Risk and liability allocation are perhaps the most fundamental,
and certainly in the eyes of some clients, the most important parts
of the formation of any construction contract. JCT, NEC and FIDIC
all have their own unique approach to the conduct of the
parties.
JCT, for example, opts for a more structured approach to risk
allocation, which has its own merit in that everyone is made aware,
unambiguously, of their responsibilities and their allocated
risk.
This is in stark contrast to the approach of the NEC, which
emphasises collaboration, clarity, and flexibility in project
management.
But what if we could still promote the values of collaboration
and pro-active dispute management, no matter what contract you
choose to develop your project? That is what the Conflict Avoidance
Process, or "CAP", is aimed at achieving. This UK
Government endorsed process is a form of Alternative Dispute
Resolution that can be written into a contract or utilised on an ad
hoc
