Kelewatan atau gangguan yang berkaitan dengan pelbagai projek pembinaan di Qatar telah membawa isu penamatan kontrak menjadi perhatian.Peruntukan penamatan dalam kontrak mencerminkan persetujuan bersama pihak-pihak kepada syarat-syarat yang mengawal pembubaran hubungan kontrak tertentu antara mereka. Dalam kontrak pembinaan, pihak berkontrak boleh menetapkan peristiwa-peristiwa tertentu yang akan mencetuskan penamatan kontrak dan juga boleh memberi pihak(biasanya majikan atau kontraktor utama) hak untuk secara sepihak memutuskan hubungan kontrak sekiranya berlaku pelanggaran oleh pihak berkontrak lain.
Di samping itu, peruntukan penamatan dalam kontrak juga mungkin mengandungi,mengikut perjanjian pihak-pihak, formaliti tertentu yang mesti dipatuhi untuk mengakhiri kontrak dengan berkesan (seperti pengeluaran notis kemungkaran yang membenarkan masa pihak yang melanggar untuk membetulkan pelanggarannya sebelum notis penamatan boleh dikeluarkan).
Di Qatar, pihak-pihak bebas untuk menentukan syarat-syarat yang mengawal hubungan kontrak dan pembubarannya; Walau bagaimanapun, dalam hal-hal tertentu, seperti penamatan, Kod Sivil Qatar (Undang-undang No. 22 tahun 2004) ("Kod Sivil") menghendaki niat pihak-pihak yang sangat jelas dinyatakan dalam kontrak. Jika suatu pihak dalam suatu kontrak ingin menamatkan kontrak dan hak penamatan di dalamnya adalah samar-samar,tersirat atau bersifat sedemikian rupa sehingga mereka meninggalkan ruang untuk tafsiran alternatif, peruntukan Kod Sivil yang berkenaan akan terpakai.Di bawah Kod Sivil, kontrak pembinaan boleh ditamatkan berdasarkan salah satu daripada dua alasan: penamatan untuk kemudahan (juga disebut sebagai "penamatan padakehendak") dan penamatan untuk kegagalan.
Penamatan untuk kemudahan
Selaras dengan Artikel 707 (1) Kod Sivil, majikan atau kontraktor utama boleh menamatkankontrak dan menghentikan pelaksanaan kerja pada bila-bila masa sebelum penyempurnaankerja itu, dengan syarat pihak yang menamatkan pihak memampas pihak lain. Di bawahperuntukan Kod Sivil, pampasan yang dibayar kepada pihak yang tidak menamatkan mestitermasuk kos kerja yang disiapkan, kos yang dibelanjakan dan keuntungan yang mungkindiperolehi jika kerja selesai mengikut syarat kontrak. Walau bagaimanapun, pihak-pihakboleh bersetuju dalam kontrak untuk mengehadkan atau mengubah syarat pampasansekiranya berlaku penamatan untuk kemudahan.
Artikel 707 (2) membenarkan mahkamah untuk menilai atau menyesuaikan pampasan disebabkan oleh pihak yang tidak ditamatkan di bawah Artikel 707 (1). Mahkamah ditugaskan untuk menentukan pampasan yang kena dibayar jika pampasan yang kena dibayar dipertikaikan oleh pihak berkontrak. Mahkamah boleh membuat dua jenis pelarasan mengikut Artikel 707 (2): pelarasan budi bicara dan pelarasan wajib. Berhubung dengan bekas, mahkamah menilai keadaan sekitarnya, kerja selesai dan terma-terma kontrak dan selepas itu menyesuaikan pampasan sewajarnya berdasarkan prinsip keadilan.
Berkenaan dengan pelarasan wajib, mahkamah harus mengurangkan apa-apa pampasan disebabkan oleh pihak yang tidak menamatkan jika pihak tersebut telah meneruskan untuk mengurangkan kerugiannya akibat penamatan untuk kemudahan dan menerima ganti rugi daripada membelanjakan usahanya di tempat lain. (Sebagai contoh Kerugian dan Perbelanjaan; jumlah yang ditentukan berdasarkan asas yang adil dan munasabah)Penamatan bagi kemudahan membolehkan parti menuntut penamatan untuk membubarkan kontrak dengan serta-merta, tanpa perintah kehakiman, dengan syarat pihak itu mengkompensasi pihak berkontrak lain mengikut Artikel 707 (1) atau syarat-syarat yang dinyatakan dalam kontrak. Jenis penamatan ini lebih diutamakan di mana pihak yang berhasrat ingin mengadakan rehat yang bersih dan mengelakkan proses kehakiman atautimbang tara yang panjang dan mungkin suka.
