The ICCP Conference is Back!

We are thrilled to announce the second ICCP conference: Construction Claims and Dispute Avoidance: How to Achieve Successful Outcomes. This event is specifically designed for professionals like you who work in the specialist field of construction claims. Whether you are a developer, contractor, consultant, or legal expert, this conference is tailored to address your needs and challenges. On the Agenda Based on attendee feedback following last year's inaugural conference, this year will include a full day of sessions on claims management and dispute avoidance. Join us and gain insights from top industry experts. You will leave armed with new knowledge to put yourself in the best position to settle at project level and avoid disputes. We will delve into critical topics such as: How can we establish effective contract administration processes for claims? How can we create robust strategies to avoid claim situations? If we do find ourselves in a claim situation, how do we compile and…

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Drafting Acceleration Clauses 3

This is the third in a three-part series. The previous posts covered: Brainstorming to be carried out for drafting an acceleration clause Methodologies of achieving acceleration. Proving acceleration claim Standard acceleration clauses under FIDIC 1999, 2017 and NEC standard forms of contract Payment methodologies for acceleration. This shall discuss how we drafted a simple acceleration clause suitable for the requirements and constraints of the project; which were: Completion period – 3 years Maximum Acceleration anticipated – 2 months Acceleration likely to be ordered only during the final stages of the project and under extreme circumstances, mainly due to political considerations. Hence no question of refusal by the Contractor except in case of non-feasibility. Acceleration may be ordered to reschedule the Original Completion Date (if there is no delay) or the Extended Completion Date, in case EOT has been granted. No time to have mutually agreed costs before instructing…

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Drafting Acceleration Clauses 2

This is the second in a three-part series. The previous post discussed the brainstorming by the Employer for formulating an Acceleration clause. This post shall discuss payment modalities and how standard contracts deal with acceleration. Payment methodologies for acceleration may be: Fixed lump sum payment (lump sum amount or percentage of contract value). This payment may be conditional on the completion of deliverables by the revised dates with and/or Liquidated Damages. Payment of reasonable costs. This may be less risky to the Contractor than the first method but places a greater obligation on the Contractor to maintain accurate records and prove additional costs. Dealing with delays during an acceleration period also needs some thinking. In extreme cases, the Contractor may lose out on additional costs and also be subjected to Liquidated Damages. Other aspects that need to be considered are: If midway the Contractor realises that he will not be able to achieve the revised…

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Drafting Acceleration Clauses

This is the first in a three-part series on drafting acceleration clauses. This post will examine the considerations necessary before committing to an acceleration clause. I have been involved in a INR 2000 crore (US$250 million) Indian Public Sector EPC Project based on the FIDIC Silver Book 1999 (modified as usual by PCC - but not distorted), wherein we decided to include an Acceleration (Directed Acceleration) clause- a first in Indian Public Sector Construction Projects. Acceleration clauses look easy, but are actually quite difficult to implement. The aspects that we considered were: Do we really need an acceleration clause? Can’t we just achieve this through an amendment to the contract or Supplementary Agreement? How much acceleration is actually feasible? Should acceleration be applicable for only extended periods or for the original period of the contract as well? What will be the correlation of acceleration with the bonus clause, which was also there in the contract? How…

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FIDIC White Book – a brief overview Part 4

This is the final instalment of a four-part series on the FIDIC White Book. The previous posts have provided an overview of the White Book, an in-depth examination of changes from the 4th to the 5th edition, and a look at critical changes from 2006 to 2017. This post will complete the examination of critical changes in the 2017 edition. Agreement Termination If the Consultant breaches a material term or condition, the Client may give Notice outlining the breach. If the Consultant fails to remedy the breach within 28 days of Notice, the Client may terminate the agreement with 14 days' notice. Immediate termination is possible if the Consultant becomes insolvent or breaches anti-corruption measures. In these cases, the Client assumes control of records and documents, claims reasonable costs from the Consultant, and withholds payment until the accomplishment of stated entitlement. Additional Termination Rights for Client The Client has the discretion to terminate the agreement by…

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