Construction industry in Romania is under pressure to modernize in order to cope with the new demands of development and convergence with EU. Contractual procedures in construction have to become an ...integral part in this process of modernization. The article makes an introduction to the advantages of standard forms of contract and professional contract administration in construction and presents the current state-of-the art in the use of standard construction contracts in Romania. Some practical conclusions and recommendations are presented considering the need for further contract studies.
With the globalization of the construction market and the recession in Korea’s construction economy, construction companies in South Korea are extending their business into new international markets. ...However, there are still more than a few companies that are not making due profits despite the streams of contracts available outside the country. This is because Korean construction companies are undergoing complications in the resolution process of overseas construction claims and disputes. Therefore, the present study examines research from a construction company’s perspective, based on the FIDIC Red Book, a standard form of contract that is typically used overseas for separate bid-based construction contracts. Disputable items were selected through analysis of contract documents and the final dispute factors were derived through literature reviews and interviews with experts. To determine the priority of the dispute factors suggested by the experts who are practically in charge of overseas construction contract management, an FMEA method survey was performed and feedback was received using the Delphi method. Based on the survey results, the priority of dispute factors was analyzed, and the top 10 factors were selected as preeminent key factors for potential improvement and procedural amendment. In addition, this study analyzes whether individual or company system capabilities should be addressed in order to prevent such dispute factors. Based on the findings of this study, it is expected that Korean construction companies will establish strategies to cope with disputes at a corporate level and gain competitiveness in the overseas construction market.
AbstractThis paper reports part of a qualitative study into evolving practice in the implementation of the dispute adjudication board (DAB) construction dispute resolution technique, a variant of the ...dispute review board (DRB) concept used in the United States and Canada. Data were collected through a focus group interview of 20 highly experienced dispute resolution practitioners from engineering and the law. The group was assembled from members of FIDIC-NET with direct experience of project DABs. The part reported here concerns practice and procedure for establishing DABs. The main findings are that the constitution of DABs is often delayed because of either project owners’ ignorance of the DAB process or deterrence by the cost of the DABs; such owners also tend to insist on appointing DAB members from local engineers and lawyers without sufficient understanding of the DAB process; rates of remuneration of DAB members vary widely; the training provision for DAB membership and advocacy skills is inadequate; and the process of selecting candidates for DAB membership and negotiating the tripartite agreement between each member and the contractual parties needs to be navigated with great care to avoid raising ethical problems. The research contribution is threefold. First, it highlights the importance of realistic fees for DAB members within a standard framework in achieving timely establishment of a board that works well as a team. Second, it illustrates the use of a qualitative focus group interview to study the impact of new contract terms from multiple stakeholder perspectives. Finally, it identifies areas where further research is needed.
In the trend of global warming, storms, hurricanes, high temperature and other extreme weather phenomena occur frequently. In the field of project construction, the assets value of the building is ...exposed, so the construction projects are very vulnerable to natural disasters causing huge losses. Who bears in the both sides of engineering contract, the reasons and consequences of the loss and the specific responsibilities are ambiguous without clearly defined. This paper states the importance to grasp the principle of appropriate risk sharing and explain both responsibilities clearly in natural disasters, how to choose appropriate method to evaluate the natural disaster risk and select suitable building construction contract.
FIDIC contract terms content is quite widespread, it cover project management, technology, economy, law, insurance and so on. It is a normative document been revolve around construction project ...consultation and management. FIDIC made very detailed regulations to construction management three fields (investment control, quality control and progress control) from law, management, economy, technology and other fields. FIDIC had been became internationally recognized standardization document. It could be use every stage of construction management. This paper through analyze FIDIC contract and combine current construction management state,finally give some advices for construction management.
This article deals with dispute settlement mechanisms for construction, in particular, fidic contracts. The fidic Rules provide for a two-step process of dispute settlement. The first step, which is ...amiable in nature, relies on the consulting engineer under the fidic Rules of 1987 and on the Dispute Adjudication Board under the fidic Rules of 1999. In the second step, the dispute will be submitted to arbitration for a binding decision upon the request of one of the parties. This article is concerned with the first step, and offers a comparative analysis of the fidic Rules of 1987, which depend on the consulting engineer, and the fidic Rules of 1999, which depend on the Dispute Adjudication Board.
The world has recently witnessed the inauguration of the Panama Canal Expansion. This civil
engineering mega-project, resulting from a particular historical, political and economic background, is
...going to globally reconfigure the maritime transport. The Panama Canal Expansion includes the creation
of a new lane by the design and construction of the third set of locks, which has undergone to a qualified
tender process. The relationships between the parties (the Spanish led consortium Grupo Unidos por el
Canal as the contractor and the Panama Canal Authority as the Employer) and the different actors of the
project are configured by an extraordinarily complex international contract drawn from a FIDIC form but substantially amended taking into account the particularities of this mega-project. The contractual
provision ruling the dispute resolution terms sets forth a multi-tier clause that addresses in first place to
the negotiation between the parties, continues with a Dispute Resolution Board (DAB) and finally ends
with an arbitration. The referred escalated clause shall be insightfully analyzed in this paper, in light of
the status quo of the worth million claims filed by the contractor up to this date.
El mundo ha sido testigo recientemente de la inauguración de la ampliación del Canal de
Panamá. Este mega-proyecto de ingeniería civil, producto de un peculiar contexto histórico, político y
económico, va a reconfigurar el transporte marítimo a nivel global. La ampliación del Canal de Panamá
incluye la creación de una nueva vía mediante el diseño y construcción del tercer juego de esclusas, que
se ha sometido a un cualificado proceso de adjudicación. Las relaciones entre las partes (el consorcio
liderado por Grupo Unidos por el Canal como contratista y la Autoridad del Canal de Panamá como
Empleador) y entre los diferentes actores del proyecto están reguladas por un complejísimo contrato
internacional que parte de uno de los modelos FIDIC, pero introduce abundantes modificaciones
teniendo en cuenta las particularidades de este mega proyecto. La disposición contractual en materia de
resolución de conflictos establece una multitier clause, que remite en primer lugar a la negociación entre
las partes, continúa con una junta de resolución de conflictos (DAB) y termina finalmente con un
arbitraje. La referida cláusula escalonada va a ser objeto de análisis detallado en el presente artículo, a
la luz del status quo de las millonarias reclamaciones formuladas hasta el momento por el contratista.
Variations are ubiquitous during the building period of construction projects, and their impact on the cost of projects has been confirmed by theory and practice. Therefore, engineers should ...determine the rates of variation accurately. Under the Conditions of Contract for Construction (FIDIC 99), the paper studied how to determinate variation rates with reference to similar work, which included defining similar work and determining new rates with reference to similar work.
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