| About the Author |
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xv | |
| Foreword |
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xvii | |
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| Acknowledgements |
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xix | |
| Introductory Remarks |
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xxi | |
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| Introductory Remarks |
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xxiii | |
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| Introductory Remarks |
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xxv | |
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| 1 International Construction Projects |
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1 | (23) |
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1.1 The unique nature of the construction industry |
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1 | (1) |
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1.2 Individuality of construction projects |
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1 | (1) |
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1.3 Roles and relationships |
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2 | (2) |
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1.4 Contract administration: The Engineer |
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4 | (6) |
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1.5 Further important aspects of construction projects |
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10 | (1) |
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1.6 Typical contractual relationships |
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11 | (1) |
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1.7 Motivation for international business |
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11 | (2) |
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13 | (1) |
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14 | (1) |
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1.10 Hazard identification |
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15 | (1) |
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15 | (1) |
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16 | (1) |
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1.13 Typical hazards in the international construction business |
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17 | (1) |
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1.14 Risk allocation in contracts |
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18 | (1) |
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Vignette: Wrong forms of contract by James Bremen (UK) |
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18 | (1) |
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1.15 Form of business organization |
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19 | (3) |
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22 | (1) |
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23 | (1) |
| 2 Civil Law and Common Law |
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24 | (27) |
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2.1 Specifics of the governing law |
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24 | (1) |
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2.2 Common law versus civil law: Differences and interconnections |
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24 | (4) |
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Vignette: The common law of Australia and the influence of statutory law by Donald Charrett (Australia) |
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26 | (2) |
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2.3 Delay damages (liquidated damages) versus contractual penalty |
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28 | (1) |
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2.4 Substantial completion versus performance |
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29 | (2) |
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2.5 Binding nature of adjudication awards |
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31 | (1) |
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2.6 Limitation of liability |
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31 | (1) |
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2.7 Lapse of claim due to its late notification (time bars) |
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32 | (1) |
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2.8 Allocation of unforeseeable and uncontrollable risk to the contractor |
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32 | (10) |
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2.9 Contract administration (The Engineer's neutrality and duty to certify) |
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42 | (1) |
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2.10 Termination in convenience |
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43 | (2) |
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Vignette: Is an employer in breach of contract prevented from terminating the contract for its convenience? by Cecilia Misu (Germany) |
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44 | (1) |
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45 | (1) |
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2.12 Quantification of claims |
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46 | (1) |
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2.13 Statutory defects liability |
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47 | (1) |
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2.14 Performance responsibility: reasonable skill and care versus fitness for purpose |
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47 | (1) |
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2.15 Common law, civil law and Sharia interconnections |
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48 | (1) |
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49 | (1) |
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49 | (1) |
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50 | (1) |
| 3 Common Delivery Methods |
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51 | (15) |
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3.1 Common delivery methods: Main features |
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51 | (2) |
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53 | (1) |
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54 | (4) |
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3.4 Construction management |
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58 | (2) |
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3.5 Multiple-prime contracts |
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60 | (1) |
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60 | (1) |
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61 | (1) |
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3.8 Extended delivery methods (PPP, BOT, DBO) |
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62 | (1) |
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3.9 Further aspects of delivery methods |
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62 | (3) |
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65 | (1) |
