A CONTRACTUAL APPROACH TO THE OBSERVATIONAL METHOD: PROVISIONS AND ARRANGEMENTS REVIEWED

Uncertain ground conditions create risk for the construction industry. If understood and then managed appropriately, ground risk can become an opportunity for the industry. One way of using this opportunity is by applying the Observational Method (OM) to managing ground risk. If it is successfully applied to ground engineering design, the result can be added value by savings in construction cost. OM aims to be responsive to changes made during construction, to accommodate unforeseen ground conditions and control the resulting risks. To maximise this benefit of the OM approach, there must be a contractual framework allowing OM to function, and enabling the OM risk takers to gain some benefits too. Within this framework, the success of OM is influenced by contract type, procurement method, payment method, and operating environment. When adopting OM using the contractual approach, the following key provisions are recommended: (1) isolate the OM aspect of the works; (2) allocate the risk and the benefit to the client by a cost-reimbursement contract, and to the contractor by a design-and-build contract; (3) specify construction control and monitoring, performance review, and modification implementing fully; and (4) provide a partnering approach between client and contractor in the contract. For the covering abstract see ITRD E105619.

• Corporate Authors:

  Institution of Civil Engineers

  One Great George Street, Westminster
  London,   United Kingdom  SW1P 3AA
• Authors:
  • Wallace, W A
• Conference:
  • THE VALUE OF GEOTECHNICS IN CONSTRUCTION - MEETING CLIENT NEEDS. PROCEEDINGS OF A ONE DAY SEMINAR ORGANISED BY THE SCOTTISH GEOTECHNICAL GROUP OF THE INSTITUTION OF CIVIL ENGINEERS AND HELD IN GLASGOW ON 9 MAY 2000
• Publication Date: 2000

Language

• English

Media Info

• Pagination: p. 47-50

Subject/Index Terms

• TRT Terms: Administration; Conferences; Construction; Contractors; Contracts; Costs; Design; Industries; Methodology; Partnerships; Payment; Risk taking; Rock mechanics; Soil mechanics; Surveillance
• Uncontrolled Terms: Site investigation
• ITRD Terms: 155: Administration; 8525: Conference; 3655: Construction; 146: Contract; 136: Contractor; 224: Cost; 9011: Design (overall design); 332: Industry; 9102: Method; 219: Partnership; 272: Payment; 2259: Risk taking; 5757: Rock mechanics; 5722: Site investigation; 5755: Soil mechanics; 9101: Surveillance
• Subject Areas: Administration and Management; Construction; Design; Finance; Geotechnology;

Filing Info

• Accession Number: 00796519
• Record Type: Publication
• Source Agency: Transport Research Laboratory
• Files: ITRD
• Created Date: Aug 2 2000 12:00AM