50 common contractual problems v6charltonmartin.com/wp-content/uploads/2018/01/50-common... ·...

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Detailed Explanation for difficult problem areas Speakers Who Are Experienced construction industry practitioners Comprehensive Course Material (Comprehensive Seminar Notes / Copy of Slides Presentation) Reference to Malaysia Standard Forms of Contract The benefits Anyone involved in the administration of construction contracts including Architects, Engineers, Quantity Surveyors, Contractors, Subcontractors, Principals, Lawyers, Government Bodies, Employers, Consultants, Project Managers, Suppliers, Planners / Schedulers. Who should attend “Comprehensive seminar material” “The Q & A sessions and case studies during the workshop were very practical and related to my work” “The content and language used by the speakers was easy to understand and straight forward” “Speakers interacted well with the participants” “Practical knowledge that helps in my daily work” What participants have said about Charlton Martin Seminars This seminar qualifies to meet the CPD requirements of the Construction Industry Development Board, Board of Quantity Surveyors Malaysia, Board of Architects Malaysia, Board of Engineers Malaysia and international professions. HRDF claimable, A certificate of attendance will be issued. CPD Credit Points 29 March 2018 (Thursday) 8.30 AM - 5.00 PM Time : Venue : Junior Ballroom, Level 2, InterConnental Kuala Lumpur, Jalan Ampang, Kuala Lumpur Common CONTRACTUAL 50 Includes over 40 brand new questions PROBLEMS

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Page 1: 50 Common Contractual Problems v6charltonmartin.com/wp-content/uploads/2018/01/50-Common... · contractor to carry out the subcontract work and it is ... in PAM 2006 if the contractor

Detailed Explanation for difficult problem areasSpeakers Who Are Experienced construction industry practitionersComprehensive Course Material (Comprehensive Seminar Notes / Copy of Slides Presentation)Reference to Malaysia Standard Forms of Contract

The benefits

Anyone involved in the administration of construction contracts including Architects,Engineers, Quantity Surveyors, Contractors, Subcontractors, Principals, Lawyers,Government Bodies, Employers, Consultants, Project Managers, Suppliers,Planners / Schedulers.

Who should attend

“Comprehensive seminar material”“The Q & A sessions and case studies during the workshop were very practical and related to my work”“The content and language used by the speakers was easy to understand and straight forward”“Speakers interacted well with the participants”“Practical knowledge that helps in my daily work”

What participants have said about Charlton Martin Seminars

This seminar qualifies to meet the CPD requirements of the Construction Industry Development Board,Board of Quantity Surveyors Malaysia, Board of Architects Malaysia,Board of Engineers Malaysia and international professions.HRDF claimable,A certificate of attendance will be issued.

CPD Credit Points

29 March 2018(Thursday)

8.30 AM - 5.00 PMTime :

Venue :Junior Ballroom, Level 2, InterContinental Kuala Lumpur, Jalan Ampang, Kuala Lumpur

CommonCONTRACTUAL50

Includes over 40 brand new questions

PROBLEMS

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1. Where a contractor or subcontractor submits a tender with its own conditions of contract attached, which are neither accepted nor rejected, do these conditions apply if the work is allowed to proceed?

2. The submission of an unambiguous quotation which receives an unconditional acceptance can normally form the basis of a legally binding contract. If following the commencement of work, a formal contract is signed which contains conditions which are at variance with those referred to in the quotation and acceptance, which of the competing conditions apply to the work: those in the signed formal contract, or those referred to in the o�er and acceptance?

3. If an architect / engineer, acting as employer’s agent in a Design and Construct contract, approves the contractor’s drawings and subsequently errors are found, will the architect / engineer have any liability?

4. If a subcontractor submits a lump sum estimate to a contractor to carry out the subcontract work and it is unconditionally accepted, can he later change the price on the basis that the lump sum was only an estimate?

5. What is the di�erence between a �tness for purpose responsibility and an obligation to exercise reasonable skill and care?

6. Must a contractor notify an architect / engineer of defects in the latter’s design?

7. Where an architect / engineer is required by the conditions of the contract to approve, or accept a contractor or subcontractor’s drawings, how long can he take before an entitlement to an extension of time arises?

8. Where an item of work has been properly provided for in the Employer’s Requirements but is missing from the Contractor’s Proposals, can the contractor claim extra payment for doing the work, on the grounds that it was never included in the contract price?

9. What are the advantages and disadvantages to an employer and contractor in work being commenced on the basis of a letter of intent?

10. Will a claim for an extension of time and the recovery of loss and expense which does not precisely detail the period of delay and the amount claimed in respect of each claim matter causing delay (i.e. a failure to link cause and e�ect), sometimes referred to as a global claim, fail?

