Knowledge Hub Archive - November 2014

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

Written by Taner Dedezade | 17/11/2014

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....

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FIDIC's Silver Book - Payments due shall not be withheld … really?

Written by Andrew Tweeddale | 14/11/2014

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. ...

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BoQ rates neither ‘immutable nor sacrosanct’

Written by Steve Mangan | 13/11/2014

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....

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

Written by Victoria Tyson | 12/11/2014

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....

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