• Journal of the Korea Institute of Building Construction
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• v.20 no.6
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• pp.527-535
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• 2020

This study analyzed main causes of claims in EPC/Turnkey projects. For this purpose, this study referred to the FIDIC silver book, which lists the international standard contract conditions for EPC/Turnkey projects. The most frequent cause of claim was delay. A process was then proposed to determine whether the owner or contractor was the responsible party when the delay claim occurred. The proposed process was for damages for delay which is the conditions of contract for indemnities against delay claim. The process was based on conditions of the contract of two previous EPC/Turnkey projects that were constructed in 2010, the FIDIC silver book, as well as the obligations of owner and contactors. The proposed process is applicable depending on the conditions of the contract and the owner's meaning. Furthermore, by identifying the responsible party, this study will contribute in identifying the possible claim types before concluding a contract and writing the specific contract.

• Korean Journal of Construction Engineering and Management
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• v.23 no.6
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• pp.101-110
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• 2022

Recently, the global construction market is expected to grow at an annual average of 4.8% by 2025 and the risk of overseas construction is also expected to increase accordingly. In particular, domestic construction companies intensively participated in the EPC(Engineering, Procurement, Construction)/Turnkey project, but as a result of failing to respond to contractual risks, they have suffered losses of trillions of won in overseas business since 2013. Nevertheless, there have been not many studies on the derivation of EPC/Turnkey's contractual key risk sub-clauses. Therefore, in this study, the key risk sub-clauses were studied for the conditions of the 2017 Silver Book contract issued by the International Consulting Engineering Federation(FIDIC). To this end, 30 experts with more than 10 years of experience in international construction contracts were formed as a panel to conduct a Delphi survey on 170 sub-clauses of 21 clauses of FIDIC Silver Book to derive 62 main risk sub-clauses. In addition, the RPN(Risk Priority Number) was finally calculated using the FMEA(Failure Mode and Effect Analysis) technique, and 25 key risk sub-clauses within the Critical Risk range were derived. Through the results of this study, the practical point of view is able to refer to the contract provisions to be carefully reviewed at the bidding and contract signing stage in overseas construction projects. From an academic point of view, it provides direction and basic knowledge of how to study the contract fields used in overseas construction EPC/Turnkey projects.