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Balanced Baselines
A Fairer Allocation of Uncertain Risks

"What is, is.
What is not, is not"

Although these statements appear simple, in fact they make a profound statement on the existence in the material plane. What is not, is not basically says there can be no vacuum, that the concept of void is a logical error. The substance that is the One fills all the Universe. Classical Physics would deny Parmenides claim, however, modern physics has found that the quantum vacuum in fact fills the Universe just as Parmenides predicted over 2000 years ago.

Keywords: Construction Contracts, Risk, Latent Conditions, Claims.

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Balanced Baselines - A Fairer Allocation of Uncertain Risks [P053]

The use of a Geotechnical Baseline Report (GBR) in the construction contract provides the parties to the contract with a mutual understanding of the subsurface site conditions (the baseline). The actual conditions encountered are measured against this baseline. If the contractor comes across a more adverse condition than that of the baseline, then the owner pays the contractor more to complete the work under those adverse conditions, and if the conditions are less adverse than the baseline, then the contractor is paid no more than that tendered. The reduced risk to the contractor should result in lower tender prices and minimises the opportunity for contract claims and disputes.

Casewatch reports discussing key construction law judgements can be downloaded from the 'Casewatch Index'

Author: Jim Doyle Dip.CE, MIE (Aust), BEc (Hons), LLB (Hons). Partner, Doyles Construction Lawyers
Tel: (02) 9283 5388

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