Construction Contracts Intensive Masterclass

Main Issues in Construction Contracts 

• Discussing issues with competitive tendering
• Identifying the impact of negotiating power in the contracting process
• Understanding how contracts are affected by industry, region and law
• Defining the standard of work and understanding its associated issues
• Discussing issues with design responsibility and fitness for purpose
• Describing indemnities clauses and their issues
• Problems with insurance in construction contracts

Claims and Variations 

• Identifying the causes of claims and variations
• Discovering the scope of work variations
• Understand the claim of time extension 
• Determining when the concurrent delay occurs
• Definition of force majeure and its examples
• Discussing when termination can happen and its issues

Construction Contract Liability and Pricing 

• Defining liability in terms of construction contracts
• Describing copyright clauses in plans
• Understanding limits of liability and its forms:

1. Fixed Sum vs. Lump Sum

• Discovering common contract liability in construction:

1. Bill of Quantities vs. Schedule of Rates
2. Adding Incentive Fees
3. Escalation
4. Economic Price Adjustment

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• Discussing the purpose of liquidated damage and its associated penalties
• Overview of liability under law:

1. Selection of the right index
2. Call-off contracts

Dispute Resolution and Conflict Management 

• Discovering sources of disputes in construction projects 
• Identifying the role of negotiation techniques in dispute resolution
• Determining the role of collaboration in handling conflicts and resolving disputes
• Exploring dispute resolution approaches:

• Third-party approaches
• Alternative approaches for dispute resolution

• Discussing when to go with third-party techniques or alternative approaches for dispute resolution

Principles of FIDIC Contract

• Introduction to FIDIC and its role in construction contracts 
• Reviewing the history and evolution of FIDIC contracts 
• Understanding harmonization based on project types 
• Describing the structure and features of the FICIC 1999 edition 
• Discussing the forms and prepetition process of conditions of contract 
• Analyzing FIDIC condition of contracts and legal systems 
• Determining the importance of risk analysis in FIDIC contracts

Responsibilities of the Main Parties under FIDIC

• Introduction to the general provisions and responsibilities outlined for all parties: Clause 1
• Discussing the roles and responsibilities of the employer: Clause 2
• Identifying the roles and duties of the engineer: Clause 3
• Exploring the roles and obligations of the contractor: Clause 4
• Discussing responsibilities related to nominated subcontractors in construction contracts and design responsibilities Clause 5 
• Reviewing the roles and responsibilities related to project management:

1. Clause 6: Staff and labour
2. Clause 7: Plant material and workmanship
3. Clause 8: Commencement delays and suspension

Testing, Financial Clauses and Procedures   

• Discussing project testing procedures upon completion: Clause 9
• Identifying conditions for employer’s taking over and the contractor’s liability for defects: Clause 10
• Exploring post-contract testing requirements for plant: Clause 11
• Understanding measurement and evolution of contractor’s performance: Clause 12
• Understanding the management of contract variation and adjustment: Clause 13
• Discussing contract price and payment procedures under Clause 14

Suspension and Termination    

• Identifying termination conditions for the employer: Clause 15
• Discussing contractor’s rights to suspension and termination: Clause 16
• Understanding risk allocation between parties: Clause 17
• Defining contractor and employer’s liability and insurance coverage: Clause 18 
• Understanding force majeure under Clause 19

Claims, Disputes and Arbitration     

• Describing the claim’s structure and the mechanisms of dispute resolution: Clause 20
• Exploring common risks in construction projects and their impact on claims 
• Discussing the procedures of submitting and managing claims by contractors and employers 
• Discovering amicable settlement approaches for dispute resolutions 
• Identifying the role and responsibilities of the Dispute Adjudication Board (DAB) 
• Explaining the arbitration process and its application in dispute resolution