By: Justin L. Weisberg
After a decade, the AIA released new design and construction contract forms in April 2017. Some of the more notable changes to the AIA construction contract documents are summarized below.
London partner, Matthew E. Smith spoke on the role of insurance and cost reduction in EPC contracts at the recent Global EPC Contract & Risk Management Conference on October 12-13, 2017 in London.
To view a copy of Matthew’s presentation titled “The Role of Insurance and Cost Reduction in EPC Contracts,” please click here.
Please Join Us at the Conference and use our Sponsor Discount Code for 20% Savings
We will be sponsoring and presenting at this year’s Global EPC Contract & Risk Management Conference on October 12-13, 2017 at the Millennium Gloucester Hotel in London. We have negotiated a special discount for our clients and contacts on the conference fee.
London partner, Matthew E. Smith will be speaking on the role of insurance and cost reduction in EPC contracts and also moderating the panel on Understanding Contract Compliance with Procurement Strategies and Policies.
Seattle partner, David P. Hattery will be speaking at the panel on Ensuring Subcontractor Buy-In When Preparing and Entering Contracts.
Click here to access the conference brochure. When registering, please enter VIP code: EPC2017
The number one cause of subcontractor default is overextension of financial and operational resources. As the economy grows, subcontractor defaults are on the rise. While SDI provides improved coverage terms with claim payment provisions that are intended to streamline the process, many insured’s have experienced difficulties working through the SDI claim process that includes extensive RFI’s, cost allocation documentation and coverage interpretations that can materially impact the outcome.
By Christopher Tung, Sacha Cheong and Dominic Lau, K&L Gates, Hong Kong
On 14 June 2017, the Legislative Council of Hong Kong passed the Arbitration and Mediation Legislation (Third Party Funding) (Amendment) Bill 2016.
The Bill comes on the heels of the consultation paper issued in October 2015 by the Law Reform Commission’s Third Party Funding for Arbitration Sub-committee and closely follows the recommendations made by the Law Reform Commission in its Report dated 12 October 2016 to clarify the law concerning third party funding of arbitration and associated proceedings under the Arbitration Ordinance. (For more information about the report and the LRC’s recommendations, see our article in the May 2017 issue of Arbitration World.
NEC4, the next generation of the NEC suite of contracts, was released on 22 June 2017. It includes significant developments and reflects current best practice throughout the construction industry.
By: Łukasz Gembiś
In February 2017, the Ministry of Infrastructure and Construction announced the introduction of the “New standards in road construction” aimed primarily at regulating the balanced division of risks in roads construction contracts. Among many changes that have been made to the new model of public procurement contracts in road construction, special attention should be paid to returning – after many years of absence – arbitration as the preferred method of settling disputes between public investors and general contractors in Poland.
By: Christoph Mank
As announced last year in our blog post of 6 June 2016, Germany passed an amendment to the German Renewable Energy Act (Erneuerbare-Energien-Gesetz) to implement bidding processes for determining the amount of funding for the generation of electricity from renewable energies.
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On 17 February, the First District Appellate Court issued an opinion regarding the Implied Warranty of Habitability in the case of Sienna Court Condominium Association v. Champion Aluminum Court et al. The opinion involved three separate appeals: the first relating to claims by Sienna Court Condominium Association (“Sienna”) against an insolvent developer and an insolvent general contractor; the second involving the dismissal of Sienna’s claims against the architect, the engineers, and suppliers; and the third involving the dismissal of the general contractor’s claims against its subcontractors.
To read the full alert on K&L Gates HUB, click here.
Newark partner Christopher Barbarisi was published by Construction Executive magazine on the topic of “Techniques to Maximize SDI Coverage and Streamline the Claim Process.”
Design-builders, general contractors and “at risk” construction managers are all vulnerable to the risk of a subcontractor default. Aside from contract-related safeguards, such as increased retention, joint checks and letters of credit, subcontractor surety bonds have been the traditional mechanism for third-party risk transfer.
First introduced in the mid-1990s, subcontractor default insurance (SDI) provides a viable “first-party” insurance alternative to traditional surety bonds. To compete with surety bonds, SDI policies are heavily marketed as having a more efficient claim processes. In practice, the SDI claim process is not without its challenges. Effective techniques can be employed to streamline the process and keep the project funded and on track.
To read the full article on Construction Executive, click here.
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