law

Construction Industry, Construction Law

Decennial Liability and Latent Defects Contractors’ and Developers’ Liability in Dubai

By Lisa Dale & Steven Hunt
Since the advent of Dubai’s construction boom circa 2002, fuelled by the relaxation of restrictions on property ownership by foreign nationals, thousands of new residential property units have been completed by developers and handed over to their new owners for occupation. This relatively recent phenomenon of home ownership on any significant scale has heightened the need for both contractors and developers to understand their potential legal exposure to home owners when defects begin to appear in the properties that they have either constructed or sold to them. …

Construction Industry, Construction Law

To What Extent Does Freedom of Contract Exist for You in the UAE?

by Melanie Grimmitt

If you are a construction contractor accustomed to operating in common law jurisdictions where the doctrine of “freedom of contract” is generally upheld, you should be aware that the position under UAE law is different. We explore how it is different below …

Common Law Approach

In most common law and European jurisdictions, party autonomy and freedom of contract (whilst being gently eroded since the 19th century) are concepts that are recognised and respected. English law, for example, allows commercial parties to contract freely, provided that the agreement does not contravene any laws or public policy, and the courts will generally try to support the agreement between the parties. Although we can’t deny that notions of equality of bargaining power and fairness are increasingly being used to justify an interventionist stance, the courts of common law jurisdictions are – by and large – slow to use the doctrines of misrepresentation, mistake and economic duress to vary the terms of a commercial agreement.

The UAE position

The UAE, on the other hand, is a civil law jurisdiction, with its codified laws based on the Egyptian code, which in turn is derived from the French code. In addition, the laws of the UAE are influenced by Shari’a law. Nevertheless, as a general rule, under UAE law, the parties are entitled to agree on any contractual terms that they deem fit, provided that such terms are not inconsistent with the provisions of law or contrary to public order or public morals (pursuant to Article 2 of the UAE Commercial Code). Thus the common law concept of freedom of contract exists in the UAE but is subject to certain further limitations, based on ‘moral’ considerations.

Whilst in general the position in the UAE appears broadly similar to the English law position, there are some important differences, including the fact that in the UAE the scope of public policy exceptions and a court’s power to strike down or vary a contract are broader. This can cause challenges for parties who have become accustomed to operating in a secular legal and political environment, who may now be faced with having their contract varied or struck down on the basis of principles which may find their genesis in the Shari’a, for example.

In a construction context, the more limited application of freedom of contract in the UAE has important consequences for concepts that international contractors and developers may be familiar with, or take for granted, such as the interpretation of limitation of liability and liquidated damages clauses.

Examples of the differences in approach

Like English law, UAE law includes statutory implied terms that fetter the doctrine of freedom of contract. For instance, pursuant to the Civil Code parties are required to perform their contract in a manner consistent with good faith, (Article 246(1)). These statutory implied terms are different to those one might expect under English law, which are generally more tangible and objective.

A further example is the different approach taken to limitation of liability provisions as explained in my last blog.

Another interesting example is the different approach that the UAE takes to termination provisions, such as a termination for convenience clause. Again under English law, the Courts will generally uphold an agreed termination provision, including the right for one party to terminate its contract for convenience. The validity of such provisions in the UAE, however, is highly questionable. This is because UAE law prescribes the circumstances in which a contract may be terminated (which are limited and do not include a right to terminate a contract without cause) and because such provisions are considered to be contrary to Shari’a law. This is a topic to which we will return!

Therefore, whilst the concept of ‘freedom of contract’ can be said to exist in some form in the UAE, it is not the same as in English law. In the UAE there is a greater risk of the terms of a contract being altered and reinterpreted. In these circumstances it is vitally important to ensure contracts have been reviewed by lawyers familiar with UAE law so at least the areas of potential uncertainty are understood and action can be taken to mitigate consequential risks.

But which approach is better?

Well that, of course, depends.

The flexibility provided by the UAE law in some circumstances may be very helpful. For example a contractor faced with paying liquidated damages in circumstances where the employer has not suffered loss to an equivalent extent is likely to welcome the opportunity to argue that the liquidated damages provisions he agreed to should be varied by operation of the UAE law.

On the other hand greater certainty of contract may be argued to be a pre-requisite to construction risk management, which will surely be the focus of attention of the international contracting industry as it picks itself up from the worldwide economic downturn.

