Construction Management Guide

by Adrian Hughes

The capacity of an unsuccessful tenderer to challenge a contract award which breaches public procurement rules will be strengthened on 20th December with the coming into force of new Regulations implementing an EU Directive on Remedies. The new Regulations introduce a declaration of “Ineffectiveness” as a remedy for certain breaches of procurement rules and provide for a harmonised standstill period between the decision on a contract award and the contract award itself to allow the decision to be challenged. This Note summarises the effect of the new Regulations and refers to a recent case in the Technology and Construction Court relating to court challenges.

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by Hew Kian Heong

Many years ago, I saw a Chinese construction contract for the first time, and there was mention of a person called a “Jian Li” in the contract. I asked myself – what strange creature is this Jian Li?

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by Andrew Ness

Problems with drywall imported from China during the ill-fated U.S. housing boom continue to be front and center in the southeastern U.S., as complaints continue to roll in regarding health problems allegedly caused by the tainted wallboard, as well as damage to electrical and plumbing work. Naturally enough, a significant litigation boom has followed, including attempts to bring claims against the Chinese manufacturers who supplied the drywall. In a recent development, Knauf Plasterboard (Tianjin) Co., Ltd (“KPT”), a leading defendant in the consolidated federal court lawsuit against manufacturers of Chinese drywall, has agreed to accept service of process for homeowner plaintiffs who are named in an Omnibus Class Action Complaint, and to waive its right to demand service of process through the Hague Convention (saving plaintiffs the $15,000 service fee).

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by Júlio César Bueno

Continuing our last discussion on PPPs in Brazil, we should note that PPP LAW applies to government entities (including mixed-capital companies) directly or indirectly controlled by the Federal Government, States, Federal District and Municipalities. Article 2 of PPP LAW defines PPP as follows: “Public-Private Partnership is an administrative concession contract that may assume the form of either a sponsored or an administrative concession contract.” PPPs are expected to be implemented concurrently with existing concession contracts, focusing on infrastructure projects. PPP LAW provides for sponsored concession and administrative concession.

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by Joel Heard

Recent examples illustrate clearly that cancelling a project can be very expensive. The City of Ottawa recently paid over C$36 million to settle claims from contractors arising from the cancellation of a light rail transit project. In Montréal, the termination of a contract to build an incinerator has resulted in years of costly litigation and a large court award against the municipal defendants (which they have appealed).

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by Melanie Grimmitt

The news of the requested standstill period for Dubai World debt repayments has left those of us who advise on Public Private Partnership (PPP) projects in the region wondering what it will mean for us……

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by Sarah Thomas

As lawyers, we want what is best for our client. We will fight for that additional clause or that tricksy wording that will give our client that added protection that may, someday, prove decisive in an argument with the contractor or the employer.

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by Sachin Kerur

With construction activity in India now worth $50 billion per annum and accounting for around 6% of Indian GDP, India is an attractive market for contractors.

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by James Bremen

The use of joint ventures or consortiums are attractive because they allow contractors, consultants and financiers to team up and offer owners a single interface for all needs of a project.

Owners are increasingly requiring that consortiums be formed to provide a single point responsibility and to ensure bidders have the ability to perform the scope of work.

In light of this development, this article seeks to highlight some of the key legal and practical issues, which should be considered when entering into a joint venture or consortium agreement. The term “consortium” is used throughout the article to refer to both “consortium” and “joint venture.” [Read more...]

The construction industry in Dubai has no chance of recovery in 2010 and the emirate’s real estate operators too were likely to face difficulties over the coming months, said an industry expert.

Those construction companies which are solely operating in the Dubai are in for big trouble, Khaldoun Tabari, vice chairman and CEO of  Dubai-based engineering contractor Drake & Scull International, was quoted as saying in Arabian Business. [Read more...]