Construction Management Guide

By Hassan Al Hais

As per the arbitration rules and as per the civil rules in the UAE, the arbitration rules shall be governed by the Terms of Reference. Terms of Reference is a document used within international arbitration law. Its main purpose is the fast and efficient progress of arbitration proceedings. The agreement is drawn and signed by mutual consent of the parties and arbitrators.
The Terms of Reference clarify the terms of dispute, and if the arbitrator is able to conclude evidence or not. The period of arbitration is usually defined in the Terms of Reference, and if it is not it will only be for six months. Tthis period can only be extended by the Court or the authority which appointed the arbitrator’s attendance. [Read more…]

By DAVID JOHNSTON
WHEN agreeing to a dispute resolution clause in a construction contract, there are a number of matters to consider. Perhaps the most important of these is whether to proceed by way of litigation (before a court) or arbitration (contractual dispute resolution by a tribunal under procedural rules agreed by the parties). [Read more…]

By Becky Johnson

Implied terms in construction contracts (or lack of) and instructions to vary works can cause problems for developers carrying out construction works. These issues were considered in two recent cases: Aspect Contracts (Asbestos) Limited v Higgins Construction Plc and MT Højgaard A/S v E.On Climate and Renewables UK Robin Rigg East Ltd.¹

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By Hassan Al Hais

The implementation of the New York Convention in the UAE did not expressly displace the enforcement provisions in the Civil Procedure Code. Therefore, parties wanting to enforce an award under the New York Convention must satisfy the requirements of the UAE Civil Code. In practice, enforcing arbitration awards can be a lengthy and unpredictable process. It is common for the UAE courts to require that the foreign award satisfies the rules and procedures of the UAE, and may refuse to enforce it if there is a violation of local laws. One potential difficulty arises in convincing the UAE Court that it did not have jurisdiction to hear the dispute in the first place (irrespective of the arbitration agreement between the parties). The UAE Court normally has a fairly broad jurisdiction over disputes including, for example, claims connected to monies or assets within the UAE and claims arising out of contracts executed or to be performed in the UAE, as well as claims over foreigners resident in the UAE. Therefore, it is difficult to prove that the UAE Court did not have jurisdiction over the order. [Read more…]

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By Hassan Al Hais

It is common for the unsuccessful party to argue against the enforcement of an arbitration award on the ground that the arbitration was invalid, because the person who signed the contract was not authorized to agree an arbitration clause. In this case the losing party will file an annulment case. However, it may be possible to argue that the parties have accepted the tribunal’s jurisdiction, or have waived any right to object, or have lost that right by not objecting at the first opportunity.

[Read more…]

By Jeremy Glover

In April 2013, the Chartered Institute of Building (CIOB) published a contract for use with complex projects (known as the Complex Projects Contract or CPC 2013). Speaking about the contract, one of its authors, Keith Pickavance, boldly said:

[Read more…]

By Jatinder Garcha

Many standard form contracts contain provisions limiting the overall liability of the contractor, upon which a contractor unfamiliar with UAE law may place mistaken reliance. The FIDIC Red Book for instance, which is widely used throughout the Middle East region, contains a number of limitations on liability including at clause 17.6, which states:

[Read more…]

by Saud Al-Ammari and Tim Martin

The Kingdom of Saudi Arabia changed its arbitration law earlier in 2012 with the enactment of its New Arbitration Law 1433H (2012G) (the New Arbitration Law). On April 9, 2012, the Council of Ministers approved the New Arbitration Law and a Royal Decree on the law was issued on April 16, 2012. On Friday, June 8, 2012, the law was published in the official gazette (Um Al-Qura). In accordance with Article 58 of the New Arbitration Law, the law came into force after 30 days from the date of its publication, which was July 9, 2012, corresponding to 19 Sha’baan 1433H. The prior law was the Arbitration Law dated 1403H (1982G) (the Old Arbitration Law). The local business community used the Old Arbitration Law infrequently and multinational companies avoided it because it was seen as difficult and inefficient in resolving business disputes within the country. [Read more…]