| Title |
Contractual Risk Evaluation Model for International Construction Projects using FIDIC Silver Book |
| Authors |
Yoo, Won-Hee ; Hyun, Chang-Taek ; Moon, Hyun-Seok ; Kim, Jong-Hyeob |
| Keywords |
FIDIC ; International Construction Projects ; Contract ; Risk ; FMEA(Failure Mode and Effects Analysis) |
| Abstract |
As orders for industrial plant projects increase, mainly in the Middle East and Africa, many domestic Korean companies are entering the international construction market. The total value of orders that domestic companies received from overseas is increasing due to participation in huge Engineering, Procurement and Construction EPC projects. The ability to manage potential risks is essential in maximizing revenue through overseas construction projects. Contractors need to scrutinize the contract documents, since the risks are distributed to each party through them. However, if there is insufficient expertise in overseas construction contracts, it is impossible to assess systematic risk thoroughly. Therefore, a Contractual Risk Evaluation Model that is based on the conditions of FIDIC Silver Book contract was proposed in this study to evaluate contractual risks of EPC/Turnkey construction projects received by Korean companies from overseas. The model proposed in this study can be used as a decision making tool in the contracting stage of international construction projects on a EPC/Turnkey basis. In addition, the assessment items and evaluation criteria presented in the model development process are expected to be used as checklist by contractors. |