Penamatan untuk Kemungkaran
Kontrak pembinaan biasanya merangkumi terma yang mengawal penamatan kontrak satu pihak sekiranya berlaku salah satu pihak dari obligasi kontraknya. Walau bagaimanapun, jika kontrak itu diam atau istilah kontrak adalah samar-samar berhubung dengan hak pihak untuk menamatkan kontrak secara sepihak, pihak berkontrak boleh bergantung pada Artikel 183 (1) Kod Sivil untuk menamatkan kontrak di mana pihak yang satu lagi gagal memenuhi kewajipannya di bawah kontrak. Artikel 183 (1) menghendaki parti itu (berusaha untuk menamatkan kontrak) terlebih dahulu memberi notis kepada pihak yang ingkar dan niat awal untuk menamatkan kontrak. Artikel 183 (2) memberi hak budi bicara yang luas untuk menamatkan kontrak, membenarkan pihak ingkar tambahan masa untuk membetulkan pelanggaran atau menolak penamatan kontrak jika pelanggarannya adalah minim dari jumlah kewajiban pihak yang ingkar di bawah kontrak. Untuk memberi kesan kepada penamatan bergantung kepada Artikel 183, pihak yang ingin menamatkan kontrak mesti memohon kepada mahkamah untuk memberikan penamatan sedemikian.
Seperti yang dinyatakan di atas, mahkamah diberi budi bicara yang luas dibawah Artikel 183 untuk mengkaji keadaan sekelilingnya dan memutuskan mengenai masalah penamatan.Adalah perkara biasa, dalam konteks kontrak pembinaan di Qatar, bagi pihak-pihak untuk bersetuju dengan penamatan satu pihak oleh satu pihak berkontrak dengan notis; Walaubagaimanapun, pihak-pihak yang berkontrak sering mengabaikan beberapa syarat kontrak yang perlu yang mesti dinyatakan dalam kontrak seperti yang dikehendaki di bawah Artikel 184 Kod Sivil. Dalam banyak kontrak, bahasa peruntukan penamatan yang berkaitan dengan kemungkaran dan hak sesebuah pihak untuk secara sepatutnya ditamatkan oleh notissering gagal mencapai tahap ketepatan yang dikehendaki oleh Artikel 184. Artikel 184 (1)membenarkan pihak-pihak berkontrak bersetuju untuk menamatkan kontrak tanpa mendapatkan penghakiman mahkamah sekiranya berlaku pelanggaran oleh satu pihak;iaitu, pihak-pihak boleh bersetuju untuk membenarkan satu pihak untuk secara sepihak memutuskan hubungan kontrak dengan notis sekiranya berlaku kegagalan.
Walaubagaimanapun, Artikel 184 (2) menyatakan bahawa perjanjian (dirujuk dalam Artikel 184 (1)untuk membubarkan kontrak tanpa terlebih dahulu mendapatkan perintah penghentian penghakiman), tidak akan berkuatkuasa melainkan "perkataan kontrak itu dengan jelas menunjukkan ke arah niat pihak yang sama ". Artikel 184 (3) melangkah jauh dan mandat pengeluaran notis oleh pihak yang menamatkan pihak kepada pihak yang tidak menamatkan kegagalan dan penamatan.
