract conditions, which is applied in a case study of
five transport infrastructure projects.
2. FIDIC Conditions of Contract
The adoption of FIDIC contract conditions in infrastructure projects is
widely accepted around the world, being recommended or required in international
agreements mainly by the financing banks. These conditions were tested more than
50 years, they are flexible, reflect the market requirements and distribute balanced
the risks, rights and obligations of the parties by the terms contained therein.
Purnus, A ., Bodea, C. N. (2015). Financial management of the construction projects: a proposed
cash flow analysis m odel at pr oject portfolio level, „Organization, Technology & M anagement in
Construction: An international Journal”, Volume 7, Issue 1, 2015, p p. 1217 -1227,
http ://www .grad.hr/otmcj/clanci/vol%207_1/OTMC_6.p df (accessed 30 August 2016).
Purnus, A., Bodea, C. N. (2014). Correlation between Time and Cost in a Quantitative Risk Analysis
of Construction Projects, „Procedia Engineering”, Elsevier Ltd, vol. 85, 436-445.
Purnus, A ., Bodea, C. N. (2016). Influența condițiilor de contract FIDIC asupra managementului
financiar al proiectelor de construcții, „Revista Română de Inginerie Civilă”, Vol. 7 (2016), No. 1.
Sararu, C.-S. (2014). The interpretation of administrative contracts, „Juridical Tribune – Tribuna
Juridica”, Volume 4, Issue 1, June 2014, pp . 152-156.