Archive for the ‘Contract Administration’ Category

Dealing with Consequential Losses

By: Dr. Chandana Jayalath

Losses can be recovered under two limbs namely the losses arise naturally, according to the usual course of things, as the result of the breach (first limb); or the losses that were contemplated by the parties, at the time the parties made the contract, as being the probable result of the breach (second limb). Consequential loss in construction contracts is equated with the second limb, as they are often be specified clearly in writing, such as payments to consultants during penalty period. (Read more..)

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Standard Form Construction Contracts – Friend or Foe?

By Sachin Kerur and George Varma

The UAE construction sector is a continually developing market with complex transactions becoming increasingly prevalent. The evolution of the construction sector has highlighted the need for more robust construction contracts that deal with all the relevant risk issues for a project. (Read more..)

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Successful subcontracting – Part 2

By Sachin Kerur and William Marshall

In Part 1 of this two part subcontracting series, we detailed some tips and traps with respect to subcontracting, and considered the criticality of successful subcontractor performance to the timely and on budget delivery of projects. In Part 2 below, we examine the risks of pro-forma subcontracts and back-to-back drafting and briefly touch on the benefits of bespoke drafted subcontracts. (Read more..)

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Successful subcontracting – Part 1

By Sachin Kerur and William Marshall

Since Adam Smith first set his mind to the efficiency of the pin factory in 1776, specialisation and division of labour has underpinned industrial development. The construction industry has embraced specialisation and division of labour to such a degree that almost every construction project, no matter how large or small, is delivered in practice by a large number of separate parties, each with a narrow field of expertise and each with a commercial and practical imperative to maximise the efficiency within their field of expertise. (Read more..)

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Latest Draft of UAE Federal Arbitration Law Released

By Patrick Bourke and Adam Vause

The most recent draft of the much anticipated UAE Federal Law in respect of Arbitration (the Draft Law) was released on 16 February 2012. The Draft Law represents the UAE’s proposed updating of its legislation in order to, among other goals, comply with its accession to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention) in 2006. Although the Federal Arbitration Law remains pending, this latest release demonstrates a positive step towards such a law coming into force and its contents should be considered when drafting arbitration clauses where the dispute could involve the UAE. (Read more..)

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Rights and Obligations under Back-to-Back Contracts

The parties’ dispute concerned the extent of the coverage of this alternative design for demolition and hoarding works. The letter of award for the subcontract stated that it was to be a lump sum fixed price contract and back-to-back with the main contract. Brington maintained that Cheerise was responsible for the design as this was a back-to-back contract. (Read more..)

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Cost Control in Construction

Cost Control is an obvious objective in Construction Management and Construction Scheduling. It should be recognized that no amount of paperwork achieves this construction cost control. The actual control is achieved through the ultimate decision of the manager that something should be done differently and the translation of that decision into practice. (Read more..)

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FIDIC’s International Contract Users’ conference – CMguide readers get a 10% saving…

Now in its 25th year, FIDIC’s International Contract Users conference is indisputably the leading international forum for those wishing to make the most of the FIDIC suite of contracts.

Remain ahead of the field with exclusive, insider insights from the very people responsible for drafting and updating the contracts. (Read more..)

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Liquidated Damages for Construction Delays

Liquidated Damages is defined as “a sum which a party to a contract agrees to pay or a deposit which he agrees to forfeit if he breaks some promise and which, having been arrived at by a good faith effort to estimate in advance the actual damage which would probably ensue the breach, are legally recoverable or retainable as agreed damages if the breach occurs.” (Read more..)

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FIDIC Americas Contract Users’ Conference – the latest addition to the Contract Users’ Series!

FIDIC Americas Contract Users’ Conference

2nd & 3rd October – New York, USA
Created by FIDIC in association with IBC Legal Conferences

10% saving for CMguide readers – quote VIP code: FKW82297CMGP (Read more..)

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