Construction Contracts in Oil and Gas Projects

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The British University in Dubai (BUiD)
This research is an attempt to discuss construction contracts in oil and gas projects. It is focused on several types of construction contracts that are used in oil and gas industry. It outlines the different phases of an oil and gas project starting from concept, FEED and ending at EPC phase. The research discusses the FIDIC Silver Book which is used for EPC projects that are known as turnkey projects. Every project is experiencing risks of different levels. These risks need to be identified and managed to reduce their effect. Selecting the right contracting method helps in limiting risks the project might experience. Although UAE does not have a dedicated law for construction industry, it supports the freedom of contract principle. This means a bespoke contract, including a FIDIC contract, can be used by the contracting parties as long as its terms and conditions do not conflict with any of UAE mandatory rules. The change management is addressed in terms of variations and extension of time. Reasons causing variations and / or affecting the project schedule are addressed in this research along with the responsible party of these change orders. Moreover, the research discusses the risk allocation based on FIDIC Silver Book and highlights whether all risks are really shifted to the construction Contractor or some of them remain with the Employer. The end of the research discusses the dispute resolution mechanism adopted in FIDIC Silver Book and the mechanism adopted within UAE.
construction contracts, oil and gas industry, United Arab Emirates (UAE), construction industry, FIDIC contract, law