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Old 05-03-2011, 03:35 AM   #1
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Default Construction of prestashop legal risk preventiopre

Construction of the legal risk prevention in the construction process of bidding for professional lawyers need to guard against the risk, you need to correct, timely and high-level processing and grasp the complexity of the project contract documents, and also need to guard against risks to owners of various measures. Construction Project legal risk prevention can be divided into three areas: first, the bidding documents, namely, how to prepare bidding documents, work in the tender should do this is the first preparation; second is in the works technical change management process, the temporary treatment of claims and other issues; the third is the late relief, including how to prepare legal proceedings and the application of perprestashopmance bond.

one bidding documents

I first work in Beijing Urban Construction Group, has some experience and building business linkages, it is relatively deep feeling that the tender documents is not good enough we have This kind of problem. So the first thing we want to talk about how to improve the bidding documents.

(a) the characteristics of the bidding documents:

bidding documents with extraordinary complexity. Specifically, the following areas:

1. The complexity of valuation methods.

bidding of China's market access approach, in essence, is that method of valuation. One is the method of budget plus changes in accounts before 1996 using this method the basic domestic. Construction Committee or tender around the office regularly releases a single or fixed pricing. Each quarter, the market price adjustments do material. Construction market and productivity of different levels of management of construction enterprises in accordance with the regional average level of productivity within the community prices (fixed price) for project settlement.

Another method is to project the amount of inventory valuation methods. Requests to the Ministry of Construction in 2003 to promote the use of the method. Matching file system is also standard version of the Ministry of Construction awarded contract. The list of pricing norms, many people criticized opinion that its neither international nor local, but the way of the fixed list is simple and the international combination. But I believe it should be noted that it is very positive, mainly in: In addition to the scope of state stressed the investment of funds or state-owned investment-oriented projects should be implemented, other projects recommended, it also introduced a new The project price management, which in the past other than the Government's pricing, allowing companies to have their own price criteria. For one single project, sub-sub-headings, each a different levels of labor productivity of enterprises, each enterprise should not be compelled to use a uniform price specification. Fixed pricing is based on the past a local community level is the average price valuation standards; the current list of pricing standards, is based on the price level of their own accounting business, allows companies the ability to price according to their own. For example: In many projects, large construction companies in the template of a price lower than other construction companies, because they have their own template, it has a strong competitive price. List of methods used, can promote the introduction of large construction companies standardize their pricing, not only beneficial to the owners (the price can be better construction); and the contractor is also advantageous because they can according to their own business situation, introduction of a competitive contract prices, to improve their bidding power.

addition, there are fixed price contracts pricing. Now the works in this way is not much, so not in this detail.

2. The contract complexity.

list prestashop pricing of quantities in terms of supporting the contract system, the international environment on the popular use of different legal systems up to half a dozen contracts, the contract system, we have known in recent years, the content can be divided into two categories, the internationally popular method of FIDIC contracts and ICE contracts methods. FIDIC contract is recommended to use the International Federation of Consulting Engineers, and ICE contracts is popular in Commonwealth countries to use. Two types of contracts are popular methods in international, but in essence there are differences: FIDIC contract, the contractor can be said that the pro side, ICE contract is the pro-Owner. Specific example, in the ICE contract, there is a description of terms of the contract, that a project be considered only be satisfied with the final completion of the owners, the owners are not satisfied that we should return to work; but in the FIDIC contract that has never been described. ICE methods can be seen more likely to contract work in the engineering process required improvement. The current popular use of the Hong Kong SAR ICE contract. The FIDIC contract system in third world countries, especially in international aid projects and recommended by the World Bank loan projects, it is recommended to use more methods to help recipient countries to contract with construction companies and political implications, so the owners of the requirements of the contract is also very strict. Difference between two types of contract reason so much is that they take different positions.

contracts in the international engineering consulting engineer in this role, the equivalent of domestic supervision, but not exactly the same as China's The owners of consulting engineers in full accordance with the authority to exercise the right of inspection on site to issue the certificate, regulation disputes, and so did the role of arbitrator. Consulting engineer who is dissatisfied with the certificate of approval is not issued, which requires the contractor must be adjusted to make it satisfied, consulting engineers before issuing a certificate of approval, the owner will pay. In this case, the quality requirements will be more stringent. These issues are international projects detailed in the contract documents reflect the application of such contracts in the study should be noted that the status of the content and coordination of consulting engineers.

for the standard version of the contract, the contract to do consulting professionals view, the Ministry of Construction Standard Edition, the contract will not see their specific preference. But some people commented that the Ministry of Construction Ministry of Construction is a construction company, it presided over the preparation of the project contract documents also tend to contractors rather than owners.