11. Does the employer still need to prove actual loss incurred despite having a liquidated damages clause in PAM 2006 if the contractor challenges the employer’s liquidated damages claim in courts? Does any standard form of contract dispense with the need to prove actual loss?

12. Does a contractor or subcontractor lose entitlements to extensions of time if he fails to submit the appropriate notices and details required by the contract?

13. When an architect / engineer is considering a contractor’s application for an extension of time, can he reduce the period to which the contractor is entitled to re�ect time saved by work omitted?

14. Some standard forms of contract, such as PAM, provide for extensions of time where work is delayed due to “force majeure”. What is force majeure?

46. Does an adjudicator who communicates with one party without disclosing the details of the communication to the other party risk his decision being nulli�ed by the courts?

47. If an adjudicator issue a decision late, can it be enforced?

48. Can the party that is successful in adjudication recover its costs from the losing party?49. Where one party claims that the adjudicator has no jurisdiction, but, whilst maintaining this position, continues to take part in the proceedings, can that party avoid paying the adjudicator’s fees on the grounds that he claim the adjudicator has no jurisdiction?

50. It has been argued that adjudication in accordance with the CIPAA, because of the short time scale involved, should not be used in complex cases, as it is likely to result in a breach of natural justice; is this correct?

21. With a programme shorter than the contract period, can the contractor / subcontractor claim additional payment if, because of the timing of the issue of the architect/engineer’s drawings, he is prevented from completing in accordance with the shortened programme?

22. Where a contractor / subcontractor is granted an extension of time, is there an automatic right to the recovery of loss and expense?

23. Will the courts enforce claims for head o�ce overheads based upon the Hudson or Emden formulae, or must the contractor be able to show an increase in expenditure on head o�ce overheads resulting from the overrun?

24. What methods of evaluating disruption have been accepted by the courts and what is meant by the “Measured Mile”?

25. Will a contractor or subcontractor substantially prejudice its case for additional payment if it fails to keep adequate accurate records?

26. Once it is established that additional payment is due for prolongation resulting from an employer’s delays, should the evaluation relate to the period when the e�ect of the delay occurs or by reference to the overrun period at the end of the contract? Will the prolongation cost incurred for the whole of the site be recoverable, or only those associated with those parts of the works which are delayed?

27. Who is responsible for the additional costs and delay resulting from unforeseen bad ground conditions; the employer, or contractor / subcontractor?

28. Can a contractor / subcontractor be forced to carry out a variation after practical completion?

29. Where work is omitted from the contract by way of a variation, can a contractor or subcontractor claim for loss of pro�t?

30. How are “fair” rates de�ned?

15. Are liquidated damages which are calculated using a formula or based upon a percentage of the contract sum enforceable?

16. Where a contract includes a single liquidated damages amount for failing to complete the whole of the works by the completion date, what entitlement does the employer have to claim from the contractor who has failed to complete parts of the work by the milestone dates written into the contract?

17. Are liquidated damages payable in respect of delay which occur after a contractor’s employment has been terminated but before practical completion?

18. Do liquidated damages provide a complete remedy for delays to a contract?

19. Can an architect / engineer grant an extension of time after the date for completion has passed?

20. Can a contractor avoid payment of liquidated or delay damages where he fails to serve a delay notice, which the contract states is a condition precedent to the granting of an extension of time?

34. What is the di�erence between patent defects and latent defects?

35. Work has been completed and defects in the contractor’s work identi�ed. The architect instructs the contractor to make good the defects, but the contractor either refuses or neglects to undertake the work. It is left to the employer to make his own arrangements to appoint another contractor and make a charge in respect of the cost incurred against the defaulting contractor. The work is quite expensive and the employer is legally obliged to make a payment to a tenant who was force to vacate the premises for a period whilst the work is carried out. Is the employer entitled to recover the payment it was obliged to make to the tenant from the defaulting contractor?

36. Most subcontracts provide for the release of the �nal balance of retention only when the period included in the contract for correcting defects has expired and all defects under the main contract have been made good. If the main contractor or other subcontractors are dilatory in making good defects, is there any mechanism to enable the subcontractor to secure an early release of retention?

37. Who is responsible if damage is caused to a subcontractor’s work by a person or persons unknown, the subcontractor, contractor or employer?

38. Are there any circumstances under which a contractor / subcontractor could bring an action for the recovery of damages against an architect / engineer for negligence?

39. What is a contractor’s liability to the employer for failing to conform the speci�cation, where it is impractical for the employer to take down the non-conforming work?

