Contract Management

“Well-structured Liquidated Damages Clauses provide certainty and incentivize the performance of the project.” Liquidated Damages Clauses do not require expense of proof for recovering damages in the event of specific breaches defined in the contract, such as late performance. You can compensate damages without; ➤  the need to prove the quantum of actual damages ➤  […]

“Legal and practical consequences of termination should be considered in-depth before the Notice is given.”  Termination of a Contract is a serious step to take for the Contractor. Various circumstances, such as; ➤ A prolonged suspension, ➤ Employer’s insolvency or compounding with creditors, may lead to termination. Execution of the termination procedure properly has a […]

“The method chosen for the payment is one of the crucial elements of any Construction Contract.” Cash flow is more important than ever in today’s volatile economic conditions. The effective and efficient payment method is crucial for the performance of the project. Clause 14 of the 1999 FIDIC Silver Book contains the provisions regarding advance […]

“The methods of measurement and valuation should be specified clearly to avoid future disputes.” In accordance with Clause 12 [Measurement and Evaluation], Works should be measured and valued for payment. In the beginning of the process, the actual quantities have to be measured. The Engineer gives Notice to the Contractor’s Representative and then the measurement […]

“By the help of Value Engineering, the Contractors use their experience and knowledge for the advantage of both themselves and the Employer.” Value Engineering has been widely used in the construction industry for many years. Speeding up completion, reducing the cost of the project, improving efficiency and providing benefits for the Employer are some of […]

“Whether the construction project is small or large, variations frequently occur.”  In our case, the need for variation arises during the course of the project. The Engineer requests a proposal from the Contractor regarding the Variation. The Contractor submits the proposal. The Engineer approves the proposal and instructs Variation. The Contractor executes the Works strictly […]

“In the event of non-payment, manage the process properly and minimize the probability of future disputes.”  In our case; the Contractor submits its application for Interim Payment Certificate (IPC). However, the application is returned by the Engineer due to lack of information in the Statement. The Contractor re-submits the IPC in accordance with Sub-Clause 14.3 […]

“Under various circumstances, prolonged suspension allows the Contractor to treat suspension as an omission.” In our case; the Engineer instructs the Contractor to suspend a part of the Works. The Contractor stops the related part of the Works. During the suspension period, the Contractor fulfills its duty to protect and secure the Works. Considering that […]