Risk-sharing rule in project contracts

In this paper, the risk sharing rules an investigated to characterize the contractual structure of the project contracts. The authors exclusively focus upon the GCW and the FIDIC forms, which can be regarded as typical examples of incomplete contract forms. Risks involved in construction works are classified into exogenous and endogenous ones. The paper claims that dear differences in both contract forms in coping with endogenous risks can be found, while there are no essential differences in dealing with exogenous ones. The paper concludes by summarizing the remaining research issues to be scrutinized in the future.