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Index

Practical Guide to Engineering Procurement and Construction Contracts

Page 151 Index Index acceleration, constructive 103 – 105 acceptance of work: as Owner obligation 41 – 42 accounting: in Joint Venture 119 – 121 , 138 – 140 advance payment 11 approvals: as Owner obligation 38 archaeological items 70 automobile liability insurance 138 award criteria 47 Basic Design and Engineering Package (BDEP) 5 BDEP see Basic Design and Engineering Package (BDEP) bias: in dispute causes 2 ; optimism and 31 ; political 2 , 48 , 56 ; psychological 2 , 48 , 56 cap on liability 65 causal connection, in claims 107 – 108 change control: in contract management 94 change valuation 105 – 106 choice of law: Joint Ventures and 126 , 147 claim(s): anticipation 95 ; causal connection in 107 – 108 ; defined 106 – 107 ; Joint Venture and 125 – 126 , 146 – 147 ; management 95 – 96 collaboration 54 – 55 conceptual design 34 – 35 concurrent delay 76 – 77 ; see also delay confidentiality: Joint Ventures and 121 – 122 , 140 – 141 consequential changes 103 consequential or indirect damages 50 Consortium: expulsion from 148 ; formation of 126 – 128 ; insurance in 118 – 119 ; Joint Venture vs. 126 – 127 ; leader 147 – 148 ; liabilities 148 ; offer by 117 ; reasons for forming 114 ; securities in 117 – 118 ; steering committee with 147 ; see also Joint Venture (JV) construction/erection all risks insurance 118 , 137 construction management: daily tasks of 69 ; responsibilities of 68 – 69 ; setting out in 69 – 70 ; team 67 Construction Program Manual (CPM) 94 constructive acceleration 103 – 105 constructive changes 101 contract conditions 36 – 37 , 46 , 47 , 52 – 57 ; change control in 94 ; claim anticipation in 95 ; method of performance changes and 102 ; subcontract 64 – 65 contract management: change valuation and 105 – 106 ; claims management in 95 – 96 ; consequential changes and 103 ; constructive acceleration and 103 – 105 ; constructive changes and 101 ; Contractor-ordered changes and 100 ; defective specifications and 101 ; defects and 96 – 101 ; documentation control in 93 – 94 ; entitlement preservation and 110 – 111 ; information supply and 3 ; notices and 108 – 109 ; over-inspection and 102 ; Owner-ordered changes and 99 – 100 ; Owner-provided defective materials or property and 102 – 103 ; plans and procedures in 93 ; program 93 – 96 ; purpose of 91 – 92 ; records in 109 – 110 ; and rejection of conforming work 102 ; schedule control in 94 ; third party changes and 100 ; variation orders and 98 – 99 Contractor: in contract tendering and negotiation 49 – 52 contract review 93 contract tendering and negotiation: award criteria in 47 ; Contractor in 49 – 52 ; Page 152 exclusions in 50 ; liabilities in 50 – 52 ; Owner in 46 – 49 ; science of 48 – 49 ; warranties in 50 – 52 contractual exclusions 50 cooperation 29 cost control 67 damage: as dispute cause 21 – 24 ; liability for, as Owner obligation 42 – 44 damages: for delay, liquidated 19 ; as dispute cause 21 – 24 ; penalties vs. liquidated 19 defect(s): contract management and 96 – 101 ; Contractor-ordered changes and 100 ; failure to remedy 89 ; Owner-ordered changes and 99 – 100 ; price reduction for 89 ; search 88 – 89 ; subcontractor warranties and 97 – 98 ; third party changes and 100 ; variation orders and 98 – 99 defective specifications 101 Defects Liability Period 87 – 88 , 96 delay: delay-causing events 75 – 76 ; concurrent 76 – 77 ; as dispute source 18 – 19 ; liquidated damages for 19 ; sequential 77 – 78 design: complexities of 60 ; liability 58 – 60 ; submission of documents, to Owner 59 – 60 ; variations