Responses, Determinations and Decisions

A recent training course that I presented in London was slightly unusual in that the balance of the attendees was significantly weighted towards the client’s side and also included an arbitrator and an adjudicator. These particular attendees were obviously interested in learning how claims should be responded to and in the case of the arbitrator and adjudicator, how decisions should be presented. Whilst I am happy to say that the training dealt with the subject, I thought it would be worthwhile sharing some of the key points here. In the same way that the object of a claim is to persuade the reviewer that the claim is just and that an award of time or money should be made, the object of a response is to persuade both the claimant and the employer that whatever is awarded, be it the full amount claimed, a reduced amount or nothing at all, is fair and reasonable under the terms of the contract. The same must also be said for adjudicator or arbitrator’s decisions. If responses do not…

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Why appoint a ‘DAB’?

Through my review of several court case summaries and reports, it can be seen that many of the Gulf's construction projects disputes relate to ambiguities in the Contract documents, the inability of contracting parties to administer their Contracts and unsubstantiated/incomplete claims (whether Extension of Time or cost claims). A review of the cases revealed that the contracting parties had often first tried to resolve their disputes through direct negotiations. However; and perhaps as a consequence of the world’s current economic dilemmas and other complications in securing appropriate project finance; contracting parties are often resistant to compromise and unwilling to disburse money on their projects to ensure smooth completion. Such unwillingness has often led to disputes being resolved through ADR (Alternative Dispute Resolution) or Litigation. Why Adjudication? In numerous court cases it can be seen that the Engineer’s decision was disregarded by the court on the basis that…

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Construction Delays – Do Arbitrators and Courts have a Preference for a Certain Delay Analysis Methodology?

Disruption and delay seems to be of major importance in today’s construction world. Market pressure requires contractors not only to accept projects with insufficient profit margin but often requires them to price incomplete tenders with a lump sum price and complete the projects in the shortest possible period. For several different reasons this often leads to delays and disruptions caused by either party. If such disruptions or delays occur, the methodology of analysing it is of major importance. ICCP Fellow, Thomas Pfeller, Head of Contracts, Claims, and Change Management at SIEMENS Oil and Gas Singapore, has authored a full paper on this subject. To request a copy, please email your details to hello@instituteccp.com with "Arbitrators & Courts" in the subject line. Enjoying the ICCP's articles? Why not sign up to our mailing list and receive new articles straight into your mailbox. Or, want access to a library of member's only content on contracts and claims, check out our…

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Alternative Dispute Resolution in International Oil & Gas Construction Projects

Conflict is a common part of international oil and gas projects and if you and your contractual counterpart do not agree on proper dispute resolution, you will either have to write off what you believe are your contractual rights or you will end up in a costly and lengthy court case. ICCP Fellow, Thomas Pfeller, Head of Contracts, Claims, and Change Management at SIEMENS Oil and Gas Singapore has authored a full paper advising you what you need to know to put agreements into place, saving time and money. To request a copy, please email your details to hello@instituteccp.com with "ADR in Oil & Gas" in the subject line. Enjoying the ICCP's articles? Why not sign up to our mailing list and receive new articles straight into your mailbox. Or, want access to a library of member's only content on contracts and claims, check out our Membership page and join the ICCP community today.

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Middle East Construction Disputes

Arcadis’ recent Global Construction Disputes report says that disputes in the Middle East rose to their highest value since 2011 and that the Middle East remains the only region with increasing dispute values compared to the previous year. The length of time taken to resolve disputes in the Middle East rose to 15.2 months in the Middle East last year, although that was slightly shorter than the global average. The report said that failure to properly administer the contract holds on to its top position regionally from last year as the main cause of construction disputes, followed by poorly drafted or incomplete and unsubstantiated claims. Poorly drafted or incomplete and unsubstantiated claims have also been ranked as a top cause of disputes in Arcadis’ previous reports on this matter. I would also suggest that poorly drafted or incomplete and unsubstantiated responses and determinations should also rank fairly high on the list. The message continues to be quite straightforward – if…

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