International Construction Contracts Research Articles

Contractual Treatment of COVID-19 Induced Events under Standard International Construction Contract Conditions

Contractual Treatment of COVID-19 Induced Events under Standard International Construction Contract Conditions

ВЗАИМОДЕЙСТВИЕ МЕЖДУНАРОДНЫХ СТРОИТЕЛЬНЫХ КОНТРАКТОВ И ДОГОВОРОВ ОБ ИНВЕСТИЦИЯХ: ВОЗМОЖНОСТИ ДЛЯ ГАРМОНИЗАЦИИ КОММЕРЧЕСКИХ И ОБЩЕСТВЕННЫХ ИНТЕРЕСОВ

The article analyzes the interaction of the provisions of international construction contracts and bilateral investment treaties. The aim of the study is to identify opportunities for harmonizing commercial and public interests through model contractual clauses. The results can serve as a reference point for reforming norms and practices in the field of cross-border infrastructure. Opportunities for integrating commercial and government priorities in the areas of stabilization, arbitration, insurance, and information disclosure are being explored. Innovative provisions of standard contracts are proposed, designed to harmonize the interests of investors, the state, and society. The texts of model international construction contracts, bilateral investment treaties, multilateral conventions, scientific publications on private international investment and construction law, etc. were used as materials. The article used such methods as comparative legal analysis of provisions of contracts and agreements, system analysis of interrelationships between commercial and public-law norms, content analysis of scientific publications and expert sources, and analysis of the arbitration practice of resolving disputes from contracts and agreements. The integrated approach allowed for a comprehensive review of the interaction of international commercial contracts and investment agreements and the development of recommendations for their harmonization in the interests of all parties.

ПОНЯТИЕ МЕЖДУНАРОДНОГО ДОГОВОРА СТРОИТЕЛЬНОГО ПОДРЯДА

The article explores the concept of an international construction contract. The relevance of this topic is due to the increase in the number of international construction contracts concluded and the growth of disputes in courts, which creates the need to qualify contracts with a foreign element. Despite the rapid pace of urbanization and the development of construction, in particular international construction, the concept of an international construction contract has not yet been formulated either in the convention order or in the legislation of countries. In the doctrine of private international law, the opinions of scientists differ in the formation of this concept. However, against the backdrop of the development of international construction, it is worth formulating the concept of an international construction contract, both in the doctrine and in the legislation of the country, for the further development of this industry. The information in the article is based on the opinions of domestic and foreign scientists, as well as the legislation of various countries. The formation of the concept of an international construction contract opens the way not only for the development of the scientific component of construction law but also creates fertile ground for the proper resolution of disputes arising from international construction contracts and the improvement of construction law.

A Comparative Study of the International Construction Contract (FIDIC Red Book 1999) and the Domestic Contract in Egypt (the Administrative Law 182 for the year 2018)

A Comparative Study of the International Construction Contract (FIDIC Red Book 1999) and the Domestic Contract in Egypt (the Administrative Law 182 for the year 2018)

Kriterijumi za izbor odgovarajućih metoda analize kašnjenja (DAM) za mega građevinske projekte

Nowadays, one of the major sources of issues in the construction sector in the Middle East and North Africa (MENA) region is the Extension of time (EOT) claims, which is so hard to resolve. Authors and practitioners have started trials in numerous academic studies to show how to properly deploy Delay Analysis Methods (or "DAMs") and to give practitioners executive guidelines to support them with proper analyses and claim resolution. The awareness of the use of these methods is essential to realize their restrictions and capacity to fit in with various project circumstances and to select appropriate delay analysis methods. The main objective of this research is to provide a guide for the selection of appropriate DAM by defining a list of important criteria that have the most preference in choosing the effective method. These criteria will be rated by collecting feedback from experts in the MENA region through questionnaires. The survey was conducted in the United Arab Emirates (UAE) for the abundance of multinational firms working on mega construction projects with multicultural backgrounds and diversity of expertise in addition to the availability of carrying out interviews when needed and the widespread adoption of standard international construction contracts. Then, the possibility of ranking is calculated by using the Relative Importance Index (RII). This ranking will be considered as an important tool for the proper selection of convenient delay analysis methods. Ultimately this paper will facilitate the selection of appropriate DAM by Delay analyst through investigating project circumstances by mapping it with current ranked criteria.

