International Construction Contracts - A Handbook

International Construction Contracts - A Handbook

von: William Godwin

Wiley-Blackwell, 2012

ISBN: 9781118498477 , 224 Seiten

Format: PDF, OL

Kopierschutz: DRM

Windows PC,Mac OSX Apple iPad, Android Tablet PC's Online-Lesen für: Windows PC,Mac OSX,Linux

Preis: 64,99 EUR

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International Construction Contracts - A Handbook


 

International Construction Contracts: A Handbook

5

Copyright

6

Contents

9

Preface

15

Foreword

17

Acknowledgements

19

About the Author

21

Part I

23

1 Contract

25

1.1 What is a contract?

25

1.2 Agreement

26

1.3 Do contracts need to be in writing?

27

1.4 Other elements of a contract

27

1.5 Capacity and authority

28

1.6 Importance of a written contract

30

1.6.1 Clarity and certainty

30

1.6.2 Procedures

31

1.6.3 Risk allocation

31

1.7 What should a properly written construction contract cover?

32

1.7.1 FIDIC contracts

33

1.7.2 Programme

34

1.7.3 Delays and extensions of time

34

1.7.4 Delay damages

35

1.8 Tailoring the contract

36

2 Risk

37

2.1 How risk may be allocated

37

2.2 The ‘traditional’ approach to risk

38

2.3 EPC/turnkey projects

40

2.4 BOT-type projects

40

2.4.1 Parties to a BOT-type project

40

2.4.2 Contracts involved in a BOT-type project

42

2.5 The FIDIC Silver Book

44

2.6 Particular risks: The unforeseen and design

46

2.6.1 Unforeseeable physical conditions

46

2.6.2 Design responsibility

46

3 Types of Construction Contract

49

3.1 Lump sum contracts

49

3.2 Prime cost or reimbursable contracts

50

3.3 Unit price contracts

50

3.4 Target contracts

51

3.5 Which contract?

51

Part II

53

4 The FIDIC Design-Build Contracts

55

4.1 Some key general provisions

56

4.1.1 Communications: Clause 1.3

56

4.1.2 The law and the language of the contract: Clause 1.4

57

4.1.3 The priority of documents: Clause 1.5

57

4.1.4 Compliance with laws: Clause 1.13

58

4.2 The Employer

59

4.2.1 The right of access to, and possession of, the site: Clause 2.1

59

4.2.2 Evidence of the Employer’s financial arrangements: Clause 2.4

59

4.2.3 Employer’s claims against the Contractor: Clause 2.5

60

4.3 Contract administration: Clause 3

61

4.3.1 The role of the Engineer

61

4.3.2 ‘Determinations’ in the Yellow and Silver Books

62

4.3.3 Employer’s Representative in the Silver Book

63

4.3.4 The giving of instructions

63

4.4 The Contractor

63

4.4.1 The Contractor’s general obligation: Clause 4.1

63

4.4.2 ‘The works’ which must fit the intended purpose: Clause 4.1

65

4.4.3 Securing performance: Clause 4.2

65

4.4.4 Contractor’s Representative: Clause 4.3

66

4.4.5 Subcontracting: Clauses 4.4 and 4.5

66

4.4.6 Setting out: Clause 4.7

66

4.4.7 Sufficiency of the Contract Price (Silver Book) or Accepted Contract Amount (Yellow Book): Clause 4.11

67

4.4.8 Unforeseeable difficulties/physical conditions: Clause 4.12

67

4.4.9 Progress reports: Clause 4.21

67

4.5 Design

68

4.5.1 The Contractor’s general design obligations (Yellow and Silver Books): Clause 5.1

68

4.5.2 Contractor’s documents: Clause 5.2

68

4.5.3 Contractor’s undertaking: Clause 5.3

69

4.6 Staff and labour: Clause 6

69

4.7 Plant, materials and workmanship

70

4.7.1 Executing the works: Clause 7.1

70

4.7.2 Samples: Clause 7.2

70

4.7.3 Inspections: Clause 7.3

70

4.7.4 Testing: Clause 7.4

71

4.7.5 Rejection and remedial work: Clauses 7.5 and 7.6

71

4.7.6 Ownership: Clause 7.7

72

4.8 Time: commencement, delays and suspension of the works

72

4.8.1 Commencement and time for completion of the works: Clauses 8.1 and 8.2

72

4.8.2 Programme: Clause 8.3

72

4.8.3 Delays and extensions of time: Clause 8.4

74

4.8.4 Suspension of the works: Clauses 8.8 to 8.10

74

4.8.5 Prolonged suspension: Clause 8.11

75

4.9 Tests on completion

75

4.9.1 Contractor’s obligations: Clause 9.1

75

4.9.2 Delayed tests: Clause 9.2

76

4.9.3 Re-testing: Clauses 9.3 and 9.4

76

4.10 Employer’s taking over

76

4.10.1 Taking over of the works: Clause 10.1

76

4.10.2 Taking over of part of the works: Clause 10.2

77

4.11 Defects liability

78

4.11.1 The Defects Notification Period: Clauses 11.1 to 11.3

