Research On The Liability Sharing Of Seismic Risk Based On FIDIC Terms

Under the background of the global economy integration, more and moredomestic construction companies go abroad to hire of overseas engineering projects.Foreign construction companies also enter our construction market through theinternational competitive bidding. So construction projects is becoming international.Therefore, the terms of the engineering construction contract used on the internationalneed to confirm the rights and obligations of the parties to the contract more accuratelyto make the international cooperation proceed more smoothly. Nevertheless, there arefuzzy regions in these terms of the contract especially those of earthquake riskaffecting the confirmation of rights and obligations of the parties to the contract.This paper introduces basic components of the FIDIC and the project constructioncontract demonstration text of our country, and makes comparison of the force majeureclause of the contract between them. It also makes analysis about the seismic riskresponsibility provided by the concept of force majeure in FIDIC, compared thecontract of China based on the justice principle followed when the contract partiessharing the risk. It proposes some fuzzy area that is stated in the terms connected withearthquake risk liability share for both sides of the contract. After certain analysis offuzzy area, it introduced the theory of small probability events in probability statisticsas the basis of making a clear division of the seismic risk liability. It also draws the lawof the earthquake happened in Hebei Province by using the Statistics knowledge andengineering seismology on the basis of the analysis of historical earthquake data inHebei Province, which will provide the actual data basis for the seismic riskresponsibility shared by both sides of the project construction contract in the area.Clear division of responsibility for earthquake risk not only improve theenthusiasm of risk prevention of both sides of contract but also provide the basis ofreasonable share for loss responsibility for construction, and reduce disputes betweenthe parties in the region of the fuzzy rules after the earthquake disaster. Seismic riskresponsibility clearly determination can offer certain theoretical help for both FIDICcontract and China’s construction contract demonstration text to be further perfect.