ABSTRACT
The Emerald Book, the new FIDIC Standard Form of Contract developed for Underground Works, was prepared following a balanced risk allocation approach, whereas the Employer retains the ground related risk and the Contractor is responsible for the performance related risk for given ground conditions. The contract uses a Geotechnical Baseline Report (GBR) to set out the sub-surface conditions anticipated under the contractually agreed Excavation and Lining design and construction methods and states the allocation of the risks contemplated for sub-surface conditions between the Parties.
If the encountered ground conditions differ from those set forth in the GBR, the contract contemplates that the Contractual Time for Completion should be adjusted, increased if more unfavorable conditions are encountered than foreseen in the GBR, or shortened if more favorable conditions are encountered, of and to the extent that the critical path is affected.
This paper describes the philosophy behind this contractual mechanism and the time adjustment procedures contemplated in the Emerald Book.