3. General terms and the importance of the contract system.

whether domestic or international contracts, construction contracts usually when we speak of the general talk about specific terms. For example: the issue of package contract is customary to refer to the special provisions of the contract. Long led to a neglect of this understanding, that ignores the importance of common terms. Can further say that, but also ignored the agreement in front of and behind the standards, ignoring the tender, tender documents, letters Q, construction drawings into the value of the contract system, ignored the bills of quantities,virtuemart template, quotations in the contract works in value. Construction contract, whether domestic or foreign contracts contracts are the most forward in terms of the contract documents (such as FIDIC contract 99 and 1.5, the Ministry of Construction 99 and special provisions of Article 2) specifically about this issue, document organization system problem. But many people do not pay attention to this issue that most contracts are like this. In addition to draw attention, if the project implementation process, the contract conflict between the interpretation of the order of documents in accordance with that interpretation of the order. Very complex construction contracts, content variety, not the slightest conflict between the terms is not very easy. How to solve the event of conflict, we must rely on the interpretation of the provisions of the order. Therefore, the provisions of the order must be given adequate attention.

4. tightness of the tender documents.

why in many of the documents to an agreement up front, then the letter of acceptance, then tender, followed by the special provisions, general provisions. Because the agreement is the agreement reached between the last minute. Tendering process is a special process in which there will be a number of clarifications on the tender document or communication, subject to a few months before prestashop after. The process of bidding to hold Q & A, there are many problems to the owners answering questions, answering only to explain the course of the contract process, but also amended to clarify the terms of the contract for the future lay the foreshadowing. Agreeable to both parties signed the final agreement shall prevail. Thereprestashope, the agreement is the first important document. Secondly,prestashop, why is the tender

books? The winning bid because it is the most fundamental meaning of the construction unit that could not be adjusted. It first explained in terms of the contract back. In order to embrace some of the contractor to the project, often do a lot of concessions. From the owners point of view, this is where the most that can be used. Now for the works are many disputes, Beijing has encouraged the use of legal means to contractors and owners of Resolve outstanding issues, I believe that with more and improved legal environment, since this lawsuit will be more and more. Lawsuit went to the end, we all know to protect your contract and write only those things. In order to embrace the contractor to the project, often in the tender on the promise that they actually can not do a lot of things. Need to be reminded that this interpretation of the order of the priority document is quite early. But now the legal environment is still not perfect, in the court documents do not explain in full accordance with the order to try the case, which is that the owners and lawyers rather confusing place. However, to further improve the legal environment does require you to pay attention and study, while taking advantage of it to protect the reasonable and legitimate interests of the parties.

5. Special provisions forward-looking.

We would prefer to do when the owners in the tender pre-legal work. Many owners do when the tender documents by project management, technical staff, although they are all very professional technical personnel, but virtuemart template neglected compared to the legal requirements. This may be due to our subconscious that something happens after the litigation lawyers are used. In fact, many business consulting lawyers to provide consulting services bidding. If we can work to the front to the lawyers, the contract's complexity, rigor can both be guaranteed. Expect many years building a school of professional and technical personnel to achieve a thick contract there is no contradiction and conflict, it is very difficult, even if many years of practice the lawyer can not do this. Because this is a very professional legal content, and construction engineering consulting business is even more professional in the profession. Therefore, I hope our customers can afford to do some good bidding text template for the future control of this risk is very useful.

