International Construction Contracts A Handbook

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  • Edition: 1st
  • Format: eBook
  • Copyright: 2013-01-24
  • Publisher: Wiley-Blackwell

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Many large construction projects, such as those in the Middle East or Asia Pacific, are international in scope with a range of contractors and subcontractors signing contracts for delivery of specified work or services. The contractual situation in these instances may be complex and potentially includes a range of standard and bespoke contractual arrangements. In addition, the parties to these contracts may be based in different parts of the world, and are often working to different legal systems and understandings. This can lead to confusion in the understanding, interpretation and execution of a given contract.

International Construction Contracts provides concise and practical guidance to those involved in the negotiation and management of international construction and engineering contracts. It sets out in clear, straightforward language the main features of construction contracts and international dispute resolution procedures. It ensures the reader is aware of the issues that might arise on the contractual side of their project so that they may better protect their party's interests. Many of the features and points discussed are illustrated by reference to the popular FIDIC contracts and the book includes a commentary on the two most widely used FIDIC design-build forms, the Yellow and Silver Books. Also included in the book is a fully worked example of a typical ICC arbitration from start to finish, with "pleadings", a detailed case narrative and commentary on events, and an example arbitration award. The ICC and SIAC arbitration rules are also provided.

Written for construction professionals, the book will be of great interest to engineers, architects, project managers, quantity surveyors, contract managers and contract administrators working on international projects.

Author Biography

William Godwin is a barrister specialising in construction, engineering, energy and infrastructure projects and has over twenty years’ experience of international construction acting for contractors, employers, developers and consultants in projects of all kinds. A regular speaker at the FIDIC international users’ conferences, William conducts accredited training in the FIDIC contracts through Matrix Seminars, is an arbitration panel member of the China International Economic and Trade Arbitration Commission and the Dubai International Arbitration Centre, and an approved adjudicator of the English Technology and Construction Bar Association.

Table of Contents



About the Author




I. What is a Contract?

1. A working definition

2. Agreement

3. Do contracts need to be in writing?

4. Other elements of a contract

5. Capacity and authority

6. Importance of a written contract

7. What should a properly written construction contract cover?

8. Tailoring the contract

Chapter 2 Risk

9. How risk may be allocated

10. The ‘traditional’ approach to risk

11. EPC/turnkey projects

12. BOT-type projects

13. Parties to a BOT-type project

14. Contracts involved in a BOT-type project

15. The FIDIC Silver Book

16. Particular Risks: the Unforeseen and Design

Chapter 3 Types of Construction Contract

17. Lump sum contracts

18. Prime cost or reimbursable contracts

19. Unit price contracts

20. Target contracts

21. Which contract?


Chapter 4 The FIDIC Design-Build Contracts

22. Some key general provisions

23. The Employer

24. Contract Administration and the role of the Engineer

25. The Contractor

26. Design

27. Staff and Labour

28. Plant, Materials and Workmanship

29. Time: Commencement, Delays and Suspension of the Works

30. Tests on Completion

31. Employer’s Taking Over

32. Defects Liability

33. Tests after Completion

34. Variations and adjustments to the contract price

35. Payment

36. Termination by the Employer

37. Suspension and Termination by the Contractor

38. Risk and Responsibility

39. Insurance

40. Force Majeure

41. Contractor’s claims, disputes and arbitration


Chapter 5 Disputes and How to Resolve Them

42. Introduction

43. Legal Aspects of a Construction Project

44. Kinds of Claim

45. Making a Claim

46. Who decides whether to accept a claim?

47. Dispute Review Boards and the FIDIC DAB

48. Methods of Dispute Resolution

49. Arbitration

50. How are International Arbitrations conducted?


Yugo Design Company v Sino Industries Corporation: an ICC Arbitration from Start to Finish


Rules of Arbitration of the International Chamber of Commerce

Rules of Arbitration of the Singapore International Arbitration Centre


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