Contract Administration

Suspension of works

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by Dennis Brand

Until late last year I was frequently asked by those visiting the UAE and seeing the amount of construction being undertaken, when I thought the construction bubble in the UAE would burst.

My often repeated answer was that I did not think the bubble would burst as such, but would over time slowly deflate; how wrong I was. What we have seen over recent months as a result of what the experts tell us is result of the world wide economic downturn has resulted in an unprecedented number of projects and therefore contracts being suspended. …

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Contract Administration

UAE law provides security in construction deal risks

By Jim Delkousis

The UAE has seen a major slowdown of construction projects in recent months, particularly in Dubai. The situation is far from being ideal for players in the construction market.

Trapped with stagnating projects, developers and contractors are facing a recurrent question. What can we do when a project is frozen? Do we take drastic measures such as cancellation of the project? Or shall we wait until conditions improve? …

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The UAE’s new arbitration law: is there an easier way?

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by Anthony Edwards

In May, Construction Week reported the UAE’s plan to finalise a new arbitration law, and highlighted various criticisms of the current draft. One contributor was quoted saying that “The point (in arbitration)…is beaten if things get complicated”. Review of the current draft suggests that the criticism reported in May could hardly have abated. …

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Construction Industry, Contract Administration

A long term view for Credit Crunch

A long term view for Credit Crunch
by Omar Al Saadoon
Senior Associate Omar Al Saadoon.Construction & Engineering Practice – Al Tamimi & Company

This article might deter short term speculators or pessimists (so called realists) in reading further and if so no hard feelings. I too have noticed a reduction in crane activity and generally less traffic on the Sheikh Zayed Road. I also understand and appreciate the world we have lived in is rapidly changing and the credit crunch is likely to have a profound impact on global construction industries for the foreseeable future. …

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Contract Administration

Rights to terminate contracts defined

Due consideration should be given at the time of entering into the contract to the circumstances that will entitle both the contractor and the employer to terminate it and the consequences of doing so, says Adam Webster. Here, he gives an insight into the right to terminate, pointing out that invoking these provisions should always be the last resort. …

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Contract Administration

How to terminate a contract

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by Michelle Nelson
One of the issues coming across our desks more and more is that of termination of a construction contract/ The questions asked are usually: can we terminate this contractor/subcontractor for non-performance? What about termination because we can get a better price elsewhere? Or on the other side of the fence: we were terminated without reason or warning. Can we make a claim? …

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Contract Administration

Protection against contractor insolvency

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To safeguard their interests, employers should carefully word their bonds and underlying contracts to ensure that they have the protection they need in the event that the contractor does become or is likely to become insolvent, writes Martin Preston. …

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Contract Administration

(Force Majeure) Superior force in tough times

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Force majeure is a French civil law concept, in English literally meaning “superior force.” In civil-law countries, such as the UAE, force majeure generally operates to excuse a party from the terms of a contract when performance of the contract becomes impossible or oppressive as the result of an event that the parties could not have controlled. …

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Contract Administration

FIDIC 1999 or something else in disguise?

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by Michelle Nelson
Contractors already working in or thinking of working in the UAE capital may be aware that the Abu Dhabi government has recently issued new contracts for construction projects being undertaken in the emirate on behalf of public entities. The word on the street is that these contracts are to be welcomed since it is perceived that the Abu Dhabi government has decided to adopt the FIDIC 1999 form of contract. …

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Contract Administration

Contract nominations

by Dennis Brand

As a general principle, a company cannot subcontract any part of their scope of works without the employer’s consent unless the contract expressly states otherwise. …

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Contract Administration

Common contractual concerns

Michelle Nelson, partner, Pinsent Masons, says it is worth examining five common traps before plunging into construction in Dubai.

Let’s examine some of the potentially troublesome issues which contractors face regularly in the Dubai construction market. In preparing this article I have highlighted five issues which we are asked to advise contractors on regularly. …

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Construction Law, Contract Administration

Choosing the right weapon

By: Antonios Dimitracopoulos

Arbitration is almost by default the standard dispute resolution mode built into construction contracts. But is it always as efficient and suitable for the purpose it is meant to be? Or is it so only under certain conditions which, if left uncared for, can result in an erosion of what was meant to be an improvement to litigation. …

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