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<p>About the Author xxiii</p> <p>Foreword xxv<br /> <i>Svend Poulsen</i></p> <p>Acknowledgments xxvii</p> <p>Introductory Remarks xxix<br /> <i>ShuiboZhang</i></p> <p>Introductory Remarks xxxi<br /> <i>Robert Werth</i></p> <p>Introductory Remarks xxxiii<br /> <i>Ilya Nikiforov</i></p> <p><b>1 International Construction Projects 1</b></p> <p>1.1 The unique nature of the construction industry 1</p> <p>1.2 Individuality of construction projects 1</p> <p>1.3 Roles and relationships 2</p> <p>1.4 Contract administration 4</p> <p><i>In-Text Vignette: Engineer’s power to re-rate due to substantial increase in BoQ quantities by Albert Yeu (Hong Kong)</i> 10</p> <p>1.5 Further important aspects of construction projects 11</p> <p>1.6 Typical contractual relationships 12</p> <p><i>In-Text Vignette: Shipping and marine construction contracts in Asia by Knut Kirkhus (Oman)12</i></p> <p>1.7 Motivation for international business 15</p> <p><i>In-Text Vignette: The Italian construction industry: Between past and future by SDG & Partners (Italy) 17</i></p> <p>1.8 Managerial analysis 20</p> <p>1.9 Hazards and risks 21</p> <p>1.10 Hazard identification 21</p> <p>1.11 Risk analysis 22</p> <p>1.12 Anti-risk measures 22</p> <p>1.13 Typical hazards in the international construction business 23</p> <p><i>In-Text Vignette: Corruption on Peruvian gas pipeline contract by Enrique Moncada Alcantara (Peru)</i> 24</p> <p><i>In-Text Vignette: Anticorruption and construction contract law by Enrique Moncada Alcantara (Peru)</i> 27</p> <p><i>In-Text Vignette: Indian law by C.K. Nandakumar and Rishabh Raheja (India)</i> 33</p> <p>1.14 Risk allocation in contracts 35</p> <p><i>In-Text Vignette: Wrongforms of contract by James Bremen (UK)</i> 36</p> <p><i>In-Text Vignette: The importance of early analysis of risk, knowledge of efficient risk allocation and right choice of delivery method by Conor Mooney (France)</i> 36</p> <p>1.15 Form of Business Organization 42</p> <p><i>In-Text Vignette: To deal with subcontracts in international construction projects by Giuseppe Broccoli and Fabio Zanchi (Italy)</i> 42</p> <p><i>In-Text Vignette: Interface agreements between subcontractors by Bernd Ehle and Sam Moss (Switzerland)</i> 48</p> <p><b>2 Civil Law and Common Law 55</b></p> <p>2.1 Specifics of the governing law 55</p> <p>2.2 Common law versus civil law: Differences and interconnections  55</p> <p><i>In-Text Vignette: The common law of Australia and the influence of statutory law by Donald Charrett (Australia)</i> 57</p> <p>2.3 Delay damages (liquidated damages) versus contractual penalty 59</p> <p><i>In-Text Vignette: The use of liquidated damages in construction projects by Rob Horne (UK)</i> 60</p> <p><i>In-Text Vignette: Penalty clauses and liquidated damages under Brazilian law by Thiago Fernandes Moreira and Caio Gabra (Brazil) 72</i></p> <p>2.4 Substantial completion versus performance 76</p> <p>2.5 Binding nature of adjudication awards 78</p> <p>2.6 Limitation of liability 79</p> <p>2.7 Lapse of claim due to its late notification (time bars) 79</p> <p>2.8 Allocation of unforeseeable and uncontrollable risk to the contractor 80</p> <p>2.9 Contract administration (the Engineer’s neutrality and duty to certify) 90</p> <p>2.10 Termination in convenience 90</p> <p><i>In-Text Vignette: Isan employer in breach of contract prevented from terminating the contract for its convenience? by Cecilia Misu (Germany)</i> 91</p> <p>2.11 Time-related issues 93</p> <p>2.12 Quantification of claims 94</p> <p>2.13 Statutory defects liability 95</p> <p>2.14 Performance responsibility: Reasonable skill and care versus fitness for purpose 95</p> <p>2.15 Common law, civil law, and Sharia interconnections 96</p> <p><i>In-Text Vignette: Considerations