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.
Download – Balanced Baselines – A Fairer Allocation of Uncertain Risk
Author: Jim Doyle Dip.CE, MIE (Aust), BEc (Hons), LLB (Hons). Partner, Doyles Construction Lawyers
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