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65 | (1) |
| 4 Specifics of EPC and EPCM |
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66 | (22) |
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66 | (1) |
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4.2 Engineer procure construct (EPC) |
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66 | (3) |
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4.3 Bespoke EPC contracts |
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69 | (1) |
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4.4 Turnkey EPC contracts |
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70 | (2) |
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Vignette: Water treatment, wind farm and road construction projects in Asian and African countries by Stephane Giraud (France) |
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71 | (1) |
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4.5 Front end engineering design |
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72 | (5) |
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Vignette: Key issues in the procurement of international hydropower construction contracts by Alex Blomfield (UK) |
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73 | (4) |
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4.6 Engineer procure construction management (EPCM) |
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77 | (8) |
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Vignette: The use of the EPCM delivery method in the mining industry by Mark Berry (UK) and Matthew Hardwick (UK) |
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79 | (6) |
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85 | (1) |
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86 | (1) |
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87 | (1) |
| 5 Unification and Standardization in International Construction |
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88 | (18) |
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5.1 Unification of contracts |
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88 | (1) |
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5.2 Unification per law, principles and sample documents |
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88 | (2) |
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5.3 Lenders and their influence on unification |
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90 | (2) |
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5.4 Standard form of contract in a governing law context |
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92 | (1) |
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5.5 Purpose of sample documents in construction projects |
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93 | (1) |
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5.6 Standard sample forms as a source of law |
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94 | (1) |
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95 | (1) |
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96 | (1) |
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5.9 Trade usage and business custom |
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97 | (3) |
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Vignette: A common law of construction contracts - or vive la difference? by Donald Charrett (Australia) |
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98 | (2) |
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5.10 Lex constructionis principles |
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100 | (2) |
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5.11 The use of lex constructionis |
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102 | (3) |
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Vignette: Future-proofing construction contracts by Shy Jackson (UK) |
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102 | (3) |
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105 | (1) |
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105 | (1) |
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105 | (1) |
| 6 Price |
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106 | (22) |
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106 | (1) |
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107 | (2) |
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6.3 Methods of contract price determination |
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109 | (1) |
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109 | (3) |
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112 | (1) |
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112 | (1) |
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6.7 Guaranteed maximum price |
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113 | (1) |
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113 | (1) |
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114 | (3) |
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Vignette: Taxation in international construction contracts by Alex Blomfield (UK) |
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115 | (2) |
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6.10 Contract price under FIDIC forms |
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117 | (2) |
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119 | (1) |
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6.12 Abnormally low tender (ALT) |
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120 | (1) |
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6.13 Claims as part of contract price |
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121 | (1) |
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6.14 Public procurement law limitations |
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122 | (4) |
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Vignette: A concept of variation in a construction contract under Polish public procurement by Michat Skorupski (Poland) |
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123 | (3) |
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126 | (1) |
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126 | (1) |
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127 | (1) |
| 7 Time |
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128 | (33) |
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128 | (1) |
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128 | (2) |
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7.3 The United Kingdom Society of Construction Law Delay and Disruption Protocol |
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130 | (1) |
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131 | (2) |
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133 | (13) |
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Vignette: Time extension and float ownership under the FIDIC Red and Yellow Books (1999 editions) (BAMCO FDTEA final argument) by Frank Thomas (France) |
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133 | (13) |
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7.6 Time at large and Extension of Time (EOT) |
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146 | (2) |
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148 | (2) |
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Vignette: Delay clauses in different jurisdictions by Jacob C. Jorgensen (Denmark) |
