THE NATURE OF CONSTRUCTION CONTRACTS
1. Exclusive Structure of Construction Projects
23
2. Particularities of Construction Contracts
24
2.1. Custom–Made Projects
24
2.4. Construction Site
27
2.5. Financial Dimension
27
2.6. International Scope
29
2.7. Voluminous Documentation
30
2.7.1. Plant Deion/Specification
31
2.7.3. Bill of Quantities (BoQ)
32
2.7.5. Payment Schedule / Milestones
34
2.8. Need for Flexibility and Reformation
35
3. Parties of a Construction Project
36
3.1. Employer (Owner–Client–Customer)
36
3.2. Contractor(Entrepreneur)
37
3.4. Engineer / Architect
39
3.5. Quantity Surveyor (Cost Consultant/Engineer)
40
4. Obligations of Parties
41
4.1. Contractor’s Obligations
41
4.1.1. Execution of the Work
41
4.1.3. Delivery of the Work
43
4.1.4. Statutory Obligations
44
4.2. Employer’s Obligations
44
4.2.1. Payment of the Contract Price
44
4.2.1.1. Fixed Price / Lump Sum:
44
4.2.1.2. Unit Price / Re–Measurement:
45
4.2.1.3. Cost–Reimbursement / Cost–Plus:
46
4.2.2. Non–Hindrance and Collaboration
46
4.2.3. Duty of Notice for Defects
47
5. Types of Construction Contracts
48
5.1. Build–OnlyDesign–Bid–Build
48
5.2. Turn–KeyDesign and Build (DB)
49
5.3. Engineering, Procurement, and Construction (EPC)
50
5.4. Build, Operate, and Transfer (BOT)
51
5.5. Construction Management (CM)
51
6. Place in Swiss and Turkish Legal System
52
7. The Integral Part of Construction Contracts: Standard Rules
57
7.1.2. FIDIC Yellow Book
61
7.1.3. FIDIC Silver Book
62
POTENTIAL DISPUTES AND FORCE MAJEURE & HARDSHIP
1. Variations / Changes
65
1.1. Possible Variation Cases
65
1.2. The Scope of Variations
66
1.3. The Role of Engineer in Variations
68
2.1. Before Taking Over
71
2.2. After Taking Over
72
2.2.1. Defects Notification Period (DNP)
72
2.2.2. Remedies Against Defects
73
2.4. Performance Certificate
74
3.1.1. Critical / Non–Critical Delays
78
3.1.2. Excusable / Non–Excusable Delays
79
3.1.2.1. Compensable / Non–Compensable Delays:
80
3.1.3. Concurrent Delays
80
3.2. The Completion Date
83
3.3. Extension of Time (EoT)
84
3.4. Entitlement to Additional Expenses and Loss
86
3.5. Liquidated Damages (LDs)
87
4.1. Differences Arising From Impossibility Types
92
4.2. Perspective of FIDIC
93
4.2.1. Consequences of Exceptional Events
95
6. Force Majeure and Hardship Scenarios With Current Issues Through The
Example of A NPP Project in Turkey
98
6.3. Sanctions and Embargos
103
6.4. InflationFluctuations
104
7.1. Employer’s Termination
106
7.2. Contractor’s Termination and Suspension
108
DISPUTES RESOLUTION METHODS AND MULTI–TIER CLAUSES
1. Conciliation and Mediation
110
3.1. Features and Advantages
115
3.3. Ad Hoc vs Institutional Arbitration
118
4. Multi–Tier Clauses
119