Friday 6 June 2014

Tunnelling & TBM Course: Contracts & Claims

During the specialising course on Tunnelling and TBM at Politecnico di Torino, we had a module on Contracts and Claims. Understanding contractual nuances plays a very important role in managing complex projects such as Tunnelling, which is prone to a lot of claims. Only a keen and comprehensive understanding of the contracts will help in avoiding disputes and accompanying cost and time overruns. 

Mr. Romano Allione, Chairman of Dispute Resolution Board Foundation, took us through the clauses of the FIDIC, Red Book (Conditions of contract for construction) and briefly introduced the other forms of Contracts (Short form, EPC-Turnkey, Plant, Design and Build). Emphasis was made on Clause 20 (Claims, Disputes and Arbitration) and the timeline to be followed as per FIDIC form of contract.
Different forms of FIDIC Contract
Following the above lecture, Mr. Patrizio Torta from PM&E s.r.l gave us an overview of claims, calculation of claims under different scenarios with case studies.

References:
[1] Bunni, Nael G. The FIDIC form of contract: the fourth edition of the Red Book. Oxford: Blackwell Science, 1997.

[2] Glover, Jeremy, and Simon Hughes. Understanding the FIDIC Red Book: A Clause by Clause Commentary. Sweet & Maxwell, 2011.

[3] Jaeger, Axel Volkmar, and Götz-Sebastian Hök. FIDIC: A guide for practitioners. Springer, 2009.

[4] Perry, John G. "The New Engineering Contract: principles of design and risk allocation." Engineering, Construction and Architectural Management 2.3 (1995): 197-208.

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