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149 | (1) |
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150 | (1) |
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7.9 Time for completion under FIDIC forms |
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151 | (1) |
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7.10 Time programme under FIDIC forms |
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152 | (2) |
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Vignette: A lack of realism in negotiations by James Bremen (UK) |
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154 | (1) |
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7.11 Delay and suspension under FIDIC forms |
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154 | (4) |
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7.12 Contract termination under FIDIC forms |
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158 | (2) |
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160 | (1) |
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160 | (1) |
| 8 Variations |
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161 | (20) |
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161 | (2) |
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8.2 Variations under FIDIC forms |
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163 | (1) |
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8.3 Claims related to variations |
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164 | (2) |
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166 | (7) |
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Vignette: The US approach to constructive acceleration by Robert A. Rubin and Sarah Biser (the USA) |
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170 | (3) |
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8.5 Proving the acceleration claim |
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173 | (1) |
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174 | (6) |
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Vignette: Modification of contracts during their execution under EU law by Odysseas P. Michaelides (Cyprus) |
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176 | (4) |
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180 | (1) |
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180 | (1) |
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180 | (1) |
| 9 Claims |
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181 | (24) |
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181 | (4) |
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Vignette: Claims caused by deficiencies in tender documents by James Bremen (UK) |
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184 | (1) |
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9.2 Contractor's claims under FIDIC forms |
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185 | (1) |
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9.3 Employer's claims under FIDIC forms |
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186 | (3) |
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Vignette: Claims in the St Petersburg flood protection barrier construction by Aleksei Kuzmin (Russia) |
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186 | (3) |
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189 | (2) |
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191 | (1) |
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9.6 Limits of the lapse of claim |
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191 | (13) |
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Vignette: Construction claims in the UK by Garry Kitt (UK) |
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193 | (3) |
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Vignette: Condition precedent and time-barred claims under Polish Law by Michal Skorupski (Poland) |
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196 | (1) |
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Vignette: Australian position on time bars by Andrew P Downie (Australia) |
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197 | (7) |
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204 | (1) |
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204 | (1) |
| 10 Claim Management |
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205 | (30) |
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205 | (1) |
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10.2 Claims for Extension of Time (EOT) |
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206 | (2) |
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10.3 Claims for additional payment |
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208 | (1) |
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10.4 Claims resulting from delay and/or disruption under the provisions of the contract |
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209 | (11) |
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Vignette: Considerations related to site overhead claims by Gary Kitt (UK) |
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210 | (10) |
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10.5 Claims resulting from governing law |
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220 | (1) |
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220 | (4) |
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Vignette: All global claims are not negatively 'global'! by Frank Thomas (France) |
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223 | (1) |
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10.7 Contractor's claim management under FIDIC forms |
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224 | (3) |
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10.8 Employer's claim management under FIDIC forms |
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227 | (1) |
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10.9 Intercultural aspects |
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228 | (3) |
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Vignette: Cultural considerations in Southeast Asia by Salvador P. Castro, Jr. (The Philippines) |
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228 | (2) |
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Vignette: 'Claim' as perceived in the Polish civil law environment by Michal Skorupski (Poland) |
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230 | (1) |
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10.10 Claim management implementation |
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231 | (3) |
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Vignette: Claims in a tunnel construction in the Republic of Serbia by Radim Wrana (the Czech Republic) |
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232 | (2) |
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234 | (1) |
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234 | (1) |
| 11 Construction Dispute Boards |
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235 | (31) |
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11.1 Construction disputes |
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235 | (2) |
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Vignette: Construction dispute in sheet metal galvanizing line project by Patrick Kain (South Africa) |
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235 | (2) |
