Arbitration Update – The new FIDIC certifications: will they pass the test?

In March 2020, FIDIC launched FIDIC Credentialing Ltd (FCL) to certify industry professionals. Though seen by some as overambitious, it aims to address real issues with FIDIC forms. This article examines one programme's potential to solve these problems.

By |24/06/2021|Arbitration, Knowledge Hub, Publications|Comments Off on Arbitration Update – The new FIDIC certifications: will they pass the test?

Changing Tack

A contract may require a party giving notice of a claim to specify the contractual or legal basis of that claim in the notice (or the supporting particulars). What if that party states a contractual or legal basis for the claim but later (perhaps with the benefit of additional information or because of advice from its lawyers) changes its mind or wants to include further contractual or legal bases? This was considered by the Hong Kong Court of Appeal in Maeda Corporation and China State Construction Engineering (Hong Kong) Limited v Bauer Hong Kong Limited [2020] HKCA 830. It found that a subcontractor could not change the contractual basis for its claim once the time period for providing such notice had expired. What, if any, impact will this decision have on the FIDIC forms of contract?

By |07/05/2021|Arbitration, featured, Knowledge Hub|Comments Off on Changing Tack

Jurisdiction, Admissibility and FIDIC

An issue that often arises in international arbitrations involving the FIDIC forms of contract is whether a claimant's failure to: (a) go through the dispute resolution provisions; or (b) comply with a time-bar clause gives rise to a question of admissibility or jurisdiction. Put another way, if a claimant has failed to issue a notice of claim within 28 days or failed to refer a dispute to a DAB, does the arbitral tribunal have jurisdiction to make an award on the merits or should the arbitral tribunal make an award stating that it lacks jurisdiction?

By |06/11/2020|Adjudication / Dispute Boards / ADR, Arbitration, Delay, Dispute Boards, featured, FIDIC, Knowledge Hub|Comments Off on Jurisdiction, Admissibility and FIDIC

FIDIC’S Golden Principles – holding back the tide?

FIDIC is concerned about its image. It says that heavily amending the FIDIC forms of contract impacts upon the FIDIC brand and that this is damaging FIDIC’s reputation. It seeks to address this with the introduction of five Golden Principles. But the Golden Principles are merely aspirational; they are not binding and have no contractual effect. Does this render them a pointless gesture ‘trying to hold back the tide’?

By |10/03/2020|Dispute Boards, featured, FIDIC, Knowledge Hub|Comments Off on FIDIC’S Golden Principles – holding back the tide?

Pay attention Bond!

The recent English case Sumitomo Mitsui Banking Corporation Europe Limited v Euler Hermes Europe SA (NV) [2019] EWHC 2250 (Comm) highlights that where an on demand bond is assigned and a demand then made under that bond, the beneficiary will need to be sure not only that the demand is compliant with the terms of the bond but also that the assignment was effective in the first place.

By |10/03/2020|Bonds, English Law, featured, Knowledge Hub|Comments Off on Pay attention Bond!

FIDIC’s Emerald Book – A contractor’s charter or optimum risk allocation?

Is FIDIC’s new Emerald Book overly contractor-biased or does it offer pragmatic risk allocation for underground works? This article compares its benefits and risk distribution with the unamended FIDIC Yellow Book, especially regarding employer risks in claim-prone areas.

By |10/03/2020|Arbitration, featured, FIDIC, Knowledge Hub|Comments Off on FIDIC’s Emerald Book – A contractor’s charter or optimum risk allocation?

Design Obligations in Design-Build Contracts – Recurring Issues

Standard form design and build contracts vary in contractor design obligations, requiring fitness for purpose or reasonable skill and care. Revisions can lead to unclear, contradictory obligations, causing recurring issues highlighted in recent cases, which Contractors and Employers should be aware of.

By |10/06/2019|Design, Knowledge Hub, Publications|Comments Off on Design Obligations in Design-Build Contracts – Recurring Issues

No EOT for Concurrent Delay, if so Agreed

Contract clauses that deny a contractor entitlement to an extension of time for concurrent delays caused by both employer and contractor are valid in principle.  In North Midland Building Ltd -V- Cyden Homes Ltd [1] the Court of Appeal of England and Wales has ruled that such clauses do not offend the common law prevention principle.  Nor do they give rise to an implied term to prohibit the imposition of delay damages that may result.

By |21/05/2019|Delay, English Law, featured, Knowledge Hub|Comments Off on No EOT for Concurrent Delay, if so Agreed

FIDIC contracts – What protection do they give contractors for employer financial problems?

In all construction contracts, one of the central principles is the Employer’s obligation to pay the contract price. The Contractor will be wary about the Employer’s financial standing and ability to pay and concerned to ensure that payments are made on time and that effective remedies are available in case of late or non-payment. The FIDIC standard forms of contract contain provisions dealing with these aspects.

By |21/05/2019|Dispute Boards, featured, Knowledge Hub|Comments Off on FIDIC contracts – What protection do they give contractors for employer financial problems?

1999 Suite: Commentary on Clause 17 – Risk and Responsibility

Clause 17 covers risk and responsibility, indemnities, liability limitations, and intellectual property rights. The Contractor bears risk during execution and defect remedy periods, with risk transferring to the Employer upon issuing the Taking-Over Certificate. Risk allocation depends on governing law.

By |04/04/2019|Commentaries on the 1999 Suite, Delay, English Law, featured, Knowledge Hub|Comments Off on 1999 Suite: Commentary on Clause 17 – Risk and Responsibility

1999 Suite: Commentary on Clause 08 – Commencement, Delays, and Suspension

Clause 8 covers the start of works, time for completion, delays, extensions, and suspension of works. It includes provisions for commencement, completion, progress, delay damages, and suspension, with updates from the 4th Edition Red Book.

By |14/11/2018|Commentaries on the 1999 Suite, Delay, English Law, featured, Knowledge Hub|Comments Off on 1999 Suite: Commentary on Clause 08 – Commencement, Delays, and Suspension

1999 Suite: Commentary on Clause 06 – Staff and Labour

Clause 6 covers Staff and Labour, requiring the Contractor to comply with local laws, pay fair wages, provide accommodation, ensure health and safety, and maintain proper records. It also restricts recruitment from the Employer’s personnel and mandates qualified supervision.

By |14/11/2018|Commentaries on the 1999 Suite, featured, Knowledge Hub|Comments Off on 1999 Suite: Commentary on Clause 06 – Staff and Labour
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