A Comparative Study Of International Engineering Standard Contract: Contract Function Perspective

Contract has a key role in the coordination and cooperation between project participants.At present,the research of contract has been developed from the single study of control function to the comprehensive study of control,coordination and adaptation function.The proportion of control,coordination and adaptation in a contract affects the cooperation and trust of both parties after the signing of the contract.Contracts which are used in international engineering project are formed after the modification and specification of standard contracts.Thereafter,studying international engineering standard contracts from contract function perspective can help to connect contract research with the design of usable contracts.This paper untangles researches of contract function which is studied from transaction cost theory and organization theory,defines control,coordination and adaptation,and describes which should be included in the three functions according to engineering characteristics.This paper uses FIDIC red,yellow and silver book as the research object,identifies the functional configuration mode of international engineering contract through content analysis,further contrasts the coding results of the three books and explores the factors influencing the allocation of three functions in international engineering contract.This paper found that the proportion of control function in international engineering standard contract is the most,and the proportion of adaption function is the least.Besides,control function is achieved mainly through stipulating responsibilities and risks of both parties,the punishment after the breach of contract provisions and the beforehand allocation of rights;coordination function is achieved mainly through description of the division of tasks and the way of tasks completion;and adaption function is achieved mainly through providing the distribution of decision right after accidents and the principle and specific measures to deal with accidents.Finally,risk sharing may influence the allocation of the three functions by affecting the number of uncertain events stipulated in contract;and compared to the scope of the project,the degree of owner's management has greater impact on contract coordination function.This paper constructed a framework to study international engineering contract,identified the other two kinds of terms to achieve coordination function,and is helpful for the further development of function measurement in international engineering contract and for the international engineering contract standard setters and project owners to draft and modify the contract.