Comparative analysis of condition of contracts in Sri Lankan construction industry, study of ICTAD AND FIDIC

Abstract

Standard condition of contracts is frequently used in Sri-Lankan building sector to create precise requirements for buildings. The world-famous Federation des Ingenious Councils (FIDIC) and the regional Institute for Construction Training Development (ICTAD) are two of the well-known contractual structures used. With a focus on the ICTAD and FIDIC conditions frameworks, this research comprises of a detailed comparative evaluation of standards used in contract terms in Sri-Lankan projects. This study was reviewed the importance of standard condition of contracts (ICTAD or FIDIC) in the Sri Lankan projects, also discussed the essential function of these contracts for controlling construction activities and reducing problems. It is also reviewed the contents of condition of contracts, clauses with usages and limitations of the FIDIC and ICTAD documents. This study incorporates case studies like construction variations, claims, bonds issues and guaranties to show how choosing between ICTAD and FIDIC conditions papers may affect building projects in Sri Lanka. In this study used the quantitative methodology especially use the questionnaire, and questionnaire sent to the random sampling size 50 people from construction industry. However, only 35 people fully response to the questionnaire. This research study examines the flexibility of FIDIC and ICTAD conditions such as market conditions, ecology requires and industry development. This study expert comparison analysis offers useful information from those who involved in the construction Sri Lanka, also these analyses revealed the answers are ICTAD suitable for priority documents, contract agreement, investor’s benefit and most suitable cost formula in Sri Lankan construction industry. On the other hand, FIDIC suitable for right to access site, performance guarantee and safety arrangement in the site. Providing through the analysis of benefits with drawback of ICTAD and FIDIC documents, the research makes choosing an in contract easily. This research helps to providing approaches and improvements of handling projects. Also this study creates the future hope to analyse the worldwide other various condition of contracts and suitability in the Sri Lankan building projects.