A Proposed Approach for a Balanced Construction Contract for Mega Industrial Projects in Egypt

Abstract: Nowadays, strong organizations make efforts to ensure that successful relationships are keep up through terms that encourage collaboration and support manage risk. Despite the importance of the existence of several forms of construction contracts for standardization contractual clauses in Mega industrial projects, standardization inevitably reduces the flexibility of these documents and their ability to adapt to all possible circumstances and parties' interests and needs. Contracts can function as an administrative tool for effective dispute control and project management by allocating each significant risk factor to the party who is capable to bear, manage, or mitigate it. The Conditions of Contract for Plant and Design Build {FIDIC form 2017 Yellow Book} were studied and examined to address the risky clauses. Some amendments were made to mitigate the project's significant risk factors and change the contract into a risk-balanced contract that could be used as a project management tool. These amendments focused on the specific requirements of Mega industrial projects, strive hard to address some problems such as the responsibility matrix between the Employer and the Contractor, limitation of liability, resolving procurements problems, Design errors, and contradiction in documents, the need for coordination between contractors and subcontractors, the importance of adhering to the project program, and linking delay damages with the project milestones. The outcomes of this study will be highly valuable to contract parties in terms of good managing projects, reallocating, reducing, and managing risk, and dispute avoidance. Keywords: Risk allocation, project management, FIDIC 2017 Yellow Book, Delay Damage, Milestones. Title: A Proposed Approach for a Balanced Construction Contract for Mega Industrial Projects in Egypt Author: Mona Abdel Hamid Hassanen, Ahmed Mohammed Abdelalim International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 10, Issue 1, April 2022 - September 2022 Page No: 217-229 Research Publish Journals Website: www.researchpublish.com Published Date: 06-June-2022 DOI: https://doi.org/10.5281/zenodo.6616913 Paper Download Link (Source) https://www.researchpublish.com/papers/a-proposed-approach-for-a-balanced-construction-contract-for-mega-industrial-projects-in-egyptInternational Journal of Management and Commerce Innovations, ISSN 2348-7585 (Online), Research Publish Journals (Publisher), Website: www.researchpublish.co