Construction Industry Development Board Act, 2000 (Act No. 38 of 2000)Board NoticesConstruction Procurement Best Practice4. Contracting Strategies |
There are a number of ways in which risks, liabilities and obligations can be allocated between the two main parties to a contract, i.e. the employer and the contractor. Total investment costs are influenced by the risk / reward strategy that is adopted in a particular procurement. Contracting and pricing strategy permits the employer to allocate risk to the party that is best able to manage the risk.
| ➢ | CIDB Construction Procurement Best Practice Guideline A5 (1005), Managing Construction Procurement Risks, establishes desirable and appropriate risk management practices. |