Perhaps the more interesting question is whether as a matter of principle the UAE should reach the same position in relation to freedom of contract as that found under the common law? Should freedom of contract supersede moral or religious considerations when determining the terms of an agreement between two commercial entities, or are the latter considerations more important?

 

Kluwer Construction Blog

Construction Industry, Construction Law, Contract Administration

Issues involved in Taxation of Construction contracts

by Sujjain Talwar

There is a lot of mystery regarding taxation of Construction activities in India. The mystery starts from the fact that a Construction contract involves both labour and material and hence, both Service tax and Value Added tax is levied on one transaction.

The process becomes more complex depending upon a number of factors such as the Scope of work, the nature of the contract, whether the contract includes any further sub-contracting, whether individual prices have been specified for each part of the scope of work and whether the contract involves off-shore and on-shore activities etc.
Let us first consider the Indirect taxes applicable on a Construction contract. As already stated above, a Construction contract involves both labour and materials. Hence, a Construction contract is liable to both Service tax and Value Added tax.

Contract Administration

GCC in catch-22 over FIDIC forms

The Fidic form of contracts has been in the Middle East since the 1970s, yet it is far from popular. Adam Webster looks at legal issues that should be borne in mind when negotiating Fidic-based contracts.
THE legal systems of the Middle East are founded upon civil law principles (most heavily influenced by Egyptian law, which is itself based on the Napoleonic Code) and Islamic Shariah law – the latter constituting the guiding principle and source of law.

The impact of Shariah law depends on the jurisdiction. For example, charging interest is prohibited under Saudi law, whereas only prohibitive interest will be unenforceable in the UAE. In the UAE and other civil law jurisdictions in the Middle East (including Bahrain, Saudi Arabia, Kuwait and Oman), legislation tends to be formulated into a number of major codes providing for general principles of law with a significant amount of subsidiary legislation. Unlike common law jurisdictions, there is little, if any, precedent and we can only surmise what decision a court may arrive at on any given point.
The Fidic forms of contract have been in use in the Middle East since the 1970s. Indeed, the abbreviation “Fidic” (Fédération Internationale des Ingénieurs-Conseils) has become synonymous with the Middle East. It is somewhat paradoxical that the majority of Middle East countries, which source their law from a mixture of civil and Shariah law, have based their conditions of contract on the Fidic form despite the fact that the Fidic conditions of contract are based largely on English common law principles.
Historically, the public sector (in Gulf countries especially) has promoted Fidic as the accepted standard and the private sector has followed suit. There is no apparent rhyme or reason for this, and although Fidic is the established form of construction contract in the region, it is far from popular. It is interesting to note that whilst Abu Dhabi has officially adopted the Fidic form for its standard government contracts, it remains to be seen whether Dubai will follow suit.
According to a recent survey conducted by Norton Rose’s Middle East offices, most developers and contractors responded that they choose to use Fidic forms largely through habit (indeed 94 per cent of respondents said that they primarily use Fidic or modified Fidic contracts, largely because it is well-established and recognised within the region). That said, many respondents also complained that Fidic is too rigid and breeds an adversarial relationship. The current downturn may give contractors and developers time to reassess their contractual models and consider other forms of contract, including Institution of Civil Engineers (ICE), New Engineering Contract (NEC) and partnering contracts. However, few respondents expected that there will be a change in approach towards contracts in the short term.
Unlike in the UK and other common law jurisdictions, countries in the Middle East do not have a specific body of construction or engineering-related laws and precedents, despite the fact that particular problems recur. Although civil codes can give some comfort and confidence to foreign developers and contractors, the uncertainty that often surrounds the interpretation of such laws should not be dismissed out of hand. While it is true that there are principles common to most legal systems, there are some quite significant differences, and often, in the context of construction and engineering projects, these have the capacity to be problematical if not addressed from the outset. As such, it is necessary to have an appreciation of and be aware of the relevant civil code articles and local law nuances which may impact on certain Fidic conditions.
Obviously, the issues vary from country to country as the local laws are not identical. That said, they are often quite similar and, as such, it is possible to highlight some of the key legal issues that should be borne in mind when negotiating Fidic-based contracts.
• In most (if not all) Gulf jurisdictions, it is not possible for contractors to contract out of liability for major structural defects, which threaten the total or partial collapse of a building for a period of not less than 10 years from the date of practical completion.
• Further, whilst it is possible for parties to ascertain and limit damages from the outset of a contract, if the actual damage sustained as a result of a breach is proven to be well in excess of any agreed cap, a court/arbitral tribunal may look beyond the cap and award damages that are quantifiably closer to the actual losses incurred.
• Contractors may also be precluded from claiming payment if payment certificates have not been issued in respect of work performed. Careful consideration should, therefore, be given to the wording of Fidic (or any other standard form or bespoke contract) to ensure that the time for late payment runs from the date on which the interim and/or final payment certificate, as opposed to the date on which the contractor’s application for payment, is made.
• The local laws of most Gulf nations permit parties to a contract to agree on the circumstances in which a contract can be terminated, including provisions that determine the contractor’s employment, but not all of the contractor’s obligations under the contract. In Bahrain, as in Qatar and Egypt, an employer may terminate a contract and stop work at any time before the completion of the works, provided he compensates the contractor for all the expenses he has incurred for the work completed and the profit he would have made if he had completed the works. The court may, however, on application of the employer reduce the compensation for loss of profit, if it sees fit. There is no such provision under the UAE law, however, and in certain circumstances, a court order may be required to terminate a contract. Drafting could be included in contracts governed by the UAE law to provide that the parties agree that they may be terminated without a court order if such termination is in accordance with the termination provisions, but it is not certain that this will be effective if challenged.The Fidic form of contracts has been in the Middle East since the 1970s, yet it is far from popular. Adam Webster looks at legal issues that should be borne in mind when negotiating Fidic-based contracts.

