Legal disputes in the Middle East construction industry are now taking over a year to be resolved, according to study from EC Harris.
The global built asset consultancy said it has found that construction disputes in the Middle East are taking, on average, 14.6 months to be settled compared to just nine months in the previous year, an increase of 62 percent. …
Construction legal disputes most costly in Middle EastRead More »
Construction consultancy Sweett has won a legal dispute with a house-builder client after a contractor went into liquidation. The court ruled that Cyril Sweet (now just Sweett), was not negligent as employer’s agent for Michael Wight Homes in failing to procure a performance bond for its client. …
Sweett wins contractual dispute after contractor is liquidatedRead More »
by Dr Chandana Jayalath
Changes are inevitable in any construction therefore the parties are provided a flexibility to make changes to the work under a typical contract changes clause. However, the ability for owner requested changes, even if provided in the contract, are not without limitations, restrictions as well as consequences. …
Limit of changes that can be introduced under variation provisions!Read More »
by Dr. Chandana Jayalath*
The provisions of price adjustment on account of increase or decrease in costs of goods and services in construction contracts are practiced World over to have more realistic competitive bids and execution of contracts on just and equitable manner. Prices of materials, plant and labour are highly variable due to fluctuations in the currency market. Construction experts, therefore, thought it prudent to compute the cost of contracts on present price, keeping provisions of price adjustment for probable fluctuations. The Institute for Construction Training and Development (ICTAD) of Sri Lanka has undertaken among others, the standardization of “country specific” documents to regulate and streamline the administration of contracts. The Formula Method for Reimbursement of Price Fluctuation is one such initiative to offer a reasonable basis for calculating price adjustment for construction contracts. …
ICTAD Price fluctuation Formula; Clarifying The Context in Which It OperatesRead More »
By Vasanth Kumar
As Qatar seems set finally to award raft of contract awards with highly compressed time limits, one of the key challenges will be “teamwork” amongst various stakeholders involved in the construction industry.
These mega project awards will modernise the country in line with the ambitious National Vision 2030 and the FIFA world cup in 2022 but Doha can’t afford any project delays which will be a fertile breeding ground for disputes ,penalties and lawsuits between the various parties involved in construction. …
By Arvin Daeizadeth
Leadership in sustainability can only be seen in two countries, the UAE (Abu Dhabi) and Qatar. These are the only two states that have mandated sustainability ratings for new buildings – Estidama and QSAS.
One of Alpin’s current projects is the Msherieb Downtown Doha project, a massive redevelopment set in the heart of Doha. Comprised of more than 90 buildings, most are set to be LEED Gold. …
By Suzannah Newboult
When a party is substituted for another party to contract and assumes the original party’s rights and/or obligations, it does so either by way of ‘novation’ or ‘assignment’. Party A contracts with Party B. Party C is substituted for Party B. The contract is now between Party A and Party C.
If the substitution has occurred by way of novation, then the original contract is effectively replaced by a new contract on the same terms as if the new party, (Party C in the example above) was party to the contract from the outset. …
By Marc Howe
The use of Building Information Modelling (BIM) could radically enhance the costing process following its expansion beyond quantities calculation and specifications data to other core areas of project management.
While BIM has thus far focused primarily on the use of digital representations of the physical and functional traits of a facility to guide both the design and construction processes, the next generation of BIM adds even greater functionality by providing advanced tools for estimating costs throughout a project’s life cycle. …
Rebecca Evans, solicitor with Thomas Eggar LLP, reports on a case that offers good news for contractors in England.
A recent case, heard by Akenhead J in the Technology & Construction Court in London, has practical consequences for contractors: the effect of concurrent delay on an extension of time claim.
Walter Lily Company (WLC) was employed by DMW Developments Ltd (DMW) to construct a substantial house in the Boltons in London. DMW was the corporate vehicle for Mr and Mrs Mackay. The architects were Barrett Lloyd Davis Associates (BLDA). The work started in 2004 with the initial projected timeframe of 18-20 months. …
The effect of concurrent delay on an extension of time claimRead More »
There are two considerations when trying to win payment from an overseas client.
Firstly, ‘Can the contractor enforce a judgment or monetary award in the country where the client is based?’ And secondly, ‘Where are the overseas client’s chargeable assets?’ …
Becoming an Early Entrant into a Hotel Market
“Many hotel developers are usually behind the wave when it comes to exploring future potential,” says Shuja Zaidi, Vice President Projects – KSA, Hilton Worldwide. “By the time they jump in to take advantage of a booming city and actually complete the project, the market may be already saturated,” he goes on to say. …
Interview with: Shuja Zaidi, Vice President Projects – KSA, Hilton WorldwideRead More »
Contract Requirements
Max Abrahamson in his book Engineering Law and The ICE Contract wrote
” A party to a dispute, particularly if there is an arbitration will learn three lessons (often too late) the importance of records, the importance of records and the importance of records”. This quotation came to mind recently when I read the judgement in the case of Attorney General for the Falkland islands v Gordon Forbes construction (Falklands) Limited. A contract was let for the construction of the infrastructure of the East Stanley Housing Development in the Falkland Islands using the FIDIC 4th Editions conditions. These conditions, like most standard forms, provide a procedure which requires the contractor to follow in the event of him submitting a claim. …
RECORDS, RECORD, RECORDS – importance for contract claimRead More »
