by Conrad Egbert
A lack of government indices and statistics for the UAE construction sector is making it difficult to incorporate ‘escalation clauses’ into contracts, according to industry experts. …
by Steven Hunt
sense that, for many contractors, ‘taking over’ is seen as the moment when the proverbial foot can come off the gas – the time when the contractor is finally relieved of the burden of delivering the project. For a contractor the process of taking over is an important one as the care of the works will pass to the employer and the employer’s entitlement to recover liquidated damages will cease. It is not, however, the end of the story for the contractor as he will remain liable for defective workmanship and materials beyond handover. …
Take care when taking over: Contractor liability explainedRead More »
Martin Preston* of Norton Rose focuses on payment issues that need to be considered between the Grantor** and Company*** in relation to concession agreements ranging from utility developments to large-scale property developments in the region. …
by Nick Carnell
Both the 1987 and 1999 editions of the FIDIC standard form contain a number of requirements that particular things shall be done within a set period of time. …
by Dennis Brand
For termination of a contract due to default by the Contractor, FIDIC 4th Edition provides remedies for the employer in Clause 63.1 which, save for a fairly common provision relating to the contractor’s bankruptcy, liquidation or dissolution, requires a certificate to be issued by the engineer stating (a) that the contractor has repudiated the contract, or (b) without reasonable excuse has failed to commence or proceed with the works following a 28-day notice, or (c) has failed to comply with a specific notice or instruction concerning rejection and/or removal of improper work, materials or plant, or (d) despite previous warning from the engineer, is neglecting to comply with any of the contractor’s obligations, or (e) has contravened the provisions of the contract related to sub-contracting, in which case, upon the employer giving 14 days’ notice to the contractor, may enter upon the site and terminate the contract. …
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. …
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. …
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. …
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. …
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. …
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. …
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. …
Advising clients on the appropriate form of contractRead More »