Lex Constructionis as a Regulator of an International Construction Contract in Russia

Introduction. The gaps in the international private legal regulation of legal relations arising from an international construction contract are filled by other sources of law, primarily Lex constructionis, which is a set of acts and documents developed by non-governmental organizations that do not have the force of law, but are actively used in business circulation.FIDIC contracts can be cited as standard contracts, which are a set of narrowly focused standard forms of contracts, each of which was developed for a specific situation and certain legal relations arising from an international construction contract.Despite the international and narrowly focused nature of the FIDIC agreements, their application is also possible in the national projects of Russia with some reservations.The purpose of this article is to analyze Lex constructionis on the example of standard FIDIC con- tracts and the possibility of using FIDIC contracts in national projects in Russia.Materials and methods. The implementation of the research tasks was achieved on the basis of the study of theoretical and practical experience in the application of standard FIDIC construction contracts. The methodological basis of the study was the following methods: generalization, analysis, synthesis, induction, deduction, comparative legal analysis. The results of the study. The following tasks are solved in the work: an analysis of standard contracts and Russian legislation is carried out, their contradictions are revealed.Discussion and conclusions. The use of FIDIC model contracts without their adaptation to Russian law is not possible due to the existence of contradictions between the provisions of FIDIC model contracts and the mandatory rules of Russian law, arising from different approaches to the regulation of a construction contract - FIDIC model contracts are based on the doctrine of common law, while Russian law belongs to the Romano-Germanic legal family.

Mechanisms for resolving international contracts for building and construction disputes: آليات حسم منازعات العقود الدولية للبناء والتشييد

Consider of resolving international contracts for building and construction is extremely important for architects and building construction implementers, as international building and construction contracts are complex contracts and countless international parties participate in their implementation. The aim of this research is to show the legal implications of implementing dispute resolution mechanisms, international contracts in construction and construction. The International Building and Construction Contract does not deviate from being a complex, international commercial contract, from private law contracts, even with the presence of the state or a legal person as a party to the contracts, this does not change their legal nature as contracts of law. The private where the results of the following research study showed: 1- The failure of national legislation to address many of the problems arising from international contracts for building and construction, which are of a technical nature due to their rapid development that are unable to keep pace with those national legislations, thus enhancing the role of rapidly developing and modifying model contracts to ensure simulation of the practical reality of these new technical problems and to provide the best means. To solve it, we extracted from the research the following results. 2- Model contracts are not considered contracts in the strict legal sense as they do not include consent between two parties, but rather they are a pre- prepared contract formulation in printed form, so that it is ready for use by the parties to the contract, and it is not evidence except for the persons who agreed to the agreement to refer to it where the search was used The inductive approach to measuring and understanding its archeology, as it relied on reviewing previous literature and studies in explaining the legal implications, and the research recommendations came as follows: 1- Attaching special importance to drafting international contracts for building and construction, and entrusting this task to a team of legal, technical and economic experts who have the scientific and practical qualities that qualify them to do this task in the best way, so that the parties to these contracts can avoid or at least reduce the disputes arising from these contracts. 2- Preparation and drafting of a unified Arab contract as a model for concluding international contracts for building and construction, which is evident in the customs and habits of this industry derived from our contemporary reality and in line with the legal concepts prevailing in our Arab countries, so that they act as the actual guarantee on which every contractor from our Arab society depends.

Granting Enforcement to the FIDIC Dispute Adjudication Board’s Decision by the Amendment of the New York Convention 1958

AbstractIn international construction contracts huge financial, technical, and human resources are involved, so in the long-term construction contracts, it is important to solve all the disputes at...

