The UAE Civil Code and Claims under the Red Book FIDIC in the UAE

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The UAE Civil Code and Claims under the Red Book FIDIC in the UAE
Filed in Contract Administration on Nov.13, 2008

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The UAE Civil Code and Claims under the Red Book FIDIC in the UAE For all its innovation and spectacular achievements, the construction industry in the UAE has been slow to move on from its close relationship with the FIDIC Red Book (4th Edition) (the Red Book). This was, of course, superseded long ago and it is
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There are two provisions of the Red Book which state that a failure to comply with the specified notice or particularisation procedures for making a claim will justify the rejection of the claim. First. However. Subscribe q Unsubscribe Related Links The Red Book provides a number of notoriously tricky procedures for claim notification and particularisation to be followed by the Contractor. Entitlement to Claim The Red Book provides that in certain circumstances a Contractor’s entitlement to claim may be lost if he fails to give notice of his intention to claim or fails to provide detailed claim particulars within the timescales prescribed.org/archives/238 (2 of 5)11/07/2011 1:56:32 PM q Become a Fan of CMGUIDE q Categories r Civil Engineering Cmguide Articles Construction Industry Construction Law Construction Technology Contract Administration General Management PMP Hints Procurement Management Project Management Upcoming Events r r r r r r r r r r . which is concerned with applications for extensions of time. the Engineer may be entitled to reject the claim outright. Building and civil works contracts in the UAE are generally governed by UAE law and hence the UAE Civil Code (the Civil Code) will apply. This clause provides that in case of noncompliance with the time limit to provide notice and/or to provide detailed claim particulars. a more moderate and fair outcome may emerge. Your email: Enter email address. outside of this region.The UAE Civil Code and Claims under the Red Book FIDIC in the UAE scarcely used anywhere else in the world.. it seems to be implied in some cases that if these procedures are not strictly adhered to by the Contractor. This article considers how.. Clause 44. the Engineer “is not bound to make any determination” of a claim for an extension of http://www.cmguide. They are not sharply drafted and their meaning and intent are not always clear. the claim will be dead in the water – in other words.2. when express notification procedures are read in the light of applicable provisions of the Civil Code.

it could. This could apply. within the stipulated time period and. Clause 52. that the Employer and the Engineer have actually been notified of the existence of the claim. in such a case. r r FIDIC-Guide to the use CONDITIONS OF CONTRACT FOR Design and Build (1. among other things. this clause allows for a claim to be disallowed if the 14 day time limit is not complied with The Civil Code If the Engineer feels inclined to reject an otherwise meritorious claim solely by reason of non-compliance with strict technicalities of the notification procedures it is important for him to consider the provisions of the Civil Code.The UAE Civil Code and Claims under the Red Book FIDIC in the UAE time. Second. The Contractor may argue. q Construction News r Saudi Arabia's Qassim Cement profit rises 6. This clause states that the varied work will not be valued unless notice of an intention to claim extra payment is made within 14 days of the date of the instruction. The Engineer.55% UAE President's Housing Initiative: Works on 258 houses to begin soon r r Iraq: Five laboratories for imports inspection under construction . Furthermore. the Engineer rejects a claim for additional payment for varied work purely on the grounds that the time limit for notice has not been met. which applies to applications for payment for variations. be relevant. as a matter of UAE law.5 MiB. Article 106 says that the exercise of a right shall be unlawful if.org/archives/238 (3 of 5)11/07/2011 1:56:32 PM q Latest Articles r On-demand bonds are not foolproof Retrospective Delay Analysis Techniques COURTS PROVIDE PROTECTION FOR SUBCONTRACTOR IN CLAIMS r r r Why eco-friendly builders should research green performance bonds Benefits and issues of design-build model Communication Management Plan Examples Opening and Closing remarks of Construction Lifecycle Risk Management Conference r r r r Inherent Risk Factors q Downloads r FIDIC-Client Consultant agreement (50 bytes. r FIDIC RED BOOK 1999 (13. consideration of good and bad faith may. in a written form.9 KiB. 795 hits) You do not have permission to download this file. Strictly construed. this may well be unlawful.6 MiB. r Four ways to become an effective manager (871. the interests desired are disproportionate to the harm that will be suffered by the other party. Thus. the purpose of the notification provision has been fulfilled and that it would be an act of bad faith not to accept this. Article 246 states that contracts must be performed in a manner consistent with the requirements of good faith. The Civil Code also states that neither party may exercise its rights under a contract in a manner which is oppressive or abusive to the other. For instance. 766 hits) You do not have permission to download this file. which might have a bearing on the issue. for example. Articles 318 and 319 of the Civil Code provide that unjust enrichment is unlawful. as a matter of UAE law. for example. has a discretion not to make a determination if either the time limit for notice or for particularisation is not met. therefore.cmguide.7 MiB. as is sometimes the case. as such. where a Contractor points to information given in agreed minutes of a meeting or a periodic report as written notice of an intention to claim.2. If. if an otherwise valid and meritorious claim is disallowed solely by reason of purely technical breach of a notice provision. 694 hits) You do not have permission to download this file. If. especially if the likely financial harm to the Contractor is disproportionate to the interests in upholding the Employer’s contractual right to receive timely notice.047 hits) Lessons in project management (1. as required by the Red Book. 4. 782 hits) You do not have permission to download this file. a question arises as to whether information in a formal minute or a written report is strictly “written notice”. be the case that the Employer has been unjustly enriched by benefiting from additional work while seeking to avoid payment by relying on a procedural http://www. the Civil Code makes clear that neither party to a contract should act in bad faith.

