Study of Risk in Construction Contracts

The Risk Allocation concepts described in this Briefing have been shown to be effective conflict prevention approaches in construction matters. In other complex contractual arrangements, realistic assessment of risks and allocation of responsibility consistent with control over risks should be the first step and the foundation stone in an effective dispute prevention and resolution system. Risk in construction is common and are enormous and hence the construction industry is subject to major risk the following complementary charts, showing dispute resolution steps and construction contract options, demonstrate how Realistic Risk Allocation fits into a system of superior conflict management that starts with prevention and ends with efficient conflict resolution devices.