FIDIC 2017: What You Need to Know Now
It is now 5 years since the FIDIC 2017 editions of the Red, Yellow and Silver Books were published. As anticipated, it’s taking the industry some time to get on board and adopt these latest editions on projects.
Change Can Be Uncomfortable....But it's Inevitable
Nobody likes change. Employers and engineers are no different. It can be uncomfortable and it takes time and effort to take effect. But, as time moves on more and more projects will move to the FIDIC 2017 editions and it's critical that project teams understand these contracts.
I also suspect that Read more
How To Avoid Disputes From the Outset
Hewitt Decipher Partnership recently presented a webinar on international arbitration. Panel members included a barrister, an arbitrator and a solicitor. They were joined by HDP employees who provide expert advice to legal professionals working on construction disputes. The aim was to look at how to avoid claims.
Whilst these professionals earn fees from disputes, the overwhelming consensus was that the best way to deal with disputes is to not have them in the first place.
So, what can we do to avoid disputes right from the start of the project?
The Difference Between A Claim to the Engineer & A Claim in Arbitration?
A student recently asked, "is there any difference between a claim submitted to the Engineer and one submitted for arbitration?" My response was along the lines of “Yes, there frequently is, but there shouldn’t be”.
The Scenario:
Let me explain why by describing a very frequent scenario related to claims.
Why do Final Accounts lead to Disputes?
I recently provided advice on a dispute of US$250M. This sum includes variations, prolongation costs, acceleration costs, disruption costs and delay penalties. The dispute crystalised when the contractor submitted his final account. This is a familiar occurrence. In fact, a large proportion of disputes occur when the project is either nearing or after completion.
How to Ensure you Avoid Costly and Time-Consuming Disputes on your Projects
We all want to avoid disputes on our construction projects. But it seems we fail to learn from lessons of the past. ARCADIS have just published their annual Global Construction Disputes Report 2019. It makes interesting, but, not altogether surprising reading.
This year, the top three reasons for disputes are:
- Owner/Contractor/Subcontractor failing to understand and/or comply with its contractual obligations;
- Errors and/or omissions in the contract document;
- Failure to properly administer the contract.
Some other interesting noteworthy observations are:Read more
How to Ensure a DAB is Formed Correctly
A blog subscriber recently asked for some advice on the setting up and organisation of a Dispute Adjudication Board (DAB). They specifically wanted to know what to do if one of the parties is trying to frustrate the procedure by refusing to agree to the appointment of the DAB. The following advice is relates to the FIDIC contracts. However, it may be equally applied to other forms of contract that have dispute board provisions.
Inadequately Expressed Claims: the second most frequent reason for disputes
ARCADIS have recently published their Global Construction Dispute Report 2018 and unsurprisingly “Poorly drafted or incomplete/unsubstantiated claims” is reported as the second most frequent reason for disputes. This annual report has consistently ranked the same reason highly for several years, so it seems that the industry is not learning the fact that the onus is on the claimant to properly prove his case and that failure to do so will be costly and time-consuming.Read more
Delay: Choosing the right method for your dispute
How should you analyse delay? Which delay analysis method is best? What options are available?
When a delay occurs on a project, analysing cause and effect is vital to understanding where liability lies. Delay analysis (sometimes called Forensic Planning) is something which some refer to as a ‘dark art’. Arguably because it’s often misunderstood by those who carry it out or claim to understand it. This article aims to set out some of the key elements to consider when undertaking an analysis or working with an analyst to demonstrate delay.Read more
New Top Tips Paper! Application of Dispute Boards on Construction Projects
Most contracts have provisions whereby the Engineer, or his equivalent under other forms of contract, is required to make a fair determination of the claim. They also include a requirement that the parties attempt to reach amicable agreement in situations where either party does not accept the Engineer’s determination. Read more
Construction and Contract News 2019
We are looking ahead to 2020 and back on the past year. What has changed and what should we be looking out for in the world of construction contract and claims? We take a look in this round-up of construction and contract news from around the world…
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