THE legal systems of the Middle East are founded upon civil law principles (most heavily influenced by Egyptian law, which is itself based on the Napoleonic Code) and Islamic Shariah law – the latter constituting the guiding principle and source of law.

The impact of Shariah law depends on the jurisdiction. For example, charging interest is prohibited under Saudi law, whereas only prohibitive interest will be unenforceable in the UAE. In the UAE and other civil law jurisdictions in the Middle East (including Bahrain, Saudi Arabia, Kuwait and Oman), legislation tends to be formulated into a number of major codes providing for general principles of law with a significant amount of subsidiary legislation. Unlike common law jurisdictions, there is little, if any, precedent and we can only surmise what decision a court may arrive at on any given point.

The Fidic forms of contract have been in use in the Middle East since the 1970s. Indeed, the abbreviation “Fidic” (Fédération Internationale des Ingénieurs-Conseils) has become synonymous with the Middle East. It is somewhat paradoxical that the majority of Middle East countries, which source their law from a mixture of civil and Shariah law, have based their conditions of contract on the Fidic form despite the fact that the Fidic conditions of contract are based largely on English common law principles.


Historically, the public sector (in Gulf countries especially) has promoted Fidic as the accepted standard and the private sector has followed suit. There is no apparent rhyme or reason for this, and although Fidic is the established form of construction contract in the region, it is far from popular. It is interesting to note that whilst Abu Dhabi has officially adopted the Fidic form for its standard government contracts, it remains to be seen whether Dubai will follow suit.


According to a recent survey conducted by Norton Rose’s Middle East offices, most developers and contractors responded that they choose to use Fidic forms largely through habit (indeed 94 per cent of respondents said that they primarily use Fidic or modified Fidic contracts, largely because it is well-established and recognised within the region). That said, many respondents also complained that Fidic is too rigid and breeds an adversarial relationship. The current downturn may give contractors and developers time to reassess their contractual models and consider other forms of contract, including Institution of Civil Engineers (ICE), New Engineering Contract (NEC) and partnering contracts. However, few respondents expected that there will be a change in approach towards contracts in the short term.


Unlike in the UK and other common law jurisdictions, countries in the Middle East do not have a specific body of construction or engineering-related laws and precedents, despite the fact that particular problems recur. Although civil codes can give some comfort and confidence to foreign developers and contractors, the uncertainty that often surrounds the interpretation of such laws should not be dismissed out of hand. While it is true that there are principles common to most legal systems, there are some quite significant differences, and often, in the context of construction and engineering projects, these have the capacity to be problematical if not addressed from the outset. As such, it is necessary to have an appreciation of and be aware of the relevant civil code articles and local law nuances which may impact on certain Fidic conditions.


