Critical success factors in construction or rehabilitation contracts regarding dams

Constructing or rehabilitating a dam, be it for hydro power generation or other purposes such as flood control, drinking water supply or irrigation, is a complex project. Drafting adapted contracts taking into account and balancing the mutual interests of the contractual parties (the - future - owner as the “Employer” of the contract and the Contractor) and aligning them with the requirements of other stakeholders of the project is a challenging task. The critical success factors are: • a clear-cut, unambiguous definition of the Scope of Works: this is the key provision of the contract and the benchmark, whether the works have been performed in compliance with the contract; • comprehensive rules regarding interface responsibilities and the interface management, be it between several Contractors, be it between the Employer and the Contractor; determination of the “rely upon information” to be provided by the Employer; • a carefully drafted provision regarding the allocation of typical risks in case of unforeseen events during the erection phase; • quality assurance: an accurate documentation, the Employer’s approval-, inspection- and instruction rights and an adapted project organisation; • extensive reporting obligations to be complied with by the Contractor