Construction

Arbitration
Dr. Crengua Leaua
Course no. 1

Basic relationships related with a construction project

Construction works for the project

Design of the project
Achisition of construction materials for the project
Supplying utilities for the works at the site
Guardianship of the site during the works
Supervision of the works on the site
Management of the contractual relationship
Insurances for liability in construction
Bank guarantees for liability in construction

Works Contract
Works contract entered by the employer with
the contractor
subcontracted works (contracts entered by
the contractor with subcontractors )

electricity
water & sewage
connection with the general supplying system for
the utilities ( gas, electricity, water)
special instalations ( elevators)
special finishing ( artistic works)

Design Contract

Design contract entered by the

employer with an arhitect/designer
Design contract entered by the
contractor with an arhitect/designer if
the contract between the employer and
the contractor is a design & works
contract

Aquisition of Construction Materials Contract

Aquisition of the construction materials is usually

made by the contractor, who identifies the
suppliers and buys the materials; prior approval
of the employer for either the type of materials or
of both the type of materials and of the suppliers
for such materials may be needed
Alternatively, the employer may buy some of the
materials and provide them to the contractor

Suppliance Contract for the Utilities during the Works

Entered by either the Contractor (usually) or the

Employer

Engineer contract
contract for supervision of the works entered by the employer
with the engineer
Role of the engineer under FIDIC
All FIDIC books define the role of the engineer essentially as
the agent of the employer. The engineer is primarily
responsible for contract administration. The engineer:
issues instructions and notices;
monitors the works;
acts as certifier.
The engineer is no longer stated to be impartial, it is deemed
to and in practice does act for the employer.

Contract Management Contract

management contract entered by the
employer or the contractor with a contract
management company

Insurance Contract

Insurances for liability in construction

insurance contract entered by the

contractor with an insurance company ,
naming the employer as beneficiary of the
policy

Bank Guarantees

Banking guarantees for liability in

construction
performance guarantee
bank guarantee contract entered by the
contractor with a bank, naming the
employer as beneficiary of the guarantee

Arbitrability
Contractual disputes arbitrable as a
rule
Problematic issues :
Consumer disputes
Public procurement
State-entities