ABSTRACT
Design and construct contracts are considered in Chapter 9. Such contracts differ from construct-only contracts that were more commonly used in the past, in that the designer is engaged by the Contractor, not the Employer. This chapter addresses one of the issues peculiar to design and construct contracts – which party bears the risk that the final as-constructed cost exceeds the estimated cost of the preliminary design on which the successful tender was based. This requires scrutiny of the contractual relationships between the Contractor and its designer, and the different ways in which these are implemented. The principles are illustrated by reference to the limited case law that has dealt with this issue.
