Mr. Paul Sheridan:

Price increases are one risk, but a broad range of risks may arise on any construction project that started three years ago, is only going on site now and requires another two years to complete. We all know that events can happen. We want a contract that can react to that in a collaborative way. The idea of risk mechanisms is to protect the contractor's business and the project, as well as to deliver value for the client. The NEC-type contracts handle risk in a much better and fairer way. In such a system we collaborate more, manage it better and the client only pays for what is actually delivered. It takes competitive tendering on risk out of the process.