for the construction of offshore oil and gas structures in the Middle East by Faisal Attia and Fernando Ortega (Qatar)</i> 97</p> <p><b>3 Common Delivery Methods 102</b></p> <p>3.1 Common delivery methods: Main features 102</p> <p>3.2 General contracting 104</p> <p>3.3 Design-build 105</p> <p><i>In-Text Vignette: Dutch design and construct of infrastructural projects in complex environments by Joost Merema</i> <i>(the Netherlands)</i> 109</p> <p><i>In-Text Vignette: Best value in the Netherlands by J.N. (Jaap) de Koning (the Netherlands)</i> 126</p> <p><i>In-Text Vignette: Concern over increasing adoption of design build for infrastructure works—JICA funding projects</i> <i>by Takashi Okamoto (Japan) </i>128</p> <p>3.4 Construction management 131</p> <p><i>In-Text Vignette: Interface management and interface agreements by Zachary Ferreira (the United States) and Alex Blomfield (UK)</i> 132</p> <p>3.5 Multiple-prime contracts 138</p> <p>3.6 Partnering 138</p> <p><i>In-Text Vignette: Integrated project delivery—“Collaborate rather than litigate” by Edward J. (“Ned”) Parrott (the United States)</i> 139</p> <p>3.7 Alliancing 140</p> <p><i>In-Text Vignette: Targetprice and early risk identification/management: London 2012 Olympics by Klaus Grewe (UK)</i> 140</p> <p>3.8 Extended delivery methods (PPP, BOT, DBO) 143<br /> <i>In-Text Vignette: Public-private partnerships by Steven Van Garsse (Belgium)</i> 144</p> <p><i>In-Text Vignette: Infrastructure through public-private partnerships in the Philippines by Aris L. Gulapa and</i></p> <p><i>Dan Kevin C. Mandocdoc (the Phillipines)</i> 146</p> <p>3.9 Further aspects of delivery methods 153</p> <p><i>In-Text Vignette: BIM—The way forward? by Christopher Miers (UK)</i> 156</p> <p><i>In-Text Vignette: Developments in BIM application: Legal aspects by Joost Merema (the Netherlands)</i> 159</p> <p><i>In-Text Vignette: BIM: A superior approach for infrastructure construction by Josef ?ák (the Czech Republic) </i>166</p> <p><b>4 Specifics of EPC and EPCM 172</b></p> <p>4.1 EPC and EPCM 172</p> <p>4.2 Engineer procure construct (EPC) 172</p> <p><i>In-Text Vignette: The employer’s pitfall in the use of FIDIC conditions of contract for the EPC/turnkey projects (Silver book) in Indonesia by Sarwono Hardjomuljadi (Indonesia)</i> 175</p> <p>4.3 Bespoke EPC contracts 177</p> <p><i>In-Text Vignette: Mitigating the risk of delays in power plant projects: An EPC contractor’s view on different contractual concepts by Jacob C. Jørgensen (Denmark)</i> 178</p> <p>4.4 Turnkey EPC contracts 185</p> <p><i>In-Text Vignette: Water treatment wind farm, and road construction projects in Asian and African countries</i> <i>by Stéphane Giraud (France)</i> 186</p> <p>4.5 Front end engineering design 188</p> <p><i>In-Text Vignette: Key issues in the procurement of international hydropower construction contracts by Alex Blomfield (UK)</i> 189</p> <p>4.6 Engineer procure construction management (EPCM) 192</p> <p><i>In-Text Vignette: The use of the EPCM delivery method in the mining industry by Mark Berry (UK) and Matthew Hardwick (UK)</i> 195</p> <p>4.7 EPC versus EPCM 200<br /> <br /> <i>In-Text Vignette: Offshore construction by Fernando Ortega (Qatar)</i> 202<br /> <b>5 Unification and Standardization in International Construction 215</b></p> <p>5.1 Unification of contracts 215</p> <p>5.2 Unification per law, principles, and sample documents 215</p> <p><i>In-Text Vignette: Resolving construction claims under investment treaty arbitration by Fernando Ortega (Qatar)</i> 218</p> <p>5.3 Lenders and their influence on unification 220</p> <p>5.4 Standard form of contract in a governing law context 222</p> <p>5.5 Purpose of sample documents in construction projects 222</p> <p>5.6 Standard sample forms as a source of law 224</p> <p>5.7 <i>Lex