Construction Industry

Construction Industry, Construction Law, Contract Administration, Project Management

Empowering the Engineer: Significant Advances in FIDIC 2017 Red Book Over 1999

The FIDIC Red Book, published by the International Federation of Consulting Engineers (FIDIC), is a widely used standard form of contract for construction projects where the Employer designs the works. The role of the Engineer, a pivotal figure in administering the contract, has undergone significant enhancements in the FIDIC 2017 Red Book compared to its 1999 predecessor. These improvements aim to promote fairness, clarity, and efficiency in contract administration. This blog post explores the key advancements in the Engineer’s role under FIDIC 2017, focusing on substantial changes and citing relevant clauses for educational purposes. For brevity, we will not dwell on aspects of the Engineer’s role that remain unchanged or have only minor differences between the two editions. …

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Construction Industry, Construction Law, Contract Administration, Project Management

Understanding FIDIC Golden Principles: A Guide for Construction Professionals

In this post, we dive into the FIDIC Golden Principles, a cornerstone of fair and balanced construction contracts globally. Whether you’re a contractor, engineer, or project manager, understanding these principles is essential for navigating international construction projects with confidence. Let’s explore what they are, why they matter, and how they impact your work.

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Construction Industry, Construction Law, Security of Payment, Statutory Adjudication

Judicial Decisions Concerning Expert Evidence in Adjudication

By Dr Samer Skaik

In the realm of construction disputes, expert evidence plays a pivotal role in shaping the outcomes of litigation and arbitration. Traditionally, expert witnesses are engaged by parties to analyze facts, form opinions, and present conclusions that can influence the decision-making process of a tribunal. However, the growing use of expert witnesses in statutory construction adjudications, especially for large and complex payment claims, has introduced new challenges. Unlike the more extended timelines in litigation and arbitration, adjudicators in construction disputes often operate under severe time constraints—typically just 10 business days. This accelerated process leaves little room for the thorough examination of expert evidence, such as cross-examinations or detailed meetings with experts, which can complicate the adjudication process. …

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Construction Industry, Construction Law, Contract Administration, Project Management

Understanding Contractors’ Rights and Liabilities in the UAE: Navigating the Legal Framework of Subcontract Nomination

By Dr Samer Skaik

Subcontractor nomination is a common practice in the UAE construction industry, often governed by the FIDIC suite of contracts and the local Civil Code. However, the legal intricacies surrounding the rights and liabilities of nominated subcontractors (NSCs) and Main Contractors (MCs) can be complex. This blog post explores the legal framework of subcontract nomination in the UAE, shedding light on the key issues of liability, contract privity, and the role of collateral warranties. …

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Construction Industry, Construction Law, Contract Administration, Procurement Management, Project Management, Security of Payment

The Importance of Timely Payments in the UAE Construction Industry: Challenges and Solutions

By Dr Samer Skaik

Cash flow is the lifeblood of the construction industry, and timely payments are essential for maintaining a healthy financial ecosystem. In the UAE, delayed or non-payment by employers has become a significant issue, leading to severe cash flow problems for contractors and their supply chains. These disruptions not only impact the construction companies but also have broader implications for the UAE’s economy, where construction contributes significantly to the GDP.

Traditionally, contractors claim payments upon completing specific project milestones, with payments made on a monthly basis or as specified in the contract. However, various factors can jeopardize this smooth cash flow, causing delays that ripple through the entire supply chain. Delayed payments can lead to project delays, disputes, and reduced profitability, and in extreme cases, even push contractors and subcontractors toward insolvency. …

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Construction Industry, General Management, PMP Hints, Project Management

The Role of Emotional Intelligence in Construction Project Management: Key Findings and Future Directions

By Dr Samer Skaik

The construction industry, known for its complexity and high-pressure environment, has recently seen a growing interest in the application of Emotional Intelligence (EI) within project management. A recent study has explored this emerging field, revealing both the current state of research and providing recommendations for future studies. …

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Construction Industry, Construction Law, Contract Administration, Procurement Management, Project Management

Navigating Nomination Procedures in Construction Contracts: Insights and Challenges

By Dr Samer Skaik

In the realm of construction project management, nomination procedures play a pivotal role in determining how subcontractors are selected and engaged. These procedures have evolved significantly over time to address various shortcomings and complexities inherent in subcontractor nomination. This blog post explores the intricacies of nomination procedures, the risks associated with them, and strategies for improving their effectiveness. …

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Construction Industry, Construction Law, General Management, Procurement Management, Project Management

Navigating the Insolvency Risks in the Australian Construction Industry: Insights from a Recent Study

By Dr Samer Skaik

Insolvency is a pressing concern within the Australian Construction Industry (ACI), where businesses face significantly higher risks compared to other sectors. This challenge is not unique to Australia, as construction industries globally experience similar issues. However, the causes of insolvency can vary widely across different regions, prompting the need for tailored approaches to predict and manage these risks.

A recent study has shed light on the critical factors contributing to insolvency within the ACI, offering a theoretical framework that prioritizes these factors based on their relative importance. This framework, derived from a rigorous systematic literature review (SLR) and supplemented by data from the Australian Securities and Investments Commission (ASIC), highlights both quantitative and qualitative factors essential for predicting insolvency. …

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Construction Industry, Contract Administration, Procurement Management, Project Management

Mastering Subcontract Nomination in Construction: Key Strategies for Success

By Dr Samer Skaik

Subcontract nomination is a pivotal practice in the construction industry, offering significant advantages in project management. It allows the Employer to maintain control over cost, quality, and time while ensuring the involvement of specialized subcontractors. Despite the challenges and complexities associated with this approach, subcontract nomination remains a valuable tool for optimizing project outcomes. This blog delves into the essentials of subcontract nomination, exploring its benefits, strategic applications, and the types of subcontracting arrangements that can enhance project efficiency. …

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Construction Industry, Construction Law, Contract Administration, Procurement Management

How to Deal with Provisional Sums Under FIDIC 1999

By Dr Samer Skaik

In construction contracts governed by FIDIC 1999, provisional sums are often included to account for certain parts of the work that are not defined in detail at the time of contract signing. These sums provide flexibility to accommodate future decisions by the Employer or Engineer regarding specific work items or materials. Proper management of provisional sums is crucial to ensure that the contract remains fair and that all parties understand their obligations and entitlements. …

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Construction Industry, Contract Administration, Project Management

Navigating Latent Conditions in Construction Contracts: A Practical Guide for Contractors

Construction projects are often complex endeavors with various stakeholders, timelines, and unforeseen challenges. One such challenge that contractors frequently encounter is latent conditions. These hidden or unexpected conditions can significantly impact project timelines, budgets, and overall success if not properly addressed. In this guide, we will delve into what latent conditions are, how they can affect construction projects, and strategies for contractors to effectively manage them during project execution.

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Construction Industry, Construction Law, Security of Payment, Statutory Adjudication

How to use the Security of Payment Legislation to recover or reject progress claims

By Dr Samer Skaik

The Building and Construction Industry Security of Payment legislation (SoPA) is a vital legal framework for contractors and subcontractors in the construction industry, particularly for the recovery of progress payments. Understanding and effectively utilizing this legislation can safeguard the financial health of businesses and ensure the smooth progression of construction projects. The purpose of this post is to offer a brief guide on navigating the Security of Payment legislation, highlighting its importance and providing practical steps for contractors and subcontractors to effectively manage and recover progress payments.

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