Killer Contract Provisions
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The document discusses "killer contract provisions" that present significant risks to contractors. Some of these provisions include short notice requirements, waiving claims and lien rights with progress payments, denying claims for damages due to project delays, one-sided dispute resolution processes, unlimited consequential damages, unreasonable liquidated damages, holding contractors responsible for scheduling and coordination outside of their control, and limiting contractor rights in the event of termination. The presentation was delivered by Craig Dirrim, a partner at Woods Aitken law firm.
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The document discusses various issues that commonly arise in construction contracts in Nebraska. It covers topics such as defining the scope of work, different methods of pricing contracts, potential problems with boilerplate contract language, and "killer" contract provisions to watch out for like no damages for delays clauses. It also examines negotiation of contracts, pre-contract meetings, dispute resolution processes, and other clauses involving scheduling, coordination, liquidated damages, and more.
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The document discusses claims and disputes in construction projects. It defines a claim as a request for payment or entitlements under the contract terms. Claims generally arise due to situations where a party has not fulfilled their contractual obligations. There are different types of claims such as those due to changes by the employer, delays, disruptions, defective specifications, and differing site conditions. Claims must have a basis in the contractual clauses or common law. Key contract clauses relate to areas like access to site, cooperation of parties, unforeseeable conditions, delays, testing, and taking over of works.
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This document discusses construction delays and extensions of time under standard construction contracts. It defines different categories of delays including those caused by the contractor, employer, and third parties. For contractor-caused delays, the contractor is not entitled to an extension of time or reimbursement for losses. For employer-caused delays, the contractor can claim an extension of time and reimbursement for losses. The document outlines the procedure for applying for an extension of time and the principles for granting one. It also discusses implications of granting or not granting extensions of time, such as liquidated damages and time becoming at large.
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The client wishes to develop a RM600 million hotel and shopping complex in Kuala Lumpur within 20 months to take advantage of tourists for the upcoming Commonwealth Games. Some key issues are the short timeframe, uncertainty over final costs, inexperienced client, and need for transparency in contractor selection. Management contracting is proposed where one contractor oversees design and construction packages. Key contract terms include fixed fees for contractors, quality standards, payment schedules to incentivize on-time completion, and clauses addressing delays and defaults.
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Typical services of the employer are:
Obtaining official approvals
Commissioning experts
Provision of the documents required for planning, such as site plan, data on soil conditions etc.
Supply of utilities for commissioning
Free of charge provision of areas for site facilities
Free of charge supply of power and water to the building site.
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The document discusses various types of claims that can arise in construction contracts, including contractual claims, ex-contractual claims, and common law claims. It provides details on negative claims, which contractors can submit to avoid payments like liquidated damages, and positive claims, which contractors can submit for additional payment. The document outlines factors to consider when originating, preparing, and presenting claims, such as referring to relevant documents, proving disruption, calculating prolongation costs, and including overhead and profit.
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Here are the key points the Site Agent should make in support of the claim:
- Clause 2.2.1 of the GCC allows for claims due to adverse physical conditions that could not reasonably have been foreseen by an experienced contractor.
- The recent flooding was an adverse physical condition - i.e. it made execution of the works more difficult and expensive.
- As flooding is not normally expected on this site, an experienced contractor could not reasonably have foreseen this event.
- Records have been kept of the delays and additional costs incurred due to dealing with the effects of the flooding.
- An extension of time is required to account for the delays caused. Payment is also due for the additional costs incurred
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The document discusses extension of time (EOT) in construction projects. It outlines factors that can cause delays and qualify for an EOT, including weather, site conditions, design issues, and delays by owners or other contractors. It also summarizes requirements for applying for and approving EOTs according to standard contract forms and Nepalese law. Contractors must apply before the deadline and prove delays were outside their control. EOT approval depends on the length of extension needed and requires investigation by the owner. Liquidated damages may be assessed for contractor delays, but contracts also provide rewards for early completion.
Prolongation and HOOH Costs
Contractor’s ability to mitigate damages can be limited if coupled with uncertainty of the duration of the delay. HOOH is recoverable in certain prolonged delay situations and has been granted by courts and amicable settlements for more than half a century. The Contractor may recover the return that he would have achieved on other work had his resources not been detained on the Works due to the delay. The presentation highlights the different formulae used in the calculations and conditions precedent to do so.
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The employer will lose the right to determine the contractor's employment under clause 25.1 based on the original default. The employer will need to issue a new notice of default if the contractor commits another default in the future, and follow the full procedure again including issuing the notice of determination within 10 days if the default continues after 14 days, in order to validly determine the contractor's employment. Failing to adhere to the timelines stipulated in the contract means the determination will not be valid.