causae</i> 224</p> <p>5.8 Interpretation 225</p> <p><i>In-Text Vignette: Inconsistency in contract documents by Patrick Kain (South Africa)</i> 226</p> <p>5.9 Trade usage and business custom 229</p> <p><i>In-Text Vignette: A common law of construction contracts—or Vive La différence? by Donald Charrett</i> (Australia) 230</p> <p>5.10 <i>Lex constructionis</i> principles 232</p> <p><i>In-Text Vignette: Contractor’s duty to mitigate delay and damages under FIDIC 1999 standard forms and in lex mercatoria by Vladimir Vencl (Serbia)</i> 234</p> <p>5.11 The use of <i>lex constructionis</i> 240</p> <p><i>In-Text Vignette: Future-proofing construction contracts by Shy Jackson (UK)</i> 240</p> <p><b>6 Price 244</b></p> <p>6.1 Contract price 244<br /> <br /> <i>In-Text Vignette: International construction measurement standards: Global consistency in cost analysis by Simon Collard (United Arab Emirates)</i> 245</p> <p>6.2 Bid pricing methods 247</p> <p>6.3 Methods of contract price determination 248</p> <p>6.4 Re-measurement 249</p> <p>6.5 The lump sum 252</p> <p>6.6 Cost plus 252</p> <p>6.7 Guaranteed maximum price 253</p> <p>6.8 Target price 253</p> <p>6.9 Payment 254</p> <p><i>In-Text Vignette: Taxation in international construction contracts by Alex Blomfield (UK)</i> 255</p> <p><i>In-Text Vignette: Managing the risk of non-payment by Sean Sullivan Gibbs (UK)</i> 257</p> <p>6.10 Contract price under FIDIC forms 261</p> <p>6.11 Cost overruns 263</p> <p>6.12 Abnormally low tender (ALT) 264</p> <p><i>In-Text Vignette: Best value approach in the Netherlands by Wiebe Witteveen (the Netherlands)</i> 265</p> <p>6.13 Claims as part of contract price 273</p> <p>6.14 Public procurement law limitations 273</p> <p><i>In-Text Vignette: A concept of variation in a construction contract under Polish public procurement by Michał Skorupski (Poland)</i> 275</p> <p><b>7 Time 280</b></p> <p>7.1 Time in construction 280</p> <p>7.2 Delay 280</p> <p>7.3 The United Kingdom Society of construction law delay and disruption protocol 282</p> <p>7.4 Time program 283</p> <p>7.5 Ownership of floats 285</p> <p><i>In-Text Vignette: Time extension and float ownership under the FIDIC Red and Yellow Books (1999) by Frank Thomas (France)</i> 285</p> <p>7.6 Time at large and extension of time (EOT) 298</p> <p>7.7 Concurrent delay 300</p> <p><i>In-Text Vignette: Delay clauses in different jurisdictions by Jacob C. Jørgensen (Denmark)</i> 301</p> <p>7.8 Disruption 302</p> <p>7.9 Time for completion under FIDIC forms 303</p> <p>7.10 Time program under FIDIC forms 304</p> <p><i>In-Text Vignette: A lack of realism in negotiations by James Bremen (UK)</i> 306</p> <p>7.11 Delay and suspension under FIDIC forms 306</p> <p>7.12 Contract termination under FIDIC forms 309</p> <p><b>8 Variations 313</b></p> <p>8.1 Variation clauses 313</p> <p>8.2 Variations under FIDIC forms 315</p> <p><i>In-Text Vignette: Sub-Clause 13.2 value engineering under the FIDIC forms by Manuel Conthe (Spain)</i> 316</p> <p>8.3 Claims related to variations 319</p> <p>In-Text Vignette: The nightmare of valuing omissions by Aymen K. Masadeh and Remon Farag (UAE) 321</p> <p>8.4 Acceleration 329</p> <p><i>In-Text Vignette: Drafting acceleration agreements by Alan Whaley (UK)</i> 333</p> <p><i>In-Text Vignette: The U.S. approach to constructive acceleration by Robert A. Rubin and Sarah Biser</i> <i>(the United States)</i> 336</p> <p><i>In-Text Vignette: Constructive acceleration claims: A common law perspective by Alan Whaley (UK)</i> 339</p> <p>8.5 Proving the acceleration claim 340</p> <p>8.6 Substantial change 342</p> <p><i>In-Text Vignette: Modification of contracts during their execution under EU law by Odysseas P. Michaelides (Cyprus)</i> 343</p> <p><i>In-Text Vignette: ITER—An International project for the construction of