6CN011 Contract Law and
Dispute Resolution (Qatar)
Lecture 5
Progress, Completion &
Defects
This session will cover
Progressing with the (construction)
works
Extension of time
Completion
Dealing with defects
Re: The Engineers role
The Engineer also plays a role in
Commencement, Delays and
Suspension (Details in Lecture No.5)
8.1 Commencement of Works, 8.3 Programme, 8.4
Extension of time for completion, 8.6 Rate of progress,
8.8 Suspension of Work, 8.9 Consequences of
Suspension, 8.11 Prolonged Suspension, 8.12
Resumption of Work
Commencement & progressing
(8.1)
Construction to commence within 42
days of letter of acceptance see
timeline
Engineer to give minimum of 7 days
notice for commencement
Works to progress with due
expedition and without delay
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The Programme (8.3)
Within 28 days after receiving
Commencement of Works notice, C should
submit to the Engineer a detailed
programme including
Order in which C intends to carry out the Works
Work by nominated subcontractors
Sequence and timings of Inspections and testing
Supporting report including: description of
methods, personnel & construction equipment
Programme to be updated if circumstances
change
The Programme (8.3)
Engineer has 21 days from receipt of the
programme to check and ensure that it
complies with the Contract.
Points to note:
Programme is not a contract document
Programme is not for approval of the Engineer
Form of the programme is not dictated
Contractor to give notice or early warning to the
Engineer of probable future events or circumstances,
which might adversely affect the works (Sub-clause
8.3)
Contractor may be asked to estimate consequent
effects
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Exercise
Discuss benefits of a programme to:
[Link]
[Link]
The Programme (8.3)
The Engineer requires programme to:
1.
Organise their office re: drawings,
schedules, nominated s/cs
2.
Organise their engineering staff and
inspectors
3.
Monitor the contractors progress
4.
Establish the cash flow (for the Employer)
5.
Monitor claims for extensions of time
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The Programme (8.3)
The Contractor requires programme
to:
1.
2.
3.
4.
Organise subcontractors, procure plant,
labour and materials
Plan and control the works
Establish the basis of claims
Establish the cash flow
The Programme (8.3)
Reasons for Employers/Engineers requiring
Contractors to include programme and method
statements with their tender:
Help to appraise tenders
Help Employer to fulfil own obligations
Help Employer to co-ordinate work with others
Relevant legal case
Yorkshire Water v Alfred McAlpine (1985) see
page 10 of the notes
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Extension of time for completion
(8.4)
Grounds for e.o.t. include:
A variation or other substantial change in
quantity
Delay under sub-clause of these conditions
Exceptionally adverse climatic conditions
Shortages in personnel or goods caused by
epidemic or government actions
Delay caused by the employer
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Exercise
Identify situations which can give
rise to extension of time
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Extension of time for completion
(8.4)
The following clauses carry an
entitlement to an extension of time plus
cost and a reasonable profit
1.9 Delayed drawings and instructions
2.1 Right of access to the site
4.7 Setting out
7.4 Testing
10.3 Interference with Tests on Completion
16.1 Contractors entitlement to suspend
work
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Extension of time for completion
(8.4)
The following clauses carry an
entitlement to an extension of time plus
cost only
4.12 Unforeseen physical events
4.24 Fossils
8.9 Suspension initiated by the Employer
13.7 Adjustment for changes in legislation
17.4 Consequences of employers risks
Consequences of force majeure
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Extension of time for completion
(8.4)
The following clauses carry an
entitlement to an extension of time
only:
8.5 delays caused by authorities
15
Boskalis Wesminster Construction
Ltd v. Liverpool City Council (1983)
B entered into a contract with L for the
construction of dwellings. The contract
(under JCT63) provided for industrial action
as a Relevant Event. A question put to the
Court following an Arbitrators award was
whether delays caused by strike actions of
the employees of the Statutory Undertaker
employed by the Employer to carry out work
not forming part of the Contract was covered
by the Clause?
Yes/No?
Boskalis Wesminster Construction
Ltd v. Liverpool City Council (1983)
No
Break
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Completion
Contractor shall complete all or
section(s) of the works:
Within time(s) allowed (8.2)
C can apply for Taking-over Certificate
within 14 days of completion (10.1)
1.
2.
E to issue this Certificate within 28 days;
or reject the application with reasons
Certificate deemed issued if E fails to
comply in No.1
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Completion
Completion means works are
finished except:
For minor works and defects which
will not substantially affect the use
of (sections of) the works (10.1.a)
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Tests on Completion (9.1)
Contractor shall carry out tests on
Completion:
Notify E, at least 21 days in advance
Carry out test within 14 days of the
date notified
Report certified results of tests passed
to the Engineer
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Tests on Completion (9.2)
If Contractor fails to carry out tests
on Completion:
E may by Notice , ask Contractor to
carry out tests within 21
If Contractor still does not comply,
Employers personnel may carry out
the tests
Contractor will be deemed present and
results accurate
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Defects (11.1&2)
A Defects Notification Period (DNP) is
applicable see contract
Defects notified by:
The Engineer in the Taking-Over Certificate
The Employer Within the DNP
Defects attributable to the Contractor
are rectified at his own cost; while
others are treated under the Variation
Procedure
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Defects
DNP may be extended, by up to 2
years maximum, if a defect renders
the works unusable (11.3)
If a Contractor fails to remedy a defect
(11.4):
Employer can remedy it at the
Contractors expense
Employer can also terminate the Contract
if the defect deprives him of the works
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Defects
Works can be retested after
rectifying defects (11.6)
Subject to Employers security
measures; Contractor to be
allowed access to the works for
remedying defects (11.7)
25
Claim by Employer (Time)
H.W. Nevill (Sunblest) Ltd v William Press &
Son Ltd:
1st Contractor came to correct defective
works
1st Contractor delayed 2nd Contractor
plus obstructed the Employers functions
Employer then claimed for both cost of
delay to 2nd Contractors work and his
own late openings
Should the Employer succeed?
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Claim by Employer (Time)
H.W. Nevill (Sunblest) Ltd v William
Press & Son Ltd:
Should the Employer succeed?
Yes
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Defects
Performance Certificate issued after all
defects have been rectified (11.7-11)
Within 28 days of expiration of DNP
Performance Certificate issued to the
Employer
Performance Certificate constitutes the
acceptance of the Works
Contractor to clear Site of rubbish, etc.
within 28 days of Performance Certificate
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Defects
Despite the issue of Performance
Certificate (11.10):
1.
2.
Each party will remain liable for any
unfulfilled obligations
Contract remains in force due to No.1
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This session has covered
Progressing with the (construction)
works
Extension of time
Completion
Dealing with defects
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Lecture 5 - Tutorial
1.
2.
FIDIC demands that Works should progress
with due expedition and without delay.
Discuss reasons why contractors might not
proceed diligently with a project
On some instances FIDIC expects the
Engineer to give a notice to the Contractor,
and vice-versa. Identify 6 notices
mentioned in FIDIC and when they should
be issued.
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