16 BUSINESS AND TRAINING
• Can the scope of work described realistically be carried out for the contract sum ?
• Is ‘ beneficial occupation ’ required ? This is not provided for in any of the 4 SfCs but must described in the tender / construction documentation .
• Does the project comply with all applicable statutory regulations ?
• Have any other risks to the project execution been identified and assessed ?
• If in doubt – consult a technical or legal person with experience in construction practice / contract law .
Note : Either party may be in breach of contract by failing to comply with a contractual obligation – typically by not acting within the stipulated time or submitting a claim or making payment .
Highlight in another colour a list the other party ’ s obligations :
• Has the other Party given itself ‘ rights ’ not normally associated with this type of contract ?
• Payment – the period to make payment is described in the SfCs :
• Has the period for payment been modified ?
• Is the employer prepared to provide a security for payment ?
• Note that only FIDIC refers to ‘ requesting proof of the employer ’ s ability to pay ’
• Confirm the insurance requirements .
• Type of insurance – by employer ( request proof thereof ) or by contractor ?
• Value to be insured , validity period , excess amount ?
DISAGREEMENTS AND DISPUTES If any disagreement occurs , forthwith give notice thereof to resolve it speedily .
• Seek to avoid disputes through regular communication with the CA .
• Confirm that the dispute resolution clauses have not been modified .
• Step 1 : attempt to resolve the matter between the parties .
• Step 2 : involve the CA or a mediator to guide the dispute resolution process .
• Step 3 : consider adjudication to resolve contract / procedural matters .
• Step 4 : arbitration to resolve complex and interpretation issues .
• Step 5 : ( avoid ) litigation .
By following these criteria , execution should result in a successful and profitable project ! PA
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Arthur Classen displays his monkey wrench and crescent gas pliers .