a first-of-a-kind fusion nuclear installation under the FIDIC forms by Karoly Tamas Olajos (France)</i> 347</p> <p><b>9 Claims 364</b></p> <p>9.1 Claims 364</p> <p><i>In-Text Vignette: Claims caused by deficiencies in tender documents by James Bremen (UK)</i> 368</p> <p>9.2 Contractor’s claims under FIDIC forms 368</p> <p>9.3 Employer’s claims under FIDIC forms 369</p> <p><i>In-Text Vignette: Employer’s notices by Victoria Tyson (UK)</i> 369</p> <p><i>In-Text Vignette: Claims in the St. Petersburg flood protection barrier construction by Aleksei Kuzmin (Russia)</i> 373</p> <p>9.4 Lapse of claim 377</p> <p>9.5 Cause of the claim 378</p> <p>9.6 Limits of the lapse of claim 379</p> <p><i>In-Text Vignette: Construction claims in the UK by Garry Kitt (UK)</i> 381</p> <p><i>In-Text Vignette: Condition precedent and time-barred claims under Polish law by Michał Skorupski (Poland)</i> 383</p> <p><i>In-Text Vignette: Australian position on time bars by Andrew P. Downie (Australia)</i> 385</p> <p><i>In-Text Vignette: Timebars under Kuwaiti law by Dina Al Ansary (Kuwait)</i> 392</p> <p><b>10 Claim Management 395</b></p> <p>10.1 Claim management 395</p> <p>10.2 Claims for extension of time (EOT) 396</p> <p>10.3 Claims for additional payment 398</p> <p>10.4 Claims resulting from delay and/or disruption under the provisions of the contract 399</p> <p><i>In-Text Vignette: Considerations related to site overhead claims by Gary Kitt (UK)</i> 400</p> <p><i>In-Text Vignette: Head office overhead claims under FDIC contracts by Alan Whaley (UK)</i> 410</p> <p><i>In-Text Vignette: Calculation and recovery of home/head office overhead in North America by James G. Zack</i> <i>(the United States)</i> 412</p> <p>10.5 Claims resulting from governing law 424</p> <p>10.6 Global claims 425</p> <p><i>In-Text Vignette: All global claims are not negatively “global”! by Frank Thomas (France)</i> 428</p> <p>10.7 Contractor’s claim management under FIDIC forms 429</p> <p>10.8 Employer’s claim management under FIDIC forms 431</p> <p>10.9 Intercultural aspects 432</p> <p><i>In-Text Vignette: “Claim” as perceived in the Polish civil law environment by Michał Skorupski (Poland)</i> 434</p> <p>10.10 Claim management implementation 436</p> <p><i>In-Text Vignette: Claims in a tunnel construction in the Republic of Serbia by Radim Wrana (the Czech Republic)</i> 437</p> <p><i>In-Text Vignette: The evolution of contractor’s claims in Peru/South America by Jerry Pessah (Peru)</i> 438</p> <p><b>11 Construction Dispute Boards 442</b></p> <p>11.1 Construction disputes 442</p> <p><i>In-Text Vignette: Construction dispute in sheet metal galvanizing line project by Patrick Kain (South Africa)</i> 442</p> <p>11.2 Dispute boards 444</p> <p><i>In-Text Vignette: Project dispute avoidance by Christopher J. Mather (the United States)</i> 445</p> <p><i>In-Text Vignette: Dispute resolution boards: The long-term experience from the United States by Robert A. Rubin</i> <i>(the United States)</i> 451</p> <p>11.3 Contractual adjudication: The use of DAB in FIDIC forms 454</p> <p><i>In-Text Vignette: Construction disputes in Ukraine by Roger Ribeiro and Yaryna Bakhovska (Ukraine)</i> 457</p> <p>11.4 Enforcement of dispute board decisions 464</p> <p><i>In-Text Vignette: The Persero proceedings and the issue of the enforcement of a non-final DAB decision under the FIDIC conditions by David Brown (UK)</i> 469</p> <p>11.5 Statutory adjudication 471</p> <p><i>In-Text Vignette: Statutory adjudication by Nigel Grout (UK)</i> 471</p> <p><i>In-Text Vignette: Settling construction disputes in Hungary by Tamás Balázs (Hungary)</i> 474</p> <p><i>In-Text Vignette: Statutory adjudication in Australia by Donald Charrett (Australia)</i> 475</p> <p><i>In-Text Vignette: Statutory adjudication in Malaysia by Albert Yeu (Hong