FIDIC

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. …

Contract Administration

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

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 This was, of course, superseded long ago and it is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. …

Contract Administration

Can a Contractor Obtain Compensation for a Radical Increase in its Costs if a Construction Contract Contains No Price Escalation Clause?

Christopher R. Seppälä, Elizabeth Lefebvre-Gross

Faced with a drastic increase in the cost of commodities—for example, of steel, or oil—that undermines the economic assumptions of a construction contract, lawyers trained in the common law may believe that, if the contract has no price-escalation clause, the only relief from the contract available is termination on the grounds of frustration, impossibility, or impracticability. In fact, outside the common law countries, it may be possible to obtain other relief, including an increase in the contract price, to take into account changed circumstances after a contract has been signed. Several examples are provided below. …

Contract Administration

Caution: Contracts

by Dennis Brand

Ask a group of industry professionals to state what they believe to be the most important provision in a construction contract and you will probably get as many varied responses as there are people in the group.

Give the same group of people a copy of a standard form contract (e.g. FIDIC, ICE or JCT) to read with a form of Particular Conditions or similar attached, and invariably they will look first at the Particular Conditions and possibly no further. …

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