Other the requirements are below:

(1) Make the proposal more critically and add some data.

(2) The end of (back ground of study), I have no idea to write continuedly, please write more. The aim is giving some effective policies to improve fixed-price contract.

(3) Write more of (research questions) and (research objectives)

My supervisor was very strict and kept asking me to be critical and specific.

The risk transferring: a critical approach to discuss the fixed-price contract plays a common role in the construction projects



The purpose of this paper is to discuss some problems occurred in fixed-price contracts which applied by the corporation between client and construction companies in the risk transferring methods, meanwhile it will give some effective contracts’ policies which could help to reduce the legal disputes between construction companies and clients. In the complex environment, the construction companies tend to cannot change the nature of the risk itself through the risk avoidance or risk mitigation method. In this situation, risk transferring method is the choice because it can transfer the result of the project risk to the other party together with the rights corresponding to the risk to reduce the loss of the cost.


Background of the study

Normally, risk is transferred for a fee. Thus, risk transfer in principle amounts to the “sale” of risk. It is fair to say that the fixed-price contracts are the common way for construction companies to transfer risk, especially in the construction industry. The construction companies will establish a set price for each client regardless of the actual time and materials used for a project.

The fixed-price contracts are attractive to both construction firms and clients, which firms have detailed project budgets before construction, and clients who prefer contracts with transparent prices to avoid open-ended timing contracts. From the negative side, the disadvantages of fixed-price contracts are often the trigger for legal disputes between construction companies and customer service. First, risk transfer breaks the principle of personal responsibility, because risk transfer leads to injustice as it imposes responsibility for the failure of the project on the party that did not perform the action in the first place. Secondary, not only does the customer have to pay more than a flexible contract, but a sudden drop in service and quality during the period puts the customer at a disadvantage. Furthermore, when the price of services or materials increases sharply, the construction company may not be able to fulfill the contract so that the clients need to take useful legal action. For the construction company side, the design process should be completed before the contract is signed so that the later design changes to the project will reduce the revenue of the profit. Finally, delays in the client’s finance will delay the project because the break of capital chain can affect procurement. Therefore, how to minimize the problems arising from fixed contracts is another argument to be discussed in this paper. For example, how to specify problem solutions and policies in a fixed contract…………………………

Research aim

The long-term goal of the research discusses the problems occurred in the fixed-price contracts in risk transferring and state some effective methods or policies which could help to reduce the legal disputes between construction companies and clients.


Research objectives

1.Explain the benefits of the contract to the construction company and the client.

  1. To find out the problems caused by the fixed-price contracts.

3.Give some useful methods and policies to improve fixed-price contract’s practicability.

Research questions

  1. As a common form of risk transfer, what are the economic and risk benefits of fixed-price contracts bring to the construction companies and clients?
  2. Do fixed-price contracts cause legal disputes between construction companies and clients under special circumstances?
  3. What policies can improve the fixed-price contract?

    Customer Area

    Make your order right away

    Confidentiality and privacy guaranteed

    satisfaction guaranteed