Analyzes risk allocation in international construction contracts, suggesting improved compliance monitoring.
International construction projects routinely collapse into expensive disputes despite using Fédération Internationale des Ingénieurs-Conseils (FIDIC) contracts designed to prevent conflicts. A $2.4 billion Romanian infrastructure project required six dispute board decisions and four arbitrations over 10 years, exemplifying how contractual ambiguities undermine project success. This research transforms FIDIC provisions from subjective legal text into mathematical algorithms using propositional logic and Boolean algebra. Six subclauses underwent conversion into conditional statements followed by truth table analysis covering all compliance scenarios. Mathematical analysis reveals FIDIC provisions operate as conjunctive gates requiring simultaneous satisfaction of average conditions for entitlement, creating 11.2% success rates with 88.8% procedural failures. Claims procedures exhibit 7.9∶1 denial ratios, demonstrating that apparent contractual balance masks risk allocation algorithms designed to transfer liability through procedural complexity. These findings enable automated compliance monitoring, reduce interpretative disputes for procedural requirements, and provide construction professionals with quantitative risk assessment tools that supplement professional judgment with systematic logical analysis. The methodology addresses objectively verifiable procedural conditions while acknowledging that evaluative terms requiring professional judgment remain subject to expert interpretation.
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Khan et al. (2026) studied this question.
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