A CONSIDERATION ON THE ASSESSMENT AND ALLOCATION OF GEOTECHNICAL RISK IN PFI CONSTRUCTION PROJECTS

Abstract

This paper focuses on the basic concept how to rationally allocate geotechnical risk in construction projects. Firstly, risk allocation policies specified in each typical construction contract represented by FIDIC are investigated. Finally, conclusions make it obvious that both project owner and contractor principally share geotechnical risk in construction projects, and that both parties should cooperate to establish methodologies associated with the reduction of potential loss due to the geotechnical risk.