CMGUIDE KNOWLEDGE HUB

Your Complete Resource for Construction Law & Contract Management

Construction Law

COURTS PROVIDE PROTECTION FOR SUBCONTRACTOR IN CLAIMS

Main Contract Dispute

Subcontractors being lower down the food chain are reliant upon contractors for payment. Where disputes arise over the amount a main contractor is obliged to pay to the subcontractor the usual ” he who alleges must prove ” argument comes to the fore. If the main contractor makes a claim against a subcontractor and as a result reduces the amount due for payment or seeks to recover actual payment from the subcontractor then the shoe is on the other foot. …

Construction Law

Why eco-friendly builders should research green performance bonds

Legal debates come up frequently in the construction industry. No matter what the problem is or whose fault it actually was, professionals and project owners alike seem to be good at playing the blame game. When problems related to a structure’s stability or safeness arise, contractors generally find themselves having to resolve the problem in one way or another. …

Contract Administration

Communication Management Plan Examples

There are three types of communication – mandatory, informational and marketing. When you create a Communication Plan for your project it might make sense to have different types of communication that fit into all three categories.

Mandatory

These types of communication are required by your company, your industry or by law.

  • Project Status Reports
  • Regular voicemail updates (of status)
  • Status meetings
  • Meetings with steering committee
  • Regular conference calls and videoconferences with remote stakeholders
  • Required reports to shareholders or your Board of Directors
  • Government required reports and other information
  • Required financial reporting such as budget vs. actuals, budget variances, etc.

This information is “pushed” (sent directly to) to recipients.

Informational

This is information people want to know or that they may need for their jobs. You put this information in a place that people can access and you tell them that it is there.

  • Awareness building sessions that people are invited to attend (these are not meant as training – just to build awareness of the project)
  • Project deliverables placed in a common repository, directory, website or library that people can access
  • Frequently-asked questions

This information is made available for people to read, but requires them to take the initiative, or “pull” the communication.

Marketing

These are designed to build buy-in and enthusiasm for the project and the deliverables. This communication is especially important if your project is going to change how people do their jobs. These types of projects are culture change initiatives.

  • Project newsletters with positive marketing spin
  • Meeting one-on-one with key stakeholders on an ongoing basis
  • Traveling road shows to various locations and departments to explain the project and benefits
  • Testimonials from others that describe how the project deliverables provided value
  • Contests with simple prizes to build excitement
  • Project acronyms and slogans to portray a positive images of the project
  • Project countdown-until-live date
  • Informal (but purposeful) walking around to initiate discussions about all the good things the project is accomplishing
  • Celebrations to bring visibility to the completion of major milestones
  • Project memorabilia with project name or image portrayed, such as pins, pencils, Frisbees, cups, T-shirts, etc.
  • Publicizing accomplishments

This type of communication is “pushed” to the readers.

The point of the examples is to show that project communication can take many shapes and forms. For large projects especially, the project team should be creative in determining how, what, to whom, where and how frequently the communication takes place. If the project is controversial, requires culture change or is political, the positive aspects of marketing communication become more and more critical.

 

Construction Law, Contract Administration, Project Management

Opening and Closing remarks of Construction Lifecycle Risk Management Conference

Construction Lifecycle Risk Management Conference

Date: 17th & 18th April 2011

Venue: Sheraton Abu Dhabi Hotel & Resort, Abu Dhabi, UAE

Welcome and Opening Remarks by the Chairperson, Samer H SkaikWelcome and Opening Remarks by the Chairperson Samer H Skaik

Ladies and Gentlemen,

Good morning.

I am delighted to join our speakers in welcoming you all and open this Conference on “Construction lifecycle Risk Management” in Abu Dhabi.

It gives me great pleasure and honor to chair this conference. I am so happy that we have in this hall, dedicated individuals from different backgrounds and expertise, from various industries across the GCC region. Those delegates who travelled for miles remind us how important this conference is. Thank you all for coming.

…

Project Management

Inherent Risk Factors

Inherent risks are those that exist based on the general characteristics of the project. These are risks that can appear regardless of the specific nature of the project.

None of the inherent risks mean that the project is in trouble. Many of these risk factors will be rated as low or medium-level risks. Even if you identify an inherent risk as high, other project factors will come into play as well. For instance, the checklist below states that a large project is inherently more risky that a smaller project. This is generally true. However, an experienced project manager can mitigate many risks associated with large project size. Also remember, if your project falls into a high-risk category, it does not mean you will not be successful. It only means that you should put plans into place to manage the risks. …

Contract Administration

RECORDS, RECORD, RECORDS – Importance for Contract Claim

Contract Requirement

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.

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Contract Administration

Head Office Overhead & Profit Claims – Why Hudson’s Formulae Failed Most of the Time?

If you are a contractor and having a delayed project (presumably not solely caused by you!), Head Office Overheads Contributions may be in your list for Loss and Expense claims. It is common for contractor to adopt the simplest and so called ‘accepted’ method of calculating such expenses hoping the other side will accept it too. …

Construction Law, Contract Administration

WHEN DOES A VARIATION IN CONSTRUCTION BECOME A SEPARATE CONTRACT?

Variations Clause
Most standard forms of contract include a clause under which the employer or his representative is able to issue an instruction to the contractor to vary the works which are described in the contract. A change in shape of the scheme, the introduction of different materials, revised timing and sequence are all usually provided for by the variations clause. It will also usually include a mechanism for evaluating the financial effect of the variation and there is normally provision for adjusting the completion date. In the absence of such a clause the employer could be in a difficulty should a variation to the works be required. The contractor could either refuse to carry out the work or undertake the work and insist upon payment on a quantum meruit or fair valuation basis. Calculation of the price for the extra work applying this method could involve payment well in excess of the contract rates. …

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