Archive for the ‘Contract Administration’ Category

How to ensure payment by an overseas client

There are two considerations when trying to win payment from an overseas client.

Firstly, ‘Can the contractor enforce a judgment or monetary award in the country where the client is based?’ And secondly, ‘Where are the overseas client’s chargeable assets?’ (Read more..)

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RECORDS, RECORD, RECORDS – importance for contract claim

Contract Requirements

Max Abrahamson in his book Engineering Law and The ICE Contract wrote

” A party to a dispute, particularly if there is an arbitration will learn three lessons (often too late) the importance of records, the importance of records and the importance of records”. This quotation came to mind recently when I read the judgement in the case of Attorney General for the Falkland islands v Gordon Forbes construction (Falklands) Limited. A contract was let for the construction of the infrastructure of the East Stanley Housing Development in the Falkland Islands using the FIDIC 4th Editions conditions. These conditions, like most standard forms, provide a procedure which requires the contractor to follow in the event of him submitting a claim. (Read more..)

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Projects & Pitfalls – Sports, Water, Energy & FIDIC

By Mohan Pillay

The inaugural Youth Olympic Games hosted by Singapore in August last year left a positive impression on Singapore’s young guests. The fanfare would have been much bigger had the Singapore Sports Hub been available for the event.

At an estimated cost of S$1.33 billion, the new Sports Hub will boast a 55,000-seater retractable roof stadium, a 6,000-capacity Indoor Aquatic Centre, a 3,000-capacity Multi-Purpose Arena and a Water Sports Centre. (Read more..)

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FIDIC Red Book – A hiccup?

By Mohan R Pillay

In a rare decision, the Singapore High Court in PT Perusahaan Gas Negara (“PGN”) v CRW Joint Operation (“CRW”) [2010] 4 SLR 672 refused to uphold an ICC arbitration award arising from a contract using the FIDIC Red Book 1999 Edition.

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No Increases Allowed

The term guaranteed maximum price when applied to a construction contract provides for the employer a nice feeling of security. He of she when entering into a contract of this nature is convinced that no matter what happens the final cost will not be above the maximum and there is a fair chance it could be lower. Any design changes which results from the specific instructions of the employer would understandably fall outside the guaranteed price. Guaranteed maximum price contracts have been with us for many years. IDC a Stratford on Avon construction company who pioneered design and construct contracts some twenty five or thirty years ago promoted their contracts as guaranteed maximum price. It is a good selling point which can be persuasive. (Read more..)

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FIDIC’s Middle East Contract Users’ – less than a month away!

Interested in getting the latest best practice guidance on FIDIC contracts from the very people responsible for drafting and updating the contracts? How about getting tailored advice for the Middle East?

You’ve got one chance this year. Join us at FIDIC’s 4th Middle East Contract Users’ conference – and get a 20% saving courtesy of!

Taking place in February in Dubai, this year we have the pleasure of welcoming Samer Skaik, the founder of to our panel of 29 distinguished speakers. (Read more..)

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

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? (Read more..)

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The importance of terms and conditions

Exclusion clauses in your terms and conditions could save your business, reports Thomas Eggar LLP senior associate Kim Teichmann. In Allen Fabrications Limited v ASD Limited the defendant avoided a £7m claim due to a term that limited its liability to £705. A large saving for such a little clause! (Read more..)

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Performance Contracts in FM

By Azzam Messaykeh

Today, with intense competition, high costs of operation and still-struggling economies, businesses are seeking ways to become leaner, more agile and increase operational efficiencies.

Concentrating efforts on cutting costs makes sound business sense, and that is where the importance of energy performance contracting comes in, making it a viable financial strategy. (Read more..)

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The direct agreements solution

By Katie Liszka
Direct agreements are used in project finance transactions to provide lenders with protection should the project get into difficulty. These are contractual mechanisms that enable the lenders to step into the shoes of the project company (the borrower) and take over the project and/or find a substitute entity to continue the project. The parties to the direct agreement include the project company itself and the counterparty to the project document to which the direct agreement is collateral to. (Read more..)

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