A Brief Introduction to the Kuwait MPW General Conditions of Contract and Claims Issues

17
Speaker: Engr. Mohammed Fareedul Haq Imadi, B.E. (Civil), MIE, Chartered Engineer, PMI-RMP, PMI-SP, PMP, CCE

Transcript of A Brief Introduction to the Kuwait MPW General Conditions of Contract and Claims Issues

Page 1: A Brief Introduction to the Kuwait MPW General Conditions of Contract and Claims Issues

Speaker: Engr. Mohammed Fareedul Haq Imadi, B.E. (Civil), MIE, Chartered Engineer, PMI-RMP, PMI-SP, PMP, CCE

Page 2: A Brief Introduction to the Kuwait MPW General Conditions of Contract and Claims Issues

The First Edition of the MPW General Conditions was printed in1969 based on 2nd Edition of FIDIC, with minor modifications to suit the Law and conditions of Kuwait.

Subsequent revisions incorporate changes and additional clauses to suit Kuwaiti requirements.

These General Conditions form the basis for the contractual relationship between the Employer and the Contractor, thus provide the framework for any claim which arises during the contractual relationship.

Government projects in Kuwait are still follow these Conditions.

Some private sector projects have started to adapt the FIDIC’s New Red Book 1999.

Page 3: A Brief Introduction to the Kuwait MPW General Conditions of Contract and Claims Issues

1. Definitions and Interpretations.

Clause 1.

2. The Engineer and The Engineer’s Representative

Clause 2.

3. Assignments

Clauses 3, 4 and 5.

5. Contract Documents

Clauses 6, 7, and 8.

6. General Obligations

Clauses 9 to 33

Page 4: A Brief Introduction to the Kuwait MPW General Conditions of Contract and Claims Issues

7. Labour

Clauses 34 and 35.

8. Materials and Workmanship

Clauses 36 to 40.

9. Commencement Time and Delays

Clauses 41 to 48.

10.Maintenance and Defects

Clauses 49 and 50

11.Alterations, Additions ad Omissions

Clauses 51 and 52.

Page 5: A Brief Introduction to the Kuwait MPW General Conditions of Contract and Claims Issues

12. Plant, Equipment, Temporary Works and Materials

Clauses 53 and 54.

13. Measurement

Clauses 54 to 59.

14. Certificates and Payment

Clauses 60 to 67

15. Notices

Clause 68.

16. Increase or Decrease of Costs

Clause 69.

17. Miscellaneous

Clauses 70 to 74.

Page 6: A Brief Introduction to the Kuwait MPW General Conditions of Contract and Claims Issues

The Following presentation represents my study and interpretation. Efforts have been made to express a simple understanding of the terms and conditions. However, other interpretations may exist.

The Institution of Engineers India and its Kuwait Chapter bear no responsibility for the accuracy of the contents.

Page 7: A Brief Introduction to the Kuwait MPW General Conditions of Contract and Claims Issues

The Contract is between the Employer and the Contractor

Although the Engineer is Employed by the Employer, he is expected to perform impartially.

Employer

ContractorEngineer’s

Representative

The Engineer

The Engineer Administers the Contract

Page 8: A Brief Introduction to the Kuwait MPW General Conditions of Contract and Claims Issues
Page 9: A Brief Introduction to the Kuwait MPW General Conditions of Contract and Claims Issues

The Basic Procedures for Claims and Change Order Administration are:

◦ Contract Knowledge – ability to recognize changes.

◦ Notification◦ Systematic and accurate documentation.◦ Analysis of time and cost impacts.◦ Pricing.◦ Negotiation◦ Dispute resolution and settlement.

Page 10: A Brief Introduction to the Kuwait MPW General Conditions of Contract and Claims Issues

In case necessary drawings or Instructions aremissing, the Contractor should notify / request theEngineer in a timely manner.

If the Employer / Engineer fails to provide theDrawings and Instructions within reasonable time,then, the Contractor will be entitled to time andadditional cost according to the stipulations.

Page 11: A Brief Introduction to the Kuwait MPW General Conditions of Contract and Claims Issues

The Contractor shall conduct all the necessary inspections to verify the site, its surroundings, and satisfied himself that his offer includes for all the conditions and circumstances which he would face while executing the works.

Then if the Contractor suffers financial difficulties beyond the limits of possibility to obtain information about extra ordinary risks, contingencies and other circumstances which may influence or affect his tender.

Then, the Contractor may submit his claim under “the theory of exceptional circumstances” and /or “unexpected financial difficulties” as per the Law.

Page 12: A Brief Introduction to the Kuwait MPW General Conditions of Contract and Claims Issues

If the Employer instructs the Contractor to perform tests

not mentioned in the Contract Specification.

The Contractor should perform such tests to prove the

compliance of works with specifications.

If the tests pass and if it is proved that the works executed

by the Contractor were as per the required specifications.

Then, the Contractor is entitled to ask for extra time and

cost incurred for such additional tests.

However, if it is proved that the works executed by the

Contractor fail to comply with Contract Specifications,

then, the Contractor shall bear such expenses.

Page 13: A Brief Introduction to the Kuwait MPW General Conditions of Contract and Claims Issues

If the Contractor Complies with Article 38(1), and still, the

Employer instructs the Contract to uncover and make

openings for inspection and up on opening it is proved

that the works executed by the Contractor are compliant

with the Contract Specification, then the Contractor will be

entitled to claim the recovery of such additional expenses

and time spent for uncovering or making openings.

Also, if the works got delayed due to such additional

uncovering and making openings, the Contractor is

entitled for additional time accordingly.

Page 14: A Brief Introduction to the Kuwait MPW General Conditions of Contract and Claims Issues

If the works or any part is suspended by a written order of the Engineer, unless such suspension is attributable to Contractor’s fault. Then, the Contractor is entitled to claim for extra time and cost including all running wages to be paid on the site, salaries, depreciation and maintenance of plant on site costs and overhead costs incurred by the Contractor in giving effect to the Engineer’s Instruction under this clause. However the Contractor will not be entitled to recover such claims if he fails to notify within 28 days of Employer’s instruction.

Page 15: A Brief Introduction to the Kuwait MPW General Conditions of Contract and Claims Issues

If the Contractor suffers delay or incurs expense from failure on the part of the Employer to give possession in accordance with the terms of this clause the Engineer shall grant extension of time for the completion of works and certify such sum as shall be paid to cover the expense incurred which sum shall be fair by the Employer.

Page 16: A Brief Introduction to the Kuwait MPW General Conditions of Contract and Claims Issues

The Employer has the right to make variations in the form of quality or quantity of the works until the issuance of Certificate of Substantial Completion. However if such variations cause additional cost or time, the Contractor is entitled for the same in accordance with the corresponding stipulations in the Contract.

Any time extension as a result of this clause is not compensable.

Page 17: A Brief Introduction to the Kuwait MPW General Conditions of Contract and Claims Issues

As a result of various clauses of Contract, if the works are delayed beyond the responsibility and / or control of the Contractor, the Engineer should grant appropriate Extension of Time for Completion according to the procedure stipulated in the Contract.