Contract Management

“Not having a valid ground while terminating a Construction Contract will significantly affect your legal position.” The majority of standard form of construction contracts contain provisions to regulate the rights of parties to terminate the Contract in defined circumstances. Termination is a serious step. Termination brings the risk of additional delay and costs in the […]

“Variations are common and inevitable in most of the Construction Projects. Well defined “Variation Procedure” adds value to the performance of the project.” Whether the construction project is small or large, variations frequently occur. The existence of the variation increases the probability of the future disputes. To minimize that, you have to define the “Variation […]

“One of the most important risks that occur in Construction Contracts is the difference between the existing and the expected ground conditions.” The Contractor encounters unforeseen adverse ground conditions. To inform the Engineer, the Contractor gives a Notice describing the negative effects of the ground conditions. The Engineer investigates the situation and instructs the Contractor […]

“Under various circumstances, Prolonged Suspension allows the Contractor to Terminate the Contract.” The Engineer instructs the Contractor to suspend the Works in accordance with Sub-Clause 8.8 [Suspension of Work]. Despite not having responsibility, the Contractor suspends the Works in line with the Engineer’s Instruction. During the suspension, the Contractor protects the Work against any deterioration, […]

“Taking-Over is one of the most critical parts of a Construction Project. Well-managed taking-over process will minimise the potential for disputes.” The Employer can use any part of the Works, after the Taking-Over Certificate is issued for this part. There are only two exceptions for this. A temporary measure or an existence of an agreement. […]

“Tender Evaluation Process has a great impact on the success or failure of the Construction Project.” Well-managed Tender Evaluation Process enables accessing quality, experience, capacity and minimises the probability of Contractor Default. Steps of Tender Evaluation Process 01 Constitution of the Evaluation Committee 02 Reception of the Tenders 03 Opening of the Tenders 04 Administrative […]

“Legal and practical consequences of termination should be considered in-depth before Notice is given.”  Clause 16 in 2017 Editions of the Red and Yellow Books states the circumstances that entitle the Contractor to terminate the Contract, the procedures during and after the termination and the payment mechanism. Steps of Termination of the Contract by the […]

“The FIDIC Contracts set out certain rights to terminate the Contracts. But, it is important to remember that termination is a serious step.” Clause 15 in 2017 Editions of the Red, Yellow and Silver Books states the Contractor’s Defaults that entitle the Employer to terminate the Contract, the procedures of termination, completion of works, valuation […]

“Taking-Over is one of the most critical parts of a Construction Project. Well managed Taking-Over process will minimise the potential for disputes.” Mainly, the Taking-Over process means transferring the risks of the project from the Contractor to the Employer. Clause 10 in the 2017 Editions of the Red and Yellow Books states the procedure for […]