Overview of MSc dissertation in Construction Engineering and Management titled " Risks Allocation in Egyptian Construction industry; Case studies in view of FIDIC forms.

1. Risk Allocation in Egyptian Construction Industry;
Case Studies in view of FIDIC Forms
Cairo University
Faculty of Engineering
Construction Engineering and Management
MASTER OF SCIENCE
By
Nefert S. Moussa
BSc Construction Engineering and Management, Cairo University
Under the Supervision of
Prof. Dr. Nabil A. Yehia
Dr. Tarek H. Hamed

2. A clarification, in a structured and systemic manner, of the current risk allocation
practices in the Egyptian construction industry as compared to the international
standards, through;
 A study of the mandatory rules relevant to Construction Contract in the
ECC.
 A study of the risk allocation between the Employer and the Contractor in two
different FIDIC forms.
 A study of the risk allocation between the Employer and the Contractor in
intensively used construction contracts in Egypt.
Overview
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3. Mandatory Rules related to the Construction
Contracts under the ECC
SourceofRisk
The Contracting
parties actions
Behavioural Risks
Governed by the
Contract
Conditions
Outside reasons
beyond the parties
will
Natural Risks,
Political Risks,
Economical Risks
The consequences
are the
impossibility to
execute works
End of Contract
Contract
termination (Article
665)
Breaking the
economic
equilibrium
between the
parties
Proceed with works
Or
End of Contract
Adjustments to the
Contract (Article
658 )
Major losses to a
party that was not
foreseen and are
not remedial
Proceed with
works
Reducing the
obligations of a
party
(Article 147.2 )3

4. Risk Allocation under FIDIC (CONS)
and FIDIC (P&DB)
The FIDIC forms setting the benchmark
for the study
(FIDIC CONS): the FIDIC Conditions of Contract for
Construction Works Designed by the Employer, 1999.
(FIDIC P & DB): the FIDIC Conditions of Contract for
Plant and Design-Build, 1999.
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5. The case studies subject to the analysis are four contracts
currently used in the Egyptian Market:
Contract 1
Modified
FIDIC
(CONS)
1999
Contract 2
Modified
FIDIC
(CONS)
1987
Contract 3
Standard
ad hoc
Design-
Build
Contract
Contract 4
Ad hoc
Design-
Build
Contract
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Risk Allocation in Construction Industry
(case studies)

6. Conclusion
Objective risk
allocation criteria are
formulated after risk
identification.
These criteria aim to
allocate the risks among
project stakeholders in a
way that minimizes the
expected project costs
and execution time.
Risk identification,
formulation of allocation
criteria, and risk
allocation are done in
partnership between
stakeholders.
Risk Allocation criteria
that aims to minimize
the risks allocated to
one party (usually the
Employer).
This practice is
balanced/countered by
increase in
contingency, hence
price, from the
contractor side.
Risk Identification and
allocation is done by
the Employer side.
Theefficientstrategy
Defensivestrategy
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