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237 | (9) |
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Vignette: Project dispute avoidance by Christopher J. Mather (the USA) |
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238 | (7) |
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Vignette: The use of dispute boards in the Middle East and North Africa by Andy Hewitt (United Arab Emirates) |
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245 | (1) |
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11.3 Contractual adjudication: The use of DAB in FIDIC forms |
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246 | (3) |
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11.4 Enforcement of dispute board decisions |
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249 | (5) |
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11.5 Statutory adjudication |
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254 | (10) |
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Vignette: Statutory adjudication by Nigel Grout (UK) |
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254 | (2) |
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Vignette: Settling construction disputes in Hungary by Tamcis Balcizs (Hungary) |
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256 | (2) |
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Vignette: Statutory adjudication in Australia by Donald Charrett and Andrew Downie (Australia) |
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258 | (6) |
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264 | (1) |
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265 | (1) |
| 12 FIDIC |
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266 | (39) |
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266 | (1) |
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266 | (1) |
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12.3 FIDIC's influence on the construction industry |
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267 | (1) |
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267 | (1) |
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12.5 Networking activities |
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268 | (4) |
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Vignette: The use of FIDIC forms in Southeast Asia by Salvador P. Castro, Jr. (The Philippines) |
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270 | (1) |
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Vignette: The use of FIDIC forms in Russia by Dmitry Nekrestyanov (Russia) |
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271 | (1) |
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Vignette: The use of FIDIC forms in Brazil by Rafael Marinangelo (Brazil) |
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272 | (1) |
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12.6 FIDIC forms of contract |
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272 | (2) |
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12.7 The structure of the contract under FIDIC forms |
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274 | (3) |
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12.8 Conditions of Contract for Construction (CONS) — 1999 Red Book |
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277 | (6) |
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Vignette: Misapplications of FIDIC contracts in the United Arab Emirates by Kamal Adnan Malas (United Arab Emirates) |
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278 | (5) |
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12.9 Conditions of Contract for Plant and Design-Build (P&DB) — 1999 Yellow Book |
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283 | (1) |
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12.10 Conditions of Contract for EPC/Turnkey Projects (EPC) — 1999 Silver Book |
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284 | (1) |
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12.11 Short Form of Contract — Green Book |
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285 | (1) |
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12.12 Construction Subcontract |
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285 | (1) |
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12.13 Conditions of Contract for Design, Build and Operate (DBO) — Gold Book |
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286 | (3) |
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12.14 Other FIDIC standard forms |
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289 | (2) |
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Vignette: Use of FIDIC contracts by the mining industry in Africa by Coenraad Snyman (South Africa) |
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289 | (2) |
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12.15 Risk allocation under FIDIC forms |
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291 | (10) |
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Vignette: China's Standard form of construction contract in comparison with FIDIC forms by Shuibo Zhang (China) |
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294 | (5) |
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Vignette: Explanation of FIDIC EPC risk allocation by FIDIC |
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299 | (2) |
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12.16 Design responsibility under FIDIC forms |
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301 | (2) |
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303 | (1) |
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303 | (2) |
| 13 Other Standard Forms of Construction Contracts: NEC, ICC, ENNA, IChemE, Orgalime, AIA, VOB |
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305 | (25) |
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13.1 Common standard forms of construction contracts |
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305 | (1) |
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13.2 The NEC (New Engineering Contract) |
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305 | (5) |
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13.3 FIDIC forms versus NEC3 |
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310 | (3) |
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13.4 ICC forms of contract |
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313 | (1) |
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13.5 ENAA forms of contract |
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314 | (1) |
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13.6 IChemE forms of contract |
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314 | (1) |
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13.7 Orgalime forms of contract |
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315 | (1) |
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13.8 AIA forms of contract: US standard |
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316 | (2) |
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13.9 VOB: German standard |
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318 | (6) |
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13.10 Invalid clauses in German case law |
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324 | (4) |
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Vignette: The standard forms of construction contract in Australia by John Sharkey (Australia) |
