Contract Administration

Construction Law, Contract Administration

Draft hybrid contract with care

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. …

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Construction Law, Contract Administration, Project Management

Closer look at fitness for purpose

By David Johnston

ONE of the issues that most vexes construction lawyers is that of the standard of care the contractor owes to the employer, that is the degree of skill and caution which the contractor must exercise under the building contract.

Contractors will seek to ensure that the duty of care required is one of “reasonable skill and care”. Under a “reasonable skill and care” obligation, the contractor is required to exhibit only the standard of care that could reasonably be expected of a competent contractor. Employers, on the other hand, will often demand a higher standard which will seek to ensure that the completed project will be fit for its intended purpose. …

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Contract Administration, Project Management

Managing Payment Delays on International Construction Projects

(The following outline was used in a presentation to the Overseas Construction Association of Japan, Inc. (OCAJI) The Dynamics of Payment

As a construction project moves toward completion, the Contractor loses leverage, and the Employer gains leverage.

This is based on the reality that the Contractor builds the project, and the Employer simply pays money. As the project nears completion, the Contractor has less leverage because the Employer is close to obtaining what he bargained for – a completed project. This is the time when the Employer will be inclined to suspend or reduce payments to the Contractor, not early in the Project.  …

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Construction Law, Contract Administration

Consultants’ Fee Claims To Be Time-Barred in the UAE

By Michael Grose

As the fifth anniversary of the onset of the financial crisis approaches, engineers, architects and other consultants to the construction industry should be aware of the potential risk that this unhappy anniversary presents to any remaining fee claims. Whilst any expectation of payment at this late stage is likely to be low, any optimism that early signs of returning confidence might provide a chance to cash in old debts should take into account one of the more obscure time limits applicable under UAE Laws. …

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Construction Law, Contract Administration, Project Management

Construction Law Summer School – IBC Legal’s 13th Annual Conference

“An international fiesta for construction industry professionals.”

 Join your international peers at IBC Legal’s most comprehensive construction law event for 3 days of intensive learning and networking

Construction Law Summer School – IBC Legal’s 13th Annual Conference

3rd – 5th September 2013 – Downing College, Cambridge University, UK

CMguide readers get a 10% saving …

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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, 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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Contract Administration

Construction legal disputes most costly in Middle East

Legal disputes in the Middle East construction industry are now taking over a year to be resolved, according to study from EC Harris.

The global built asset consultancy said it has found that construction disputes in the Middle East are taking, on average, 14.6 months to be settled compared to just nine months in the previous year, an increase of 62 percent. …

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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, 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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Contract Administration

Two states bid for sustainability lead

By Arvin Daeizadeth

Leadership in sustainability can only be seen in two countries, the UAE (Abu Dhabi) and Qatar. These are the only two states that have mandated sustainability ratings for new buildings – Estidama and QSAS.

One of Alpin’s current projects is the Msherieb Downtown Doha project, a massive redevelopment set in the heart of Doha. Comprised of more than 90 buildings, most are set to be LEED Gold. …

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