Archive for the ‘Contract Administration’ Category

Quantity clause needs update

by Chris Larkin

The UAE has undergone dramatic changes in recent years and the building boom has led to increasingly sophisticated methods of procuring construction work. The speed of these changes has made it difficult for the legal framework to keep up. As a result, some provisions of UAE law can appear outdated and even in conflict with modern forms of contract. (Read more..)

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The Effect of the Recession on Partnering in the Construction Sector

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Good form for resolution

by Joe Colgan

For a market whose construction projects are almost beyond imagination in terms of scale and design, the UAE’s contracting policy, when compared to the UK’s, is languishing in the past.

Whilst the UK has introduced novel forms of procurement and contract, such as PFI, PPP and the NEC, virtually all contracts in the UAE are executed using the FIDIC conditions of contract.

Both the 1987 and 1999 forms are used to varying degrees, with bespoke project requirements generally picked up in the Particular Conditions of Contract (PCCs). (Read more..)

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Resolving the issues with FIDIC

by Joe Colgan

In his second article, Joe Colgan, senior project manager, EC Harris, follows up on the problems associated with FIDIC’s nomination clause.

FIDIC ‘99 provides for a right of objection under Clause 5.2 that is conditional upon the contractor’s receipt of an indemnity from the proposed nominated entity. (Read more..)

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Nominating the best project subcontractors

by Mukund Karnick

In his second article, Mukund Karnick, senior contracts advisor at Nakheel’s Palm Jebel Ali, broaches the topic of Nominated Subcontractors (NSC). The benefits of introducing Nominated Subcontractors (NSC) in tenders By introducing NSC in tenders, the client: (Read more..)

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Problems with using critical path analysis for proving delay claims

By Robert Palles-Clark

In my previous article for the Legal Review, I argued that, in the case of a claim for delay on a construction project, the courts are directing us towards the need for some sort of critical path analysis to be provided as part of the evidential material required to prove the claim. There are plenty of planners out there that will tell you that the use of critical path analysis for this purpose is essential. It is certainly the norm ultimately for both parties to an arbitration or litigation concerning delays to appoint planning experts and for those experts to present their critical path model and analysis of the delays contended for. In this article I thought that it would be interesting to examine some of the many problems associated with the requirement and use of such techniques. (Read more..)

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Does every silver lining have a cloud?

by Chris Larkin

The construction market in the UAE poses many challenges: the number and scale of projects have generated a tremendous demand for construction services; the weakening of the US dollar against other major currencies coupled with other inflationary factors has further increased the cost of construction; and the potential impact on the global economy caused by difficulties in the US sub-prime market has created uncertainty amongst investors. These issues give rise to particular risks for developers and contractors alike. (Read more..)

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Stats needed to put clause into effect

by Conrad Egbert

A lack of government indices and statistics for the UAE construction sector is making it difficult to incorporate ‘escalation clauses’ into contracts, according to industry experts. (Read more..)

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Take care when taking over: Contractor liability explained

by Steven Hunt

sense that, for many contractors, ‘taking over’ is seen as the moment when the proverbial foot can come off the gas – the time when the contractor is finally relieved of the burden of delivering the project. For a contractor the process of taking over is an important one as the care of the works will pass to the employer and the employer’s entitlement to recover liquidated damages will cease. It is not, however, the end of the story for the contractor as he will remain liable for defective workmanship and materials beyond handover. (Read more..)

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Picking up the pieces

by Ian Ingram-Johnson
 Memories of the GCC, being an island of opportunity for contractors to shelter from worldwide economic storms, are now distant in most people’s minds.

The contracting landscape is so changed from a year ago that it is barely recognisable. Simply put, there is less money for clients, less business for contractors and the fear of insolvency for certain key players. (Read more..)

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