International Construction Contracts

Many large construction projects, such as those in the Middle East or Asia Pacific, are international in scope with a range of contractors and subcontractors signing contracts for delivery of specified work or services. The contractual situation in these instances may be complex and potentially includes a range of standard and bespoke contractual arrangements. In addition, the parties to these contracts may be based in different parts of the world, and are often working to different legal systems and understandings. This can lead to confusion in the understanding, interpretation and execution of a given contract. International Construction Contracts provides concise and practical guidance to those involved in the negotiation and management of international construction and engineering contracts. It sets out in clear, straightforward language the main features of construction contracts and international dispute resolution procedures. It ensures the reader is aware of the issues that might arise on the contractual side of their project so that they may better protect their party's interests. Many of the features and points discussed are illustrated by reference to the popular FIDIC contracts and the book includes a commentary on the two most widely used FIDIC design-build forms, the Yellow and Silver Books. Also included in the book is a fully worked example of a typical ICC arbitration from start to finish, with "pleadings", a detailed case narrative and commentary on events, and an example arbitration award. The ICC and SIAC arbitration rules are also provided. Written for construction professionals, the book will be of great interest to engineers, architects, project managers, quantity surveyors, contract managers and contract administrators working on international projects.

Autorentext

William Godwin is a barrister specialising in
construction, engineering, energy and infrastructure projects and
has over twenty years' experience of international
construction acting for contractors, employers, developers and
consultants in projects of all kinds. A regular speaker at the
FIDIC international users' conferences, William conducts
accredited training in the FIDIC contracts through Matrix Seminars,
is an arbitration panel member of the China International Economic
and Trade Arbitration Commission and the Dubai International
Arbitration Centre, and an approved adjudicator of the English
Technology and Construction Bar Association.

Inhalt

Preface xiii

Foreword by Vivian Ramsey xv

Acknowledgements xvii

About the Author xix

Part I 1

1 Contract 3

1.1 What is a contract? 3

1.2 Agreement 4

1.3 Do contracts need to be in writing? 5

1.4 Other elements of a contract 5

1.5 Capacity and authority 6

1.6 Importance of a written contract 8

1.6.1 Clarity and certainty 8

1.6.2 Procedures 9

1.6.3 Risk allocation 9

1.7 What should a properly written construction contract cover? 10

1.7.1 FIDIC contracts 11

1.7.2 Programme 12

1.7.3 Delays and extensions of time 12

1.7.4 Delay damages 13

1.8 Tailoring the contract 14

2 Risk 15

2.1 How risk may be allocated 15

2.2 The 'traditional' approach to risk 16

2.3 EPC/turnkey projects 18

2.4 BOT-type projects 18

2.4.1 Parties to a BOT-type project 18

2.4.2 Contracts involved in a BOT-type project 20

2.5 The FIDIC Silver Book 22

2.6 Particular risks: The unforeseen and design 24

2.6.1 Unforeseeable physical conditions 24

2.6.2 Design responsibility 24

3 Types of Construction Contract 27

3.1 Lump sum contracts 27

3.2 Prime cost or reimbursable contracts 28

3.3 Unit price contracts 28

3.4 Target contracts 29

3.5 Which contract? 29

Part II 31

4 The FIDIC Design-Build Contracts 33

4.1 Some key general provisions 34

4.1.1 Communications: Clause 1.3 34

4.1.2 The law and the language of the contract: Clause 1.4 35

4.1.3 The priority of documents: Clause 1.5 35

4.1.4 Compliance with laws: Clause 1.13 36

4.2 The Employer 37

4.2.1 The right of access to, and possession of, the site: Clause 2.1 37

4.2.2 Evidence of the Employer's financial arrangements: Clause 2.4 37

4.2.3 Employer's claims against the Contractor: Clause 2.5 38

4.3 Contract administration: Clause 3 39

4.3.1 The role of the Engineer 39

4.3.2 'Determinations' in the Yellow and Silver Books 40

4.3.3 Employer ' s Representative in the Silver Book 41

4.3.4 The giving of instructions 41

4.4 The Contractor 41

4.4.1 The Contractor ' s general obligation: Clause 4.1 41

4.4.2 'The works' which must fit the intended purpose: Clause 4.1 43

4.4.3 Securing performance: Clause 4.2 43

4.4.4 Contractor ' s Representative: Clause 4.3 44

4.4.5 Subcontracting: Clauses 4.4 and 4.5 44

4.4.6 Setting out: Clause 4.7 44

4.4.7 Sufficiency of the Contract Price (Silver Book) or Accepted Contract Amount (Yellow Book): Clause 4.11 45

4.4.8 Unforeseeable difficulties/physical conditions: Clause 4.12 45

4.4.9 Progress reports: Clause 4.21 45

4.5 Design 46

4.5.1 The Contractor's general design obligations (Yellow and Silver Books): Clause 5.1 46

4.5.2 Contractor's documents: Clause 5.2 46

4.5.3 Contractor's undertaking: Clause 5.3 47

4.6 Staff and labour: Clause 6 47

4.7 Plant, materials and workmanship 48

4.7.1 Executing the works: Clause 7.1 48

4.7.2 Samples: Clause 7.2 48

4.7.3 Inspections: Clause 7.3 48

4.7.4 Testing: Clause 7.4 49

4.7.5 Rejection and remedial work: Clauses 7.5 and 7.6 49

4.7.6 Ownership: Clause 7.7 50

4.8 Time: commencement, delays and suspension of the works 50

4.8.1 Commencement and time for completion of the works: Clauses 8.1 and 8.2 50

4.8.2 Programme: Clause 8.3 50

4.8.3 Delays and extensions of time: Clause 8.4 52

4.8.4 Suspension of the works: Clauses 8.8 to 8.10 52

4.8.5 Prolonged suspension: Clause 8.11 53

4.9 Tests on completion 53

4.9.1 Contractor's obligations: Clause 9.1 53 <p&gt...