Dalam praktiknya, kebanyakan kontrak pembinaan mengandungi klausa penamatan yang tidak jelas dengan jelas menyatakan hasrat pihak-pihak untuk membenarkan penamatan kontrak unilateral dengan notis berikutan kegagalan pihak kontraktor. Secara amnya,sekiranya berlaku kemungkaran, pihak akan mengeluarkan notis kemungkaran, yang kemudiannya akan diikuti dengan notis penamatan. Parti yang mahu menamatkan kontrak itu menganggap kontrak itu ditamatkan. Walau bagaimanapun, seperti yang dinyatakan di atas, melainkan jika bahasa kontrak dengan jelas menyatakan hasrat pihak-pihak untuk membenarkan penamatan oleh notis, penamatan itu akan menyalahi undang-undang tanpa perintah mahkamah yang memberi kesan kepada penamatan
Articles related to costing, contracts, procurements, commercials and human relation issues
About Me
- Azman Yahaya
- Received my early education at the Rifle Range Road (2) Primary School, Kuala Lumpur. Attended junior high school at Raja Abdullah Secondary School, Kuala Lumpur and high school at Technical Institute, Kuala Lumpur. Further study at Mara Institute of Technology (ITM), Shah Alam, Selangor and obtained Certificate in Town and Regional Planning and Diploma in Quantity Surveying. Continued study in Mara University of Technology (UiTM) and obtained Bachelor of Quantity Surveying (Honours). I am a skilled commercial manager with extensive background in-and thorough knowledge of- development, construction, maintenance and construction contracts. Also having knowledge and experience in project, facilities and property management. Experienced in developing and implementing competitive cost planning, project budgeting, cost controlling and development appraisal. Exceptional organizational, analytic and managerial skills. Career as Commercial Expert till now.
Saturday, 10 February 2018
Kaedah Pendaftaran Komersil Baru di Qatar
Artikel ini mengenal pasti perubahan yang berlaku kepada Undang-undang Pendaftaran Komersil Qatar No. 25 tahun 2005.
Undang-undang ini mengawal proses pendaftaran komersil di Kementerian Ekonomi dan Perdagangan ('Kementerian') untuk orang (sama ada individu atau undang-undang) untuk membolehkan mereka menjalankan aktiviti komersial di Qatar.
Pendaftaran syarikat-syarikat di Qatar sangat penting. Kecuali syarikat perkongsian tertentu, untuk memperoleh kedudukan undang-undang yang sah yang mana semua syarikat yang dikawalselia di bawah Undang-undang Syarikat Komersial mesti didaftarkan pada pendaftaran komersial.
Maklumat syarikat termasuk dalam fungsi daftar perdagangan sebagai perisytiharan dari Kementerian bahawa maklumat tersebut benar dan sah untuk pihak ketiga uk bergantung. Oleh itu, undang-undang memperuntukkan bahawa apa-apa perubahan yang mempengaruhi aktiviti syarikat, menukar pengurus, pengarah, penandatangan yang diberi kuasa atau pemegang saham akan memerlukan pindaan selanjutnya kepada pendaftaran komersial. Selain itu, sebarang keputusan mahkamah yang dikeluarkan berkenaan dengan status syarikat atau keupayaan untuk melaksanakan obligasi, termasuk, keputusan mahkamah atas penamatan pengurus atau ketidaksempurnaan atau pembubaran lembaga pengarah syarikat (seperti yang baru-baru ini ditambah), juga harus diberitahu kepada pihak berkuasa yang kompeten di Kementerian.
Undang-undang Pendaftaran Komersial kini telah dipinda berdasarkan Undang-undang No. 20 tahun 2014. Pindaan baru-baru ini memperkenalkan sistem yang lebih cekap dari segi penerimaan atau penolakan permohonan pemohon dan proses merayu kepada Kementerian Ekonomi secara langsung di dalam peristiwa penolakan (di bawah permohonan undang-undang terdahulu perlu didengar oleh mahkamah). Ia selanjutnya memperuntukkan penalti yang lebih tinggi sekiranya tidak mematuhi Undang-undang Pendaftaran Komersil.
Pindaan penting di bawah Undang-undang baru
a. Proses permohonan dan pendaftaran
Di bawah Undang-undang baru, Jabatan Pendaftaran Komersil di Kementerian perlu memberi respons kepada permohonan pemohon untuk pendaftaran pada hari yang sama pemohon mengemukakan permohonan itu, dengan syarat ia disokong dengan semua dokumen yang berkaitan (termasuk, antara lain, satu salinan daripada kelulusan nama kementerian oleh Kementerian, surat dari bank yang mengesahkan bahawa modal minimum bagi syarikat sebagaimana yang dikehendaki di bawah Undang-undang Perusahaan Komersial telah disetorkan dengan betul, artikel kelulusan dan pengesahan persatuan). Pemohon juga perlu membayar yuran pendaftaran yang ditentukan oleh skop aktiviti syarikat.
