Tweet Share

• Send by email

  Send by email

  

  Fit for Purpose and Design Risk in the FIDIC Emerald Book

  In Design-Build it is difficult to separate design risk from construction risk. Clause 4.1 in the FIDIC Conditions of Contract for Underground Works 1st Edition 2019 (The Emerald Book) states “When completed, the Works (or Section or Part or major item of Plant, if any) shall be fit for the purpose(s) for which they are intended, as defined and described in the Employer’s Requirements” . Contractors sometimes object to such “fit for purpose” obligation because this imposes an absolute standard on their design for which, in some jurisdictions, they are unable to obtain Professional Indemnity insurance. Alternatively they may question the design risk allocation. Clause 5.1 says “The Contractor shall carry out, and be responsible for, the design of the Works to the extent specified in the Employer’s Requirements, and, where applicable, in accordance with the Geotechnical Baseline Report”. The Contractor may follow the design criteria stated in the Employer’s Requirements, but later find that it is ”conservative”, “overdesigned”, or rendered “inefficient” by an emerging new technology, or prove over time that it does not satisfy the specified design life! This paper will explore in greater detail the fit for purpose obligation and design risk allocation in the FIDIC Emerald Book.

  Recipient :

  Name ^* :

  E-mail address ^* :

  ^* Required fields

  Send   or  Cancel

• Print