FIDIC Amendments and The Golden Principles
We have all seen it. We receive what we assume is a FIDIC form of contract. But when we examine its contents or the Particular Conditions, we find it has been subject to amendments and changed considerably. FIDIC amendments we often see include:
- Clauses struck out, usually those that give the contractor rights and remedies.
- New clauses appear which are often punitive toward the contractor.
- The remeasurable Red Book changes to a lump-sum contract.
- Time-frames may have been reduced for the Contractor’s actions and extended. Alternatively, time-frames vanish altogether for the Engineer and Employer’s obligations.
Added to this, the changes and amendments are often poorly drafted and the final version contains ambiguities and conflicts.
So what we end up with is not what FIDIC intended. In short, it does not do what it says on the tin.
Employers and Engineer’s make these changes in an attempt toRead 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…
The Engineer's Responses and Determinations: What Should be Included?
Earlier this year I presented a CPD talk to RICS members in Dubai on the topic of Engineer’s Responses and Determinations. I usually like to kick things of with a poll and I asked the group the following questions:
How many people have experienced a situation where the Engineer does not respond to a claim within the contractual time-frame? Almost everyone confirmed that they had.
How many people have experienced a situation where the Engineer’s response has done little to resolve the claim? Again, almost everyone confirmed that they had.
How many people have experienced a situation where the Engineer’s response has caused the matter to escalate to a dispute? Over 50% of attendees confirmed that they had.
How many think that failures of the Engineer to carry out their contractual obligations on claims is helpful to projects? No one thought that this helped projects.
This is clear feedback from RICS members that the Engineers often do not perform their obligations. This has a detrimental effect on projects.
So, what should Engineers be doing to help projects when responding to claims? Well, as usual, the contract provides the answers, so let’s have a look at what the FIDIC Red Book has to say on the subject.Read more
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
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
Crisis for Gulf Construction Companies?
Let's take a look at what has been happening in the Gulf construction market recently.Read more
6 Key Actions UAE Contractors Should Take in Today's Tough Market
UAE contractors are facing tough market conditions, with cash flow constraints and greater competition for fewer contracts placing a squeeze on margins. Expo 2020 is just around the corner now but much of the anticipated bonanza from Expo and related projects has yet to kick off. The region however still offers decent long-term fundamentals for companies prepared to ride out the current slowdown in the market.Read more
Insights on the Construction Industry in Singapore
I have just returned from Singapore where I presented our Claims Class 2-Day Intensive Training Course on construction claims to a group of 29 construction professionals from all sectors of the industry.Read more
Dublin Course Generates Valuable Discussion Amongst Delegates
I have just returned from a thouroughly enjoyable trip to Dublin where we held one of Claims Class' 2-Day Intensive Training courses on construction claims.The course went well, with some lively discussions and debate amongst delegates from several disciplines within the industry. I was also flattered to find that some delegates had travelled from England and Belgium to attend the course.Read more
Reflections on Construction in 2020
To say that 2020 has been an unusual year would be an understatement. Not just for the construction industry, but for all of us around the world. Despite the challenges, things are not entirely doom and gloom. We have all learned in one way or another from the COVID-19 experience. Sometimes we need a challenge to force us to think about alternative ways of doing things.
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