By Becky Johnson
Implied terms in construction contracts (or lack of) and instructions to vary works can cause problems for developers carrying out construction works. These issues were considered in two recent cases: Aspect Contracts (Asbestos) Limited v Higgins Construction Plc and MT Højgaard A/S v E.On Climate and Renewables UK Robin Rigg East Ltd.1
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By Jeremy Glover
In April 2013, the Chartered Institute of Building (CIOB) published a contract for use with complex projects (known as the Complex Projects Contract or CPC 2013). Speaking about the contract, one of its authors, Keith Pickavance, boldly said:
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CPC 2013 — The new CIOB contract for use on complex projectsRead More »
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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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.
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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 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 David Johnston
DELAYS on engineering and construction projects are almost inevitable; the more complex the project, the more likely the prospect of delay, and the more chance of two or more delays occurring at or around the same time.
Where the contractor is culpable for the delay, for example, rectifying its own defective workmanship, it is usually not entitled to an extension of time. However, where an employer-caused delay occurs concurrently with the contractor’s culpable delay – for example, where the employer has instructed a variation, and assuming that each of these events is of approximately equal significance – is the contractor now entitled to an extension of time?
Various legal jurisdictions have struggled with this question and come to different positions. Some of these positions are set out in this article, as are some suggestions as to how this debate should inform approaches taken by employers to concurrent delay on construction projects in the GCC.
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By Heba Osman
A common scenario: the Employer is not happy with the Contractor’s performance, whether because of failure to perform the works in the manner provided for in the Contract or because of some other breach of the Contract. The Employer picks up the Contract, which – in the UAE – is usually some modified FIDIC standard form, in search of the termination provision. Most such termination provisions require the Employer to send the Contractor a notice to correct the failure or the breach within a specified period. If the Contractor fails to correct the breach, then the Employer becomes entitled to terminate the Contract. The Employer, feeling confident of its legal position, sends the termination notice. The Employer is satisfied that it has correctly terminated the contract.
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By Martin Preston
TYPICALLY, the contract price under a construction contract will either be a lump sum or cost reimbursable.
Under a lump sum contract, the contractor is required to provide a fixed price for carrying out and completing the scope of work. The risk that the cost of completing the works is more than the lump sum price sits with the contractor, who will only be entitled to be paid more than the lump sum price if the employer varies the scope of the works or delays or obstructs the contractor in carrying out the works. …
