Limitations on liability in the UAE – beware!

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:

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Saudi Arabia Modernizes Arbitration Laws

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…]

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Limitation of liability clauses and consequential loss: Court revisits the approach in ‘Peerless’

The phrase “consequential loss” is very commonly used in exclusion and limitation of liability clauses. Despite its widespread use and a significant amount of case law on the topic, the legal meaning of the phrase in specific contexts is notoriously difficult to pin down. Moreover, there is a clear difference in the approaches applied by Australian and UK courts to interpreting the phrase. A recent decision of the Supreme Court of Western Australia has gone back to basics and, in doing so, has broken new ground on how to interpret the phrase. [Read more…]

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CMGuide Founder to Speak in AACEI Conference in Dubai

AACEI – UAE Section announces the one day Technical Conference on “Claims Management Practices” to be conducted at Hotel Gloria, Dubai on 09th November 2013. This Conference has been designed with a focus on Understanding claim events through the whole project life cycle right from Inception to the execution phase of the project. Along with understanding the claim events, early mitigation measures right from FEED stage and through various risk study methods become vital. Major claims of the days being on time related issues, a sheer attention is given on the topics related to Schedule preparation and Extension of Time studies during the one day conference.  [Read more…]

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FIDIC guidance on enforcing DAB decisions

By Gerrmy Glover

FIDIC, as is well known, are currently finalising a new amended version of the Yellow Book. In a taste of what is to come, on 1 April 2013 the FIDIC Contracts Committee issued a Guidance Note dealing with the powers of, effect of and the enforcement of Dispute Adjudication Board (“DAB”) decisions.

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FIDIC’s 26th Annual FIDIC International Contract Users’ Conference

Exclusive saving for all FIDIC users 

As a CMGuide reader, you’re invited to attend FIDIC’s 26th annual FIDIC International Contract Users’ conference at a 10% saving.

Indisputably the leading international forum for those wishing to make the most of the FIDIC suite of contracts, this is your annual opportunity for comprehensive best practice advice on using the range of contracts and understanding the implications of the latest contract amendmentsdirectly from the very people who draft and amend the contracts! [Read more…]

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Adjudication in The Middle East

By Nicolos Gould
Adjudication is now a dispute resolution process that most in the UK construction industry are familiar with. The process was introduced by the Housing Grants, Construction and Regeneration Act 1996, which became effective from May 1998. We have therefore lived with it for almost 15 years. Adjudication is included in all of the standard form contracts, but in any event will be implied, as we all now know, into any contract that meets with the definition of “construction contract” under the Act.

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Bonds provide cover against risk

By David Johnston
BONDS are one method used by employers in construction and engineering projects to mitigate the risk of non-performance by a contractor.

The overriding principle behind the use of bonds is that the entity which issues the bond contractually agrees to take responsibility for the performance of one or more obligations owed by the contractor to the employer, in the event that the contractor fails to perform.

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PPA route to renewable energy

By Martin Preston

MANY GCC countries are now looking to introduce renewable energy despite having, in most cases, substantial oil and gas reserves.

There are several reasons for this:

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Finer points key to PPP success

By Martin Preston

Traditionally, governments have procured infrastructure by entering into a contract for the construction of the relevant asset such as a road, school, hospital, etc and taking over the operation and maintenance of the asset when it is completed.

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