Sekiranya Kementerian menolak permohonan itu atau tidak meluluskannya pada hari yang sama, ia sepatutnya memberikan sebab untuk keputusannya. Undang-undang itu memberi kuasa kepada Menteri Ekonomi dan Perdagangan (bertentangan dengan mahkamah yang kompeten sebelum undang-undang dipinda) untuk menerima atau menolak rayuan keputusan Kementerian dalam tempoh 15 hari selepas tarikh rayuan. Keputusan menteri dalam hal ini adalah muktamad.
b. Kesahan pendaftaran komersil
Sebelum pindaan undang-undang baru-baru ini, pendaftaran komersial boleh diperolehi untuk tempoh antara satu tahun hingga lima tahun. Walau bagaimanapun, di bawah Undang-undang baru, pendaftaran komersial hanya boleh sah untuk satu tahun boleh diperbaharui tiga puluh hari sebelum tarikh tamat tempoh yang dinyatakan pada pendaftaran komersial. Kementerian mempunyai hak untuk memadamkan pendaftaran seseorang jika proses pembaharuan tidak selesai dalam tempoh 90 hari dari tarikh orang berkenaan diberitahu tentang keperluan memperbaharui pendaftaran komersial. Pendaftaran semula dibenarkan mengikut budi bicara Kementerian, dan hanya selepas yuran pendaftaran telah dibayar dari tarikh pendaftaran komersil sepatutnya diperbaharui atau pada masa tamatnya.
c. Cawangan
Undang-undang, sebagaimana yang dipinda, menghendaki cawangan yang diperbadankan di Qatar untuk (i) memegang nama sebenar syarikat induk tanpa sebarang pengubahsuaian; dan (ii) memastikan aktiviti komersil yang disebutkan dalam pendaftaran komersial cawangan adalah sama seperti aktiviti yang disenaraikan dalam dokumen penggabungan syarikat utama. Undang-undang selanjutnya memperuntukkan bahawa cawangan tidak dianggap sebagai entiti undang-undang yang berasingan dari syarikat utama. Pengendali cawangan akan mempunyai tempoh tangguh enam bulan dari tarikh Undang-undang berkuat kuasa untuk mematuhi Undang-Undang.
Perlu diperhatikan bahwa Pasal 3 Undang-Undang Nomor 13 Tahun 2000 ('Undang-Undang Investasi Asing') mengizinkan perusahaan asing membuka kantor cabang di Qatar jika perusahaan tersebut diberikan kontrak atau proyek tertentu yang menyumbang kepada kepentingan awam.
d. Pindaan lain di bawah Undang-undang
Sejak penerbitan asal Undang-Undang ini pada tahun 2005, Undang-undang menghendaki setiap orang yang didaftarkan dalam pendaftaran komersial untuk menulis, dalam bahasa Arab, nama komersil dan nombor pendaftarannya di premis komersial dan semua surat-menyurat dan dokumen komersial yang digunakan oleh orang itu (Perkara 6 ). Pindaan kepada Undang-Undang ini telah meningkatkan penalti kewangan untuk melanggar Perkara 6 dari QAR 10,000 hingga QAR 50,000. Walau bagaimanapun, tidak seperti Undang-undang 2005, pindaan itu tidak memperuntukkan hukuman jenayah kerana melanggar syarat.
Pindaan juga dibuat kepada penalti yang terpakai kepada seseorang (i) mengendalikan premis komersial tanpa didaftarkan dalam Pendaftaran Komersil, (ii) menyalahgunakan atau membenarkan orang lain untuk menyalah guna pendaftaran komersial, atau (iii) menyediakan Kementerian dengan palsu atau dokumen yang salah untuk didaftarkan dan mendapatkan pendaftaran komersial. Penalti bagi pelanggaran tersebut boleh didenda sehingga QAR 200,000 dan / atau enam bulan penjara. Sebagai tambahan kepada penalti-penalti ini, mahkamah yang kompeten boleh mengeluarkan perintah untuk menggantung kegiatan perusahaan untuk suatu tempoh tidak melebihi satu tahun, atau untuk menutup premis perniagaan atau untuk membatalkan pendaftaran syarikat.
