Abstract:
The Design and Build Procurement method is one of the most frequently used procurement
methods in the present construction industry. It releases Employers from the design
responsibilities and transfers design and construction responsibilities to the Contractor.
Further, Differing Site Conditions are one of the unforeseen, unpredictable risks construction
projects face, and it acquires considerable additional time and cost to complete the project.
Hence Contractors are keen on claiming the Differing Site Conditions situation, one of the
highly disputed claim types in the Design and Build projects. Thus this research aims to
manage the contractual disputes related to the Contractor’s Liability under Differing Site
Conditions in Design and Build Projects. Initially, a comprehensive literature survey was
conducted, followed by selection of three case studies. Document review and expert
interviews helped gather information about the Design and Build Projects in Sri Lanka. The
research findings revealed that Contractors’ Differing Site Conditions liabilities towards the
D&B projects and types of Differing Site Conditions disputes from the literature review were
validated via interviews. In addition, the interviews disclosed the new Differing Site
Conditions liabilities of the Design and Build Contractor and Differing Site Conditions
disputes. The research disclosed the D&B Contractor’s non-perform DSC liabilities and
reasons for the non-performance. The study outcome reveals that validation of Employerprovided
data
and
not
conducting
a
proper
site
investigation
before
bid
submission
are
some
DSC
liabilities
non-performed
by
the
D&B
Contractors.
The
research
further
identified
that
the
main
reasons
for
this
non-performance
are
the
negligence
and
unawareness
of
the
DSC
liabilities
by D&B Contractors and the cost and time limit to include a detailed site
investigation during the bidding period. The literature revealed the contractual and technical
parameters to manage each type of Differing Site Conditions dispute, and the interviews
introduced new parameters to manage the Differing Site Conditions disputes. The interview
results revealed that establishing the DSC parameters, DSC evaluation techniques, and
identifying DSC risk responsibilities in the Contract are primary contractual parameters.
Doing a detailed site investigation and obtaining technical experts’ knowledge to identify
and analyse the potential DSC risks are a few technical parameters to manage the DSC risk
as of the interview response. Managing the Differing Site Conditions disputes in the
construction project is a win-win situation for both the Employer and the Contractor. This
research can be a benchmark for further study in Differing Site Conditions disputes.
Citation:
Weerawardana, I.A.D.S.S. (2022). Management of dispute related to contractor's liability under differing site conditions in design and build projects [Master's theses, University of Moratuwa]. Institutional Repository University of Moratuwa. http://dl.lib.uom.lk/handle/123/21416