Particularities of International Construction Contracts in the Offshore Wind Industry

Particularities of International Construction Contracts in the Offshore Wind Industry

Foreign Experience of Construction Contracts Regulation

Introduction. Analysis of foreign legal norms, including the Anglo-Saxon and the Romano-German legal systems that regulate the construction contract, their similarities and differences is described in this article.Materials and methods. The goal was achieved through the study of theoretical and practical experience. The structural analysis was used as a key method for this study.Study results. The article overviews the legal regulation of construction contracts in foreign countries described in the works of foreign and domestic researchers, in the legislation of foreign countries and includes the analysis of sources governing the construction contract; and idetifes concepts for the regulation of construction contracts.Discussion and conclusions. The study showed that countries of Romano-Germanic and Anglo-Saxon legal families have different approaches to the regulation of construction contracts, i.e. the application of a Romano-Germanic legal family or a precedent-oriented Anglo-Saxon legal family should be taken into account when entering into an international construction contract.

Odbor za razmatranje/rešavanje sporova - još jedna alternativa državnim sudovima

Dispute board is a relatively new, internationally recognised ADR method, a regular feature of international construction and infrastructure contracts. It is composed of three independent and impartial persons selected by the contracting parties. It's basic function is not only to resolve disputes among the parties, but also, if at all possible, to prevent them from happening. So, the board members help the parties avoid or overcome any disagreements or disputes that arise during the implementation of the contract. They also serve to ensure that, where differences between parties escalate into disputes, issues are resolved equitably and as expeditiously and cost-effectively as possible, so that relationships are enhanced (rather than harmed) for the future. The DBprocess is designed to be fast, cheap and well suited for construction disputes. The parties care fully pick their own panel based on integrity, knowledge of the work, and experience in dispute settlement. Dispute boards are certainly not new but experience over the last twenty years has proven them to be highly successful, relatively inexpensive and the only proactive form of ADR which promotes the avoidance of disputes.

The Nature of Civil Liability of the Consulting Engineer in International Construction Contracts

Civil liability legislations have agreed on considering the contractual fault as a basis of the contractual liability. While Tort liability is based on a breach of a general obligation “not to cause harm to another.” FIDIC contracts specify the liability of the consulting engineer in accordance to the fault, if his fault is related to contractual liability. Whereas he holds responsibility for the damage if it is associated to tort liability. This research aims to determine the nature of the civil liability of the consulting engineer, whether it is of contractual liability or tort liability in its relationship with the parties of FIDIC contract: the employer and the contractor. Keywords : Tort Liability, Contractual Liability, damage, harmful acts, Tort. DOI : 10.7176/JLPG/92-20 Publication date: December 31 st 2019

Development of Automatic-Extraction Model of Poisonous Clauses in International Construction Contracts Using Rule-Based NLP

As construction projects have significantly increased in size and become more complicated, the number of claims and dispute cases between participating parties during the construction work have been continuously increasing. To prevent such claims and disputes, the participants need to be assured of their contractual positions and rights based on contract facts. For this reason, the process of writing and reviewing the contracts for construction work is crucial. Most international construction projects require contract management teams to review all the possible risks in the contracts during the bidding periods. However, it is very difficult to review a vast number of contracts in a short period of time. Therefore, in this study, we proposed an automatic model of contract-risk extraction based on natural language processing (NLP) that can automatically detect the poisonous clauses of the contract in order to support contract management for construction companies (contractors). In validating the performance of the automatic model developed in this study, we found that the precision and recall were both 81.8% compared with manual review. This study is meaningful since a model has been developed that can carry out a preemptive contract-risk review.