Kesimpulannya
Undang-undang ini nampaknya telah direka untuk mempercepat prosedur pendaftaran dan pembaharuan sebagai tindak balas kepada tuntutan daripada komuniti perniagaan. Ia mencapai ini dalam beberapa cara, termasuk menghapuskan keperluan untuk pergi ke mahkamah untuk merayu keputusan pendaftaran. Sekarang permohonan tersebut didengar oleh Menteri Ekonomi dan Perdagangan, yang akan menjadi proses yang lebih efisien sebagaimana Menteri harus memutuskan permohonan dalam masa 15 hari setelah menerimanya.
Undang-undang ini akan berkuatkuasa pada tarikh ia diterbitkan dalam Warta Rasmi. Setelah itu, orang (individu dan syarikat) yang didaftarkan dalam pendaftaran komersil sebelum tarikh undang-undang berkuatkuasa, akan mempunyai tempoh enam bulan untuk mematuhi Undang-undang ini, melainkan jika tempoh tersebut dilanjutkan oleh keputusan Menteri. Kementerian Ekonomi dan Perdagangan akan bertanggungjawab untuk memastikan undang-undang dilaksanakan dari segi pematuhan dengan Undang-undang oleh Kementerian dan orang berdaftar, setakat yang terpakai kepada masing-masing.
Sunday, 6 August 2017
Lump sum based on BQ with exclusions
The details shown on the Drawings shall prevail over the descriptions given in the Bills of Quantities. Based on this the drawing takes precedence over the BoQ, thus the Contractor should have priced based on the drawing.
Monday, 26 January 2015
"Let's Agree to Disagree." I Don't Agree to That….So what?
The term "agree to disagree" or "agreeing to disagree" is a phrase in English referring to the resolution of a conflict (usually a debate or quarrel) whereby all parties tolerate but do not accept the opposing position(s).
During negotiation with regards to the claims by the Contractor the argumentation can get tiresome. Every parties wanted to win the argument and what most important certain basis need to be adapted. I have experience a lot of this matter the entire project that I were involved.
Against, for me; I also go back to the basic. Always put the principle in the upmost position and any argument could be settled. Walk through the basis step by step and understand the situation and then only one could make any decision with sound mind.
The best response to this, and here I really don't think I'm guilty of overambitious optimism, is to identify and clarify what the point at issue really is, and to concertedly stay conscious of the fact that people are not their individual beliefs, and that it is alright to have been wrong about facts. If people can manage that, they can have disagreements without conflict. Or, they can achieve the same effect if they simply accept that conflict is not necessarily bad so long as it ends and has a reasonable expectation of getting somewhere.
But most people are not so high-minded. Much of the time, people simply want to bury the hatchet (which is perfectly well admirable, except that a disagreement is really a lot more like a land mine than a hatchet in that regard).
So they resort to the old chestnut of "Why don't we agree to disagree." (I neglect to use a question mark because it is never said with that inflection. It is not really a question, it is a demand, and a cravenly presented one at that. Impolite, really.)
But it's rather anticlimactic, isn't it? I am reminded of a joke: "There are two types of people: those who don't need closure."
In fact, the nature of disagreements, if they are genuine disagreements is that we disagree whether we assent to it or not. To disagree, at least two people must have at least two beliefs, and those beliefs must be incompatible.
Things are incompatible by virtue of their containing a contradiction. Contradictions are endemic to the concepts themselves. If I happen to believe that all school buses are red, and you believe that they are all yellow, our agreeing to disagree affects the facts that we have incompatible views not at all.
Not to be overly literal. I know that people who say this don't think that it really settles the discussion. They want merely to avoid conflict. But it is the height of bad manners to not only interrupt somebody, but also to interrupt them to tell them that they can not and may not go on expressing themselves, lest they offend the holy rules of social grace and the satisfy the insane need of the un-argumentative to "keep everyone happy".
Who, anyway, is the graceless and conflicted one in the situation, he who happens to have an opinion which is conceptually incompatible with someone else's, or he who would rather censor a discussion than be challenged?
The dissonance that goes with disagreement is a tension, sure. But it is certainly better to relieve a tension than to ignore it. At the end, the best would let parties put their case and get the experts to review and be the judge.
Tips on Career Success Abroad – Indonesia Experience
Point 1. Must Have Confidence and
Mental Strong
Global
careers are not the same as careers in the domestic environment, because the
environment you are in area the global arena. Do not equate the nature and
attitude of the people there with in Indonesia because it is so much different.
Therefore you need a lot of adapting to new things and mental strength needed
to survive. Understand the human relation aspects of the local vis-à-vis the local
culture, rules and regulations.
