Unified Risk Approach for Construction Contracts: A Comparative Analysis of NEC, JCT, and FIDIC from a Contractor’s Perspective.

In the construction industry, effective contractual risk management is critical to the success and resilience of projects in avoiding the soaring construction disputes. However, construction contract risks are inevitable for the contracting parties due to the complexity of the Standard Forms of Contract (SFoC). This study investigates and compares risk management approaches across three widely used construction contracts: NEC 4, JCT Design and Build 2016, and FIDIC Yellow Book 2017, focusing on contractor-specific risks. Through a comprehensive analysis of contract clauses, industry practices, and existing literature, this paper identifies key commonalities and differences in how these contracts handle various risk categories, including financial, schedule, compliance, and legal risks. The findings reveal NEC contracts emphasize collaborative and flexible risk-sharing through early warning systems, while JCT contracts adopt a more rigid, structured approach that prioritizes clear, predefined processes. FIDIC contracts, on the other hand, strike a balance by providing structured yet adaptable frameworks for managing unforeseen risks. By synthesizing these insights, the study proposes a unified risk management approach that combines the strengths of each contract type, with a view to improve risk mitigation and project outcomes for contractors. This unified risk approach may serve as a guide for construction professionals seeking to adopt more resilient and effective risk management practices in diverse project environments.