Title A Comparative Study of Risk Allocation of Design Liability in Public Sector Design-Build Projects in South Korea
Authors Kim Ho-Jeong
Page pp.33-42
ISSN 12269093
Keywords Design-Build ; Public Sector Design-Build ; Design Liability ; Contractual Issues ; Risk Allocation
Abstract Over the last fifteen years, the number of public sector Design-Build projects has increased dramatically in South Korea. The primary method of public sector project delivery has traditionally been design-bid-build delivery. In the late 1990s, the government began to experiment with design-build project delivery, which combines both design and construction services with a single entity in one contract. The design-build contracting fundamentally alters the relationships, obligations and rights of the contracting parties. In order to take full advantage of the benefits derived from a single-point responsibility in Design-Build projects, the reasonable contractual risk allocation unique to design-build projects is very important. This paper presents a comparative study, which reviews the unique design liability issues and risk allocation in Design-Build projects in South Korea. The current contract practices of design-build projects in public sector are extensively analyzed to address the legal issues of design professional’s standard of care, performance warranties, entitlement to change orders, working relationship and loyalties among the parties, and limitations of design liability.