78

4.11.2 Failure to remedy defects: Clause 11.4

78

4.11.3 Extending the DNP: Clause 11.3

79

4.11.4 Further tests: Clause 11.6

79

4.11.5 The Performance Certificate: Clause 11.9

79

4.11.6 Unfulfilled obligations: Clause 11.10

80

4.12 Tests after completion

80

4.13 Variations and adjustments to the contract price

80

4.13.1 Right to vary: Clause 13.1

80

4.13.2 Variation procedure and value engineering: Clauses 13.2 and 13.3

81

4.13.3 Changes in legislation: Clause 13.7

81

4.13.4 Cost fluctuations: Clause 13.8

82

4.14 Payment

82

4.14.1 Interim payments: Clause 14.3

82

4.14.2 Timing of interim payments: Clause 14.7

83

4.14.3 Advance payment: Clause 14.2

83

4.14.4 Retention money: Clauses 14.3 and 14.9

83

4.14.5 Delayed payment and the right to financing charges: Clause 14.8

84

4.14.6 Financial steps after Taking Over: Clauses 14.10 to 14.13

85

4.14.7 Cessation of Employer’s liability: Clause 14.14

86

4.15 Termination by the Employer

86

4.15.1 Termination for Contractor default: Clause 15.2

87

4.15.2 Valuation for works executed at date of termination: Clause 15.3

88

4.15.3 Payments after termination: Clause 15.4

88

4.15.4 Termination for convenience: Clause 15.5

88

4.16 Suspension and termination by the Contractor

88

4.16.1 Suspension: Clause 16.1

88

4.16.2 Termination: Clause 16.2

89

4.16.3 Events after termination: Clause 16.3

89

4.16.4 Payment on termination: Clause 16.4

89

4.17 Risk and responsibility

90

4.17.1 Indemnities: Clause 17.1

90

4.17.2 Contractor’s care of the works: Clause 17.2

91

4.17.3 Specific Employer’s risks: Clauses 17.3 and 17.4

91

4.17.4 Limitation of liability: Clause 17.6

92

4.18 Insurance

93

4.19 Force majeure

93

4.19.1 Meaning of ‘force majeure’: Clause 19.1

93

4.19.2 Notice: Clause 19.2

94

4.19.3 Minimising delay and the consequences of force majeure: Clauses 19.3 and 19.4

94

4.19.4 Prolonged force majeure: Clause 19.6

95

4.19.5 Release from performance under the law: Clause 19.7

95

4.20 Contractor’s claims, disputes and arbitration

96

4.20.1 Contractor’s claims: Clause 20.1

96

Part III

99

5 Disputes and How to Resolve Them

101

5.1 Introduction

101

5.2 Legal aspects of a construction project

101

5.2.1 The terms of the construction contract

102

5.2.2 The law which governs the construction contract

102

5.2.3 The terms of the construction contract relating to the resolution of disputes between the parties

102

5.2.4 The law of the process for resolving a dispute

103

5.2.5 Rights and liabilities that might arise independently of any contract

103

5.2.6 The law which applies to a project by virtue of its location

104

5.3 Kinds of claim

104

5.3.1 Claims for which the contract specifically provides

104

5.3.2 Claims for which the contract does not specifically provide

105

5.4 Making a claim

106

5.4.1 Do I have a claim?

106

5.4.2 If I have a claim, when do I make it?

107

5.4.3 How do I make my claim?

107

5.4.4 Summary

108

5.5 Who decides whether to accept a claim?

108

5.6 The FIDIC Dispute Adjudication Board

109

5.6.1 Scope

110

5.6.2 Appointment of the DAB

110

5.6.3 Referring a dispute

111

5.6.4 Reaching a decision

111

5.6.5 Informal opinion?

111

5.6.6 Arbitration?

112

5.7 Methods of dispute resolution

112

5.7.1 Final methods of dispute resolution

112

5.7.2 Informal methods of dispute resolution

114

5.7.3 Arbitration or litigation?

115

5.8 Arbitration

116

5.8.1 The arbitration agreement

117

5.8.2 The place of arbitration

117

5.8.3 Arbitration institutions

117

5.8.4 Commencement of an arbitration

118

5.8.5 Conduct of the arbitration

118

5.8.6 The arbitration award and challenges to the award

119

5.8.7 Enforcement of arbitral awards

120

5.9 How are international arbitrations conducted?

121

5.9.1 The traditional arbitration centres

121

5.9.2 ICC arbitration

123

APPENDIX I Yugo Design Company v Sino Industries Corporation: An International Chamber of Commerce Arbitration

127

APPENDIX IIA Rules of Arbitration of the International Chamber of Commerce

159

APPENDIX IIB Rules of Arbitration of the Singapore International Arbitration Centre

199

Index

219