40. Can suppliers rely upon exclusion clauses in their terms of trading to avoid claims for supplying defective goods, or claims based on late supply?

41. What level of supervision must an architect provide on site?

42. Where a speci�cation includes a named supplier “or other approved”, can the architect / engineer refuse without good reason to approve an alternative supplier proposed by the contractor/subcontractor?

43. If a subcontractor is failing behind programme and in danger of completing late because of his own ine�ciencies, can the contractor bring other labour onto the site to supplement the subcontractor’s e�orts, to ensure completion on time?

44. Where a contractor takes over work which is part completed, does it have any responsibility for correcting work which was incorrectly undertaken by the previous contractor that it has replaced?

45. Where an engineer is employer by the employer, is he legally obliged to warn of dangers associated with the temporary works which are designed and constructed by a contractor?

SEMINARCONTENT

Tenders, Bidding & Design

Loss and Expense & Variations

Extension of Time

Rights and Remedies

Adjudication

31. How are practical completion and substantial completion under the PAM and KLRCA conditions de�ned?

32. Where an employer takes possession of a building or engineering facility before all the works has been completed, can the contractor rightfully claim that practical completion of substantial completion has been achieved in relation to the part taken over?

33. Is a contractor / subcontractor absolved from any liability if the employer refuses him access to make good defects because he chooses to make them good himself?

Practical Completion and Defects

Pending

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ABOUTTHE SPEAKERS

RODNEY MARTINChief Executive

JOHN WONGDirector

Rodney is Chief Executive of the Charlton Martin Group, having previously been employed as Group Regional Director and Senior Vice President of two major contracts consultancy groups in the Asia Pacific Region. Of his 31 years of experience, 21 have been at senior level in this region. Additionally Rodney has worked for many clients in Europe, Africa, the Middle East, and India. Rodney holds dual qualifications in quantity surveying and law and as a chartered quantity surveyor is a specialist in construction contract consultancy providing professional and technical advice to clients relating to contract documentation, contractual claims, dispute avoidance and resolution. He is an accredited mediator, panel arbitrator and panel adjudicator with the Kuala Lumpur Regional Centre for Arbitration and is an experienced speaker within the region. He is a Fellow of the Chartered Institute of Arbitrators as well as both the Malaysian and Singapore Institute of Arbitrators. Rodney has been appointed as Expert Witness on matters relating to quantum and has acted as lay advocate in arbitration proceedings. Rodney has also been appointed as an arbitrator, mediator, adjudicator and Dispute Adjudication Board member in Malaysia. He has lived in Kuala Lumpur since 1997.

RODNEY MARTIN BSc, LLB(Hons), MSc, MRICS, FCIArb, FMIArb, FSIArb, FMSAdj

Michael Charlton and Rodney Martin have worked together successfully for the past 21 years, the last 11 of which have been as Chairman and CEO of the Charlton Martin Group. The Charlton Martin Group was established in 2007 with practices in Hong Kong, Singapore and Malaysia. They bring in excess of forty years experience of working in the Asia Pacific and Australian regions. The Charlton Martin Group provides services to the construction industry on contractual matters and contract administration; claims preparation; training and seminars; mediation; adjudication and arbitration services and representation; litigation support and expert witness services.

For further information in regard to the Malaysia practice, please contact Rodney Martin, Managing Director of Charlton Martin Consultants Sdn Bhd in Kuala Lumpur

Tel: 603 2287 5175 or email [email protected]. Visit our website: www.charltonmartin.com

CHARLTON MARTIN – Construction Contracts Consultants

Shawn is a well-qualified multi-disciplinary professional with over 31 years’ of experience in construction, engineering, energy and infrastructure projects. His experience on large scale projects covers many sectors, executed under various contractual arrangements, inter alia, Traditional Contracts, Management Contracting, Construction Management, Design & Build, Turnkey, BOT, PFI and PPP. Shawn specialises in the provision of dispute related services, having previously been employed in two major contract consultancy groups and as senior commercial manager of a large multi-national company where he headed the commercial and risk division, managing and directing operation resources, oversees contract administration, arbitration, adjudication, and other legal matters. The combination of his technical, quantity surveying, project management, IT, law and business administration skills enables him to assist clients in a broad range of issues and maximising the prospects of success in a cost-effective manner. He counsels employers, contractors and subcontractors in commercial, retail, office, residential, civil engineering, industrial park, power plants and airport projects and was recognised for his ability to effectively resolve complex and difficult commercial and contractual matters.

