FIDIC - CMGuide

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

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

(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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Contract Administration, Procurement Management

Advising clients on the appropriate form of contract

In some procurement contexts, the choice of contract may be determined by external factors, such as requirements of the funder. For example the World Bank now require the FIDIC forms of contract to be used on projects of over £6 million, and it appears as if the NEC form may be the preferred choice for the Olympic construction programme. In such cases the form to be used will have been selected before the Architect and other consultants are appointed. …

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Contract Administration

Avoid subjective terms when signing contracts

by Andrew Gibson

When I announced at the beginning of this year to colleagues in the UK that I would shortly be relocating to Dubai to specialise in the resolution of construction disputes, most, if not all, imagined the typical contractor/employer type of disputes arising out of defects or delaying events. …

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Contract Administration

Bonded issues

by Dennis Brand

As we saw previously, contractors in the construction industry are commonly required to provide bonds or guarantees as performance security. These should be unconditional, on demand and issued by a bank that is acceptable to the employer. Examples of the types of bonds and guarantees available follows. …

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Contract Administration

The UAE Civil Code and Claims under the Red Book FIDIC in the UAE

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The UAE Civil Code and Claims under the Red Book FIDIC in the UAE
For all its innovation and spectacular achievements, the
construction industry in the UAE has been slow to move on from
its close relationship with the FIDIC Red Book (4th Edition) (the
Red Book). This was, of course, superseded long ago and it is
scarcely used anywhere else in the world, outside of this region. …

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Contract Administration

New engineering

by Dennis Brand

How does the New Engineering Contract (NEC) compare to FIDIC? Dennis Brand examines the uptake of NEC in the region and outlines what you need to know. …

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Contract Administration

Re-thinking Contract Price in the UAE

The UAE construction industry is experiencing a growing yet significant debate, driven by the desire of Employers to successfully procure and deliver projects through alternative contractual pricing mechanisms. …

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