Obviously, the issues vary from country to country as the local laws are not identical. That said, they are often quite similar and, as such, it is possible to highlight some of the key legal issues that should be borne in mind when negotiating Fidic-based contracts.


• In most (if not all) Gulf jurisdictions, it is not possible for contractors to contract out of liability for major structural defects, which threaten the total or partial collapse of a building for a period of not less than 10 years from the date of practical completion.


• Further, whilst it is possible for parties to ascertain and limit damages from the outset of a contract, if the actual damage sustained as a result of a breach is proven to be well in excess of any agreed cap, a court/arbitral tribunal may look beyond the cap and award damages that are quantifiably closer to the actual losses incurred.


• Contractors may also be precluded from claiming payment if payment certificates have not been issued in respect of work performed. Careful consideration should, therefore, be given to the wording of Fidic (or any other standard form or bespoke contract) to ensure that the time for late payment runs from the date on which the interim and/or final payment certificate, as opposed to the date on which the contractor’s application for payment, is made.


• The local laws of most Gulf nations permit parties to a contract to agree on the circumstances in which a contract can be terminated, including provisions that determine the contractor’s employment, but not all of the contractor’s obligations under the contract. In Bahrain, as in Qatar and Egypt, an employer may terminate a contract and stop work at any time before the completion of the works, provided he compensates the contractor for all the expenses he has incurred for the work completed and the profit he would have made if he had completed the works. The court may, however, on application of the employer reduce the compensation for loss of profit, if it sees fit. There is no such provision under the UAE law, however, and in certain circumstances, a court order may be required to terminate a contract. Drafting could be included in contracts governed by the UAE law to provide that the parties agree that they may be terminated without a court order if such termination is in accordance with the termination provisions, but it is not certain that this will be effective if challenged.

Gulf Construction

Construction Industry, Contract Administration, General Management

Key points while entering into a joint venture in the Middle East

by James Bremen

The use of joint ventures or consortiums are attractive because they allow contractors, consultants and financiers to team up and offer owners a single interface for all needs of a project.

Owners are increasingly requiring that consortiums be formed to provide a single point responsibility and to ensure bidders have the ability to perform the scope of work.

In light of this development, this article seeks to highlight some of the key legal and practical issues, which should be considered when entering into a joint venture or consortium agreement. The term “consortium” is used throughout the article to refer to both “consortium” and “joint venture.” …

Contract Administration, Project Management

Be careful when you terminate a contract

In the current economic climate, there is growing interest in whether a contract can be cancelled, if one party is no longer able to fulfil its obligations due to financial difficulties.

A basic principle of contract law is that the contracting parties must perform their obligations with good faith and in a manner consistent with the contract. However, subject to this basic principle, a party to a contract that is subject to UAE law, can seek to end the contract in one of three ways: …

Construction Law

Arbitration and civil procedure

by Dennis Brand

I think it is fair to say that occasionally some thought is given as to enforcement of the arbitration award, but rarely if any real thought is given to the jurisdiction of the local courts, either as to any challenge to an arbitration award or its enforcement.

Unlike many jurisdictions, the UAE does not have an arbitration law; in 2008, a draft arbitration law was in circulation, but as of today it is still in draft form. …