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FIDIC forms are standard forms of contract published by FIDIC that are commonly used for international construction projects. The key forms discussed in the document are the Red Book for civil engineering works, Yellow Book for E&M works, and newer forms from 1999 including construction, plant & design-build, and EPC contracts.
The document then provides a detailed overview of key clauses in the FIDIC Construction Contract, covering topics like the roles of employer and engineer, requirements for the contractor, payments, variations, defects liability, and termination procedures. It explains administrative processes and rights/obligations of the different parties under the contract.
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The document discusses contractor claims for loss and expense in construction contracts. It addresses two questions:
1) There is no automatic right to recover loss and expense just because an extension of time is granted. Claims for time extensions and loss/expense are evaluated separately.
2) For a loss and expense claim, the contractor must demonstrate how the regular work progress was materially affected based on reasons stated in the contract. The contractor provides initial notice within 28 days and full particulars within another 28 days, otherwise the claim is waived.
The document also lists six common reasons for claims, such as late instructions, work postponements, and variations. It describes six typical claim types like standing time for plants/labor
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◇面对父母的压力，希望尽快拿到；
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◇回国马上就要找工作，办给用人单位看；
◇企事业单位必须要求办理的
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1:该专业认证可证明留学生真实身份
2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分
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多年留学服务公司,拥有海外样板无数能完美1:1还原海外各国大学degreeDiplomaTranscripts等毕业材料。海外大学毕业材料都有哪些工艺呢？工艺难度主要由：烫金.钢印.底纹.水印.防伪光标.热敏防伪等等组成。而且我们每天都在更新海外文凭的样板以求所有同学都能享受到完美的品质服务。
国外毕业证学位证成绩单办理方法：
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— — — — 我们是挂科和未毕业同学们的福音我们是实体公司精益求精的工艺！ — — — -
一真实留信认证的作用(私企外企荣誉的见证):
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2：国家专业人才认证中心颁发入库证书这个入网证书并且可以归档到地方。
3：凡是获得留信网入网的信息将会逐步更新到个人身份内将在公安部网内查询个人身份证信息后同步读取人才网入库信息。
4：个人职称评审加20分个人信誉贷款加10分。
5：在国家人才网主办的全国网络招聘大会中纳入资料供国家500强等高端企业选择人才。问山娃想买什么想吃什么山娃知道父亲赚钱很辛苦除了书籍和文具山娃啥也不要能牵着父亲的手满城闲逛他已心满意足了父亲连挑了三套童装叫山娃试穿山娃有点不想父亲说城里不比乡下要穿得漂漂亮亮爸怎么不穿得漂亮望着父亲山娃反问道父亲听了并不回答只是吃吃地笑山娃很精神越逛越起劲父亲却越逛越疲倦望着父亲呵欠连天的样子山娃也说困了累了回家吧小屋闷罐一般头顶上的三叶扇彻夜呜呜作响搅得满屋热气腾腾也搅得山娃心烦意乱父亲一的
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Killer Contract Provisions
- 1. KILLER CONTRACT PROVISIONS PRESENTER: CRAIG DIRRIM, PARTNER
- 2. KILLER CONTRACT PROVISIONS Short Notice Provisions – Not allowing adequate time to determine ramifications of events on the project Claim Waivers and Releases with Pay Applications – Requiring contractor to waive and release any claims connected with work included in pay applications in order to receive progress payments Lien Waivers –Waiving contractor’s lien rights as part of contract No Damages for Delay – Denying contractor to seek any damages caused by project delays (whether caused by contractor or not) One-Sided Dispute Resolution – Restricting the types of disputes, the requirements for consideration and/or the venues that a contractor may utilize in the resolution of project disputes
- 3. KILLER CONTRACT PROVISIONS No Limits on Consequential Damages – Providing no limits to the damages that can be sought against the contractor High or Uncapped Liquidated Damages – Providing unreasonable or punitive liquated damages against the contractor for late completion Scheduling of Work – Making contractor responsible for work progress entirely out of its control Coordination of Work of Others – Requiring contractor to coordinate work of parties with whom they have no contractual relationship or means to control Default or Convenience Terminations – Limiting contractors rights in the event of contract termination
- 4. THANK YOU! CRAIG DIRRIM 301 SOUTH 13TH STREET, SUITE 500 LINCOLN, NE 68508 (402) 437-8500 CDIRRIM@WOODSAITKEN.COM