In: Civil Engineering
ConsensusDocs 750 vs. AIA A401‐2007:
comparing the risk shifting aspects of the different AIA and Consensus subcontract forms. Then answer the questions below.
Imagine a situation in which you are employed as a project manager by a very large, multinational General Contractor. Given your company’s market share and financial strength, you are in a position to impose extraordinary amounts of risk on the subcontractors on your projects. If you choose to allocate extraordinary risks to your subcontractors, is that necessarily in the best interest of your company? Please discuss the pros and cons of this risk allocation strategy.
Next, assume you work for a subcontractor to whom extraordinary risk is being allocated. What is your strategy for dealing with this situation? Given the differences between the two forms, as the Subcontractor, identify which form you would prefer to use if your primary concern is:
Consequential damages
Dispute resolution
Indemnity
Insurance