provision and 60 – 61 Design Brief 4 dispute causes 1 – 26 ; bias in 2 ; damages in 21 – 24 ; delay in 18 – 19 ; information supply in 2 – 4 ; origins of 1 ; from outside contractual parties 15 – 17 ; payment in 11 – 15 , 13 ; price in 9 – 11 ; quality in 19 – 20 ; rely-upon information and 3 ; scope of work in 4 – 6 ; site access as 7 – 8 dispute resolution 24 documentation control 93 – 94 drawings: as Owner obligation 39 due diligence: decision-making after, in project conception 30 – 32 duty of non-interference 39 – 40 Employer’s Requirements: conceptual design in 34 – 35 ; contract conditions in 36 – 37 ; facility requirements in 35 ; general requirements in 35 ; overview of 34 ; Owner’s obligations in 37 – 44 ; particular requirements in 35 ; tender phase in 35 – 36 entitlement preservation 110 – 111 environmental protection 71 – 72 EOT see extension of time (EOT) equipment: Ownership of 73 ; Owner-supplied 72 exchange rates 10 exclusions: in contract tendering and negotiation 50 ; in scope of work 6 experience 29 expulsion: from Joint Venture 122 – 124 extension of time (EOT) 94 facility requirements 35 feasibility study 28 – 30 FEED see Front-End Engineering and Design (FEED) Final Acceptance 41 – 42 , 89 financing: in Joint Venture 120 fixed price contract 9 – 10 Flyvbjerg, Bent 2 , 31 , 48 , 56 Force Majeure 17 forward contract 10 fossils 70 Front-End Engineering and Design (FEED) 36 , 48 , 58 general purchase conditions 65 general requirements 35 Health, Safety and Environment (HSE) 68 ; see also safety hold harmless 22 – 23 HSE see Health, Safety and Environment (HSE) information: as Owner obligation 39 information supply: as dispute cause 2 – 4 innovation 29 inspection: joint 88 ; over- 102 instructions: as Owner obligation 39 insurance: construction/erection all risks 118 ; in Joint Venture/Consortium 118 – 119 , 136 – 138 ; liability 119 ; marine cargo/transportation 118 , 137 ; third-party liability 138 ; work 136 – 138 ; workman’s compensation 119 , 137 – 138 invoicing: in Joint Venture 119 , 138 joint inspection 88 Joint Venture (JV): accounting in 119 – 121 , 138 – 140 ; arbitration and 125 – 126 , 146 – 147 ; choice of law with 126 , 147 ; claims and 125 – 126 , 146 – 147 ; Page 153 confidentiality and 121 – 122 , 140 – 141 ; Consortium vs. 126 – 127 ; continuation of 143 ; contributions of members to 133 ; dispute resolution and 125 – 126 , 146 – 147 ; effective date of 124 ; exclusivity with 135 ; expulsion from 122 – 124 , 142 – 146 ; financial plans of 115 – 116 ; financials in 119 – 121 , 138 – 140 ; financing in 120 , 139 ; formation of 114 – 115 ; insurance in 118 – 119 , 136 – 138 ; invoicing in 119 , 138 ; liability and 122 , 141 – 142 , 144 – 145 ; management structure of 130 – 132 ; offer by 117 , 135 – 136 ; payments in 120 , 138 – 139 ; principles of joint operation in 134 – 135 ; profit and loss sharing in 134 ; project management in 116 – 117 , 131 – 133 ; reasons for forming 114 ; securities in 117 – 118 , 136 ; steering committee in 116 – 117 , 130 – 131 ; strategic management in 130 ; taxes and 121 , 140 ; termination of 125 , 145 – 146 ; unpaid working capital in 120 , 139 ; use of property and 144 JV see Joint Venture (JV) knock-for-knock 21 – 23 , 26 , 42 knowledge sharing 30 labour shortage 76 late payments 11 – 12 L/C see letter of credit (L/C) letter of credit (L/C) 12 – 13 , 13 liability: Consortium and 148 ; in contract tendering and negotiation 50 – 52 ; for damages 124 ; design 58 – 60 ; Joint Ventures and 122 , 141 – 142 , 144 – 145 ; as Owner obligation 42 – 44 ; for work provided 124 liability insurance 119 loss of profit, loss of use 50 lump sum pricing 9 – 10 , 55 marine cargo/transportation insurance 118 , 137 materials: Ownership of 73 ; Owner-supplied 72 ; shipping responsibility for 73 method of performance changes 102 milestone payments 18 mineral deposits 70 mutual hold harmless 22 – 23 non-interference, duty of 39 – 40 notices 108 – 109 optimism 31 option contract: exchange rates in 10 overall liability cap 50 over-inspection 102 Owner: changes ordered by 99 – 100 ; in contract tendering and negotiation 46 – 49 ; defective materials or property provided by 102 – 103 ; equipment supplied by 72 ; materials supplied by 72 ; plant supplied by 72 ; services to be supplied by 72 ; submission of design documents to 59 – 60 ; supplies to be supplied by 72 Owner’s obligations: acceptance of work as 41 – 42 ; approvals as 38 ; drawings as 39 ; duty of non-interference as 39 – 40 ; in Employer’s Requirements 37 – 44 ; information as 39 ; instructions as 39 ; liability as 42 – 44 ; payment as 40 – 41 ; permits as 38 ; site access in 37 – 38 ; site possession in 37 – 38 ; start date as 38 – 39 Owner’s risks 17 particular requirements 35 payment: advance 11 ; as dispute source 11 – 15 , 13 ; guarantees in 13 – 15 ; in Joint Venture 120 , 138 – 139 ; late 11 – 12 ; letter of credit in 12 – 13 , 13 ; as Owner obligation 40 – 41 penalties: liquidated damages vs. 19 performance measurement 20 performance tests 79 – 80 permits: as Owner obligation 38 physical conditions, unforeseeable 15 – 17 Planning Fallacy 31 plant: Ownership of 73 ; Owner-supplied 72 political bias 2 , 48 , 56 price: as dispute cause 9 – 11 ; reduction, defects and 89 procurement, project 32 project conception: cooperation in 29 ; due diligence in, decision-making after 30 – 32 ; experience in 29 ; feasibility study in 28 – 30 ; innovation in 29 ; knowledge sharing in 30 ; management in 27 – 28 ; preparation in 29 ; procurement and 32 ; standardisation in 29 project management: in Joint Venture 116 – 117 , 131 – 133 Page 154 psychological bias 2 , 48 , 56 public convenience 71 public utilities 72 Punch List 89 purchase conditions 65 quality: as dispute cause 19 – 20 recordkeeping 109 – 110 Reference Class Forecasting 31 – 32 , 48 – 49 , 56 – 57 rely-upon information 3 requirements: facility 35 ; general 35 ; particular 35 Ruskin, John 48 safety: in construction 70 – 71 ; see also Health, Safety and Environment (HSE) schedule control: in contract management 94 scope of work: as dispute cause 4 – 6 ; exclusions in 6 ; subcontract and 64 securities: in Joint Venture/Consortium 117 – 118 , 136 sequential delay 77 – 78 ; see also delay setting out 69 – 70 shipping responsibility 73 site access: as dispute source 7 – 8 ; failure, in delay 76 ; as Owner obligation 37 – 38 software issues 88 specifications, defective 101 standardisation 29 start date: as Owner obligation 38 – 39 storage responsibility 73 strikes 76 subcontract: conditions 64 – 65 ; scope of work and 64 subcontractor warranties 97 – 98 substitution: expulsion by 124 , 145 Taking-Over: assessment procedures after 84 ; certificate 83 – 84 ; conditions 82 ; procedure 83 ; relevance of 84 ; responsibility transfer in 82 – 83 taxes: and Joint Ventures 121 , 140 tender phase 35 – 36 termination: of Joint Venture 125 tests, performance 79 – 80 third parties: disputes arising from 15 – 17 third-party liability insurance 138 time management 67 transportation insurance 118 unforeseeable physical conditions 15 – 17 variation orders 98 – 99 variations provision 60 – 61 warranty: contractual 50 – 52 ; quality and 20 ; subContractor 97 – 98 wear and tear 88 workman’s compensation insurance 119 , 137 – 138

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