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Refereeing the contracts' game

By BCA Webmaster on 11/20/2013

Contracts are Chris Binnington's forte. He strengthens his ability with the help of a United States-listed construction management specialist, writes David Poggiolini.

Adjudicators determination not final and binding; Quo Vadis?

By BCA Webmaster on 8/1/2013

In this article Chris Binnington examines the process of arbitration which would usually follow a failed adjudication outcome. Adjudication is promoted internationally as being a cost effective and speedy mechanism for the resolution of construction disputes and a number of (mainly Commonwealth Countries) have promulgated legislation requiring parties to a construction contract to use the adjudication process as the first stage for the resolution of construction dispu ...

Cash is king

By BCA Webmaster on 3/1/2013
Chris Binnington revisits the thorny issue of providing performance securities or bonds. I have previously written in Civil Engineering Contractor about the amount of money which Employers waste insisting upon the provision of performance securities or bonds, for which the Employer ultimately pays within the contract price, simply because the accepted norm within the industry is for such a bond to be in place. I suggested a more selective approach would be more cost effective particularly where the Employer was in a position to select its bidders.

Who owns the float?

By BCA Webmaster on 1/31/2013

In September 2008 I addressed the issue of terminal float in construction programmes in an article published in this magazine entitled “Floating in a Sea Of Uncertainty”. That article, in particular, addressed the requirements of terminal float as specified in the NEC Suite of Contracts. An understanding of the issue of who owns the terminal float in a construction programme is vital to the Contractor in the event that it plans to finish early since the ownership of terminal float wi ...

Submissions to the Adjudicator

By BCA Webmaster on 11/30/2012
The process of adjudication should provide disputing parties with a cost effective method of reaching a result which by definition in the standard forms of contract, is immediately binding but not yet final. Although there has definitely been a significant increase in the use of adjudication since its first introduction in South Africa by way of the New Engineering Contract Suite of documents in 1996, it is clear that both Contractors and Employers and obviously Sub-contractors where they are parties to an adjudication, remain woefully ignorant of the way in which a submission for the purpose of referring a dispute to a tribunal alternatively of defending a dispute which has been referred to the tribunal, is prepared.

The Risks of Third Party Claims in the Construction Process

By BCA Webmaster on 9/28/2012
Construction is an inherently dangerous business. Hardly a week goes by without some report of a death or injury arising out of construction or construction related activities. Employers, and in this context I refer to any organisation that employs employees, thus employers generally as well as contractors and sub contractors may all find them find themselves on the receiving end of claims arising out of negligent acts by their employees during the course and scope of their employment activities ...

Global Claims - What Chances of Success?

By BCA Webmaster on 7/31/2012

Introduction Global claims are often a contentious issue as between Employer and Contractor. The Contractor is wishing to put forward its claim on a global basis while the Employer is wishing to strike out any such claim on the basis that it is put forward in a global manner.

Do you know the difference between a Notice and a Time Bar?

By BCA Webmaster on 7/31/2012

It is essential to have a thorough understanding of the difference between a notice and the time bar, writes Chris Binnington.

Recovering the Cost of Non-Critical Delays

By BCA Webmaster on 5/1/2012

Clauses which allow Contractors to claim extensions of time are primarily there to protect the Employer’s rights to continue to apply the penalty provisions. If such clauses were not in the contract and the Employer caused the Contractor to be delayed, then the Employer’s rights to deduct the penalty would fall away and the effect would be that time would become “at large” and the Contractor’s only obligation would be to finish within a “reasonable time” ...

Understanding the Contract

By BCA Webmaster on 3/31/2012

Since contracts define the rights and obligations of the parties usually by way of a set of General Conditions combined with Special Conditions of Contract, it goes without saying that the parties to the contract Employer/Contractor or Contractor/Sub-Contractor need not only to be familiar with those terms but must also understand the terms of the contract. It will be of no assistance to a party to a contract who is found to be in breach to argue that he did not understand his rights or obligati ...