Projects (Business)

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Browsing Projects (Business) by Subject "construction industry"

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    Dealing with Late Payments - A Challenge for UAE Small Scale Subcontractors?
    (The British University in Dubai (BUiD), 2015-11) Purayil, Abdulla Poomangalorakath Puthiya
    The small scale subcontractors provide an extremely important service to the construction industry in UAE and they carry out more than 50% of the actual execution of the works at site in major projects as direct subcontractor to the main contractor or as a sub-subcontractor. It has been reported that the small scale subcontractors in UAE are severely affected by the late payment issues. Although several researches were conducted on the late payment issue faced by subcontractors in general, the researches with special focus to small scale subcontractors are very limited in numbers. This research focused on identifying various challenges faced by small scale subcontractors in UAE with respect to the late payment issues, examining the legal and contractual aspects of the late payment issues under various jurisdictions with a particular focus to UAE law and to find out feasible solutions for the late payment issue. The methodologies adopted were questionnaire survey, literature review and face-to-face interviews. The research reveals that dealing with late payment is a challenge for small scale subcontractors in UAE and foremost reason for the late payment is „main contractors wrongfully withholding due payments‟. The research further shed light in to various provisions, concerning late payment to small scale subcontractors, available in the UAE law as well as other jurisdictions and found that UAE law is lacking several provisions which are available in other jurisdictions that protect small scale subcontractors. To conclude, the late payment issue faced by the small scale subcontractors is an issue to be dealt with great concern as it has severe economic as well as social impacts. Further, it is recommended to adopt a quick and affordable statutory adjudication and a protection to subcontractors‟ payment through the project escrow account in UAE as a solution to eliminate this issue.
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    LEGAL ANALYSIS OF CONCURRENT DELAY CLAIMS IN CONSTRUCTION PROJECTS AND EVALUATION OF ENTITLEMENT USING APPORTIONMENT PRINCIPLE
    (The British University in Dubai (BUiD), 2015-11) JOSEPH, BINU
    Concurrent delays in construction are complex and often matter of dispute in construction industry. The law is unclear in this issue and the parties generally use concurrency as an excuse to escape from their responsibility to compensate the other party. In different cases related to concurrency the judges have provided rulings based on which different principles have developed on concurrency. This indicates that there cannot be a single general principle to deal with concurrency. In this research project noted English cases related to concurrency and the rulings of the judges have been reviewed. The “Society of Construction Law (SCL)” and “Association for the Advancement of Cost Engineering International (AACEI)” have developed guidelines to deal with concurrency. A legal analysis of SCL and AACEI recommendations has been carried out with the case laws in order to arrive at best possible way to deal with a concurrency situation. As the construction projects are generally large in size and lasts for a longer period of time the delay events and the critical path of the project changes over the period of time. Therefore it is important to establish the varying dominant cause of delay and understand the relevance of each event during the span of the project duration. It is rare that two concurrent delay events overlap exactly without a dominant cause. In such an instance where a dominant cause cannot be established, it is appropriate to apply the principle of apportionment to arrive at a fair entitlement for the parties. Even though apportionment principle is generally accepted as the best recommended solution for a true concurrency it is often difficult to evaluate entitlement under apportionment. This research project by means of a case study establishes that “Window Analysis” with “Time Impact Analysis (TIA)” provides best solution to apportion the entitlements under concurrency. The results of interviews with experts on this subject have been discussed at end of this document which provides better understanding of concurrency and evaluation of entitlements and liabilities of the parties.