Archive for the ‘Contract Administration’ Category

Agreements should sort payment issues

Martin Preston* of Norton Rose focuses on payment issues that need to be considered between the Grantor** and Company*** in relation to concession agreements ranging from utility developments to large-scale property developments in the region. (Read more..)

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Contractors must check the fine print

Amid the current global financial crisis, the construction market has seen a downturn, exposing contractors to risks. JONATHAN BRUFAL* discusses crucial issues contractors might face if the contracted party calls for a change in terms. (Read more..)

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What time do you call this?

 by Nick Carnell
Both the 1987 and 1999 editions of the FIDIC standard form contain a number of requirements that particular things shall be done within a set period of time. (Read more..)

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Dithering trends in case of suspension or termination

by Antonios Dimitracopoulos
As a result of the termination or indefinite suspension of projects en masse, over the last two to three months, irate contractors were seeking urgent advice from their lawyers on their legal position, as well as on the process and cost of dispute resolution options. (Read more..)

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Termination of the contract

by Dennis Brand
For termination of a contract due to default by the Contractor, FIDIC 4th Edition provides remedies for the employer in Clause 63.1 which, save for a fairly common provision relating to the contractor’s bankruptcy, liquidation or dissolution, requires a certificate to be issued by the engineer stating (a) that the contractor has repudiated the contract, or (b) without reasonable excuse has failed to commence or proceed with the works following a 28-day notice, or (c) has failed to comply with a specific notice or instruction concerning rejection and/or removal of improper work, materials or plant, or (d) despite previous warning from the engineer, is neglecting to comply with any of the contractor’s obligations, or (e) has contravened the provisions of the contract related to sub-contracting, in which case, upon the employer giving 14 days’ notice to the contractor, may enter upon the site and terminate the contract. (Read more..)

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Survive the crisis: five top tactics for developers

 I believe the economic slowdown is not a bad thing at all, but a golden opportunity for Dubai to start anew. In order to survive these tough market conditions, I’ve listed five essential strategies that developers must adopt. (Read more..)

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Suspension of works

by Dennis Brand

 Until late last year I was frequently asked by those visiting the UAE and seeing the amount of construction being undertaken, when I thought the construction bubble in the UAE would burst.

My often repeated answer was that I did not think the bubble would burst as such, but would over time slowly deflate; how wrong I was. What we have seen over recent months as a result of what the experts tell us is result of the world wide economic downturn has resulted in an unprecedented number of projects and therefore contracts being suspended. (Read more..)

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UAE law provides security in construction deal risks

By Jim Delkousis

The UAE has seen a major slowdown of construction projects in recent months, particularly in Dubai. The situation is far from being ideal for players in the construction market.

Trapped with stagnating projects, developers and contractors are facing a recurrent question. What can we do when a project is frozen? Do we take drastic measures such as cancellation of the project? Or shall we wait until conditions improve? (Read more..)

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The UAE’s new arbitration law: is there an easier way?

by Anthony Edwards

 In May, Construction Week reported the UAE’s plan to finalise a new arbitration law, and highlighted various criticisms of the current draft. One contributor was quoted saying that “The point (in arbitration)…is beaten if things get complicated”. Review of the current draft suggests that the criticism reported in May could hardly have abated. (Read more..)

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A long term view for Credit Crunch

A long term view for Credit Crunch
by Omar Al Saadoon
Senior Associate Omar Al Saadoon.Construction & Engineering Practice – Al Tamimi & Company

This article might deter short term speculators or pessimists (so called realists) in reading further and if so no hard feelings. I too have noticed a reduction in crane activity and generally less traffic on the Sheikh Zayed Road. I also understand and appreciate the world we have lived in is rapidly changing and the credit crunch is likely to have a profound impact on global construction industries for the foreseeable future. (Read more..)

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