Archive for the ‘Contract Administration’ Category

Liquidated Damages – The Bigger Picture

By Faisal Attia

Liquidated damages clauses (or penalties clauses) are widely used in construction contracts worldwide. The employer is entitled to deduct a specified and pre-agreed amount of money from the contractor by way of compensation for failure to progress the works to meet set milestones or the date for completion of the works. (Read more..)

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Expect The Unexpected

By Pamela Mcdonald

All contractors, whether in Qatar or elsewhere, want certainty as to their contractual obligations. Contractors want to know well in advance what their potential exposure is if those obligations are breached.

What are they liable for if they are late in completing the works? How secure are the damages for late completion that are specified in advance in the contract?

Liquidated damages (LD) provisions in construction contracts fix a sum that is payable by the contractor in the event that it is late in completing works. (Read more..)

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How should adjudicators deal with expert reports in Australia?

By Samer Skaik, Jeremy Coggins, Anthony Mills

Since its introduction in to Australia fifteen years ago, statutory adjudication has become increasingly used by parties seeking to recover payment claims which are large in amount and technically and legally complex in nature. This has inevitably led to the formalisation of the adjudication process with parties often submitting, amongst other documents, expert witness reports to support their arguments. The increase in documentation that an adjudicator must consider poses a threat to the integrity of the adjudicator’s determination. (Read more..)

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Beware fast tracking complex high rise buildings

By Samer Skaik

In complex high rise projects, employers tend to fast track works where construction can begin while design is still incomplete following three main phases of procurement. Shoring system and piling are firstly procured and awarded to an enabling contractor. Upon completion of enabling works, main design and traditional tendering of the second phase can be concluded in order for main construction works to commence on site. While main work is progressing, design of specialist packages will be completed and nominated subcontractors are appointed in a timely manner shaping the third phase of procurement. Such common phased construction usually results in substantial time saving in project life cycle. However, many fast track projects suffer time and cost overruns due to inherent risks of fast tracking such as design deficiencies and ambiguities in risk allocation between involved parties. This paper aims to investigate pros and cons of fast track procurement approach for complex high rise projects and examine how relevant risks are allocated among enabling contractors, main contractors, nominated subcontractors and project consultants in theory and practice. (Read more..)

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Jump ahead of your competition: International Construction Law…

Interested in gaining new skills and in-depth knowledge that will help you in your everyday work, will give you the edge on your competitors and open up new career opportunities?

Take a look at UWE Bristol’s Postgraduate Diploma in International Construction Law – the distance learning course that’s been designed for professionals based in any country and in a wide range of job roles and industry sectors: (Read more..)

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Responsiblity in negotiation

By By Vasanth Kumar
It is understandable that no construction project is risk-free as risk is inherent in the contracting business. Project risks could arise from factors such as natural, political, social, economic, legal, and general behaviours. Whilst risks can be managed, minimised, shared, transferred, or accepted, they cannot just be simply ignored.

The common ways of handling risks in construction contracts are by means of due diligence, insurance, quantifying damages, indemnity, and enforcing liability caps of parties. (Read more..)

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The art of avoiding contract conflict

By Saifee M. Tarwala

Ultimately, almost every construction project will vary from its initial design, scope, and definition.

Hardly any project is executed as per the original contract scope prepared by architects and engineers; changes are inevitable due to factors such as technological advancements, statutory enforcement, geographical and geological considerations, and non-availability of specified materials.

Standard forms of contract typically include express provisions, giving engineers the power to amend orders when such changes become necessary (FIDIC Clause 51.1). This clause is designed to facilitate the smooth administration of works and contracts. (Read more..)

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What’s happening at IBC Legal’s most comprehensive construction law event in 2015?

 

The Construction Law Summer School is the most comprehensive event in IBC Legal’s Construction Law & Engineering Series and is therefore the ideal choice for anyone on your team looking to gain a thorough understanding and international update of the area.

The conference combines case studies, discussion groups, Q&A sessions, presentations, workshops and a different social activity every evening – allowing your team to gain the maximum learning benefit from the 20+ international speakers. (Read more..)

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Construction Law: Contracts & Disputes – avoid costly mistakes by following these experts’ recommendations

 

Equip your team with guidance on how best to minimise risks, avoid unnecessary conflicts and cut the costs of resolving disputes by getting guidance from 35 speakers at the Construction Law: Contracts & Dispute Management conference.

Taking place in London, delegates will be able to focus their time but choosing from these five separately bookable segments… (Read more..)

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FIDIC Time Bar Provisions

By Andrew MacCuish and Denis Moriarty

Given the frequency with which we have referred to, or had others refer us to, and English Court decision interpreting part of the FIDIC standard form, we thought it would be useful to refresh your knowledge. Readers may recall the decision of The Hon. Mr Justice Akenhead in the English High Court case of Obrascon Hautre Lain SA v. Her Majesty’s Attorney General for Gibraltar [2014] EWHC 1028 (TCC), and the useful discussion and views as to the interpretation and operation of aspects of clause 20.1 (and its inter-play with clause 8.4) of the standard FIDIC contract conditions – in this case, the version generally known as the “Yellow Book”. (Read more..)

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