Construction Law

Construction Industry, Construction Law, Contract Administration, Project Management

Top Tips For Handling Disputes In The UAE

by Richard Bell and James Fox

No business wants to enter into a dispute. Disputes are often costly, tie up management time and distract staff from profitable work. In the UAE where a civil dispute is sometimes accompanied by a criminal complaint, a dispute can have a significant impact on key staff, including travel bans and the stress of facing criminal charges. Taking the right action from the beginning of a dispute can help to resolve the dispute faster, more efficiently and at less cost. …

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Construction Law, Contract Administration, Procurement Management, Project Management

Bridging the contractual gap between an employer and a sub-contractor in the UAE

By Eric Teo

What are the rights of an employer in the event a nominated sub-contractor fails to deliver the standard or quality of material and workmanship that the employer had expected to receive? Common wisdom dictates that the employer would ordinarily seek recourse against the main contractor for the sub-contractor’s failure, but are there any alternatives?

To answer the above question we need to firstly understand that there are, in practice, two types of sub-contractors: domestic sub-contractors and nominated sub-contractors. Secondly, we should examine the contractual relationships between the three parties, i.e. the employer, the main contractor and the sub-contractor. …

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Construction Law, Contract Administration, Project Management

Limit of changes that can be introduced under variation provisions!

by Dr  Chandana Jayalath

Changes are inevitable in any construction therefore the parties are provided a flexibility to make changes to the work under a typical contract changes clause. However, the ability for owner requested changes, even if provided in the contract, are not without limitations, restrictions as well as consequences.

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Construction Law, Construction Technology, Contract Administration, Project Management

FIDIC Asia-Pacific Contract Users – take a look at these 6 great reasons to attend

FIDIC’s 5th Asia-Pacific Contract Users’ conference is taking place on 11th & 12th June in Malaysia (workshops on 10th & 13th June).

If you’re involved in this region then you won’t want to miss out! Take a look a look at these 6 great reasons to attend:
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Construction Law, Contract Administration

ICTAD Price fluctuation Formula; Clarifying The Context in Which It Operates

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 by Dr. Chandana Jayalath*

  The provisions of price adjustment on account of increase or decrease in costs of goods and services in construction contracts are practiced World over to have more realistic competitive bids and execution of contracts on just and equitable manner. Prices of materials, plant and labour are highly variable due to fluctuations in the currency market. Construction experts, therefore, thought it prudent to compute the cost of contracts on present price, keeping provisions of price adjustment for probable fluctuations. The Institute for Construction Training and Development (ICTAD) of Sri Lanka has undertaken among others, the standardization of “country specific” documents to regulate and streamline the administration of contracts. The Formula Method for Reimbursement of Price Fluctuation is one such initiative to offer a reasonable basis for calculating price adjustment for construction contracts.

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Construction Law, Contract Administration, Procurement Management, Project Management

N is for the Novation

By Suzannah Newboult

When a party is substituted for another party to contract and assumes the original party’s rights and/or obligations, it does so either by way of ‘novation’ or ‘assignment’. Party A contracts with Party B. Party C is substituted for Party B. The contract is now between Party A and Party C.

If the substitution has occurred by way of novation, then the original contract is effectively replaced by a new contract on the same terms as if the new party, (Party C in the example above) was party to the contract from the outset. …

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Construction Law, Contract Administration

The effect of concurrent delay on an extension of time claim

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Rebecca Evans, solicitor with Thomas Eggar LLP, reports on a case that offers good news for contractors in England.

A recent case, heard by Akenhead J in the Technology & Construction Court in London, has practical consequences for contractors: the effect of concurrent delay on an extension of time claim.

Walter Lily Company (WLC) was employed by DMW Developments Ltd (DMW) to construct a substantial house in the Boltons in London. DMW was the corporate vehicle for Mr and Mrs Mackay. The architects were Barrett Lloyd Davis Associates (BLDA). The work started in 2004 with the initial projected timeframe of 18-20 months. …

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Construction Law, Contract Administration

RECORDS, RECORD, RECORDS – importance for contract claim

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Contract Requirements

Max Abrahamson in his book Engineering Law and The ICE Contract wrote

” A party to a dispute, particularly if there is an arbitration will learn three lessons (often too late) the importance of records, the importance of records and the importance of records”. This quotation came to mind recently when I read the judgement in the case of Attorney General for the Falkland islands v Gordon Forbes construction (Falklands) Limited. A contract was let for the construction of the infrastructure of the East Stanley Housing Development in the Falkland Islands using the FIDIC 4th Editions conditions. These conditions, like most standard forms, provide a procedure which requires the contractor to follow in the event of him submitting a claim. …

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Construction Law, Contract Administration

Projects & Pitfalls – Sports, Water, Energy & FIDIC

By Mohan Pillay

The inaugural Youth Olympic Games hosted by Singapore in August last year left a positive impression on Singapore’s young guests. The fanfare would have been much bigger had the Singapore Sports Hub been available for the event.

At an estimated cost of S$1.33 billion, the new Sports Hub will boast a 55,000-seater retractable roof stadium, a 6,000-capacity Indoor Aquatic Centre, a 3,000-capacity Multi-Purpose Arena and a Water Sports Centre. …

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