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ITA - AITES
ITA - AITES
Tunnelling
Adversity will be encountered
This Adversity must be overcome
Payment will be required
ITA - AITES
Contractually
Adversity must not mean failure
Project Success must not mean
bankruptcy of state or corporation
Payment must be fair and just
ITA - AITES
State
Must be prudent with citizens
natural and fiscal resources
Political champions reputations rise
and fall on project success
ITA - AITES
Companies
Reputations are just as important for
survival as individuals
Corporate interests are not served
by failed projects either
ITA - AITES
Contracting
The terms and management of the contracts we
create greatly influence the successful
management of the inevitable technical
challenges tunnelling
It is in all parties interests to optimise
tunnelling as a commercial arrangement not
engage in gambling and fighting
ITA - AITES
Contracts
Universal principles
Local approach
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Colonialism
It is wrong to impose a contract
from one country upon another
country.
To do so is a form of legal and
economic colonialism
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Options
Almost infinite
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Example Contracts
FIDIC
NEC New Engineeering Contract
Version 3 issued by the ICE June
2005
American Society of Civil Engineers
VOB German Standard Form of
Contract
French Conditions of Contract
SIA Swiss Conditions of Contract
Latest Revision November 2004
etc
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Hybrid
Mixtures of contracts and/or edited
standard form contracts
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New Frameworks
Eg
Public Private Partnerships
Alliancing
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Challenge?
Adjust contracts to suit India's
needs
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Reasons?
Contractual Problems:
Design changes
Geological and ground problems
Poor weather conditions
Delayed deliveries of plant and equipment
Lack of understanding out of communication
mechanisms between the parties
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Dispute Resolution
Failure to accept decisions
Appeal rights almost always
exercised
Payments delayed/refused
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Options
It is right to present contractual
options
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Tailoring
It is the duty of the Lawyers to
tailor the contractual framework.
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Suggestion
Clearly define what India Wants
Eg 30,000 MW by 2015?
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Understand
How business is conducted in
India
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BANKING
INSURANCE
LABOUR MARKET
REGULATIONS
POLITICS
DISPUTES
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Difficult geology
Poor dispute management
Beurocracy
Delays
Funding
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Tailor
Use ITA as a barometer to check that
due regard has been had to critical
subject areas
Tailor the contracts to meet the local
commercial and political conditions.
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Conclusion
In Contracting there are new tools to
better embrace the inevitable challenges
of underground construction
These contracting tools must be tailored
the special needs of the countries in
which they are used.
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