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. …

Contract Administration

Can a Contractor Obtain Compensation for a Radical Increase in its Costs if a Construction Contract Contains No Price Escalation Clause?

Christopher R. Seppälä, Elizabeth Lefebvre-Gross

Faced with a drastic increase in the cost of commodities—for example, of steel, or oil—that undermines the economic assumptions of a construction contract, lawyers trained in the common law may believe that, if the contract has no price-escalation clause, the only relief from the contract available is termination on the grounds of frustration, impossibility, or impracticability. In fact, outside the common law countries, it may be possible to obtain other relief, including an increase in the contract price, to take into account changed circumstances after a contract has been signed. Several examples are provided below. …

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