Posts Tagged ‘escalation’

(Force Majeure) Superior force in tough times

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. (Read more..)

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Common contractual concerns

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. (Read more..)

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Re-thinking Contract Price in the UAE

The UAE construction industry is experiencing a growing yet significant debate, driven by the desire of Employers to successfully procure and deliver projects through alternative contractual pricing mechanisms. (Read more..)

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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. (Read more..)

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Cost escalation

Cost escalation is one of the major issues currently affecting the construction sector in the region. There are regular press reports on the extent to which the costs of steel, cement and labour have risen. (Read more..)

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Common contractual concerns

by Michelle Nelson
 
Michelle Nelson, partner, Pinsent Masons, says it is worth examining five common traps before plunging into construction in Dubai. (Read more..)

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Contracts must be fair to all if prices rise far beyond reason

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