(b) legal work in harmony with the principles of technical work

legal and technical work is in the bidding mutually supportive. Lawyers and experts work to solve the main file system problems. For example, the interpretation of the contract and the norms explanation of how to do a conflict? And engineering experts, we have discussed, that there should be a standardized selection process, in contradiction to the norms that might explain. Particularly high in the technical content of the works in question had, of course, housing may not be so common grave. We have done in Beijing, such a project, hired a group of experts selected specification and selection of norms, those contradictions to be explained by experts, and confirmed by both parties, and then virtuemart template adjustments to some specification or selection of some foreign specification. The legal work is compatible with the technical work place. How to ensure that so many technical problems can and do not conflict with the previous contract, together with, but also protect the owner or contractor to the interests of harmony, it is worth studying.

There is also a list of quantities pricing method, which involves the preparation of contract documents may be many people who provided the technical specifications for I do not understand the problem, it is a very professional specifications. Now do not understand, which inevitably appear in front of the contract specifications and conflict. This is something we encounter in practice many times. Therefore, legal services, early intervention is that the preparation of bidding documents in time to put this conflict eliminated to make it harmonious.

integrated these points, to everyone's advice is, issuing documentation, paying particular attention to rigor in the preparation of special provisions when the discussion should clear.

II construction contract in the process of implementation issues



construction contract disputes some of the implementation process, the dispute form, and we should pay attention to the problem should also A very important issue. Hundreds of pages of a construction contract, regardless of the final analysis are the three words: duration, quality, price, duration to ensure that quality should be excellent, the price should be reasonable, this is a good project.

(a) The duration of the problem

in construction projects tend to have a lot of drag on the phenomenon exists. May be due to a lack of preparation, such as the status of the site to deliver bad; survey is not detailed, leading to complex ground after digging; design is not adequate, frequent design changes in construction; there is a shortage of funds and other property owners. Some large projects may also be the case, basic engineering is done by a company to complete and then handed over to another company to do structural engineering. In this case, we have yet to see the two companies work hand-over is not that contradictory, and often have a wide range of conflicts, leading to schedule delays.

the middle of the construction process, design changes led to schedule delays caused by major economic and technical negotiations are a lot of the phenomenon of schedule delays. From the owners perspective, of course, do not want to delay the project, which involves management issues, while also made our contract requirements. General requirements for the drafting of the contract that we clear the project only affects the critical path, the duration can be extended, in general, can not be postponed.

imputation on the site is both informative archival materials engineering project management requirements, but also required by law. If the duration of a judicial dispute, then, we must first look at the contract, the contract is the first order of the file. A request for the project is the establishment of a dispute, especially in the construction and engineering claims and counter-claims cases, I think the evidence is of first importance. If there is no evidence to support, the court will not support your conclusions and requests. In some cases, our agents, it is because many project files are missing, leading to the result of a lawsuit is difficult to judge.

the way here to talk about the position of supervising engineers. Management of the Trinity site, the owners, contractors and supervision engineers. Supervision Engineer is the law of social responsibility on the construction site quality control role. In fact some of the views of the Commissioner as an expert witness advice in litigation or arbitration, the courts and arbitration institutions in many issues, supervising engineer with the views to determine the problem. So a very important role of supervising engineers, their views must be given adequate attention.

addition in the construction process, it is also often delayed for projects leaving the construction side slowdowns, work stoppages, and thereby lead to schedule delays. Construction side of the suspension period will not guarantee, followed by a series of problems. Bear the brunt of the responsibility is the third person. Such as: If the project is commercial residential buildings, will be delivered to owners related to the problem of delay will produce a series of claims submitted to occur; if it is part of the project lay-off, such as civil works, will affect the follow-up works, will be quality changes caused by the material, material piled up storage fees and so on. In this case, the lawyers work to be done, first, time sent a letter to the related parties concerned to remind them to take appropriate measures to mitigate the losses caused by downtime; second, for the owners sent a letter to the construction side, to remind them protect the construction site, the responsibility to help the owners of the proposed measures; Third, if the lawyer as a contractor, will have to analyze whether the suspension is a powerful measure of suspension of work, enjoy the rights and the contractor were sent a letter to the upstream and downstream units, make arrangements and interpretation.

