Procurement trends in the Gulf

by Sachin Kerur

Despite the challenging world economic conditions, the Gulf looks set to remain one of the most significant global construction markets.

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How subcontractors can get paid

One of the critical but not “headline making” aspects of the downturn in the construction industry is that many subcontractors are having difficulty getting paid on projects and meeting their own debts as they fall due.

The subcontractor is usually dependent on the contractor being paid under the main contract. One often sees a “pay when paid” clause in subcontract which essentially means that the subcontractor will not be paid by the contractor until the contractor has been paid for the subcontractor’s work by the employer. This necessarily involves even in the best case scenario a longer credit period to the contractor than the contractor in turn gives to the employer. The subcontractor generally has little input in to the certification process by the employer’s advisor prior to him or her approving an invoice in favour of the contractor. [Read more…]

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FIDIC’S FOUR NEW STANDARD FORMS OF CONTRACT: Risks, Force Majeure and Termination

 By Christopher R. Seppala

I propose briefly to discuss five topics in the three new Books for major works (the new Construction Contract, the Plant Contract and the EPC Contract), as follows:

 (1) Contractor’s risk and “Employer’s Risks”,

(2) Indemnities,

(3) Limitation of Liability,

(4) The New Force Majeure Clause, and

(5) Grounds and Procedure for Termination of the Contract by the Employer and the Contractor. [Read more…]

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Making Demands on Advance Payment Guarantees and Performance Bonds: The Test to Secure Summary Judgment on a Claim before the English Court

by Karen Gough

We are in the midst of a world-wide recession. So, in times when contractors’ liquidity and therefore their very survival is more at risk than usual, and employers are more than usually jittery about the ability of contractors to complete works, a recent decision on a claim to enforce an advance payment guarantee and a performance bonds is of particular interest to construction law practitioners. [Read more…]

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Are lawyers ready to leave their comfort zones to set the world’s infrastructure projects on the right track?

by Martin Harman

I have just returned from a family holiday in India, our first visit together although I am a frequent business traveller there. Apart from the beauty and vibrancy of the country and its people, what struck me most was that when travelling on business one is so very removed from the real life of the people of the country. I spend a large part of my time working as an international legal counsel to Indian law firms and Indian corporates who are at the forefront of the delivery of India’s infrastructure vision, a vision that requires, as just one example, the delivery of 20 kilometres of road every day over the next few years. For the business traveller, whose main transport experience is a journey from hotel to office, the scale of the infrastructure deficit begins to come into focus but as a tourist traveller, it looms extremely large. [Read more…]

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Tests on Completion under the FIDIC Yellow Book

by Sarah Thomas

I am a contractor working on a wastewater project in Eastern Europe, using the FIDIC Yellow Book –Design & Build. Vol.3 of our contract contains the following clause:

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Legislation on waste disposal in Russia: some practical tips for contractors

by George Burn

Post prepared by Karina Chichkanova (Partner, Head of Salans’ St. Petersburg Real Estate Group) and Galina Pashkovskaya (Associate)

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Contractual Easter Eggs

by John Bishop

Monday was a public holiday in China, to celebrate Qing Ming, the Chinese tomb-sweeping festival which also happily coincided with Easter. I spent some time explaining to my Chinese friends the Easter story, and how in recent times there have been other interpretations involving bunnies and chocolate eggs.

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We do not negotiate! Or do we?

by Conrad Egbert
With the market having fallen 40% until now, many clients, contractors and suppliers across the region have begun to renegotiate contracts. CW talks to some of the top experts in the industry to find out what they think about the trend. Last week, CW discovered that City of Arabia – the Ilyas & Mustafa Galadari owned US $3 billion development – is currently renegotiating certain contracts. [Read more…]

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Opening the Door to U.S. Federal Court a Wee Bit Wider

by Andrew Ness

When forced to litigate in the U.S., many businesses – especially multinational ones – prefer to be in federal rather than state court. The U.S. Supreme Court just made it a bit easier to fulfill that desire.

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