Construction and Engineering industry is a high risk industry. Management of the risks has overridingimportance and every risk must be allocated to one or other party. Practice over many years has shownthat sensible and balanced risk allocation results in the lowest overall total cost for completed projects.Common delivery methods such as General Contracting or Design-Bid-Build (often abbreviated as D/B/B),Design-Build (often abbreviated as D/B) including EPC (Engineer-Procure-Construct), and ConstructionManagement (often abbreviated as CM), including CM At-Risk and EPCM (Engineer-Procure-ConstructionManagement) and their key aspects such as Contract Price, Design Responsibility and Contract Administrationcreate a basis of Risk Allocation.
Claim Management is a system for early solution of problems, obstructions and complications that helpsreflect realized risk in Contract price and in Time for Completion.
The Fédération Internationale des Ingénieurs-Conseils (International Federation of Consulting Engineers)was founded in 1913 and the number of FIDIC associations worldwide is nearing to almost 100. FIDIC publishdifferent best practise documents including sample forms of contracts for works that are known for balancedrisk allocation and efficient Claim management system.