Potential Risks Occurring in Fidic Contract Construction Projects: A Literature Review

Document Type: Original Article

Authors

1 Industrial Engineering Department, Mercu Buana University, Jakarta, Indonesia

2 Research Assistant, Civil Engineering Department, Mercu Buana University, Jakarta, Indonesia

Abstract

Most major construction projects in the world are based on standard contract conditions for international projects issued by the Fédération Internationale des Ingénieurs-Conseils (FIDIC, or International Federation of Consulting Engineers), which are based on concept law rooted in the common law system. Thus, the stakeholders involved in construction projects in the World need to understand the interpretation of FIDIC provisions against a background of civil law. This literature study will explore the identification of risks that occur in international projects using FIDIC contracts. A systematic review and detailed content analysis of 30 articles selected from respected academics and relevant journals published over the past three decades was carried out. The findings of risk identification are divided into 5 namely (1) Planning and Design, (2) Construction, (3) Operations & Maintenance, (4) Political Environment and (5) Social Economic. This study trying to identify, investigate, and classify the strongest factors that are considered to influence delays in construction projects. From the results of grouping identification, it is found that the greatest risk in FIDIC construction contracts is when the construction work is caused due to the complexity of the problems at the time of the construction, whether the dispute, payment or claims of work results. Recommendations from the authors would be good for the relevant stakeholders the project uses the FIDIC contract to further study the contents of the contract to help reduce or at least minimize the risk of project delays, especially during construction.

Keywords


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