View
218
Download
0
Category
Preview:
Citation preview
8/16/2019 Termination Suspension Risks and Insurance
1/33
6CN011 Contract Law and
Dispute Resolution (Qatar)
Lecture 7
Termination / Suspension
Riss ! "nsurance
#$ %arc& #01#
8/16/2019 Termination Suspension Risks and Insurance
2/33
Today: Scope of thelecture
• Termination o' ors * t&e+mplo*er
•
Termination and suspension o' ors* t&e Contractor
• Riss in constructionpro,ects/contracts
• "nsurance o' t&e ors and resources
8/16/2019 Termination Suspension Risks and Insurance
3/33
8/16/2019 Termination Suspension Risks and Insurance
4/33
Termination by Employer (Cl 15)
+mplo*er can also terminate i' Contractor-•Sucontracts t&e wors
•2ssi3ns t&e contract
•
4ecomes anrupt or insol5ent•Demonstrates ein3 corrupt (rier* etc)
•
urt&er8 +mplo*er can terminate *reason o' con5enience (19:9)
8/16/2019 Termination Suspension Risks and Insurance
5/33
Rice ; CT) contract stated t&at ?i' t&eContractor commits a reac& o' an* o'an* o' its oli3ations under t&e Contract@ t&e Council (+mplo*er) ma* wit&out
pre,udice to an* accrued ri3&ts orremedies under t&e Contract terminatet&e ContractorAs emplo*ment under t&e
contract * notice in writin3A:• "s t&e +mplo*er entitled to terminate 'or
an* reac&B
8/16/2019 Termination Suspension Risks and Insurance
6/33
Rice ;
8/16/2019 Termination Suspension Risks and Insurance
7/33
Termination by the Employer (Cl15)
Timin3- T&e +mplo*er can terminatet&e Contract immediatel*-
•Corruption
•
"nsol5enc*
+mplo*er to 3i5e Contractor 1 da*sA
notice in ot&er circumstances
8/16/2019 Termination Suspension Risks and Insurance
8/33
Termination by the Employer (Cl15)
"n t&e e5ent o' termination * T&e+mplo*er Contractor to-
•lea5e site
•
Compl* wit& reasonale instructionsw&ere possile
•andEo5er an* rele5ant documents to
t&e +mplo*er
8/16/2019 Termination Suspension Risks and Insurance
9/33
Suspension and termination bythe Employer
•+mplo*er to noti'* and &andEo5erContractorAs eFuipment-
–2t or near t&e site
–Can sell t&ese to recoup an*mone* owed
• +mplo*er to 5alue wors done *
Contractor and pa* t&e later w&ereapplicale
• +mplo*er ma* complete t&e ors
Suspension and termination bythe Employer
8/16/2019 Termination Suspension Risks and Insurance
10/33
Suspension and termination bythe Contractor
1: Contractor can stop (Suspend) wor orslowEdown Ga'ter #$ da*sA noticeH i'+mplo*er does not-
– issue pa*ment certicate
– ro5ide e5idence o' inancial 2rran3ement
#: Contractor can 'urt&er
1: Terminate t&e Contract i' t&e +mplo*er
does not recti'* (1) ao5e
#: Claim 'or losses t&erein
– +n3ineer to a3ree or determine matters
8/16/2019 Termination Suspension Risks and Insurance
11/33
Suspension and termination bythe Contractor
Contractor can terminate t&e Contract'or se5eral reasons-
+Iercise- Jsin3 Clause 16:# discusst&ese reasons-
•1)
8/16/2019 Termination Suspension Risks and Insurance
12/33
Suspension and termination bythe Contractor
•"n t&e e5ent o' terminationContractor to (16:K)-
– Lea5e site8 eIcept 'or sa'et* reasons or
to protect li'e – ando5er documents and resources
alread* paid 'or
– Remo5e ot&er 3oods 'rom site
8/16/2019 Termination Suspension Risks and Insurance
13/33
Suspension and termination bythe Contractor
• 2'ter termination +mplo*er to (16:)-
– Return er'ormance Securit* toContractor
– a* t&e Contractor w&ere applicale
8/16/2019 Termination Suspension Risks and Insurance
14/33
8/16/2019 Termination Suspension Risks and Insurance
15/33
Suspension and terminationthrough Force majeure
1: orce ma,eure can aMect eit&er+mplo*er Contractor or ot&
#: "' so aMected eit&er part* can-
• Noti'* t&e ot&er wit&in 1 da*s o'ecomin3 aware statin3 t&e e5ent orcircumstances
• 2pplicant eIcused 'rom per'ormance ut t&is does not include oli3ation tomae pa*ments
8/16/2019 Termination Suspension Risks and Insurance
16/33
Suspension and terminationthrough Force majeure
1: arties to tr* to minimise dela*s dueto orce ma,eure
#: Noti'* t&e ot&er part* w&en t&e* areno lon3er aMected * orce ma,eure
8/16/2019 Termination Suspension Risks and Insurance
17/33
Suspension and terminationthrough Force majeure
• "' so aMected * orce ma,eure andnotice &as een 3i5en-
1:+n3ineer to assess impact o' e5entor circumstances
#:Contractor ma* e entitled to i)eItension o' time and ii) eItra costs:
