Risks during the construction works, FIDIC and local practice in 2014.

Practical handbooks for participants in construction projects.

  • Risks in the Serbian construction industry
  • Risks in FIDIC contract models
  • Procedures disorders and delays in works
  • Unforeseen circumstances and force majeure
  • Notices, warnings and claims for damages
  • Transfer of risk and insurance papers

More than 95% of construction projects are not implemented as planned, primarily in terms of costs and time at which the projects should be completed.

The causes of these disorders are found in four sources: first, in the context of the causes that are in the sphere of responsibilities of the contractor, the second, the causes of which are in the sphere of the Purchaser and the third, where the causes can not be attributed to any of the parties and the district where the causes can be attributed to both sides simultaneously.

These causes are essentially a risk of occurrence of negative effects on the realization of the project and contract are distributed (allocated) between the parties.

Allocation of risk is very demanding and responsible activity, and is therefore at the international level where pre-prepared models of contractual conditions such as FIDIC, PRAG etc.

In Serbia, there is no accepted model contract conditions for the purposes of the construction projects, but there are specific rules on construction applied as an integral part of the contract. These usages dating back to 1997 but because of its quality and still in use (based on the autonomy of the will of the contracting parties), although formally repealed in 1978

The book mainly deals with the FIDIC model contract and the practical application of the mechanisms provided for in these models the contract.

The book helps participants in construction projects (primarily on projects that are realized according to FIDIC models) to complete the identification of the causes (risk) that lead to negative disturbances on the project in order to create a correspondence with the representatives of the buyer) engineer, supervisory authorities, professional supervision and etc.), and how to exercise their right to reimbursement of unplanned costs and loss of time (Stamp and variations).

The book explains the difference between unforeseen circumstances, force majeure, the risk that a contracting authority accepts that cause material damage to the work and the importance and effect of the insurance policy papers regarding these consequences.

What can be singled out is that the book deals with the most common causes (risks) disorders on projects and how practical it should act in such situations (notifications, warnings, Tattoo and -DAB disputes and arbitration) which relate to: errors and deficiencies in project documentation, delay in receiving adequate instruction and technical project documentation, discrepancy between the tender conditions (data) and the actual conditions of works (primarily construction sites and require the buyer), the problem unresolved expropriation of property and legal relations on the construction site, the site of the late submission posed performers and the delay in setting a date for the commencement of works, non-acceptance of the works performed and problems with their evaluation and suspension).

In preparing the second edition of this book, which will bring a number of practical examples and examples of good practice in the design and construction works (with examples Klem and variations), instruments which the client and his representative be used in case of disturbances in the works (remedies “) as well as the procedure and the consequences of termination of the contract (as to which there was a lack of professional materials and ambiguities in the interpretation of the relevant contractual provisions giving rise to a very significant negative economic consequences on both the contractor and the customer and on the side of the subcontractors, suppliers and Acting various services that are engaged in construction projects).