Archive for the ‘Contract Administration’ Category

Tales Of The Unexpected: Where Liability Lurks Unseen #3

by Melanie Grimmitt

Recap

After a diversion a fortnight ago to address the newsworthy events in Dubai, normal service resumes with this blog. The previous two blogs in this series considered decennial liability and liability for harmful acts under UAE law.

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Issues involved in Taxation of Construction contracts

by Sujjain Talwar

There is a lot of mystery regarding taxation of Construction activities in India. The mystery starts from the fact that a Construction contract involves both labour and material and hence, both Service tax and Value Added tax is levied on one transaction.

The process becomes more complex depending upon a number of factors such as the Scope of work, the nature of the contract, whether the contract includes any further sub-contracting, whether individual prices have been specified for each part of the scope of work and whether the contract involves off-shore and on-shore activities etc.
Let us first consider the Indirect taxes applicable on a Construction contract. As already stated above, a Construction contract involves both labour and materials. Hence, a Construction contract is liable to both Service tax and Value Added tax.

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Effect of civil code on supply contracts

By James Williams

In terms of the large-scale construction projects familiar to Dubai, the building contract has received more attention than any other agreements, which include development agreements and deals to lease, the contractor’s security package, warranty documents and documents relating to the provision of finance. (Read more..)

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CMGUIDE is the MEDIA PARTNER of the first FIDIC Contract Users’ conference in the Middle East

This new event follows the success of the International Contract Users’ conference in London and was created in response to the numerous requests for a regional event.

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GCC in catch-22 over FIDIC forms

The Fidic form of contracts has been in the Middle East since the 1970s, yet it is far from popular. Adam Webster looks at legal issues that should be borne in mind when negotiating Fidic-based contracts.
THE legal systems of the Middle East are founded upon civil law principles (most heavily influenced by Egyptian law, which is itself based on the Napoleonic Code) and Islamic Shariah law – the latter constituting the guiding principle and source of law. (Read more..)

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The Foreign Project Consultant as Jian Li

by Hew Kian Heong

Many years ago, I saw a Chinese construction contract for the first time, and there was mention of a person called a “Jian Li” in the contract. I asked myself – what strange creature is this Jian Li?

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Chinese Drywall Update – Chinese Manufacturer Waives Hague Convention

by Andrew Ness

Problems with drywall imported from China during the ill-fated U.S. housing boom continue to be front and center in the southeastern U.S., as complaints continue to roll in regarding health problems allegedly caused by the tainted wallboard, as well as damage to electrical and plumbing work. Naturally enough, a significant litigation boom has followed, including attempts to bring claims against the Chinese manufacturers who supplied the drywall. In a recent development, Knauf Plasterboard (Tianjin) Co., Ltd (“KPT”), a leading defendant in the consolidated federal court lawsuit against manufacturers of Chinese drywall, has agreed to accept service of process for homeowner plaintiffs who are named in an Omnibus Class Action Complaint, and to waive its right to demand service of process through the Hague Convention (saving plaintiffs the $15,000 service fee).

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Ppp Projects In Brazil: 2) General Concepts And A Comparative Comparative View Between Ppp And Concession

by Júlio César Bueno

Continuing our last discussion on PPPs in Brazil, we should note that PPP LAW applies to government entities (including mixed-capital companies) directly or indirectly controlled by the Federal Government, States, Federal District and Municipalities. Article 2 of PPP LAW defines PPP as follows: “Public-Private Partnership is an administrative concession contract that may assume the form of either a sponsored or an administrative concession contract.” PPPs are expected to be implemented concurrently with existing concession contracts, focusing on infrastructure projects. PPP LAW provides for sponsored concession and administrative concession.

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A Convenient Ending

by Joel Heard

Recent examples illustrate clearly that cancelling a project can be very expensive. The City of Ottawa recently paid over C$36 million to settle claims from contractors arising from the cancellation of a light rail transit project. In Montréal, the termination of a contract to build an incinerator has resulted in years of costly litigation and a large court award against the municipal defendants (which they have appealed). (Read more..)

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Dubai World restructuring and PPPs in the Gulf

by Melanie Grimmitt

The news of the requested standstill period for Dubai World debt repayments has left those of us who advise on Public Private Partnership (PPP) projects in the region wondering what it will mean for us……

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