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PERSERO 2 – Singapore Court of Appeal rules DAB decisions are enforceable by way of interim award

On 27 May 2015, the 160-page reserved judgement of the Singapore Court of Appeal (“CA”) was handed down in Persero 2 - PT Perusahaan Gas Negara (Persero) TBK (“PGN”) v CRW Joint Operation (“CRW”)[1]. It will be regarded a triumph for contractors wishing to enforce DAB decisions. The CA ruled that the interim award issued by the arbitral tribunal ordering enforcement of the DAB’s decision should stand. Using the concept of an “inherent premise”, the CA made two important findings: 1) it was not necessary for the Contractor to refer the failure to pay (the secondary dispute) back to the DAB; and 2) it was not necessary for him to refer the merits (the primary dispute) in the same single arbitration as his application to enforce.

By |September 14th, 2015|Dispute Boards, Knowledge Hub|Comments Off on PERSERO 2 – Singapore Court of Appeal rules DAB decisions are enforceable by way of interim award

FIDIC’S procedures for the appointment of a DAB need improvement

If the parties to a FIDIC contract cannot agree on a suitable DAB member and they have selected FIDIC as their appointing entity, they may request FIDIC to appoint that DAB member. FIDIC’s present procedures however seem less than ideal. They increase the prospect of rejection of the candidate nominated by FIDIC in the first instance and so also the need to repeat the exercise. They could also result in an appointment unacceptable to one or both parties. In my view they need to be revised.

By |September 14th, 2015|Dispute Boards, Knowledge Hub|Comments Off on FIDIC’S procedures for the appointment of a DAB need improvement

Release from Performance – FIDIC’s Clause 19.7 and Other Remedies

Is not uncommon to find that an employer attempts to pass almost all risk in a contract to the contractor. However, such an approach may have unforeseen consequences when events later make completion of the works impossible. Here Andrew Tweeddale considers how and when a contractor might be released from further performance.

By |September 4th, 2015|Knowledge Hub|Comments Off on Release from Performance – FIDIC’s Clause 19.7 and Other Remedies

Can a party ignore FIDIC’s DAB process and refer its dispute directly to arbitration?

If there is no DAB appointed by the parties to a FIDIC 1999 contract, may disputes be referred directly to arbitration under clause 20.8? This issue has troubled many in the industry – and has now been considered in English and Swiss courts.

By |November 17th, 2014|Adjudication / Dispute Boards / ADR, Dispute Boards, Knowledge Hub|Comments Off on Can a party ignore FIDIC’s DAB process and refer its dispute directly to arbitration?

FIDIC’s Silver Book – Payments due shall not be withheld … really?

There is a substantial difference between the payment provisions of the FIDIC 1999 Red and Yellow Books compared with the Silver Book. This article explores how a court in Queensland (Australia) has dealt with the Silver Book’s provision. Contractors have good cause to be wary.

By |November 14th, 2014|Knowledge Hub|Comments Off on FIDIC’s Silver Book – Payments due shall not be withheld … really?

BoQ rates neither ‘immutable nor sacrosanct’

A contractor who has loaded a tender BoQ rate in the expectation of a windfall will be interested to learn that recent guidance from the Hong Kong Court of Appeal supports the engineer’s request for evidence of the original tender build up and, among other things, will disallow all loading if substantial differences in actual quantities would make it reasonable to do so under the contract. This article explores that new guidance which finds contract rates to be neither immutable nor sacrosanct in such circumstances.

By |November 13th, 2014|Knowledge Hub|Comments Off on BoQ rates neither ‘immutable nor sacrosanct’

Indemnity Costs – you’ll be lucky! Interim Payment of Costs – definitely maybe

Even if a claimant has achieved complete success in litigation, it remains exceptionally difficult to recover legal costs on an indemnity basis, as this case demonstrates. Costs will most likely be recovered on the standard basis – at least in the absence of bad conduct during the litigation itself. This case also indicates that the court will generally limit an interim payment of costs to two-thirds of an approved costs budget.

By |November 12th, 2014|English Law, Knowledge Hub, Litigation|Comments Off on Indemnity Costs – you’ll be lucky! Interim Payment of Costs – definitely maybe

Light at the end of the tunnel? Gibraltar dispute reviews key FIDIC Yellow Book provisions

As disputes under the FIDIC forms of contract are normally resolved in private Dispute Adjudication Board (“DAB”) proceedings or confidential arbitration proceedings, reported FIDIC cases are rare and often of considerable precdential value either formally or informally. In this article, originally published in The International Construction Law Review, Corbett & Co. Director Victoria Tyson considers one such recent decision which was transferred from the Gibraltar courts.

By |September 14th, 2014|Arbitration, Dispute Boards, Knowledge Hub|Comments Off on Light at the end of the tunnel? Gibraltar dispute reviews key FIDIC Yellow Book provisions

Tunnel Vision: The English High Court Considers the FIDIC Yellow Book

The English Court considers termination and notice provisions under the FIDIC Yellow Book 1999. How are clause 15.1 notices to correct limited? Do termination events have to be repudiations? Is it fatal to serve notice of termination on the ’wrong’ address? When does the 28-day period under clause 20.1 start to run? Mr Justice Akenhead offers guidance to the industry.

