By Gerrmy Glover
FIDIC, as is well known, are currently finalising a new amended version of the Yellow Book. In a taste of what is to come, on 1 April 2013 the FIDIC Contracts Committee issued a Guidance Note dealing with the powers of, effect of and the enforcement of Dispute Adjudication Board (“DAB”) decisions.
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Exclusive saving for all FIDIC users
As a CMGuide reader, you’re invited to attend FIDIC’s 26th annual FIDIC International Contract Users’ conference at a 10% saving.
Indisputably the leading international forum for those wishing to make the most of the FIDIC suite of contracts, this is your annual opportunity for comprehensive best practice advice on using the range of contracts and understanding the implications of the latest contract amendments – directly from the very people who draft and amend the contracts! …
FIDIC’s 26th Annual FIDIC International Contract Users’ ConferenceRead More »
By Nicolos Gould
Adjudication is now a dispute resolution process that most in the UK construction industry are familiar with. The process was introduced by the Housing Grants, Construction and Regeneration Act 1996, which became effective from May 1998. We have therefore lived with it for almost 15 years. Adjudication is included in all of the standard form contracts, but in any event will be implied, as we all now know, into any contract that meets with the definition of “construction contract” under the Act. …
By Martin Preston
MANY GCC countries are now looking to introduce renewable energy despite having, in most cases, substantial oil and gas reserves.
There are several reasons for this:
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By David Johnston
Project finance loans are provided against project cash flows, rather than the assets of the project company. Any risk to the project cash flows endangers the lender’s ability to recover the debt capital. The lender, therefore, needs to ensure that the terms of the project documents are satisfactory and will both facilitate and protect the project’s ability to generate the necessary revenue to satisfy the loan repayments, particularly where – as happens all too often – the project runs into difficulties. As part of this, the lender will seek to ensure that the risk allocation between the project company and any third parties is acceptable and, therefore, that the project is considered bankable.
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By David Johnston
DELAYS on engineering and construction projects are almost inevitable; the more complex the project, the more likely the prospect of delay, and the more chance of two or more delays occurring at or around the same time.
Where the contractor is culpable for the delay, for example, rectifying its own defective workmanship, it is usually not entitled to an extension of time. However, where an employer-caused delay occurs concurrently with the contractor’s culpable delay – for example, where the employer has instructed a variation, and assuming that each of these events is of approximately equal significance – is the contractor now entitled to an extension of time?
Various legal jurisdictions have struggled with this question and come to different positions. Some of these positions are set out in this article, as are some suggestions as to how this debate should inform approaches taken by employers to concurrent delay on construction projects in the GCC.
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By Heba Osman
A common scenario: the Employer is not happy with the Contractor’s performance, whether because of failure to perform the works in the manner provided for in the Contract or because of some other breach of the Contract. The Employer picks up the Contract, which – in the UAE – is usually some modified FIDIC standard form, in search of the termination provision. Most such termination provisions require the Employer to send the Contractor a notice to correct the failure or the breach within a specified period. If the Contractor fails to correct the breach, then the Employer becomes entitled to terminate the Contract. The Employer, feeling confident of its legal position, sends the termination notice. The Employer is satisfied that it has correctly terminated the contract.
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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. …
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. …
To help you make the most of their suite of contracts, FIDIC is returning to the Americas for the 2nd FIDIC Americas Contract Users’ conference – the region’s only event that’s officially endorsed by the association. …
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(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. … Managing Payment Delays on International Construction ProjectsRead More » |
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. …
Consultants’ Fee Claims To Be Time-Barred in the UAERead More »
