Cost Control is an obvious objective in Construction Management and Construction Scheduling. It should be recognized that no amount of paperwork achieves this construction cost control. The actual control is achieved through the ultimate decision of the manager that something should be done differently and the translation of that decision into practice. …
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Remain ahead of the field with exclusive, insider insights from the very people responsible for drafting and updating the contracts. …
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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.” …
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By Ruth Wilkinson
Key Points:
• A force majeure clause normally excuses one (or both) parties from performance of the contract in some way on the occurrence of a specified event or events beyond their control
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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. …
By Dr. Chandana Jayalath
The contractual ‘engineer’ could be anyone designated as the Engineer under the contract. As per clause 1 in any standard form, the engineer and his representatives (assistants and inspectors named under FIDIC versions to represent the engineer) are two different personalities. The engineer’s representative is appointed by the employer to perform the duties delegated under another clause (clause 3 under new forms). It is the engineer who shall notify such an assignment of duties and delegation of authority to the contractor in writing indicating the extent of authority to act as the engineer’s representative. …
Demystifying the Role of Engineer under FIDIC FormsRead More »
Delay – what is the common law position? Why is a completion date needed?
If no agreement is reached on the time within which a service must be performed, it only needs to be performed within a reasonable time. Whilst this may be workable in the context of, say, a contract for the delivery of a new washing machine, it is not satisfactory when applied to something as complex as a construction project. …
Delay and extensions of time in construction contractsRead More »
Most forms of building contract include a clause entitling the Client to a specified level of damages, referred to as “Liquidated Damages” or “Liquidated and Ascertained Damages” if the Contractor is late in handing over the building. LADs replace the Client’s common law right to damages for late completion with a contractual right to a pre-determined sum for the period of delay. …
Liquidated damages clauses in construction contractsRead More »
By Chris Wilcock
Managing complex disputes can be difficult. The recently-reported Australian case of Alstom v Yokogawa1 highlights how it can go horribly wrong. In March 2002, Alstom entered into a ‘turnkey’ contract with FPP as the owner. Alstom agreed to refurbish an ageing power station to meet a performance specification. The contract sum was AU$148m. There were staged completion requirements and significant delay damages. …
By KATIE LISZKA and NAZLI OKUSLUK
ABU DHABI Law No 6 of 2008 (procurement law), which governs the procurement of materials, service contracts and works contracts in the Emirate of Abu Dhabi, aims to decentralise, modernise, simplify and facilitate procurement by government departments. It grants the Department of Finance the authority to issue a manual to execute the provisions of the law, pursuant to which the department issued the Purchases, Tenders and Bids Manual in 2008 (manual). This manual sets out provisions, policies and procedures in respect of tenders for purchasing materials, services contracts and executing works and bids, in addition to the terms and policies related to electronic tenders and purchases.ScopeWithout prejudice to the provisions of Law No 21 of 2006 regarding construction contracts and agreements in the field of civil works, the procurement law and the manual are in principle applicable to all government departments and agencies funded under the general budget of Abu Dhabi and apply to all contracts, except for the following:
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The Process
The Certification process in the construction industry has been in place for many a long year and is an integral part of both building and civil engineering. It involves client, consultant, main contractor and subcontractor alike. The very existence of large numbers of companies who make their living in the construction industry depend upon the certification process. On many standard forms of main contract the contractor is entitled to be paid the sum which is certified by the Architect, Engineer or Contract Administrator. Main contractors in an effort to ensure that they do not finish up paying out more than they receive link the payment under the subcontract to the amount certified under the main contract. …
