In the Sultanate of Oman, most construction contracts entered into use Standard Documents for Building and Civil Engineering Works, usually referred to as the Standard Forms of Contract
. The two editions currently in use are Third Edition (in English, July 1981) and Fourth Edition (in Arabic, 1999).
Most standard forms of contract
, while addressing delay, do not expressly address disruption, and it is left to being a claim based on a breach of the contract.
However, the traditional lump-sum model generally prevails in this market, usually with onerous employer-biased terms introduced to standard forms of contract
, such as the FIDIC Red Book.
You should also consider whether you require bespoke amendments to those standard forms of contract
in order that the contract better suits your needs.
Paul has experience of working with all standard forms of contract
including JCT, ICE, NEC, FIDIC and IChemE.
The JCT and other standard forms of contract
expressly protect clients in this regard by allowing 5% retention till the issuance of the final certificate.
'And that's on top of the costs already incurred by the industry in devising so-called standard forms of contract
, the majority of which originate in legal offices around the country where lawyers are busily working on the premise that their efforts are geared to fully protecting the interests of their clients.
It is by no means perfect - from a contractor's standpoint - but it is a beginning and at long last clients are beginning to appreciate that standard forms of contract
have great value and lead to lower prices if much of the contingent risk can be allocated or removed.
FIDIC are standard forms of contract
for use between employers and contractors on international construction projects.
Accustomed to standard forms of contract
, such as FIDIC or JCT, and to being obliged to address issues arising during the defects liability period following practical completion, contractors may not realise that their existing risk management structures are often insufficient to cover their potential exposure under decennial liability, nor has the significant cost of insuring against that risk been priced into their tender for the works in Qatar.
He added: "Construction law is a complex area and lawyers need specialist knowledge of a massive body of case law, which is constantly changing, and must understand many different standard forms of contract