(b) prestashop quality of the claim prestashop counter claim

engineering quality problems tend to have a lot of class, a grade level is an accident, the accident must take the necessary remedial measures in order to virtuemart template up Defects; other defects, such as the quality is not very serious, does not affect the structural safety.

quality, prestashopre are many causes of the accident, specifically are the following:

1. design flaws caused by quality problems.

in the country, the design task is commissioned by prestashop owners themselves Architectural Design completed. After this there is a design problem of how to contractors. Must be referred to by the owners, as long as there is a link there is a link to the issue of accountability. We generally recommend the contract require the construction contractor to review drawings of the drawings as executor, prestashop reasonable from the construction and safety point of view that design flaws.

2. prestashop construction work itself.

construction work itself, the problem virtuemart template occurs in a hidden works. If subsequently found to significantly lagged behind, which requires the owners of the site into the wood, construction operations records, supervision records and make provisions to ensure quality and correct hidden works and then processes the next.

many contractors are free to treat the construction organization. The author believes that the construction contractor for the owners should be required to contract tailored to the specific characteristics of the project construction organization design.

3. quality assurance system.

quality assurance system is actually composed by a set of documents. For example, the construction site materials management system. Some focus, the quality of public works or projects with special requirements, you need to choose a neutral joint inspection of laboratory materials. Quality assurance system should further provide that, in addition to select a neutral laboratory and also pay attention to inspection method. Supervising engineer in the extraction of samples sealed under the supervision of inspection, or by the construction unit or units of their own archive material inspection, and then to test various aspects of the report, the difference between the two is very large. Therefore, the site management is a rigorous and scientific problem, it should be incorporated into the quality assurance system. In addition, project acceptance, test methods, the quality assurance system should virtuemart template the rules.

(c) the issue price is actually

price dispute settlement disputes. Often occur on the site to negotiate, technical change, but change does not necessarily have to negotiate the contract price will lead to a change, both of which are not fully unified. Works price of the settlement will almost certainly be supported by evidence. The evidence collected to require special attention both on-site technical visa when a visa into the economy, with the original bills of quantities, the original written estimate or quote the corresponding review. Price disputes with other problems existing in the field of factors on the contract. All in all, the construction site on to note that the integrity of the material, when you have approved the same attention. We suggest that the owners, in relation to the price when the company should be required to be effective, the only sign, called In the contract it should be clear, the importance of it to upgrade to a particular height, will summarize the final confirmation of the right to a certain level of leadership to the company to manage there.

method in quantities, the price is often more focused and less attention to content. This involves the completion of the works, to what kind of criteria to issue the amount of the approved projects. Some are in accordance with the drawings, but drawings there is double counting and other issues. BOQ method beneficial owners, its advantage is that as long as the price determined, the volume can always be settled, and the other it is very true in the economic savings, so the owners are now actively promoting this approach.

Third, the contract dispute after the contract dispute

Relief relief actually a lot of levels: on the construction contract dispute resolution regime in the international engineering communities have a very in-depth study, the domestic I have seen on the relatively weak research. But can also be divided into consultations, quasi quasi arbitration award or to litigation and arbitration. For example, quasi-arbitration law in the bill of quantities will appear in an issue that is not enough detail in the engineering design time, price not yet finalized. Then you can set a standard arbitration mechanism, that is, engineering surveyor from the preliminary ruling. Without affecting the duration of the premise, determine the material price, and Quasi-arbitration mechanism is very common in the international arena, but the standard version of our contracts in the country, in fact, no quasi-arbitration mechanism. If you have disputes submitted to litigation or arbitration. There are many disputes to arbitration is not the actual point where coordination can be solved by the authorities, and litigation, arbitration cost is also high. Therefore, the quasi-arbitration mechanism is necessary. In our country do not have this mechanism can serve this role supervision engineers, more appropriate. If you can not resolve the dispute arbitration standards, the two sides can go back to litigation, arbitration.

