AUC & SCL

Construction Contracts Development,

Challenges and Disputes Resolution
Cairo, Egypt October 2014

DraftingParticularConditions
forConstructionContracts
D r. A h m e d Wa l y
AssistantProfessor
DepartmentofConstructionandArchitecturalEngineering
TheAmericanUniversityinCairo

W A LY f i r m A r b i t r a t i o n a n d C o n t r a c t A d m i n i s t r a t i o n
awaly@vt.edu
Dr.A. Waly

CONTENT

1. Selection of the adequate contract conditions

2. Preparation of the Contract Documents
3. Drafting Particular Conditions
4. Current research at AUC

Dr.A. Waly

1
SELECTION OF THE ADEQUATE CONTRACT CONDITIONS
The use of standard form of Contracts:
FIDIC
AIA

The use of Adhoc contracts

Dr. A. Waly

SELECTION OF THE ADEQUATE GENERAL CONDITIONS

Dr.A. Waly

2
PREPARATION OF THE CONTRACT DOCUMENTS
The Conditions of Contract:
The rights and obligations of the Parties
Project management procedures

Use the General Conditions UNCHANGED.

Dr. A. Waly

DRAFTING OF THE PARTICULAR CONDITIONS

Current research at AUC:

Objective:
Providing the contract drafter with different alternatives for
particular conditions with risk their associated risks

Alternative1 AssociatedRisk

ContractCondition Alternative2 AssociatedRisk

Alternative3 AssociatedRisk

Dr. A. Waly

3
DRAFTING OF THE PARTICULAR CONDITIONS
Current research at AUC:

Thirty Construction Contracts were studied and critical contract

conditions were identified:
I.Paymentsterms:
PercentageandpaymentplanofAdvancePayment
PercentageandpaymentplanofRetention
PercentageofContractPriceafterwhichachangeintheBOQ
pricesmaybediscussed
InterimPaymentCertificateduration
InterimPaymentdurationfromapplicationsubmission
Delaydamageamount
Maximumdelaydamage
ApplicationofDelayDamageincaseofpartialcompletion
RemedyforDelayedPayments

Dr. A. Waly

DRAFTING OF THE PARTICULAR CONDITIONS

Current research at AUC:

Thirty Construction Contracts were studied and critical contract

conditions were identified:
II.Technicalissues:
Maximumdurationforreplyonsubmittals/ShopDrawinsg
RemedyforErrorsfoundinprojectDocuments
ResponsibilityofDesignandspecificationsassignedto;
Maximumdurationforreplyonsubmittals/ShopDrawings
III.Variations:
VariationsEvaluation
ExtensionofTimeDuetoVariations
IV.SuspensionofWorks:
RemedyIncaseofLongSuspension
Contractorsrighttosuspendtheworks

Dr. A. Waly

4
DRAFTING OF THE PARTICULAR CONDITIONS
Current research at AUC:

Thirty Construction Contracts were studied and critical contract

conditions were identified:

V.Commencement Date:
Eventstriggeringcommencementdate
VI.Risks:
RemedyforUnforeseeablePhysicalConditions
Employer'sRisks
RemedyIncaseofEmployerRisks
RemedyIncaseofForceMajeureEvent
VII.DefectsLiabilityPeriod:
Durationofthe defectsliabilityperiod

Dr. A. Waly

DRAFTING OF THE PARTICULAR CONDITIONS

Current research at AUC:

Thirty Construction Contracts were studied and critical contract

conditions were identified:

VIII.Termination:
Contractorsrighttoterminatethecontract
RemedyinCaseofTerminationforConvenience
IX.ClaimsProcedures:
ProcedureforExtensionofTimeClaim
ProcedureforAdditionalCostsClaim
TimeBaronClaimSubmittal
X.DisputesResolution:
ProcedureforDisputesResolution(ArbitrationClause)

Dr. A. Waly

5
DRAFTING OF THE PARTICULAR CONDITIONS
Current research at AUC:

Alternatives for each critical condition were identified:

1.interest

Remedyfordelayedpayments 2.Contractorsrighttoslowdown

3.Noremedy

Dr. A. Waly

DRAFTING OF THE PARTICULAR CONDITIONS

Current research at AUC:

Risk associated with each alternatives is identified:

Remedyfordelayedpayments

1.interest PossibleCostincrease

2.Contractorsrighttoslowdown PossibleTimeincrease

3.Noremedy Increaseincontingency

Dr. A. Waly