By Jatinder Garcha
Many standard form contracts contain provisions limiting the overall liability of the contractor, upon which a contractor unfamiliar with UAE law may place mistaken reliance. The FIDIC Red Book for instance, which is widely used throughout the Middle East region, contains a number of limitations on liability including at clause 17.6, which states:
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by Saud Al-Ammari and Tim Martin
The Kingdom of Saudi Arabia changed its arbitration law earlier in 2012 with the enactment of its New Arbitration Law 1433H (2012G) (the New Arbitration Law). On April 9, 2012, the Council of Ministers approved the New Arbitration Law and a Royal Decree on the law was issued on April 16, 2012. On Friday, June 8, 2012, the law was published in the official gazette (Um Al-Qura). In accordance with Article 58 of the New Arbitration Law, the law came into force after 30 days from the date of its publication, which was July 9, 2012, corresponding to 19 Sha’baan 1433H. The prior law was the Arbitration Law dated 1403H (1982G) (the Old Arbitration Law). The local business community used the Old Arbitration Law infrequently and multinational companies avoided it because it was seen as difficult and inefficient in resolving business disputes within the country. …
The phrase “consequential loss” is very commonly used in exclusion and limitation of liability clauses. Despite its widespread use and a significant amount of case law on the topic, the legal meaning of the phrase in specific contexts is notoriously difficult to pin down. Moreover, there is a clear difference in the approaches applied by Australian and UK courts to interpreting the phrase. A recent decision of the Supreme Court of Western Australia has gone back to basics and, in doing so, has broken new ground on how to interpret the phrase. …
AACEI – UAE Section announces the one day Technical Conference on “Claims Management Practices” to be conducted at Hotel Gloria, Dubai on 09th November 2013. This Conference has been designed with a focus on Understanding claim events through the whole project life cycle right from Inception to the execution phase of the project. Along with understanding the claim events, early mitigation measures right from FEED stage and through various risk study methods become vital. Major claims of the days being on time related issues, a sheer attention is given on the topics related to Schedule preparation and Extension of Time studies during the one day conference. …
CMGuide Founder to Speak in AACEI Conference in DubaiRead More »
By Gerrmy Glover
FIDIC, as is well known, are currently finalising a new amended version of the Yellow Book. In a taste of what is to come, on 1 April 2013 the FIDIC Contracts Committee issued a Guidance Note dealing with the powers of, effect of and the enforcement of Dispute Adjudication Board (“DAB”) decisions.
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Exclusive saving for all FIDIC users
As a CMGuide reader, you’re invited to attend FIDIC’s 26th annual FIDIC International Contract Users’ conference at a 10% saving.
Indisputably the leading international forum for those wishing to make the most of the FIDIC suite of contracts, this is your annual opportunity for comprehensive best practice advice on using the range of contracts and understanding the implications of the latest contract amendments – directly from the very people who draft and amend the contracts! …
FIDIC’s 26th Annual FIDIC International Contract Users’ ConferenceRead More »
By Nicolos Gould
Adjudication is now a dispute resolution process that most in the UK construction industry are familiar with. The process was introduced by the Housing Grants, Construction and Regeneration Act 1996, which became effective from May 1998. We have therefore lived with it for almost 15 years. Adjudication is included in all of the standard form contracts, but in any event will be implied, as we all now know, into any contract that meets with the definition of “construction contract” under the Act. …
By David Johnston
BONDS are one method used by employers in construction and engineering projects to mitigate the risk of non-performance by a contractor.
The overriding principle behind the use of bonds is that the entity which issues the bond contractually agrees to take responsibility for the performance of one or more obligations owed by the contractor to the employer, in the event that the contractor fails to perform.
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By Martin Preston
MANY GCC countries are now looking to introduce renewable energy despite having, in most cases, substantial oil and gas reserves.
There are several reasons for this:
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By Martin Preston
Traditionally, governments have procured infrastructure by entering into a contract for the construction of the relevant asset such as a road, school, hospital, etc and taking over the operation and maintenance of the asset when it is completed.
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By David Johnston
Project finance loans are provided against project cash flows, rather than the assets of the project company. Any risk to the project cash flows endangers the lender’s ability to recover the debt capital. The lender, therefore, needs to ensure that the terms of the project documents are satisfactory and will both facilitate and protect the project’s ability to generate the necessary revenue to satisfy the loan repayments, particularly where – as happens all too often – the project runs into difficulties. As part of this, the lender will seek to ensure that the risk allocation between the project company and any third parties is acceptable and, therefore, that the project is considered bankable.
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By Katie Liszka
JORDAN is highly dependent on imported energy in the form of natural gas and fuel oil. In 2011, 97 per cent of its energy was imported. The kingdom has also suffered as a result of problems with the supply of gas from Egypt. In addition to its dependency on imported energy, Jordan also projects a high growth in energy demand. Hence, the country has set itself ambitious targets in relation to the introduction of renewables into its energy mix, which will account for at least 10 per cent of the total supply by 2020. There are also a number of individual targets, such as approximately 1,200 MW (megawatts) for wind power and 600 MW for solar.
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