Construction Law

Construction Law, Contract Administration

Successful subcontracting – Part 2

By Sachin Kerur and William Marshall

In Part 1 of this two part subcontracting series, we detailed some tips and traps with respect to subcontracting, and considered the criticality of successful subcontractor performance to the timely and on budget delivery of projects. In Part 2 below, we examine the risks of pro-forma subcontracts and back-to-back drafting and briefly touch on the benefits of bespoke drafted subcontracts. …

Construction Law, Contract Administration

Successful subcontracting – Part 1

By Sachin Kerur and William Marshall

Since Adam Smith first set his mind to the efficiency of the pin factory in 1776, specialisation and division of labour has underpinned industrial development. The construction industry has embraced specialisation and division of labour to such a degree that almost every construction project, no matter how large or small, is delivered in practice by a large number of separate parties, each with a narrow field of expertise and each with a commercial and practical imperative to maximise the efficiency within their field of expertise. …

Construction Law, Contract Administration

Latest Draft of UAE Federal Arbitration Law Released

By Patrick Bourke and Adam Vause

The most recent draft of the much anticipated UAE Federal Law in respect of Arbitration (the Draft Law) was released on 16 February 2012. The Draft Law represents the UAE’s proposed updating of its legislation in order to, among other goals, comply with its accession to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention) in 2006. Although the Federal Arbitration Law remains pending, this latest release demonstrates a positive step towards such a law coming into force and its contents should be considered when drafting arbitration clauses where the dispute could involve the UAE. …

Construction Law, Contract Administration

Rights and Obligations under Back-to-Back Contracts

The parties’ dispute concerned the extent of the coverage of this alternative design for demolition and hoarding works. The letter of award for the subcontract stated that it was to be a lump sum fixed price contract and back-to-back with the main contract. Brington maintained that Cheerise was responsible for the design as this was a back-to-back contract. …

Construction Law, Contract Administration

FIDIC’s International Contract Users’ conference – CMguide readers get a 10% saving…

Now in its 25th year, FIDIC’s International Contract Users conference is indisputably the leading international forum for those wishing to make the most of the FIDIC suite of contracts.

Remain ahead of the field with exclusive, insider insights from the very people responsible for drafting and updating the contracts. …

Construction Law

Enforceability of foreign arbitral awards in the UAE

The UAE, as party to the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”) without reservations, should in principle recognise and enforce foreign arbitration awards.

Accordingly, subject to Article 5 of the New York Convention, the UAE courts should enforce foreign arbitral awards provided that the subject matter can be arbitrated under UAE law and such enforcement would not offend public policy. …

Construction Law, Contract Administration

Liquidated Damages for Construction Delays

Liquidated Damages is defined as “a sum which a party to a contract agrees to pay or a deposit which he agrees to forfeit if he breaks some promise and which, having been arrived at by a good faith effort to estimate in advance the actual damage which would probably ensue the breach, are legally recoverable or retainable as agreed damages if the breach occurs.” …

Construction Law, Contract Administration

Liquidated damages: who pays for losses?

 By KATIE LISZKA

THE use of liquidated damages provisions is widespread throughout the construction industry. Those operating in the industry locally are generally familiar with the underlying legal principles applying to such provisions, such as the fact that there are marked differences between the treatment of liquidated damages under the UAE law and English law. …

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