Kong)</i> 481</p> <p><b>12 FIDIC 485</b></p> <p>12.1 FIDIC expansion 485</p> <p><i>In-Text Vignette: Using translated texts in FIDIC contracts: The Spanish case by Ignacio de Almagro (Spain)</i> 485</p> <p>12.2 FIDIC 487</p> <p>12.3 FIDIC’s influence on the construction industry 488</p> <p>12.4 FIDIC membership 488</p> <p>12.5 Networking activities 489</p> <p><i>In-Text Vignette: The use of FIDIC forms in Russia by Dmitry Nekrestyanov (Russia)</i> 492</p> <p><i>In-Text Vignette: The use of FIDIC forms in Brazil by Rafael Marinangelo (Brazil)</i> 493</p> <p><i>In-Text Vignette: The use of FIDIC Forms within the construction contract law of Turkey by Yasemin Çetinel</i></p> <p><i>(Turkey)</i> 493</p> <p><i>In-Text Vignette: The use of FIDIC forms in Azerbaijan by Farid Nabili (Azerbaijan)</i> 502</p> <p><i>In-Text Vignette: The use of FIDIC forms in Nigeria by Marc J. Enenkel (Germany)</i> 505</p> <p><i>In-Text Vignette: The use of FIDIC forms in Ukraine by Svitlana Teush (Ukraine)</i> 507</p> <p><i>In-Text Vignette: The use of FIDIC forms in Vietnam by David Lockwood (Vietnam)</i> 513</p> <p><i>In-Text Vignette: The use of FIDIC forms in Kazakhstan by Artyushenko Andrey (Kazakhstan)</i> 517</p> <p>12.6 FIDIC forms of contract 522</p> <p><i>In-Text Vignette: Journey to the “kitchen” of FIDIC: How FIDIC publications are produced by Husni Madi (Jordan)</i> 524</p> <p>12.7 The structure of the contract under FIDIC forms 527</p> <p>12.8 Conditions of contract for construction (CONS)—1999 Red Book 530</p> <p><i>In-Text Vignette: Misapplications of FIDIC contracts in the United Arab Emirates by Kamal Adnan Malas</i> <i>(United Arab Emirates)</i> 531</p> <p>12.9 Conditions of contract for plant and design-build (P&DB)—1999 Yellow Book 535</p> <p>12.10 Conditions of contract for EPC/Turnkey projects (EPC)—1999 Silver Book 536</p> <p>12.11 Short form of contract—Green Book 537</p> <p>12.12 Construction subcontract 537</p> <p>12.13 Conditions of contract for design, build, and operate (DBO)—Gold Book 538</p> <p><i>In-Text Vignette: The 2017 updates of the 1999 FIDIC forms of contracts (Red, Yellow, and Silver Books) by Zoltán Záhonyi (Hungary)</i> 541</p> <p>12.14 Other FIDIC standard forms 547</p> <p><i>In-Text Vignette: FIDIC suite of consultant agreements by Vincent Leloup (France)</i> 547</p> <p><i>In-Text Vignette: The use of FIDIC contracts by the mining industry in Africa by Coenraad Snyman (South Africa)</i> 551</p> <p>12.15 Risk allocation under FIDIC forms 553</p> <p><i>In-Text Vignette: China’s standard form of construction contract in comparison with FIDIC forms by Shuibo Zhang (China)</i> 556</p> <p><i>In-Text Vignette: Explanation of FIDIC EPC risk allocation by FIDIC</i> 561</p> <p><i>In-Text Vignette: The FIDIC golden principles—A new approach to discouraging inappropriate amendments to standard form contracts by Donald Charrett (Australia)</i> 563</p> <p>12.16 Design responsibility under FIDIC forms 566</p> <p><i>In-Text Vignette: Design Liability: risk share, conflicts and a little bit of common sense? by Cecilia Misu (Germany)</i> 568</p> <p><b>13 Other Standard Forms of Construction Contracts: NEC, ICC, ENNA, IChemE, Orgalime, AIA, VOB 580</b></p> <p>13.1 Common standard forms of construction contracts 580</p> <p>13.2 The NEC (New Engineering Contract) 580</p> <p><i>In-Text Vignette: The NEC form of contract—ready for the international market by Rob Horne (UK)</i> 585</p> <p>13.3 FIDIC forms versus NEC3 594</p> <p>13.4 ICC forms of contract 597</p> <p>13.5 ENAA forms of contract 597</p> <p>13.6 IChemE forms of contract 598</p> <p>13.7 Orgalime forms of contract 599</p> <p>13.8 Standard forms of construction contracts in the Czech Republic 600</p> <p><i>In-Text Vignette: United States standard form contracts by Edward J. (“Ned”) Parrott (the United States)</i> 602</p> <p>13.9 VOB: German standard 607</p> <p>13.10 Invalid clauses in German case law 613</p> <p><i>In-Text Vignette: The standard forms of construction contract in Australia by John Sharkey (Australia)</i> 614</p> <p><i>In-Text Vignette: Construction contracts in the Republic of Ireland by Arran Dowling-Hussey (Ireland)</i> 617</p> <p><b>14 Risk and Insurance 623</b></p> <p>14.1 Insurance in construction 623</p> <p>14.2 Commercial risk, risk of damage, and exceptional risk 624</p> <p><i>In-Text Vignette: Weather risk in offshore wind construction contracts by Alex Blomfield (UK)</i> 627</p> <p>14.3 Risk management in the standard forms of contract 630</p> <p>14.4 Hazards and risks in construction projects 632</p> <p><i>In-Text Vignette: The difficulties connected to construction risk quantification by Dejan Makovšek(France)</i> 635<br /> <br /> 14.5 Insurance requirements in standard forms of contract 640</p> <p><i>In-Text Vignette: Professional indemnity insurance under the FIDIC yellow book by Richard Krammer (Austria)</i> 642</p> <p><i>In-Text Vignette: Insurance in hydropower projects by Alex Blomfield (UK)</i> 651</p> <p>14.6 Practical aspects of insurance in construction projects 652</p> <p><i>In-Text Vignette: Incompatibility of the construction contract with the insurance contract by Karel Fabich (the Czech Republic)</i> 655</p> <p>14.7 International insurance law and insurance standards in the construction industry 655</p> <p><i>In-Text Vignette: Construction/erection all risk insurance in the offshore wind industry by Gregory Efthimiu (Germany)</i> 658</p> <p><b>15 Risk in Underground Construction 664</b></p> <p>15.1 Underground construction hazards and risks 664</p> <p>15.2 Code of practice for risk management of tunnel works 665</p> <p>15.3 Alternatives of unforeseeable physical conditions risk allocation 667</p> <p><i>In-Text Vignette: Geotechnical baseline reports as a risk management tool by Randall J. Essex (the United States)</i> 668</p> <p><i>In-Text Vignette: Geotechnical baseline used in contractor’s bid by Michal Uhrin (the Czech Republic)</i> 679</p> <p>15.4 Unforeseeability 684</p> <p>15.5 “Unforeseeability” according to FIDIC forms 684</p> <p>15.6 Site data 686</p> <p><i>In-Text Vignette: Water-related construction projects by Robert Werth(Germany)</i> 689</p> <p>15.7 Sufficiency of the accepted contract amount 691</p> <p>15.8 Unforeseeable physical conditions 692</p> <p>In-Text Vignette: Ground conditions risk in an EPC contract for a gas treatment plant by Cristina Della Moretta (Italy) 693</p> <p>15.9 Unforeseeable operation of the forces of nature 697</p> <p><i>In-Text Vignette: Clairvoyance: A contractor’s duty? by Gustavo Paredes and Katherine Waidhofer (Peru)</i> 697</p> <p>15.10 Force majeure 700</p> <p>15.11 Release from performance under law 701</p> <p><b>16 Securities 703</b></p> <p>16.1 Securities in construction 703</p> <p>16.2 Bank guarantees 704</p> <p>16.3 Functions and parameters of bank guarantees 704</p> <p>16.4 Specifics of retention guarantee 706</p> <p><i>In-Text Vignette: Performance security and termination payment security in hydropower projects by Alex Blomfield (UK) </i>708</p> <p>16.5 Governing law 709</p> <p><i>In-Text Vignette: Common law specifics related to securities by Rupert Choat and Aidan Steensma (UK)      </i>710</p> <p>16.6 ICC rules related to securities 712</p> <p>16.7 Suretyship 712</p> <p>16.8 Stand-by letter of credit 713</p> <p>16.9 Securities under FIDIC forms 714</p> <p><b>17 Civil Engineering Works: Infrastructure Construction Projects 716</b></p> <p>17.1 Investments in developing countries 716</p> <p>17.2 The approach to the risk allocation in the United States 717</p> <p>17.3 The approach to the risk allocation in the United Kingdom 