law. have a modified or different effect when read together with applicable provisions of the Civil Code. www.The UAE Civil Code and Claims under the Red Book FIDIC in the UAE technicality. FIDIC. might not have the meaning. numerous other provisions of the Civil Code which are likely to be relevant and must be considered when advising the Contractor. in fact.cmguide. Consequently.com Similar Topics q q q q q r KSA: Petro Rabigh phenol project over in '14 Iran: Techno-Engineering Services Exports on Rise r q Tags arbitration budget building civil claim communication contractor cost crisis delay dispute disruption employer escalation extension LAD law manager negotiation nomination notice partnering payment FIDIC finishes green industry insurance JV The ins and outs of ‘suspension of the works’ under construction contracts Termination of the contract Terms of NSC Employment Breaking up is never easy Construction Claims products quality risk safety skills structure suspension sustainability technology tendering planning procurement termination TQM variations WBS q ShareThis Print This Post Category: Contract Administration Tags: claim. of course. Comment This article highlights only a few examples of how the Red Book. when read in the context of the applicable provisions of the Civil Code. or at least the effect. Contractual provisions which appear to have drastic consequences as written in the Red Book (or in any other standard form contract which may be used in the UAE) may. 2010 at 9:12 am The arguments advanced by the author are very valid but I find them insufficient and incomplete. The Claims Management procedures present in FIDIC are both beneficial and therefore also hurtful at times to both the Employer as well as the Contractor. termination User Panel r Register Log in Lost your password? r r Comments (1) | 9. There are. suggested by the express words used. the claim may succeed in the eyes of UAE law even if the notice procedures were not complied with.org/archives/238 (4 of 5)11/07/2011 1:56:32 PM .dentonwildesapte. EOTs also protect the Employer from time becoming http://www. While protecting the Contractor from Liquidated Damages. Engineer or Employer.853 views q Related Links One Response to “The UAE Civil Code and Claims under the Red Book FIDIC in the UAE” Roland Tannous Says: November 5th.

Roland Tannous q Join CMGUIDE Networks Leave a Reply You must be logged in to post a comment.org . the absence of a “time bar” (i. All rights reserved. http://www. it would become clear the purpose for which the notice provisions are there for. Best Regards.e within 28 days for example) means that the obligation is due immediately. Therefore this behaviour by the contractor would also be against ARticle 246 of the UAE Civil Code. A second reason is that it gives the Engineer the opportunity to withdraw or to give instructions when the financial and timely consequences of a claim event become apparent. the time bars on notice provisions are therefore fair even under Civil Law Context. General Management | Project Management | Civil Enigneering | Contract Administration | Construction Industry | Management Hints | Download | Cmguide Articles Copyright © 2008 cmguide. In this aspect .org/archives/238 (5 of 5)11/07/2011 1:56:32 PM .cmguide. Once this is understood. Also remember that in most Civil Code countries.The UAE Civil Code and Claims under the Red Book FIDIC in the UAE at large. Not giving a timely notice could also be interpreted under civil law to be a an act of bad faith on the part of the contractor towards’ the Engineer’s right to realise the financial and timely consequences of a claims event in a “timely manner”. Under FIDIC terms of contract it should be taken in account that the claim procedures are part of a balanced risk allocation One reason for time bars and other procedural restrictions lies in the fact that a claim notice enables matters to be investigated while they are contemporary.

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