Construction Management Guide

Understand the Characteristics of Quality for Your Project

It is hard to define product or service quality at a high-level because the term “quality” is vague and means different things to different people. You must take the time to define the lower-level characteristics of quality for each specific service or deliverable. If you want to ensure that a service or product meets the client’s expectations of quality, you have to understand the underlying characteristics of quality. [Read more…]

Construction Law Summer School: Your last week for savings
 11^th – 13^th September 2012 – Downing College, Cambridge, UK

Book by this Friday for the best rates – plus get an extra 10% discount courtesy of CMguide.org!

Don’t miss this opportunity for your team to get a detailed, intensive guide on all the most important topics in international construction and engineering law.  A unique and comprehensive learning experience; comprising presentations, group discussions, case studies, debates, a workshop and evening networking activities. [Read more…]

By Dr. Chandana Jayalath

The contractual ‘engineer’ could be anyone designated as the Engineer under the contract. As per clause 1 in any standard form, the engineer and his representatives (assistants and inspectors named under FIDIC versions to represent the engineer) are two different personalities. The engineer’s representative is appointed by the employer to perform the duties delegated under another clause (clause 3 under new forms). It is the engineer who shall notify such an assignment of duties and delegation of authority to the contractor in writing indicating the extent of authority to act as the engineer’s representative. [Read more…]

Delay – what is the common law position? Why is a completion date needed?
If no agreement is reached on the time within which a service must be performed, it only needs to be performed within a reasonable time. Whilst this may be workable in the context of, say, a contract for the delivery of a new washing machine, it is not satisfactory when applied to something as complex as a construction project. [Read more…]

Most forms of building contract include a clause entitling the Client to a specified level of damages, referred to as “Liquidated Damages” or “Liquidated and Ascertained Damages” if the Contractor is late in handing over the building. LADs replace the Client’s common law right to damages for late completion with a contractual right to a pre-determined sum for the period of delay. [Read more…]

Don’t Manage by Percent Complete

Most project management scheduling tools have a field for entering the percentage complete for each activity. Before an activity starts, it is 0% complete. When it is finished, it is 100% complete. However, in between can be tricky. On the surface, if a team member were 20 hours into a 40 hour activity, you would say he is 50% complete. But is he? He may be close to done, or he may be only 10% done.

[Read more…]

Governance is the term used to describe the formal and informal set of processes that allow organizations to resolve conflicts, make decisions and ensure management decisions and policies are enforced through the management hierarchy. Governance is a top-down management process and works as follows: [Read more…]

Investigate Further When ‘Completed’ Deliverables Are Not Really Completed

Sometimes a team member says that a deliverable is complete when in reality it is not quite done. This can happen if a deliverable is ’completed’ by the team member but not approved. The team member may say the work is complete, but when the deliverable is checked it is discovered that it is incomplete or needs additional follow-up work. [Read more…]

By Chris Wilcock
Managing complex disputes can be difficult. The recently-reported Australian case of Alstom v Yokogawa1 highlights how it can go horribly wrong. In March 2002, Alstom entered into a ‘turnkey’ contract with FPP as the owner. Alstom agreed to refurbish an ageing power station to meet a performance specification. The contract sum was AU$148m. There were staged completion requirements and significant delay damages. [Read more…]

By HUGH MURRAY and Joanne Emerson Taqi

THE use of some legal phrases in contract documentation or correspondence is considered, by most, as commonplace. However, it is important to ensure that such phrases are properly understood.
Misunderstanding such terminology, particularly when the interpretation of some key terms can differ depending on whether the words are in a document governed by English law or by another law, can potentially affect the efficacy of the commercial bargain. [Read more…]