719</p> <p><i>In-Text Vignette: Construction of airports by Patrick Kain (South Africa) </i>720</p> <p>17.4 The approach to the risk allocation in Central and Eastern Europe 722</p> <p><i>In-Text Vignette: The Romanian experience by Claudia Teodorescu (Romania) </i>725</p> <p>17.5 The Polish experience 731</p> <p><i>In-Text Vignette: FIDIC Forms and contractual relationships in Poland by Aleksandra Marzec (Poland)</i> 731</p> <p><i>In-Text Vignette: Market environment prior to and after 2008: The need for change in procurement by Michał Skorupski (Poland) </i>734</p> <p><i>In-Text Vignette: Claims considerations by Aleksandra Marzec (Poland)</i> 740</p> <p><i>In-Text Vignette: Contractor defense measures by Michał Skorupski (Poland) </i>745</p> <p>17.6 The Czech experience 748</p> <p><i>In-Text Vignette: Local limits for development: An interview with Shy Jackson (UK) by Lukas Klee (the Czech Republic)</i> 750</p> <p><b>18 Building Construction: Health Care Facilities 756</b></p> <p>18.1 Health care facility construction project 756</p> <p>18.2 Pre-design planning phase 756</p> <p>18.3 Design phase 757</p> <p>18.4 Basic structure of a hospital 758</p> <p>18.5 Efficiency and cost effectiveness         758</p> <p>18.6 Flexibility and expandability 759</p> <p>18.7 Therapeutic environment 759</p> <p>18.8 Cleaning and maintenance 759</p> <p>18.9 Controlled circulation and accessibility 760</p> <p>18.10 Aesthetics 760</p> <p>18.11 Health and safety 761</p> <p>18.12 Use of information technology 761</p> <p>18.13 Relevant regulations and standards 761</p> <p>18.14 Health care facility construction project: Suitable delivery method 762</p> <p><b>Appendix A: Interactive Exercises 766</b></p> <p>A.1 Interactive exercise 1: Delivery method selection 766</p> <p>A.1.1 Task 766</p> <p>A.2 Interactive exercise 2: Claim for delayed site handover 767</p> <p>A.2.1 Task 767</p> <p>A.2.2 Time schedule (program) 768</p> <p>A.2.3 Site handover procedure 768</p> <p>A.2.4 Mobilization  768</p> <p>A.2.5 Acceleration 768</p> <p>A.2.6 Claims 768</p> <p>A.3 Interactive exercise 3: Claim due to suspension of work 769</p> <p>A.3.1 Task 769</p> <p>A.3.2 Suspension 769</p> <p>A.3.3 Mobilization  769</p> <p>A.3.4 Claims 770</p> <p>A.4 Interactive exercise 4: Subcontractor claim for contractor delay (lack of cooperation, inadequate on-site coordination and improper, unclear, and delayed instructions) 770</p> <p>A.4.1 Task 770</p> <p>A.4.2 Fact 1—Lack of cooperation 771</p> <p>A.4.3 Fact 2—Inadequate on-site coordination 771</p> <p>A.4.4 Fact 3—Improper, unclear, and delayed instructions 771</p> <p><b>Appendix B: Sample Letters (Examples of Formal Notices) 772</b></p> <p><b>Appendix C: Dictionary of Construction Terms: English, German, French, Hungarian, Czech, Russian, Polish, Spanish, Portuguese and Chinese</b> 791</p> <p>C.1 Dictionary—General part 792</p> <p>C.2 Dictionary—Contractor’s claims 800</p> <p>C.3 Dictionary—Employer’s claims 804</p> <p><b>Appendix D: Claim Management System under FIDIC Forms </b>807</p> <p>D.1 Claim management team responsibilities 807</p> <p>D.1.1 E1—Project manager 807</p> <p>D.1.2 E2—Design and time schedule (program) 808</p> <p>D.1.3 E3—Site manager 808</p> <p>D.1.4 E4—Contract interpretation, monthly statements, invoicing, insurance, subcontractors, employer’s claims, mutual claims in a joint venture 809</p> <p>D.1.5 E5—Administrative support 809</p> <p>D.2 Claim management processes 810</p> <p>D.3 Table of contractor’s claims under FIDIC CONS 811</p> <p>D.4 Table of employer’s claims under FIDIC CONS 811</p> <p><b>Appendix E: FIDIC Forms Risk Allocation Charts 813</b></p> <p>E.1 Chart No.1: Basic risk allocation alternatives in connection with unforeseeable physical conditions 813</p> <p>E.2 Chart No. 2: Basic comparison of risk allocation (claims options) in FIDIC CONS/1999 red book, P&DB/1999 yellow book, and EPC/1999 silver book 813</p> <p>Index 817</p>

