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Is contractual risk a zero-sum game?

by Donald Charrett

Dr Donald Charrett (2010) 38 BDPS News 12

This paper was first published in BDPS News, and by kind permission of BDPS, subsequently delivered at the Society of Construction Law Australia’s inaugural conference in Perth on 19 June 2010.

This paper endeavours to suggest answers to the question from a consideration of the nature and cause of the risks involved in construction contracts and the parties’ objectives. It is suggested that contract risk can be minimised by selecting the appropriate form of contract as that which gives primacy to achievement of the Employer’s most important objective(s).

Further, for any type of contract, contract risk is minimised by following well-established principles of balanced risk allocation.

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