General Overview on Selecting and Drafting Construction Contract Disputes Resolution

A good international contract as the experts considered is the most complicated one the parties must draft carefully. It involves many stakeholders and containing documents to attach likewise financial judgment, technical specifications, work scope, rights, obligation, responsibility and other external factors which are beyond the parties’ consideration. A good design contract will prevent the parties from disputes. The dispute settlement mechanisms should be explicitly stated in the international construction contract. The nullity of the choice dispute settlement mechanisms or in the absence of the choice dispute settlement mechanisms and also the unperformed of the contract purposes will not prevent the dispute from being occurred. The most common process to resolve disputes is through litigation, but the process takes time, energy and funding. The method of alternative dispute resolution (ADR) such as mediation, conciliation, mini-trial, arbitration or other ADR techniques eradicate all the obstacles above. The question arises then, how the parties select the best alternative disputes settlement mechanism and how it should be drafted in their contract. Normative legal research is the method employed to respond the problems. Therefore, this article will elaborate the methods that will effectively settle the constructions disputes and mechanism in drafting construction contract disputes resolutions provisions

A Comparative Study on Defects Liability in International Construction Contract

A Comparative Study on Defects Liability in International Construction Contract

Culture-Risk-Trust Model for Dispute-Resolution Method Selection in International Construction Contracts

AbstractDespite the attractive opportunities that international construction offers, companies need to account for risks of moving into international markets, including major contractual and cultur...

Energy Contracts at the Crossroad between Public Law and Private Law: The Relevance of Sustainability Objectives in International EPC Contracts

In contrast with other types of contracts such as the sale of goods, international construction contracts or Engineering, Construction and Procurement contracts (commonly referred to as EPC contracts) are not governed by an international convention. Consequently, in most cases the EPC contract, further to an applicable law clause, refers to a set of general conditions of contract drafted by various international organisations. The present paper deals with the laws and regulations governing EPC contracts to be performed in different countries worldwide, as well as some aspects of the most recent trends in the resolution of disputes related thereto. It aims to evaluate how the discipline of sustainability may impact on the negotiation, drafting and performance of EPC contracts as well as on the management and solution of disputes arising therefrom.

Contract Interpretation of Scope of Works in Case ofEmployer’s Exercise of its Right to Variationsin International Construction Contract - Focusing on England Cases -

Contract Interpretation of Scope of Works in Case ofEmployer’s Exercise of its Right to Variationsin International Construction Contract - Focusing on England Cases -

The use and abuse of programmes in construction contracts

Many disputes arise on engineering and construction contracts due to the risks that are inherent in the realisation of complex projects in challenging environments. While contracts encourage collaboration between parties, the commercial consequences of managing risk and uncertainty can create tension. This paper reflects some of the authors’ experience of the use of programmes in international construction contracts. It identifies some of the issues that arise from integrating the rights and obligations set out in contract conditions with time, cost and risk management activities. It highlights the challenges that face project funders, contract administrators, project managers, designers, contractors and their suppliers in planning and reporting on the progress achieved in their project. This paper illustrates the tension between the commercial consequences of risk and transparency of contractor performance. It discusses how issues can arise that reduce the effectiveness of the programme as a collaborative management tool. It also proposes how some of these issues can be guarded against when establishing the contracting environment and in the subsequent administration of the contract.

Arbitration in Kuwait: Study of Current Practices and Suggestions for Improvements

AbstractIn the construction industry, disputes are inevitable. Contract disputes result from conflicting contract documents, changes to the original scope of work, or breaches of contract. Arbitration is the preferred alternative dispute resolution method in international construction contracts because it saves time and money and prevents litigation under foreign laws. Western contractors and investors fear entering into contracts with Middle Eastern owners and government entities, especially when a contract stipulates the application of local national laws and jurisdiction. Furthermore, questions regarding foreign contractors’ rights and the validity of certain contractual provisions for dispute resolution in local courts and their ability to use arbitration to resolve disputes need to be addressed. This paper examines the concept of arbitration as an alternative dispute resolution method and its application in the Kuwaiti construction industry. The paper focuses on Kuwaiti arbitration law, examines curr...