Contract Administration

The Crucial Choice: One or Three Decision Makers in Construction Disputes

A fundamental question often arises at the heart of dispute resolution planning: should a dispute be decided by a single individual or a multi-member tribunal? This choice carries profound implications for speed, cost, expertise, and the ultimate robustness of the decision. This post delves into the arguments for each approach across various dispute resolution mechanisms, offering insights to inform this critical decision.

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Dispute Boards in Construction: Enforcement and Governing Law

Construction projects are complex undertakings, breeding grounds for disagreements that can escalate into costly, project-derailing disputes. For decades, the industry has sought better ways to resolve conflicts without resorting to lengthy arbitration or litigation. Enter the Dispute Board (DB), a project-based, real-time resolution mechanism designed to keep projects moving and relationships intact.

However, the power of a Dispute Board decision is not absolute. Its real-world teeth depend heavily on a crucial, often overlooked factor: the governing law of the contract. This article dives into the world of Dispute Boards, exploring how they function, how their decisions are enforced, and how the choice of jurisdiction can make or break their effectiveness, especially when compared to the statutory adjudication process. …

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Construction Industry, Construction Law, Contract Administration

The Critical Edge: Why Early Warning Notices Matter in FIDIC 2017

Unforeseen events and potential issues are almost inevitable in construction and infrastructure projects. How these challenges are identified, communicated, and addressed can significantly impact a project’s success, cost, and timeline. The FIDIC 2017 suite of contracts places a strong emphasis on proactive risk management and dispute avoidance, with the Early Warning Notice (EWN), specifically under Sub-Clause 8.4 [Advance Warning], being a cornerstone of this philosophy.

This post dives into the rationale and utility of Early Warning Notices under FIDIC 2017, exploring what happens if these provisions are not complied with, and outlining the responsibilities of all parties when such a notice is issued. …

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Construction Industry, Construction Law, Contract Administration, Statutory Adjudication

Beyond Battles: How Dispute Boards Transform Construction Conflict into Collaboration

In the complex world of construction and large-scale infrastructure projects, effective dispute resolution is paramount to keeping ventures on track and budgets intact. While traditional methods like litigation and arbitration have their place, the rise of Dispute Boards (DBs) offers a proactive and often more efficient alternative. These independent bodies aim not just to resolve disputes, but, crucially, to manage and even prevent them from escalating, acting as an integral part of project delivery. …

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Construction Law, Contract Administration, Security of Payment, Statutory Adjudication

Governing Law in Contracts: Navigating the Nuances of Jurisdiction and Practicalities

The seemingly straightforward governing law clause in any contract holds immense power, acting as the legal compass that guides the interpretation and enforcement of an agreement. While its fundamental purpose—to specify which legal system will apply in a dispute—remains constant, its practical application, particularly in dispute resolution forums like adjudication and arbitration, presents a fascinating array of challenges and jurisdictional distinctions. This post demonstrates how governing law truly operates across different legal systems. …

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Construction Industry, Construction Law, Contract Administration

The Challenging Role of the Engineer/CA/PM in Construction Dispute Resolution

Disputes are an inevitable byproduct of complex projects, involving multiple parties, intricate contracts, and high stakes. At the heart of managing these conflicts, often with a heavy and unenviable burden, stands a key figure: the Engineer, Contract Administrator (CA), or Project Manager (PM).

Their role, as defined by various standard forms of contract, is often multifaceted, requiring them to be simultaneously technical experts, project leaders, financial custodians, and, crucially, initial dispute resolvers. It’s a tightrope walk where impartiality is expected, but practical realities often tug them towards one side. …

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Construction Law, Contract Administration, General Management

How Mediation Builds Bridges in Construction Projects?

Construction projects, with their intricate contracts, multiple stakeholders, tight deadlines, and complex technicalities, are fertile ground for disputes. When disagreements arise, traditional litigation can be a protracted, expensive, and relationship-damaging ordeal. This is where mediation steps in as a powerful and increasingly preferred alternative.

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

Your First Strike: Why Adjudication is the Ultimate Opening Move in Construction Disputes

In the high-stakes, fast-paced world of construction, disputes are not a matter of “if,” but “when.” From payment disagreements and extension of time claims to quality issues and unforeseen ground conditions, conflicts are an inherent part of managing complex projects. When these disputes inevitably arise, how you choose to address them can be the difference between project success and crippling delays or financial ruin. …

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

Level Up Your Construction Contract Knowledge: Introducing the CMGuide Podcast Series!

The world of construction contracts, especially the globally recognized FIDIC suite, can often feel like navigating a complex labyrinth. Clauses, entitlements, claims, termination rights, dispute boards… it’s a lot to keep track of, even for seasoned professionals. But what if you could demystify these crucial topics, one engaging conversation at a time, right from your headphones?

We’re thrilled to announce the launch of the CMGuide Podcast Series!

This isn’t just another dry lecture. We’re bringing you in-depth, practical discussions designed to unpack the intricacies of construction contracts, with a special focus on the FIDIC Suite of Contracts. …

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Construction Industry, Construction Law, Contract Administration, Project Management

Mastering Disruption Claims: Insights from FIDIC 1999 and 2017

Construction projects, by their very nature, are susceptible to disruptions – events that hinder the regular and efficient progress of work, leading to a loss of productivity and increased costs. While delays extend the project timeline, disruption impacts the efficiency of work within that timeline, often without necessarily extending the overall completion date. Successfully navigating disruption claims is crucial for contractors to recover legitimate losses and for employers to understand their contractual obligations. This post explains disruption claims under two prominent FIDIC (Fédération Internationale Des Ingénieurs-Conseils) contract editions: FIDIC 1999 and FIDIC 2017, highlighting their differences, how to establish entitlement, and methods for quantifying associated costs or Extension of Time (EOT).

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Construction Law, Contract Administration, Project Management

Prevention Over Cure: The Power of Dispute Boards in Construction

Construction projects, especially large-scale infrastructure developments, are inherently complex. They involve numerous stakeholders, intricate technical challenges, tight deadlines, and substantial financial investments. It’s no surprise that disputes are a common occurrence, often leading to costly delays, strained relationships, and even project abandonment.

However, a growing international trend, championed by organizations like FIDIC (International Federation of Consulting Engineers) and the Dispute Resolution Board Foundation (DRBF), offers a more proactive and effective approach: the Dispute Board (DB). Far from being a reactive mechanism for conflict resolution, DBs are increasingly seen as vital tools for dispute avoidance, transforming the adversarial nature of construction into a more collaborative and efficient process. …

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Construction Law, Contract Administration, Procurement Management, Project Management

From BOQ First to TOC Fights: Untangling Document Hierarchy and Handover Rights in FIDIC

By Dr Samer Skaik

What happens when a contractor is blamed for missing items, NCRs remain unresolved, and an Engineer refuses to issue the Taking-Over Certificate—even after the Employer starts using the facility? This real-world scenario raises important questions about contractual liability, document precedence, and possession under FIDIC 1999.

In this post, we examine a case involving a partial handover, missing panels and modules, and lingering Civil Defense approvals. By referencing key clauses of FIDIC 1999—along with an important modification to Clause 1.5 in the Letter of Acceptance—we’ll clarify who bears what responsibility, and how contractors should respond. …

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