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325 | (3) |
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328 | (1) |
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328 | (1) |
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329 | (1) |
| 14 Risk and Insurance |
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330 | (24) |
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14.1 Insurance in construction |
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330 | (1) |
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14.2 Commercial risk, risk of damage and exceptional risk |
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331 | (6) |
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Vignette: Weather risk in offshore wind construction contracts by Alex Blomfield (UK) |
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334 | (3) |
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14.3 Risk management in the standard forms of contract |
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337 | (2) |
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14.4 Hazards and risks in construction projects |
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339 | (3) |
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14.5 Insurance requirements in standard forms of contract |
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342 | (4) |
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Vignette: Insurance in hydroenergy projects by Alex Blomfield (UK) |
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345 | (1) |
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14.6 Practical aspects of insurance in construction projects |
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346 | (3) |
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Vignette: Incompatibility of the construction contract with the insurance contract by Karel Fabich (the Czech Republic) |
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348 | (1) |
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14.7 International insurance law and insurance standards in the construction industry |
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349 | (3) |
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352 | (1) |
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352 | (1) |
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353 | (1) |
| 15 Risk in Underground Construction |
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354 | (18) |
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15.1 Underground construction hazards and risks |
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354 | (1) |
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15.2 Code of practice for risk management of tunnel works |
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355 | (1) |
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15.3 Alternatives of unforeseeable physical conditions risk allocation |
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356 | (1) |
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357 | (1) |
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15.5 'Unforeseeability' according to FIDIC forms |
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358 | (1) |
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359 | (5) |
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Vignette: Water-related construction projects by Robert Werth (Germany) |
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361 | (3) |
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15.7 Sufficiency of the accepted contract amount |
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364 | (1) |
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15.8 Unforeseeable physical conditions |
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364 | (2) |
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15.9 Unforeseeable operation of the forces of nature |
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366 | (3) |
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Vignette: Clairvoyance: A contractor's duty? by Gustavo Paredes and Katherine Waidhofer (Peru) |
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366 | (3) |
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369 | (1) |
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15.11 Release from performance under law |
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370 | (1) |
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370 | (1) |
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370 | (1) |
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371 | (1) |
| 16 Securities |
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372 | (14) |
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16.1 Securities in construction |
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372 | (1) |
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373 | (1) |
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16.3 Functions and parameters of bank guarantees |
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373 | (2) |
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16.4 Specifics of Retention Guarantee |
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375 | (3) |
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Vignette: Performance security and termination payment security in hydroenergy projects by Alex Blomfield (UK) |
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377 | (1) |
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378 | (3) |
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Vignette: Common law specifics related to securities by Rupert Choat and Aidan Steensma (UK) |
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379 | (2) |
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16.6 ICC rules related to securities |
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381 | (1) |
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381 | (1) |
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16.8 Stand-by letter of credit |
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382 | (1) |
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16.9 Securities under FIDIC forms |
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383 | (1) |
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384 | (2) |
| 17 Civil Engineering Works: Infrastructure Construction Projects |
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386 | (37) |
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17.1 Investments in developing countries |
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386 | (1) |
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17.2 The approach to the risk allocation in the United States |
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387 | (2) |
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17.3 The approach to the risk allocation in the United Kingdom |
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389 | (3) |
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Vignette: Construction of airports by Patrick Kain (South Africa) |
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390 | (2) |
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17.4 The approach to the risk allocation in Central and Eastern Europe |
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392 | (7) |
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Vignette: The Romanian experience by Claudia Teodorescu (Romania) |
