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Copyright © 2018 TAISEI CORPORATION. All Rights Reserved. Our Experience of DB 24 May 2018 TAISEI CORPORATION Satoru TSUTAE Climb to the Top! DRBF 18 th Annual International Conference Tokyo 2018 Session 5

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Page 1: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved.

Our Experience of DB24 May 2018

TAISEI CORPORATIONSatoru TSUTAE

Climb to the Top! DRBF 18th Annual International ConferenceTokyo 2018

Session 5

Page 2: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved. 2

1. Overseas Works for Japanese Contractor

2. Landmarks in our track record of overseas projects

3. Our Experience of Dispute Board

Contents

Page 3: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved. 3

1. Overseas Works for Japanese Contractor

Page 4: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved.

1. Construction Industry

4

Construction Investment in Japan(2017)

・550 billion US$ ・Public : Private = 4 : 6

New Contracts from Overseas (2017)

・17 billion US$ ・ Public : Private = 3 : 7・ 3 % to domestic market

Source: The Overseas Construction Association of Japan, Inc.

Page 5: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved.

2. Overseas Works

5

Building Construction Works : 74%by Overseas Affiliated Companies

Civil Engineering Works : 26%by Companies in Japan

Public Funds : 50% (4 countries) ODA:50% (25 countries)

Source: The Overseas Construction Association of Japan, Inc.

New Contracts in 2016:

Page 6: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved.

3. Contract in ODA projects

6

Type of WorksConstruction only. Design by Japanese Consultant.

Type of ContractConditions of Contract for Construction, MDB Harmonized Edition 2010, FIDIC

The EngineerJapanese Construction Consultant Firm and Local Consultant Firm

Page 7: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved. 7

2. Landmarks in our track record of overseas projects

Page 8: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved.

CAMBODIA・Bridge over Mekong River

Note (500 Riel)

Page 9: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved.

TAIWAN・Kao Ping BridgeCommemorative Stamp

Memorial Silver Coin

Page 10: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved.

MALDIVES・Seawall in Male

Monument

Page 11: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved.

INDONESIA・Bali Beach Conservation

Sign-board

Page 12: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved.

PAKISTAN・Kohat Tunnel

Commemorative Stamp

Page 13: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved.

TUNISIA・Rades Bridge

Commemorative Stamp

Page 14: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved.

TURKEY・Marmaray Project

Signboard at Station

(A Dream Comes True)

Page 15: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

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THAILAND・Industrial Ring Road

Monument

Page 16: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

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3. Our Experience of Dispute Board

Page 17: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved. 17

1.Settlement of Disputes

DB → Arbitration

Mediation → Arbitration

Arbitration

5 → 3

1

2 → 4

original actual

Page 18: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved. 18

2.Unsuccessful DBs

Failure to agree on DB (2 cases)1) Employer Appointed2) Appointed by Employer’s

country Engineering association

Impartiality NOT secured

Unfair for Contractor

Page 19: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved. 19

3.DB in Silver Book

Appointed members had rich experience and high profile.

DB was active.

59 referral

Page 20: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved. 20

4.Lessons from the DB

Deny of Payment

No clause or Ambiguity

Need enforcement

Page 21: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved. 21

5.Lessons from the DB

Delay of the Employer`s determination

No time limit (cl 3.5 in silver book)

Need to be compulsory

Page 22: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

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6.Lessons from the DB

Documents only (Particular Conditions)

Hearing is not mandatory.

Not a good idea

Page 23: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved. 23

7.Lessons from the DB

Professional assistance

Unfamiliar with DB

Need reinforcing with a contract engineer

Page 24: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved.

8. Contract Administration

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Japan:No existence of the following:

1)Curriculum in universities2)Quantity Surveyor3)Contract Engineer4)Lawyer for Construction Disputes

Page 25: Our Experience of DB · Construction Industry 4 Construction Investment in Japan (2017) ・550 billion US$ ・Public : Private = 4 : 6 New Contracts from Overseas (2017) ・17 billion

Copyright © 2018 TAISEI CORPORATION. All Rights Reserved. 25

END