SHAWN CHONG BSc(Hons), PGDip, MSc, MBA, MSc, MRICS, MCIOB, MRISM, ICECA, Reg.QS, Chartered Construction Manager

John is a Director of Charlton Martin Consultants Sdn Bhd. John holds dual qualifications in quantity surveying and law, is a Fellow of the Chartered Institute of Arbitrators, a Fellow of the Malaysian Society of Adjudicator, a Certified Adjudicator under KLRCA, a Registered Quantity Surveyor with the Board of Quantity Surveyors Malaysia and a Member of The Royal Institution of Surveyors Malaysia. John is a Panel Arbitrator and Adjudicator with KLRCA and has acted as an adjudicator and an arbitrator in proceedings. John has over 22 years of experience in quantity surveying and construction contracts consultancy including providing contractual advice; contract management and administration; preparing as well as assessing loss and expense claims and extension of time claims; and giving claims support in arbitrations/adjudications and acting as an expert witness in arbitration and court proceedings. John represents parties in adjudications and mediates settlement of disputes between parties. John is an articulate speaker in construction claims in Malaysia. Apart from Malaysia, John has experience in preparing construction claims for projects in Brunei, Singapore, Indonesia, Thailand, Philippines, Shanghai, Mexico, Algeria and the Middle East.

JOHN WONG BSc(Hons), LLB (Hons), Dip. Int. Arb., FCIArb, FMSAdj, MRISM, Reg.QS

SHAWN CHONGDirector

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Company’s Stamp & Authorised Signature

Company :

Address :

Authorised/Contact person :

Designation :

Email :

Tel :

Fax :

No. of registration :

Charlton Martin Consultants Sdn BhdA-10-3 Northpoint Mid ValleyNo. 1 Medan Syed Putra Utara59200 Kuala Lumpur

Payment can be made either by cheque or direct bank-in to our HSBC account.Payment Details Enclosed is cheque number

Direct Bank-in to HSBC Bank Account No. 203-300520-102. Payable to CHARLTON MARTIN CONSULTANTS SDN BHD

1-3 participants : x

x

x

=

=

=

RM1,200 + GST (RM1,272)

RM1,100 + GST (RM1,166)4-10 participants :

Please mail payment to:

Others :

Cheques should be crossed “A/C Payee only” and made payable to CHARLTON MARTIN CONSULTANTS SDN BHD

Charlton Martin Consultants Sdn Bhd (781865-X) | A-10-3 Northpoint Mid V alley, No. 1 Medan Syed Putra Utara, 59200 Kuala Lumpur , MalaysiaTel: +603-2287 5175 | Fax: +603-2287 5176 | [email protected] | www.charltonmartin.com

for RM

29 March 2018(Thursday)

8.30 AM - 5.00 PMTime :

Venue : Junior Ballroom, Level 2,InterContinental Kuala Lumpur, Jalan Ampang, Kuala Lumpur

REGISTRATIONFORM

Early Bird Registration with full payment by 28 February 2018 ~ RM1,050 + GST (RM1,113) per person

• For outstation cheque, please add bank commission.• For EFT payment, please add transaction charges.• For online transaction, please bear respective bank charges.• The Malaysian Goods & Services Tax (GST) will be imposed on all fees / charges charged by the Bank where applicable effective 1 April 2015 at the current prevailing rate.

Registration

Session 1

Session 2

Tea/Coffee

Session 3

Questions & Discussion

Lunch

Session 4

Session 5

Tea/Coffee

Session 6

Questions & Discussion

Close

08:30 – 09:00

09:00 – 09:55

09:55 – 10:45

10:45 – 11:15

11:15 – 12:00

12:00 – 12:30

12:30 – 14:00

14:00 – 14:45

14:45 – 15:30

15:30 – 15:45

15:45 – 16:30

16:30 – 17:00

17:00

1. Registration is confirmed upon receipt of registration form and full payment is required before commencement of the seminar.2. A substitute is welcome in the event the registrants are unable to attend. Refunds less 20% administrative charge will be made for all cancellations received in writing no later than 10 working days prior to the date of seminar.3. It may be necessary for reasons beyond our control to change the date or venue or cancel the seminar. A full refund will be issued should the seminar be cancelled due to any unforeseen circumstances.4. Upon signing this form, you are deemed to have read and understood our registration policy and accepted the terms above.

The fee includes lunch, tea / coffee breaks and seminar notes

1 – 3 participants ~ RM1,200 + GST (RM1,272) per person 4 – 10 participants ~ RM1,100 + GST(RM1,166) per person

For registration of more than 10 pax, please call for special ratesEsther Ooi at Tel: 603 2287 5175 or email [email protected]

Seminar Programme

Terms & Conditions

Note:

1

2

3

4

5

Name Designation Email

Common50PROBLEMS

CONTRACTUAL