By |September 1st, 2014|English Law, Knowledge Hub, Litigation|Comments Off on Tunnel Vision: The English High Court Considers the FIDIC Yellow Book

FIDIC Guidance Memorandum – A Half Baked Solution?

This article discusses whether the recently issued FIDIC Guidance Memorandum really does provide the answer to the vexed question of enforcement of binding, but not yet final DAB decisions. On 1 April 2013 the FIDIC Contracts Committee issued a Guidance Memorandum to users which is intended to be used with the Conditions of Contract for Construction (the ‘Red Book’), the Conditions of Contract for Plant and Design-Build (the ‘Yellow Book’), and the Conditions of Contract for EPC/Turnkey Projects (the ‘Silver Book’). The FIDIC Contracts Committee have stated that compliance with the guidance is highly recommended when using the 1999 FIDIC Red, Yellow or Silver Books. This article considers briefly whether the Guidance Memorandum is either necessary or useful.

By |June 1st, 2014|Arbitration, Dispute Boards, Knowledge Hub|Comments Off on FIDIC Guidance Memorandum – A Half Baked Solution?

Mind The Gap: Analysis of Cases and Principles Concerning the Ability of ICC Arbitral Tribunals to Enforce Binding DAB Decisions Under the 1999 FIDIC Conditions of Contract

Read the full article here.

By |January 1st, 2014|Arbitration, Dispute Boards, Knowledge Hub|Comments Off on Mind The Gap: Analysis of Cases and Principles Concerning the Ability of ICC Arbitral Tribunals to Enforce Binding DAB Decisions Under the 1999 FIDIC Conditions of Contract

Enforcement of DAB decisions – The legal justification for the ‘enforcement’ of a ‘binding’ DAB decision under the FIDIC 1999 Red Book

Read the full article here.

By |March 1st, 2012|Dispute Boards, Knowledge Hub|Comments Off on Enforcement of DAB decisions – The legal justification for the ‘enforcement’ of a ‘binding’ DAB decision under the FIDIC 1999 Red Book

Are ‘binding’ DAB decisions enforceble?

Four say YES: • The arbitral tribunal in ICC Case 10619 considered that it was simply the law of the contract. • This reasoning appears to have been followed in the DBF case. • A sole arbitrator in ICC Case 16948/GZ, said a final award was OK (this is contrary to the Court of Appeal in Singapore’s guidance). • A sole arbitrator in ICC Case 15751/JHN considered that a party should be required to pay that sum decided by the DAB and interest from the date when payment was due by way of damages for breach. Three say NO: • The Court of Appeal in Singapore (CRW v PGN) say NO in relation to a final award (and upheld the High Court’s decision to set aside the arbitral tribunal’s award, which was enforced by way of a final award) but, obiter, suggest that as long as the merits are placed before the arbitral tribunal, in principle, an interim or partial award enforcing should be possible. • A sole arbitrator in ICC Case 16119/GZ suggests that a partial final award and consequently also a final award are inappropriate devices to allow enforcement but suggests, obiter, that an interim award might be effective. • The sole arbitrator in ICC Case 16949/GZ concluded that damages could not include the sum adjudged as due by the DAB and so declined to enforce.

By |October 1st, 2011|Dispute Boards, Knowledge Hub|Comments Off on Are ‘binding’ DAB decisions enforceble?

FIDIC’s Clause 20 a Common Law View

‘No one can obtain an advantage by his own wrong.’ However, clause 20.1 of the FIDIC forms of contract appears to permit an employer to obtain an advantage where it has caused a delay and where the contractor has failed to give a notice in the 28 days specified. In such circumstance should a court or arbitrator uphold the notice provisions in the FIDIC contracts? This article considers what happens when a contractor fails to give a clause 20.1 notice with the result that the employer takes advantage of his or her own default. Under the FIDIC forms of contract, a contractor that wishes to make a claim for either time or additional money must give a notice in accordance with clause 20.1. Historically, courts and arbitrators in common law countries would hold the parties to their bargains whoever difficult or unconscionable the result might be. In recent years this position appears to be changing. The legislation in many common law countries imposes terms in contracts to protect consumers. In some jurisdictions, contacts may also be interpreted to avoid commercial absurdity, and in other jurisdictions the courts will strike down unconscionable bargains. There is also a doctrine, which is applied in many jurisdictions, that ‘No one can obtain an advantage by his own wrong’ (De Zotell v Mutual Life Ins. Co. of New York, 60 SD 532, 245. NW 58, 59). It is sometimes described as a ‘principle of equity’ and expressed in the maxims: ‘ex injuria non oritur jus’ or ‘the clean hands theory’.

By |June 1st, 2006|Knowledge Hub|Comments Off on FIDIC’s Clause 20 a Common Law View
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