Salient points of a 'design and build' standard form contract with particular reference to the FIDIC orange book

Abstract

This thesis provides an analysis of 'Design and Build' (where the contractor is responsible for both construction as well as the design of a project) as a different option to the traditional building contract. 'Design and Build' departs radically from the traditional construction contract adopted by Maltese law since it assigns single point responsibility to the contractor for all his team; in the traditional scenario, the employer/owner is faced with finger pointing and disputes between the contractor and architect, which many a time results in difficulty in attributing responsibility for defects and default. In this thesis, I have highlighted the most important elements that make up a 'Design and Build' contract and which make it differ from other procurement methods. Its key elements, the concept of risk and the parties' liability were assessed in order for one to be able to decide whether the traditional or the 'Design and Build' construction contract is the most apt for the project at hand. Special Reference was made to the FIDIC 'Conditions of Contract for Design-Build and Turnkey', which is known as the Orange Book, since this standard form construction contract is widely used in Europe and since it has French law roots, it is well-suited with our civil law system. This thesis has given me the opportunity of examining the potential problems and risks which a construction project poses, as well as the positions assumed by each party in a construction contract. The Maltese construction industry is a vital part of our economy, and for people to invest in it, it is essential that they have faith in the system that regulates it. Thus a thorough yet practical standard form contract could lessen risk, though not eliminate it, and contribute to the success of this thriving industry.