Recent examples illustrate clearly that cancelling a project can be very expensive. The City of Ottawa recently paid over C$36 million to settle claims from contractors arising from the cancellation of a light rail transit project. In Montréal, the termination of a contract to build an incinerator has resulted in years of costly litigation and…

Cash-flow from lender to owner to construction manager to subcontractors is the lifeblood of any construction project. And maintaining a sufficient flow of funds is essential to every construction manager’s ability to manage the job. Contract provisions requiring a contractor or subcontractor to continue to work, even if the right to payment is disputed, mean…

With construction activity in India now worth $50 billion per annum and accounting for around 6% of Indian GDP, India is an attractive market for contractors. The construction sector in India employs around 40 million people. The granting of ‘industry’ status to the Indian construction industry by the Indian Government has resulted in fast track…

ArcelorMittal South Africa’s announcement that it has reached an agreement with gold producers Harmony and DRDGold is a blow to construction contractors hoping for more competitively priced steel in the South African market. The long-running dispute concerned the pricing of flat steel products and began in 2002 when the mining companies first lodged a complaint…

In a judgment dated February 25, 2009 (Cour de cassation, civ. 3, 25 February 2009, No. P07-20.096), the Court of cassation, the highest court in the French judiciary, confirmed its previous decisions (Cour de cassation, chambre mixte, 30 November 2007, No. 06-14.006; Cour de cassation, 3e civ., 30 January 2008, No. 06-14.641) according to which…

Federal Law No. 11079, 2004 [PPP LAW] instituted the general rules for bidding and contracting of Public-Private Partnerships (PPPs) within the realm of public administration. This is an important volley in the Brazilian government efforts to develop funding and management alternatives for public works in furtherance of the bidding system instituted by the Federal Law…

Enforcement of arbitration awards in the United States in substantial matters is governed by the Federal Arbitration Act, 9 U.S.C. § 1, et seq. (FAA). A closely related statute found at 9 U.S.C. §§ 201-208 contains specific provisions for international awards rendered under the New York Convention, but the FAA also governs those proceedings unless…

Recap The previous blog on this topic considered the potential for liability to be unwittingly assumed by parties to construction contracts. This was highlighted by the example of decennial liability under the UAE Civil Code. This blog considers another perhaps unknown liability: strict liability for harmful acts under UAE law, and considers whether parties are…