Organizational Structure

The Contract Structure or Procurement Strategy will determine the Allocation of Design Risk in general, but it will depend on the specific Type of Contract whether the Design Risk has effectively been allocated to the intended party or not. Through the application of proper Juristic Management, the parties can ensure that the Design Risk, and the degree thereof (strict liability or liability for negligence) has been allocated to the intended party.

The Type of Contract will determine the Rights and Responsibilities between the individual contracting Parties, inter alia the payment mechanisms, extension of time regime and will allocate liability for risk and indemnities for damage and loss caused by the other party. The two main categories are:

Construction Contracts – JBCC PBA, JBCC N/S Subcontracts, JBCC MBSA, FIDIC Red Book, FIDIC Yellow Book, FIDIC Silver Book, GCC, NEC, SAFCEC etc.

Professional Services Contracts – PROCSA, CIDB, FIDIC, NEC, SAACE, SAIA, SAQS, SACPM etc