8/16/2019 Termination Suspension Risks and Insurance
18/33
Termination of Contract throughForce majeure
•
2 contract can e terminated due toorce ma,eure i' it persists 'or-
1:$ da*s sin3le occurrence
#:10 da*s cumulati5el* multipleoccurrences
• 2 part* ma* 3i5e notice in t&is respect
•
Termination to tae eMect 7 da*s a'tert&is notice
• +n3ineer to assess ContractorAsentitlement i' an*
8/16/2019 Termination Suspension Risks and Insurance
19/33
Termination through other causes
1: "n addition to orce ma,eure aContract can e terminated i' aneIceptional e5ent or circumstance
pre5ents a part* 'rom carr*in3 outt&e Contract
• a*ment to t&e Contractor i' an* is
assessed as in t&e case o' orcema,eure
8/16/2019 Termination Suspension Risks and Insurance
20/33
S&ort 4rea
8/16/2019 Termination Suspension Risks and Insurance
21/33
21
is!s
2 ris is a &aard or dan3er to :::
ConseFuences o' riss-• "n,ur* to persons
• "n,ur* or dama3e to propert*
• Deat&s
8/16/2019 Termination Suspension Risks and Insurance
22/33
22
Contractor"s actions concerningris!s
Contractor is liale 'or riss eIcept 'or
1:?+Icepted rissA8 or
#:Ne3li3ence o' t&e +mplo*er
8/16/2019 Termination Suspension Risks and Insurance
23/33
Ris and Responsiilit*•
Contractor to indemni'* +mplo*er !personnel Gand 5iceE5ersaH a3ainst G17:1H-
– "n,ur* sicness disease deat&
– Dama3e/loss to propert*
• Contractor to care 'or t&e ors (17:#)
– To restore an* dama3e at own cost and ris
eIcept caused * +mplo*er• C responsile 'or dama3e caused e5en
a'ter t&e issue o' t&e ?Tain3E.5erCerticateA
8/16/2019 Termination Suspension Risks and Insurance
24/33
Employer"s is!s
• 2re listed in Cl 17:K
•
Discuss t&e +mplo*erAs riss andcompare and contrast t&ese risswit& orce ma,eure e5ents
8/16/2019 Termination Suspension Risks and Insurance
25/33
Employer"s is!s
• Dama3e cause * +mplo*erAs risss&all e rectied * t&e Contractor
• owe5er t&e Contractor is entitledto-
– +Itension o' time
– 2n* additional costs
8/16/2019 Termination Suspension Risks and Insurance
26/33
#ntellectual $ #ndustry %ropertyight
• +mplo*er and Contractor toindemni'* eac& ot&er
• i:e: protect eac& ot&er a3ainstreac&es o' cop*ri3&ts
8/16/2019 Termination Suspension Risks and Insurance
27/33
#ntellectual $ #ndustry %ropertyight
+mplo*er to indemni'* t&e Contractora3ainst-
•4reac&es 'or una5oidal* compl*in3 wit&
t&e Contract•ors ein3 used * t&e +mplo*er i:e: 'or-
1: urposes not indicated or in'erred 'rom t&eContract
#: 2n* &arm'ul t&in3 supplied w&ic& was notdisclosed to t&e Contractor prior to t&e 4aseDate
8/16/2019 Termination Suspension Risks and Insurance
28/33
#ntellectual $ #ndustry %ropertyight
Contractor to indemni'* t&e +mplo*era3ainst reac&es -
•%anu'acture use sale or import o'
an*
8/16/2019 Termination Suspension Risks and Insurance
29/33
Limitation o' liailit*
• +Icept 'or 'raud delierate de'aultor recless misconduct8 liailit*s&ould not eIceed-
1: T&e sum stated in t&e articularCondition8 or
#: 2ccepted Contract 2mount
8/16/2019 Termination Suspension Risks and Insurance
30/33
"nsurance
• ?"nsurin3 art*A "nsurer
– Contractor to insure on terms appro5ed* t&e +mplo*er
– +mplo*er to insure in accordance wit& t&earticular Conditions
• >oint co5er s&all appl* as i' eac& part*
&ad een insured separatel*• a*ment to e made in currenc* 'or
recti'*in3 t&e loss or dama3e
8/16/2019 Termination Suspension Risks and Insurance
31/33
#nsurance• ?"nsurin3 art*A to pro5ide-
– e5idence o' insurance and polic*documents to t&e ot&er art*
– +5idence o' pa*ment O noti'* +n3ineer
– +mplo*er to insure in accordance wit&t&e articular Conditions
• To insure-
1:ors and ContractorAs +Fuipment#:23ainst in,ur* to persons and dama3e to
propert*
K:ContractorAs personnel
8/16/2019 Termination Suspension Risks and Insurance
32/33
#nsurance
•
"nsurance must e maintained till t&eer'ormance Certicate is issued
• "nsurance 'or eFuipment includes
t&eir transportation to t&e site• "' certain insurance co5er is not
a5ailale at commerciall* reasonale
rates8 Contractor- – To noti'* +mplo*er
–%a* otain eIemption
8/16/2019 Termination Suspension Risks and Insurance
33/33
Today"s lecture hasco&ered:
• Termination o' ors * t&e+mplo*er
• Termination and suspension o' ors* t&e Contractor
• Riss in constructionpro,ects/contracts
• "nsurance o' t&e ors and resources
Recommended