Construction Law

‘Swift’ arbitration is key

‘Swift’ arbitration is key
by Dr Chandana Jayalath
Construction contracts often include ‘keep working provisions’ for the parties to perform their obligations, despite the existence of a dispute. The contract may expressly forbid the contractor’s right to suspend work or terminate the contract, although inconsistent with the local law.
For example, under English law, there is a statutory right to suspend work for non-payment, which can not be excluded by contract.
Also, the employer may have the right to require a contractor to proceed with variations despite the time and cost consequences, not having been agreed in advance. In a fixed lump sum contract, the contractor may lodge a claim for variation, but the employer might deny it upfront on the basis of ‘lump sum’ or pay half of the cost pending evaluation at a later stage. The engineer may ask the contractor to go ahead with the rates he deems suitable whenever the contractor has no option, because of his obligation to complete works on time.
Although the contractor is supposedly responsible for quantity errors, in any typical lump sum contract where the quantities are said to be actual and correct, he will purposely keep silent in a windfall such as overestimated quantities that bring him money for nothingAlthough the contract expressly says no re-measurement is possible, the losing party may bring out this case and attempt to interpret the function of re-measurement as the ‘standard practice’.
There is usually a term implied to the effect that the client will not prevent the contractor from carrying out work in accordance with the terms of the contract, which is sometimes referred to as the prevention principle. In the UK case of Peak Construction (Liverpool) Ltd v McKinney Foundations Ltd (1970), some defective work was discovered before practical completion had been achieved.
The client was responsible for long delays owing to failure to approve a scheme of remedial works. A dispute arose concerning the contractor’s entitlement to an extension of time. Unfortunately, there was no specific provision for an extension of time when the contractor is delayed by the client, which is a fatal shortcoming in the contract. Another aspect is that many contracts do not have a mechanism to compensate the loss behind unprecedented price escalation in the Gulf region. This is where swift solutions are required to minimise potential losses suffered by parties, instead of allowing ‘loss to prevail where it lies’, particularly when contracts are silent.
Perhaps some claims are indeed necessary and the provision for making claims is essential in order to accommodate unavoidable changes, for example by granting justifiable extensions without invalidating the contract. However, problems arise when the provision is abused, for example by contractors who allegedly tender at low prices with the objective of profiting from their claims. For example, the government sector has now been bombarded by claims more than ever before.
Claims specialists have been busy with compiling claims for work suspended in recession. On the other hand, clients who attempt to aggressively suppress legitimate claims may provoke exaggerated, unjustified or even frivolous claims with the help of their in-house experts. Needless to say, the vicious circles generated by such exaggerated actions and reactions definitely add to the avoidable costs of construction.
The author therefore strongly believes in a speedy, flexible and a fair process, indeed a gentlemanly way to resolve disputes between gentlemen, as Alexis Mourre says, rather than too formal court lawyering. This is where ‘swift’ arbitration comes into play in the context of construction thus minimising the legal expenses for making and breaking claims and demoting the tendency towards interim awards and temporarily-binding decisions.
CW

by Dr Chandana Jayalath

Construction contracts often include ‘keep working provisions’ for the parties to perform their obligations, despite the existence of a dispute. The contract may expressly forbid the contractor’s right to suspend work or terminate the contract, although inconsistent with the local law. …

Contract Administration

Insurance and indemnities

by Dennis Brand

The insurance clauses or provisions in a contract will often state the employer’s requirements as to the types of insurance and the required minimum amounts. Sometimes the amount of insurance is linked to the limit of liability under the contract – and, while there is no objection to this in principal, the required amount of insurance should not be more. Moreover, one must take care to ensure that the insurance provisions do not allow for liability which is separate or in excess of the overall limited liability under the contract. …

