The Engineer’s Responses and Determinations: What Should be Included?

Following a CPD talk to RICS members in Dubai on the topic of Engineer’s Responses and Disputes, attendees were polled by show of hands on the following questions: How many attendees have experienced a situation where the Engineer does not respond to a claim within the contractual time-frame? Almost everyone confirmed that they had. How many attendees have experienced a situation where the Engineer’s response has done little to resolve the claim? Again, almost everyone confirmed that they had. How many attendees have experienced a situation where the Engineer’s response has caused the matter to be escalated to a dispute? Over 50% of attendees confirmed that they had experienced this situation. How many attendees think that failures of the Engineer to carry out their contractual obligations with respect to claims is helpful to projects? No one thought that this helped projects. This is clear feedback from RICS members that the Engineers often do not perform their obligations and that…

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Types of Claims Q&A

In 2019, the ICCP's training partner, Claims Class, presented a series of monthly webinars on claims for the CIOB, based on the Construction Claims e-courses.* There were a good number of attendees. At the end of each webinar, participants were invited to ask questions. If time ran short during the webinar, attendees each received a collection of written responses to any questions which could not be covered in the allotted time. Hopefully, this will provide some useful insight to readers of our blogs. The following are questions and answers from the webinar on Types of Claim. This is a follow-up to the previous post, Contract Administration for Claims. Question 1 Question: Under the FIDIC suite of contracts (1999 edition) could you please advise what options the contractor has in case of force majeure conditions (i.e. Arab Spring in North Africa) if they continue to incur charges for the project. For instance, should the contractor continue to pay for renewing his Advance Payment…

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Contract Administration for Claims

In 2019, the ICCP's training partner, Claims Class, presented a series of monthly webinars on claims for the CIOB, based on the Construction Claims courses.* There were a good number of attendees. At the end of the webinar, attendees were invited to ask questions. All attendees received written answers to the questions that could not be answered during the webinar's allotted time. The following are questions and answers from the webinar on Contract Administration for Claims. Hopefully, this will provide some useful insight to our readers. Question 1 Question: Would it constitute a claim event if the Engineer, within a reasonable time-frame (3 months), fails to review and respond (approve/disapprove or comment) to a Variation for additional cost and time submitted pursuant to an Engineer’s Instruction and after the Contractor implementing the change at site? Answer: You have not explained what it is that you have submitted, so I am going to assume that this consists of an evaluation of…

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Dispute Resolution in the New Normal

The past year has seen radical changes in the way we socialise, work, and play. The resolution of disputes has been no exception in this regard. Many disputes have been resolved by means of virtual or online hearings. Parties in different locations, even their own homes, resolve their disputes remotely. Before the arrival of COVID-19, there were 10 million people using the video conferencing platform Zoom worldwide. By April 2020, there were 300 million users. This is great news for Zoom’s shareholders, if nothing else—according to their Q2 report, revenue was up 355% over Q2 2019. It could also be good news for the future of adjudications. Steering Committee member, Bill Bordill recently took part in a discussion on the use of virtual hearings and adapting to the ‘new normal’ in the UK statutory adjudication system. Panelists agreed a new way of dealing with disputes has opened up. They concurred it is now likely that many more disputes will be resolved this way in the future. Many…

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How to Ensure That a Dispute Adjudication Board is Formed Correctly

A blog subscriber recently asked how to set up and organise a Dispute Adjudication Board (DAB) and particularly what may be done when one of the parties refuses to agree to the appointment of the DAB in order to frustrate the dispute procedure. The following advice is related to the FIDIC contracts but may be equally applied to other forms of contract that have dispute board or adjudication provisions. A proactive action would be to include a list of several potential DAB members in the Contract. If the list has been prequalified in terms of qualifications and experience, particularly for the type of project being undertaken, then agreement of the board members should be straightforward. The Contract should state the time frame for the appointment of the DAB. FIDIC provides that the date should be stated in the Appendix to Tender. Contractors would be well advised to check that a reasonable date is included therein. If no list of potential DAB members is included in the Contract,…

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