Construction Arbitration

Dr. Crenguța Leaua

Course no. 1

Basic relationships related with a construction project

• Construction works for the project

• Design of the project

• Achisition of construction materials for the project

• Supplying utilities for the works at the site

• Guardianship of the site during the works

• Supervision of the works on the site

• Management of the contractual relationship

• Insurances for liability in construction

• Bank guarantees for liability in construction

Works Contract

– Works contract entered by the employer with the contractor

• subcontracted works (contracts entered by the contractor with subcontractors ) – electricity – water & sewage – connection with the general supplying system for the utilities

( gas, electricity, water) – special instalations ( elevators)– special finishing ( artistic works)

Design Contract

– Design contract entered by the employer with an arhitect/designer

– Design contract entered by the contractor with an arhitect/designer if the contract between the employer and the contractor is a design & works contract

Aquisition of Construction Materials Contract

• Aquisition of the construction materials is usually made by the contractor, who identifies the suppliers and buys the materials; prior approval of the employer for either the type of materials or of both the type of materials and of the suppliers for such materials may be needed

• Alternatively, the employer may buy some of the materials and provide them to the contractor

Suppliance Contract for the Utilities during the Works

• Entered by either the Contractor (usually) or the Employer

Engineer contract

contract for supervision of the works entered by the employer with the engineer

Role of the engineer under FIDIC

All FIDIC books define the role of the engineer essentially as the agent of the employer. The engineer is primarily responsible for contract administration. The engineer:– issues instructions and notices;– monitors the works;– acts as certifier.

The engineer is no longer stated to be impartial, it is deemed to and in practice does act for the employer.

Contract Management Contract

management contract entered by the employer or the contractor with a contract management company

Insurance Contract

• Insurances for liability in construction

insurance contract entered by the contractor with an insurance company , naming the employer as beneficiary of the policy

Bank Guarantees

• Banking guarantees for liability in construction

performance guarantee

bank guarantee contract entered by the contractor with a bank, naming the employer as beneficiary of the guarantee

Arbitrability

Contractual disputes – arbitrable as a rule

Problematic issues : – Consumer disputes – Public procurement – State-entities