Construction Law

The TIA route to resolving disputes

The TIA route to resolving disputes
Time impact analysis is becoming an increasingly popular method of resolving construction disputes without litigation. MICHAEL HARDY* details the steps to be considered and the benefits of using the method
FUNDS for a large number of construction projects in the region are drying up. This, coupled with a substantial reduction in the cost of labour and materials, has meant that some developers are reconsidering their current projects with a view to renegotiating more favourable terms or seeking to alter the original scope.
Should a developer fail to persuade its contractor to agree to a re-scoping exercise, the developer may then be faced with a claim for delay caused by what, in effect, amounts to a contract variation.
Given the financial pressure developers are currently facing, there may also be increasingly valid grounds for contractors to make extension-of-time claims in respect of delays caused by, for example, non-payment or the late provision of information.
Whatever the cause, the contract administrator (often an engineer) must apply a methodology to determine whether and to what extent an extension of time should be awarded.
There are a number of different ways to determine an extension of time and it is not uncommon for parties to disagree upon the methodology used. If the contract follows a particular industry form, there may already be a specific methodology applicable. However, most standard form contracts fail to address the issue adequately.
For example, the Fidic Conditions of Contract are commonly used in the Gulf yet fail to promote a specific approach to extensions of time. Fidic’s Red Book uses the words: “If and to the extent that completion … is or will be delayed” but fails to consider the appropriate methodology to decide such delay.
Time impact analysis (TIA) is a method typically used to resolve complex disputes. In order to undertake a time impact analysis, the six sequential steps below must be considered:
1. Has a cause entitling the contractor to an extension of time arisen (an “Event of Delay”)?
2. Identify the programme against which any delay is to be assessed. By way of example, in the case of the Fidic Red Book, the contractor is obliged to submit a programme and to revise it “whenever the previous programme is inconsistent with actual progress or with the contractor’s obligations”. Consequently, the last such accepted (or deemed accepted) programme which most recently pre-dates the ‘event of delay’ identified should be used.
3. Without taking into account the event of delay itself, revise the programme identified in Step Two, so that it reflects:
(i) The reality that pertains at the time immediately before the occurrence of the ‘event of delay’; and;
(ii) A plan for the remaining works which complies with the contractor’s duties as to programming and progressing of the works.
4. Identify planned time for completion on the revised programme developed in Step Three.
5. Identify the activities on the revised programme that will be affected by the ‘event of delay’, and then assess the effect of it on each of those activities. Finally, impact the ‘event of delay’ on those activities, in order that the revised programme takes account of the ‘event of delay’.
6. Finally, consider whether the planned time for completion has changed following the impact of the ‘event of delay’ determined at Step Five.
As to Step Three, contractors are often tempted to use an unamended version of the accepted programme to assess events of delay, irrespective of how out of date it may be. Whilst there is no reported case law in England on this point, for the contractor not to revise the programme to reflect the position immediately prior to the event of delay, is often self-serving.
Consider a project where the programme is severely out of date and the contractor is in culpable delay. If the contractor were to be entitled to assess an extension of time against the out-of-date programme, the culpable delay in the period after that programme but before the event of delay occurred would be completely ignored, thereby reflecting reality from a frozen point in time in the past and failing to accurately demonstrate the cause and effect of the delay.
This would permit the contractor to evade liability for culpable delay and effectively provide him an incentive to stop issuing programmes for acceptance in the future, in order to avoid future liability for culpable delay. The contractor could take advantage of its own wrongdoing by benefiting from a breach of contract (be it the culpable delay or the failure to submit revised programmes).
That being said, Article 246(1) of the UAE Civil Code introduces an implied term to carry out obligations in good faith, which would seem contrary to this approach.
Conversely, employers are sometimes tempted to take hindsight into account and to use a programme that post-dates the event of delay. This is similarly not permitted. Time impact analysis does not permit events to be taken into account if they post-date the event of delay in question. In other words, a retrospective approach, which allows the benefit of hindsight, is not permitted.
In relation to Step Five above, another argument known to surface is whether the assessment or “snapshot” date should be the date at which the assessment is made (or ought to have been made) or the date of the occurrence of the event of delay itself. This is probably an arguable point and depends on contractual drafting.
However, reliance on the date of assessment (as opposed to the date of the event of delay itself) would result in differing degrees of hindsight, depending on when the assessment occurred.
For example, the Fidic Red Book allows the engineer to make its determination within either 42 days after receiving the contractor’s particulars of claim, an alternative period mutually agreed or, alternatively, seek further particulars. This leaves the position open to manipulation. Aside from anything else, carrying out the assessment as at the date of the event of delay would ensure consistency irrespective of how quickly the assessment is made afterwards and would also be truer to the concept of a time impact study (as supported by the Society of Construction Law Protocol on Delay and Disruption).
The downside of the time impact methodology is that it places considerable importance on the programme and on the contractor continually updating the programme so as to reflect reality.
However, the benefits of time impact analysis in terms of prudent project management and progress tracking are to a large degree self-evident.
The parties know where they stand as the works progress as regards contractual entitlements flowing from events at the employer’s risk. This works to all parties’ mutual benefit and should help to avoid large scale after-the-event disputes on projects that encounter difficulties.
However, if the actual process of time impact assessment does not take place within a short period after the event occurring, it can be very burdensome and expensive to revisit. Clearly, it is in both parties’ best interests not to adopt a “wait-and-see” approach, but immediate action is something which is sadly more honoured in the breach than the observance.
Developers, contractors and engineers need to be prepared for these issues and to deal with them effectively, so as to protect their contractual rights (both in existing and future contracts) in what are trying economic conditions

Time impact analysis is becoming an increasingly popular method of resolving construction disputes without litigation. MICHAEL HARDY* details the steps to be considered and the benefits of using the method

FUNDS for a large number of construction projects in the region are drying up. This, coupled with a substantial reduction in the cost of labour and materials, has meant that some developers are reconsidering their current projects with a view to renegotiating more favourable terms or seeking to alter the original scope. …

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