Author name: CMGuide

Contract Administration

Green is in

By Hisham Yousef,

Sustainability has become the buzzword of choice in our industry, with many technical terms and metrics that makes it almost beyond the understanding of many clients and professionals alike. But this need not be the case. Sustainability is about going back to the basics of interacting with the environment and adopting a common sense approach to design.

We have all heard that buildings contribute a significant amount of CO2 emissions to the environment and GCC countries with new developments underway are among the top offenders. There are, of course, a number of showcase projects that deserve recognition, but speed has trumped sustainability in the vast majority of developments so far.

That said, the sustainability mindset should not be limited to developments and reside within the walls of our offices. Sustainability is about how we go about our daily routines. In order to secure a more sustainable future for the next generation, two key agents of change are necessary: education and government legislation.

Education is paramount, and schools must start educating the next generation about sustainability. Sustainability education is about instilling the right values, sensitivity and sense of responsibility towards our planet’s limited resources and can only start at a young age. Changing our value system at a later age is never easy and always resisted. But this does not mean that education should stop at early school years. Sustainability values and skills are fundamental at all stages of our educational system.

At the same time, governments must develop creative programs to encourage sustainable developments. This is especially important in states where there are no taxes. Typically, where taxes are levied, a reduction of taxes would incentivize owners and developers to adopt sustainable approaches.

The voluntary building rating systems LEED, BREAAM and others have long been leading global benchmark systems. But they never quite addressed the climate of the region.

In developing Estidama, the government of UAE has done well to tackle that problem. The Pearl rating system has been developed specifically for harsh Middle Eastern climates, and addresses the full life cycle of developments. A perusal of their website shows a well developed program. That said, the UAE is not alone in the region, other rating systems are also being developed in MENA countries including Egypt (Green Pyramid Rating System), and Qatar (Qatari Sustainability Assessment System).

So, where do we go from here? As professionals we must adopt sustainable approaches to design. This is only the first step, and it is our responsibility. Other more sophisticated techniques that can be implemented may come at a price to owners, for now. With time, as the general thinking and industry inevitably moves in the direction of sustainable developments, costs will come down. But we must start now.

CW

Contract Administration

Design-build contracts

By Dennis Brand

Perhaps the best way of describing ‘design-build’ is to describe what it is not.
The traditional ‘design-bid-build’ method of construction is a sequential process in which the owner or developer first contracts with a design professional to prepare a concept or basic design, then a detailed design for construction. This includes specifications to solicit competitive bids for construction, and finally the award of a construction contract to the lowest bidder. …

Contract Administration

Delay claims

by Dr Jay Palmos
Last month, Deutsche Bank estimated that as many as 30 000 new units will enter the Dubai residential market this year, decreasing demand for new and existing units. A Union Bank of Switzerland study predicts rental prices could decline by as much as 30% during the course of financial year 2010 due to overcapacity in the sector. These reports paint a bleak picture for current developments. …

Project Management

Safety first

by Sarah Blackman

zoomNets can be used to eliminate fall hazards but personal protective equipment should also be used when working at height.next »In order to prevent injuries or fatalities at work, companies should go out of their way to reduce hazards wherever possible. Where there is the slightest risk that someone could get hurt, personal protective equipment should always be used, as experts tell Facilities Management Middle East. …

Contract Administration

Projects, Programs, and Portfolios Defined

Many people hear the terms projects, programs and portfolio, but are not sure what they all mean and how they fit together. Project managers probably have a good sense for what a project is, but the other two terms might be a little fuzzy. In general, you can divide all the work of a corporation into projects (large and small) and support (ongoing operations). Administration may be considered separately, or as a part of support. At a high level,
Projects are where all the new work gets done, including new enhancements. They have a beginning and an end, have specific objectives and deliverables, and are unique. 

Project Management

Create Schedule Management Plan

The Schedule Management Plan describes the process that will be used to manage the project schedule including tracking activities in progress, identifying activities to be completed, measuring activity performance against allocated time, identification of potential project delays, and evaluating overall project performance. The components of the Schedule Management Plan can include: …

Construction Law, Contract Administration

Tales of the Unexpected: Where Liability Lurks Unseen

by Melanie Grimmitt

Uncertainty in the Application of UAE Laws

The UAE legal system is a civil code system based on both Islamic and civil code principles. Any contract subject to UAE law must comply with the UAE Constitution, Federal and local Emirate laws, Islamic Shari’a and custom and practice.

There are challenges in deciding how the law of the UAE will be applied in any particular case. This is due to a number of factors. The UAE legal system is still very much in its infancy, the collision of French – via Egypt and other Middle Eastern countries – civil code principles and Islamic Shari’a principles, the lack of judicial precedent – previous decisions may be useful but do not create any binding or persuasive precedent to the court, and the difficulty of predicting which legal principles and/or custom and practice a judge will apply when reaching a decision. …

Construction Law, Contract Administration

Letters of Intent: Still Crazy After All These Years?

by Melanie Grimmitt

Reviewing the wealth of commentary on the use of letters of intent in construction contracts, one might speculate that at the time the pyramids were being built some well-intentioned Egyptian lawyer was earnestly hammering out hieroglyphics warning his contemporaries of the potentially dire consequences of commencing construction works without a concluded contract in place. Nevertheless, despite the plentiful guidance cautioning contractors against relying on letters of intent which has been produced by legal professionals in more modern times, a significant proportion of construction projects do, in fact, proceed on the basis of a letter of intent. This practice is particularly common within the UAE and the wider Gulf Region. …

Construction Law, Contract Administration

Record what happened, when it happened – the importance of ‘contemporary records’

by Sachin Kerur

A large part of the administration of a construction contract comprises a contractor seeking genuine contractual entitlements for additional time and costs and the determination and award or rejection of those claimed entitlements by the engineer/employer. As a result, contractor’s claims for extensions of time and additional costs are also often the subject of arbitral proceedings and litigation. …

Construction Law, Contract Administration

Liquidated Damages in PPP Transactions

by Melanie Grimmitt

One of the most interesting aspects of working in different jurisdictions is seeing how different regions approach the same issues in different ways – both legally and commercially. An example of this in the context of PPP transactions, is the differing approach taken in the UK and the Middle East in respect the inclusion of delay liquidated damages regimes in Project Agreements. …

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