<p><b>DR. LUKAS KLEE, LL.M, P<small>H</small>D, MBA</b> is an independent expert in international construction contracts and principal at Klee Consulting, offering construction contract services, dispute resolution and bespoke training. Lukas has dealt with international construction contracts on a daily basis for over fifteen years and has participated in construction projects in the Czech Republic and internationally. Details at: www.klee-consulting.com.

<p><b>UPDATED SECOND EDITION OF THE PRACTICAL GUIDE TO INTERNATIONAL CONSTRUCTION CONTRACT LAW</b> <p>The revised second edition of <i>International Construction Contract Law</i> is a comprehensive book that offers an understanding of the legal and managerial aspects of large international construction projects. This practical resource presents an introduction to the global construction industry, reviews the basics of construction projects and examines the common risks inherent in construction projects. The author — an expert in international construction contracts — emphasises FIDIC standard forms and describes their use within various legal systems. This important text also contains a comparison of other common standard forms such as NEC, AIA and VOB, and explains how they are used in a global context. <p>This revised and expanded edition offers additional vignettes on current subjects written by an international panel of around one hundred contributors. Designed to be an accessible resource, the book includes a basic dictionary of construction contract terminology, many sample letters for Claim Management and a wealth of examples and case studies that offer helpful aids for construction practitioners. <p>Written for consulting engineers, lawyers, clients, developers, contractors and construction managers worldwide, the second edition of <i>International Construction Contract Law</i> offers an essential guide to the legal and managerial aspects of large international construction projects. <p><b>VIGNETTE AUTHORS</b> <p>Dina Al Ansary, Andrey Artyushenko, Faisal Attia, Yaryna Bakhovska , Tamás Balázs, Mark Berry, Sarah B. Biser, Alex Blomfield, James Bremen, Giuseppe Broccoli, David Brown, Yasemin Cetinel, Donald Charrett, Rupert Choat, Simon Collard, Manuel Conthe, Alberto Croze, Ignacio De Almagro, Jaap de Koning, Cristina Della Moretta, Arran Dowling-Hussey, Andrew Downie, Gregory Efthimiu, Bernd Ehle, Marc Enenkel, Randall Essex, Karel Fabich, Remon Farag, Thiago Fernandes Moreira, Zachary Ferreira, Caio Lucas Gabra, Sean Gibbs, Stephane Giraud, Klaus Grewe, Nigel Grout, Aris Gulapa, Sarwono Hardjomuljadi, Matthew Hardwick, Khalil Tayab Hasan, Andy Hewitt, Rob Horne, Shy Jackson, Jacob Jørgensen, Patrick Kain, Knut Helge Kirkhus, Gary Kitt, Richard Krammer, Aleksei Kuzmin, Vincent Leloup, David Lockwood, Husni Madi, Dejan Makovšek, Kamal Malas, Dan Mandocdoc, Rafael Marinangelo, Aleksandra Marzec, Aymen Masadeh, Christopher Mather, J.H. Merema, Odysseus Michaelides, Christopher Miers, Cecilia Misu, Enrique Moncada, Conor Mooney, Samuel Moss, Farid Nabili, Chakravarthi Nandakumar, Dmitry Nekrestyanov, Takashi Okamoto, Karoly Tamas Olajos, Fernando Ortega, Gustavo Paredes, Edward Parrott, Jerry Pessah, Rishabh Raheja, Roger Ribeiro, Dario Rizzi, Robert Rubin, Patrizia Sangalli, John Sharkey, Michał Skorupski, Coenraad Snyman, Aidan Steensma, Claudia Adalgiza Teodorescu, Svitlana Teush, Frank Olivier Thomas, Victoria Tyson, Michal Uhrin, Steven Van Garsse, Vladimir Vencl, Katherine Waidhofer, Robert Werth, Alan Whaley, Wiebe Witteveen, Radim Wrana, Albert Yeu, James Zack, Jr, Zoltán Záhonyi, Fabio Zanchi, Shuibo Zhang, Josef Žák

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