ABSTRACT
The previously available FIDIC contract forms (Red, Yellow, Silver, Gold, Green Books) are different between themselves, in particular with regards to risk allocation between the Employer and the Contractor. However, they have not been drafted with regards to the risks related to sub-surface conditions. In order to prepare a contract form that is suitable for Underground Works a joint task group put in place by FIDIC and the ITA developed the “Emerald Book”. The balanced risk allocation, which is one of the core principals of the Emerald Book, will contribute to significantly lowering the project cost, improving cost stability and will allow for easier project implementation. This paper aims to highlight the approach to risk in the different books of the Rainbow Suite and show the changes implemented in the Emerald Book in order to apply the principle of balanced risk allocation to Underground Works.