Point 2. Do not Be A Tourist
You
need to remember, living and working abroad is not the same as fooling around
spending time to travel to the country. There are demands and different responsibilities
if you are working in a foreign country. You have to be smart and agile in
order to make progress quickly. If you like it, then your boss or co-worker you
will see your abilities and of course they will give a reward after what you do
well.
Point 3. Equation Degrees
Abroad
someone older or senior does not automatically earn respect. For example, in
the office to call the boss enough to use her first name only. If the boss name
Yanto Agus, Pak Agus enough not to add Mr. or become Mr. Agus. Respect is
earned, not given = respect comes from a positive contribution instead of rank
or age alone.
If
you have questions or concerns please do not ashamed to say it, even if you are
young or junior. That seniors will not feel threatened by a proactive attitude,
they actually appreciate your bold attitude.
Point 4. Do not Doubt Make Decisions
If
you recruited on foreign companies, of course, they really appreciate the
skills and experience you. For that, it is natural if the company wants to
offer a productive and contributing to the company. Therefore, take decisions
and set priorities company quickly and precisely. You have to work more
productively and do not delay - postpone the work, automatically your career
abroad will shine quickly.
Points 5. Follow Training
Do
not rely on the capabilities that you already have today. Global careers means
you must continue to hone skills, innovate and keep abreast of the industry in
which you work. Follow the training activities or seminars are always held
every month. Continue to strengthen the competence of self in order to compete
globally.
Points 6. Develop Yourself and Honest
If Not Know
Feel
free to continue to learn anything that can develop yourselves, and do not be
afraid says the answer "I do not know". Even those well-to honestly
admit their limitations without a sense of doubt or shame. For that, you can
learn the local language or words to make it easier to know about different
cultures, procedures and learn cross-cultural management.
Honesty
about his own limitations actually admired people there. If you do not have an
answer please respond with "I do not know, I'll find the answer for you"
or when in doubt, answer "I think the reason is this, but this is all just
my speculation only".
Points 7. Obey Rules
In
some foreign countries, they have a very good database or otherwise even very
bad. Both require accuracy to draw up personal documents such as, immigration,
taxes and permits live well. Lest they do not abide by the rules, work permits
revoked simply because the company was forced to issue a document that is
trivial.
The
nature of such rules of law, which must be adhered to and, if broken, then
there will be sanctions applicable. For that, no matter where you work overseas
especially comply with existing rules.
Points 8. Organize Teams With
Meticulously
So
start the first day in a global company, it's okay if you feel excited. But not
necessarily the same for colleagues others. For them, it will be just another
day. Your team is the people who will work most closely with you in a
professional, as well as helping to adapt the work environment. Make sure you
know all the members of the team well.
Indonesian
is famous for its hospitality. If you have the opportunity to work in a global
company do not eliminate the habit of Indonesian people who are friendly to
anyone. With you always smile will give positive energy to the person you have
just met, especially your coworkers.
Among
the diverse cultures that exist in the world there is no absolute culture
better than the others. While living and working abroad, open horizons by
studying the local culture and apply the plus side. Do not forget to not forget
and also maintain a positive culture of Indonesia.
Tuesday, 13 January 2015
Contractor takes all ground condition risk?
The following clause was included in the Specification for one of the Project that were being managed by me.
As per the Appendix CC of the 1st Supplemental Agreement described:-
“13. Sub-Clause 1.1.5.5A – Lump Sum Works – means the items of work and good, meterials and services to be supplied hereunder as shown in the Drawings and/or described by the Specification and/or in the Schedule of Prices which are not to re-measured.”
“S4.02 (1) Soil Information
Any information of the properties of the soil that may be shown on the Drawings or obtained by the Contractor as a result of discussion with the Engineer shall alone not be considered as a sufficient basis for the Contractor's Bid Prices.
The Contractor is responsible for his interpretation of information supplied by the Employer and shall visit the Site and possible Borrow Pits prior to making his Bid and shall ascertain the nature of the soil, its quantity, locations, and suitability to meet the specified requirements.
He shall base his Bid estimates on the Employer's soil data supplemented by his own soil investigations.”
This would mean that the Contractor shall be deemed prior to submitting the Tender to have inspected and examined the Site and/or satisfied itself as to the nature of the ground and subsoil. No claim by the Contractor for additional payment or any extension of time shall be allowed on the ground of misunderstanding or misapprehension of these matters.
