Construction Law, Contract Administration

Draft hybrid contract with care

By Martin Preston

TYPICALLY, the contract price under a construction contract will either be a lump sum or cost reimbursable.

Under a lump sum contract, the contractor is required to provide a fixed price for carrying out and completing the scope of work. The risk that the cost of completing the works is more than the lump sum price sits with the contractor, who will only be entitled to be paid more than the lump sum price if the employer varies the scope of the works or delays or obstructs the contractor in carrying out the works. …

General Management, PMP Hints, Project Management

Six Ways to Develop Your Project Team

Regardless of how a project team gets assigned, the project manager needs to make sure that the team members have the right skills to complete their assigned tasks. In fact, if the team members do not have all the right skills and the project manager cannot help them acquire the skills, the project would appear to be at risk.
This does not always mean sending a person to class. There are many other learning events that can help, including:

PMP Hints, Project Management

Learn About Earned Value Management (EVM)

Have you ever been asked how far along you were on a project? Of course you have. If you do not have a valid schedule, or if you are not keeping the schedule up-to-date, you know that your answer is pretty much a guess. If you have a good schedule and you are keeping it up-to-date, you should have a sense for how much work is remaining and what the projected end-date is. But are you 50% complete? Or 90% complete? It is not always easy to know.

Earned value metrics were established to remove the guess work from determining where you are at in relation to a baseline. Using it allows a project manager to know precisely how far along he is, how much work is remaining, what the expected cost will be, and all sorts of other interesting information. …

Contract Administration, Project Management

Managing Payment Delays on International Construction Projects

(The following outline was used in a presentation to the Overseas Construction Association of Japan, Inc. (OCAJI) The Dynamics of Payment

As a construction project moves toward completion, the Contractor loses leverage, and the Employer gains leverage.

This is based on the reality that the Contractor builds the project, and the Employer simply pays money. As the project nears completion, the Contractor has less leverage because the Employer is close to obtaining what he bargained for – a completed project. This is the time when the Employer will be inclined to suspend or reduce payments to the Contractor, not early in the Project.  …

Construction Law, Contract Administration

Consultants’ Fee Claims To Be Time-Barred in the UAE

By Michael Grose

As the fifth anniversary of the onset of the financial crisis approaches, engineers, architects and other consultants to the construction industry should be aware of the potential risk that this unhappy anniversary presents to any remaining fee claims. Whilst any expectation of payment at this late stage is likely to be low, any optimism that early signs of returning confidence might provide a chance to cash in old debts should take into account one of the more obscure time limits applicable under UAE Laws. …

Construction Law, Contract Administration, General Management, Project Management

Construction Law Summer School – IBC Legal’s 13th Annual Conference

“An international fiesta for construction industry professionals.”

 Join your international peers at IBC Legal’s most comprehensive construction law event for 3 days of intensive learning and networking

Construction Law Summer School – IBC Legal’s 13th Annual Conference

3rd – 5th September 2013 – Downing College, Cambridge University, UK

CMguide readers get a 10% saving …

Construction Law

Recent Ruling Of Dubai Court Of First Instance On Enforcement Of Foreign Arbitral Awards: Back To Square One?

by Gordon Blanke

A recent ruling of the Dubai Court of First Instance (see Case No. 489/2012, ruling of the Dubai Court of First Instance of 18 December 2012) questions de novo the UAE courts’ compliance with their obligations under international enforcement instruments in the enforcement of foreign arbitral awards. Following the recent trend of consolidation of the UAE courts’ practice to abide by the terms of international enforcement instruments – foremost amongst them the New York Convention (see Convention on the recognition and enforcement of foreign arbitral awards, done in New York on 10 June 1958, as ratified and hence implemented in UAE law by UAE Federal Decree No. 43 of 2006), this ruling marks a sudden and unwelcome setback in what commentators had believed had become a turning-point in the UAE enforcement practice of foreign arbitral awards. …

Construction Industry, Construction Law, Contract Administration, Project Management

Top Tips For Handling Disputes In The UAE

by Richard Bell and James Fox

No business wants to enter into a dispute. Disputes are often costly, tie up management time and distract staff from profitable work. In the UAE where a civil dispute is sometimes accompanied by a criminal complaint, a dispute can have a significant impact on key staff, including travel bans and the stress of facing criminal charges. Taking the right action from the beginning of a dispute can help to resolve the dispute faster, more efficiently and at less cost. …

Construction Law, Contract Administration, Procurement Management, Project Management

Bridging the contractual gap between an employer and a sub-contractor in the UAE

By Eric Teo

What are the rights of an employer in the event a nominated sub-contractor fails to deliver the standard or quality of material and workmanship that the employer had expected to receive? Common wisdom dictates that the employer would ordinarily seek recourse against the main contractor for the sub-contractor’s failure, but are there any alternatives?

To answer the above question we need to firstly understand that there are, in practice, two types of sub-contractors: domestic sub-contractors and nominated sub-contractors. Secondly, we should examine the contractual relationships between the three parties, i.e. the employer, the main contractor and the sub-contractor. …

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