Recipes for disaster how risk allocation is a determining factor in a successful project
Recipes for disaster, how risk allocation is a determining factor in a successful project
A webinar presented by the IBA International Construction Projects Committee of the Energy, Environment, Natural Resources and Infrastructure Law Section (SEERIL)
15 JULY 2020 1300 – 1430 BST
The construction industry in the Netherlands has been confronted with huge financial setbacks in recent years. This applies in particular to a large number of infrastructure projects.
After the debacle around the widening of the A15 motorway and the construction of the Botlek bridge, which almost meant the bankruptcy of Ballast Nedam, a leading Dutch construction company, projects such as the new sea locks at IJmuiden, the Twente canals, the Hoevelaken motorway junction and, more recently, the Zuidasdok project in Amsterdam are, from a financial and planning point of view turning into disaster projects, leading to losses of hundreds of millions of euro’s for the consortia that have been awarded these projects, let alone delays for the employer.
As a result of these difficulties, integrated contracts, such as D&C-contracts and DBFM contracts are a subject of discussion.
Based on a case study, this session will focus on issues that affect the success of a large, infrastructural project. Is an integrated contract still the most favourable form of contract for such projects, or are more traditional forms of contract, alliancing contracts or other ways of cooperation better solutions for a successful delivery of a project?
Furthermore, the session will focus on other factors that may affect a successful execution of a project, such as the way procurement procedures are structured, how risks could be allocated, and how penalties or rewards could be dealt with.