There was understandable concern from the contracting community when the first contracts containing this clause were issued for tender.
There are two particular difficulties with this approach:
1. the allocation of risk can be less a reflection that the parties have carried out thorough investigations and are comfortable with what they might encounter (and could price for it accordingly), than of the overriding desire by employers to have fixed prices and certain completion dates, and perhaps of unequal bargaining power; and
2. the bidders are unable to price for the risk with any certainty; any contingency would be guesswork. Ultimately, if the risk does not eventuate the contingency is wasted, and if it did, there would be no certainty that the contingency would be enough, resulting in costs to the project elsewhere (even if simply in legal fees).
This gives a gloss on the truism about allocation of risk, that a project which goes off the rails benefits no one. If your project is going to be late, rights in contract aren’t necessarily going to help; much like Neville Chamberlain returning from Munich in 1938, there is little practical benefit in holding up a piece of paper. Once a project has become a loss maker, most contractors will understandably look for ways to reduce that loss, rather than complete the project as well as the employer might have hoped. A right to sue won’t necessarily help anyone other than the lawyers.
Conversely, where there is considerable, high quality geotechnical information available, the contractor has the skill and the resources to deal with what they might find and all parties are comfortable with what will actually be encountered, this can be a very effective allocation of risk.
As per the Appendix CC of the 1st Supplemental Agreement described:-
“13. Sub-Clause 1.1.5.5A – Lump Sum Works – means the items of work and good, meterials and services to be supplied hereunder as shown in the Drawings and/or described by the Specification and/or in the Schedule of Prices which are not to re-measured.”
“S4.02 (1) Soil Information
Any information of the properties of the soil that may be shown on the Drawings or obtained by the Contractor as a result of discussion with the Engineer shall alone not be considered as a sufficient basis for the Contractor's Bid Prices.
The Contractor is responsible for his interpretation of information supplied by the Employer and shall visit the Site and possible Borrow Pits prior to making his Bid and shall ascertain the nature of the soil, its quantity, locations, and suitability to meet the specified requirements.
He shall base his Bid estimates on the Employer's soil data supplemented by his own soil investigations.”
This would mean that the Contractor shall be deemed prior to submitting the Tender to have inspected and examined the Site and/or satisfied itself as to the nature of the ground and subsoil. No claim by the Contractor for additional payment or any extension of time shall be allowed on the ground of misunderstanding or misapprehension of these matters.
There was understandable concern from the contracting community when the first contracts containing this clause were issued for tender.
There are two particular difficulties with this approach:
1. the allocation of risk can be less a reflection that the parties have carried out thorough investigations and are comfortable with what they might encounter (and could price for it accordingly), than of the overriding desire by employers to have fixed prices and certain completion dates, and perhaps of unequal bargaining power; and
2. the bidders are unable to price for the risk with any certainty; any contingency would be guesswork. Ultimately, if the risk does not eventuate the contingency is wasted, and if it did, there would be no certainty that the contingency would be enough, resulting in costs to the project elsewhere (even if simply in legal fees).
This gives a gloss on the truism about allocation of risk, that a project which goes off the rails benefits no one. If your project is going to be late, rights in contract aren’t necessarily going to help; much like Neville Chamberlain returning from Munich in 1938, there is little practical benefit in holding up a piece of paper. Once a project has become a loss maker, most contractors will understandably look for ways to reduce that loss, rather than complete the project as well as the employer might have hoped. A right to sue won’t necessarily help anyone other than the lawyers.
Conversely, where there is considerable, high quality geotechnical information available, the contractor has the skill and the resources to deal with what they might find and all parties are comfortable with what will actually be encountered, this can be a very effective allocation of risk.
Tuesday, 6 January 2015
Indonesia Fun Fact
When
someone says yes, does he or she mean yes or no. Indonesia
is a gracious culture that is polite. Wanting to be agreeable and never wanting
to embarrass another, the native language Bahasa Indonesia has 12 words that
"say yes but really mean no. Unless you are
fluent in Bahasa Indonesia, using English or another language will not convey
the correct message. Even with a correct translation, though the literal
translation for these 12 words would be yes, the culture requires a polite,
agreeable response. Since saying no to someone is impolite,
don't assume a positive response means you have agreement.
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