(a) Litigation and Arbitration

on litigation and arbitration issue, the author stresses two elements:

1. building settlement disputes, construction claims and counter claims of evidentiary issues.

in court is finally able to play a role in evidence. Project Management to be very serious and carefully to what happened every record, preserve documentary evidence, to be diligent in issuing a written document. Works on a principle, FIDIC agreement is better, ICE agreement is better, there is such a provision, Many of the various letters on the site, to respond promptly. With particular attention to an orderly transfer of project management documents, instruments and orderly transfer of evidence to reflect this, involving technology, engineering confirmed that the communication cost accounting, etc. should reply, do come and go, everything made clear, to be able to establish a strict chain of evidence. Because the site correspondence, documents and instruments of various projects is easy to use as evidence, the author suggested that in the letter to others on the site agreed, it is best to make such restrictions: This consent relates only to technical issues, does not involve to schedule, quality confirmation, price confirmation, quality claims, financial compensation, increased man-days and so on. Because of these related to matters of an economic nature, you can not ensure their contract is not in conflict. We could not believe the technical staff on site have adequate level of professional legal contracts so complicated able to remember very clearly, this is very realistic. Therefore, the only way is to only confirm the technical content, the content does not recognize the economic and legal content.

some files must respond and must stand, such as monthly reporting of quantities, the price requested to approve, the owners have the right to disagree, or that the material requested by the other party to provide further research and then reply. Even very vague but also made a reply form from a file had to have to meet. It would also meet the engineering characteristics of the legal settlement, to resolve the remaining issues later. This is evidence of the problem, we must pay attention to the text between the subject. Reply letter and accurately, both for the future of the settlement to create the conditions provided for the settlement initiative.

2. performance bond and performance bond in the application.

we pleasantly surprised to find that some customers start using the bond was. We have more contact with the project, the implementation of the performance bond is very small, especially the really close up of a performance bond for less. In fact, in our project which should be said that 80% of the sub-contracts and sub-projects are performance bonds should be. Because construction companies are virtuemart template big assets, debt ratio is also high, may not win a lawsuit, even if not necessarily winning the implementation of the money back. This is a very real problem. To solve this practical problem, you can use the guarantee.

basic law according to the project, 10% deduction for projects in the settlement, the return is very normal. But the owners are actually paying 95%, leaving only 5% of the retention money. And other quality assurance period, the settlement that retention money of 5%. However, retention money of 5% in terms of both for many construction companies do not care, then they lack the power to perform the contract. Moreover, in the economic negotiations and construction on the site through the use of some of their skills and means to get more benefits. Therefore, the retention money of 5% when more can not control them, the only constraints can play a role is the performance bond. FIDIC contracts inside the circle there is a saying, Some even guarantee 30% for the works included, if collected on the white dry, or even a loss. Of course, we may not necessarily guarantee that high income, but we charge 15% or 10% is still very reasonable, a 10% share in any case we should charge. This would form a very important building contractors restrictive role. Of course, the owners can receive guarantees the contractor, in turn, contractors can guarantee income owners, because the owners do not fulfill the contract, Breach of Contract Examples abound of contractors. Building contractors can use the performance bond owners to promote compliance in good faith seriously, rather than the owners free to use the so-called superiority, prejudice the interests of the contractor. But generally speaking, the loss of the contractor defaults on the owners of larger, especially considering the contractor the right to use the

bond or deposit a performance bond and breach of contract, what is the difference? The nature of the undertaking is that it set a number of benefits, forfeiture conditions, and breach of contract to go through a very complicated process first recognized responsibility, found complete responsibility, you can take the money after the pricing. Therefore, the bond is very important. Because the bond issued by a professional commercial banks, in essence, is the bank credit to the provision of a bond issued by security people. If the contractor defaults, then the owner can give the construction side letter at any time, notify the bank guarantee in the amount of your money to deduct, effective immediately. Construction side to court, and won to get the bond back, this time, the owner to take the initiative. In addition, to draw attention is that performance bonds and performance bonds pay deduction, in the contract agreement should be very detailed. Such as setting schedules, such as leaving duration can not be delayed to give evidence is entitled to a deduction letter how much the construction side; the construction side, if not provided with the construction organization, the owners have the right to receive how much money and so on. As a very strong operational, there is no ambiguity, it is easy to identify. In this case, performance bond and have the strength to execute a performance bond.

legal risks in the works to prevent the problem is actually a very specialized and complex problem that requires starting from the preparation of the tender, and then in the implementation of the project to strengthen contract management, until the end of the project as the basis for the contract settlement project. This process sometimes took several years, many in fact the inevitable changes will occur. These changes in turn affect the contracts, worth doing substantive legal issues lawyers, construction companies, owners, project management company or other business consulting firms and other participants in projects carried out continuous research and concluded, to enhance the level of risk control projects .
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