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395 | (4) |
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17.5 The Polish experience |
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399 | (16) |
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Vignette: FIDIC forms and contractual relationships in Poland by Aleksandra Marzec (Poland) |
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399 | (3) |
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Vignette: Market environment prior to and after 2008 by Michat Skorupski (Poland) |
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402 | (6) |
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Vignette: Claims considerations by Aleksandra Marzec (Poland) |
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408 | (4) |
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Vignette: Contractor defence measures by Michal Skorupski (Poland) |
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412 | (3) |
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17.6 The Czech experience |
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415 | (6) |
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Vignette: Local limits for development: An interview with Shy Jackson (UK) by Lukas Klee (the Czech Republic) |
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416 | (5) |
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421 | (1) |
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421 | (1) |
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422 | (1) |
| 18 Building Construction: Health Care Facilities |
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423 | (10) |
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18.1 Health care facility construction project |
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423 | (1) |
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18.2 Pre-design planning phase |
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423 | (1) |
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424 | (1) |
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18.4 Basic structure of a hospital |
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425 | (1) |
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18.5 Efficiency and cost effectiveness |
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425 | (1) |
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18.6 Flexibility and expandability |
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426 | (1) |
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18.7 Therapeutic environment |
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426 | (1) |
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18.8 Cleaning and maintenance |
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426 | (1) |
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18.9 Controlled circulation and accessibility |
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427 | (1) |
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427 | (1) |
|
|
|
428 | (1) |
|
18.12 Use of information technology |
|
|
428 | (1) |
|
18.13 Relevant regulations and standards |
|
|
428 | (1) |
|
18.14 Health care facility construction project: Suitable delivery method |
|
|
429 | (2) |
|
|
|
431 | (2) |
| Appendix A: Interactive Exercises |
|
433 | (8) |
|
A.1 Interactive exercise 1: Delivery method selection |
|
|
433 | (1) |
|
A.2 Interactive exercise 2: Claim for delayed site handover |
|
|
434 | (2) |
|
A.3 Interactive exercise 3: Claim due to suspension of work |
|
|
436 | (1) |
|
A.4 Interactive exercise 4: Subcontractor claim for contractor delay (lack of cooperation, inadequate on-site coordination and improper, unclear and delayed instructions) |
|
|
437 | (4) |
| Appendix B: Sample Letters |
|
441 | (20) |
|
B.1 Contractor's sample letters: Notice of probable future event |
|
|
442 | (1) |
|
B.2 Contractor's sample letters: Notice of contractor's claims |
|
|
443 | (2) |
|
B.3 Contractor's sample letters: Contractor's claim No. submission (quantification) |
|
|
445 | (1) |
|
B.4 Contractor's sample letters: Request for evidences of financial arrangements |
|
|
446 | (1) |
|
B.5 Contractor's sample letters: Written confirmation of oral instruction |
|
|
447 | (1) |
|
B.6 Contractor's sample letters: Notice of dissatisfaction with a determination of the engineer |
|
|
448 | (1) |
|
B.7 Contractor's sample letters: Notice of contractor's entitlement to suspend work |
|
|
449 | (1) |
|
B.8 Contractor's sample letters: Notice of contractor's claim under the Sub-Clause 16.1 |
|
|
450 | (1) |
|
B.9 Contractor's sample letters: Application for taking-over certificate |
|
|
451 | (1) |
|
B.10 Employer's sample letters: Notice of employer's claim |
|
|
452 | (1) |
|
B.11 Employer's sample letters: Answer to request for evidence of financial arrangements |
|
|
453 | (1) |
|
B.12 Engineer's sample letters: Engineer's determination |
|
|
454 | (2) |
|
B.13 Engineer's sample letters: Engineer's instruction |
|
|
456 | (1) |
|
B.14 Engineer's sample letters: Engineer's notice to correct |
|
|
457 | (1) |
|
B.15 Engineer's sample letters: Engineer's instruction to remove a person employed on the site |
|
|
458 | (1) |
|
B.16 Engineer's sample letters: Engineer's instruction - lack of mobilisation |
|
|
459 | (2) |
| Appendix C: Dictionary of Construction Terms: Chinese, Czech, English, French, German, Hungarian, Polish, Portuguese, Russian, Spanish |
|
461 | (17) |
|
C.1 Dictionary - General part |
|
|
462 | (8) |
|
C.2 Dictionary - Contractor's claims |
|
|
470 | (4) |
|
C.3 Dictionary - Employer's claims |
|
|
474 | (4) |
| Appendix D: Claim Management System under FIDIC Forms |
|
478 | (6) |
|
D.1 Claim Management Team Responsibilities |
|
|
478 | (3) |
|
D.2 Claim Management Processes |
|
|
481 | (1) |
|
D.3 Table of Contractor's claims under FIDIC CONS |
|
|
482 | (1) |
|
D.4 Table of Employer's claims under FIDIC CONS |
|
|
482 | (2) |
| Appendix E: FIDIC Forms Risk Allocation Charts |
|
484 | (3) |
|
E.1 Chart No.1: Basic risk allocation alternatives in connection with unforeseeable physical conditions |
|
|
484 | (1) |
|
E.2 Chart No. 2: Basic comparison of risk allocation (claims options) in FIDIC CONS/1999 Red Book, P&DB/1999 Yellow Book and EPC/1999 Silver Book |
|
|
484 | (3) |
| Appendix F: Engineer's Determination Within the Ambit of the 1999 Edition of the FIDIC Contract Forms: A Case Study of Contractor's Claims in Respect of Sand and Gravel Borrow Areas |
|
487 | (42) |
|
|
|
|
|
490 | (1) |
|
|
|
490 | (1) |
|
E.3 Contractual provisions for a claim |
|
|
491 | (1) |
|
E.4 Compliance with the contractual provisions |
|
|
492 | (1) |
|
E.5 Consultations with the employer and the contractor |
|
|
493 | (14) |
|
E.6 Contractor's original intent |
|
|
507 | (5) |
|
E.7 Stage 2 - Contractor's tender submission |
|
|
512 | (1) |
|
E.8 Conclusion in respect of contractor's original intent |
|
|
512 | (1) |
|
E.9 Post contract award period |
|
|
513 | (3) |
|
E.10 Contractor's reasons for refusal to exploit the river bed borrow areas |
|
|
516 | (2) |
|
E.11 Equipment required for exploitation of river bed borrow areas |
|
|
518 | (2) |
|
E.12 Engineer's analysis of the foregoing circumstances and facts |
|
|
520 | (3) |
|
E.13 Additional costs and delays |
|
|
523 | (2) |
|
E.14 Unjust enrichment of the contractor all at the expense of the employer |
|
|
525 | (1) |
|
E.15 Engineer's determination of S&G borrow area claim notices |
|
|
526 | (3) |
| Index |
|
529 | |
