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Managing the Risks in Construction Project by Comparing MOSPI and FIDIC

K Shobana1, D Pradeep Kumar2, and J Suresh Kumar3
1. Department of Civil Engineering, Nehru Institute of Technology, Coimbatore
2. Department of Civil Engineering, Anna University of Technology, Chennai 600 025, Regional Centre, Coimbatore
3. Department of Civil Engineering, Shree Shakthi College of Engineering, Coimbatore

Abstract—The construction industry is subjected to greater risks and uncertainties than other industries. To avoid risks and manage the projects smoothly, there are lots of tools and techniques are being adopted. Among those, most of the civil engineering professionals believe that the contract document is the best tool to manage most of the construction risks. The contract document will allow the contracting parties to manage the risks properly and allocate the balanced risks between them during the initial stage of the project itself. This research project is aimed to compare the risk management clauses from the developed country construction contracts with the Indian construction contracts. Finally this research will recommend the changes required in the Indian construction contracts for better risk management to meet the current requirements in the Indian Construction Industry. And in this project it is decided to identify the popular form of procurement method and construction contract adopted from the developed country construction industry and in the Indian construction industry. Then the risk factors associated with the popular form of procurement method will be identified and the risk mitigation clause associated with those risks will be compared with the popular form of construction contract adopted in developed country construction contracts and in the India. 

Index Terms—contract, risk, design/build method, procurement route, MOSPI, FIDIC

Cite: K Shobana, D Pradeep Kumar, and J Suresh Kumar, "Managing the Risks in Construction Project by Comparing MOSPI and FIDIC," International Journal of Structural and Civil Engineering Research, Vol. 3, No. 1, pp. 124-150, February 2014.