The New Government Conditions of Contract for building and Civil Engineering Works 20

godtabh

Can any one tell me if this is still in draft or is it law?

I've read in some places its law and some places say its still draft

Victor

Its more a policy thing than law. There will be a circular issued.

Ask these peole and the relevant department / client. http://www.constructionprocurement.gov.ie/

godtabh

Victor wrote: »

Its more a policy thing than law. There will be a circular issued.

Ask these peole and the relevant department / client. http://www.constructionprocurement.gov.ie/

I'm trying to figure out if the IEI dispute resolution procedures have been out dated by the dispute resolution procedures in the new government contracts.

alanucc

Came into law last March afaik

Tails142

Yes it became compulsory in early 2008 for all government departments to use the new format of contract when going out to tender.

In terms of dispute resolution and arbitration I would imagine the IEI still play a role though I doubt the new fixed price contracts have been tested too heavily to date.

godtabh

I think the whole idea of the new contract was that it would be used for dispute resolution rather than the IEI methods

Tails142

Yeah but surely both parties will still turn to the IEI to appoint the independent arbitrator if the relationship goes south and claims cant be agreed upon.

As I'm sure you know, just because its fixed price doesnt mean extra costs cant be added due to instructions from client, unforseen ground conditions etc. etc.

It all comes down to how each particular claim event is categorised/specified on a contract by contract basis as to whether its a time, or time and costs compensation event.

And if the client disputes a time and cost compensation event such as for example delays due to weather, then arbitration might be needed and who will both parties turn to to get an independed assessment. The IEI perhaps? Department of Finance? Hmmm

godtabh

Tails142 wrote: »

Yeah but surely both parties will still turn to the IEI to appoint the independent arbitrator if the relationship goes south and claims cant be agreed upon.

As I'm sure you know, just because its fixed price doesnt mean extra costs cant be added due to instructions from client, unforseen ground conditions etc. etc.

It all comes down to how each particular claim event is categorised/specified on a contract by contract basis as to whether its a time, or time and costs compensation event.

And if the client disputes a time and cost compensation event such as for example delays due to weather, then arbitration might be needed and who will both parties turn to to get an independed assessment. The IEI perhaps? Department of Finance? Hmmm

They may appoint some one from the IEI but it would be done under the new goverment contract not the IEI contract

impr0v

There are detailed arbitration rules specifically for use with the new form which allow the parties to specify a nominating body in the contract before signing. This could be the IEI, or another body such as the RIAI or the CIArb.

If there's a government or other contract in place based on the IEI standard forms (or another form which references the IEI conciliation/arbitration procedures) then the IEI procedures will still be used to resolve disputes in connection with that contract.

The Engineer

The Contracts are neither in "draft" or in "law" Kearnsr - they are a form of tender, agreement, conditions, bond, etc. published by the Government in order to standardise the duties of contractors, employers, engineers/architects and to fairly distribute the risks in the particular project. Some years back the Government decided to reform the approach to procuring public works projects in order to achieve cost certainty and better value for money (the idea here was to ensure that as much of the costs of the projects are reflected in the tender price) - the fruits of their labours is the new Forms of Construction Contracts for Public Works.

With regard to Dispute Resolution, The Employer (or the person writing the Contract on behalf of the Employer) must insert the name of the body that is to appoint the conciliator for the purpose of dispute resolution into the Contract. The approved professional bodies are (in no particular order):

1. Chartered Institute of Arbitrators – Irish Branch
2. Engineers Ireland
3. Bar Council of Ireland
4. Law Society of Ireland
5. Royal Institute of the Architects of Ireland
6. Society of Chartered Surveyors

Obviously, for a building contract the conciliator or arbitrator should definitely be an Architect (and the RIAI should be the appointing body), for a civil engineering project the conciliator should be an Engineer (and Engineers Ireland should be the appointing body), etc. So, Tails142 is correct insofar that Engineers Ireland (formerly the IEI) still has a role to play.

In terms of dispute resloution via concilliation, the main difference that has been noted between the new Public Works Contracts compared to some of the other Contracts (e.g. IEI Contracts) is that conciliation, which was previously optional, is now mandatory. Also, the framework for dispute resolution via conciliation is now built into the Contract.

For anyone using the new Public Works Contract, Engineers Ireland often hold a 2-day course, simply entitled "Public Works Contract". The following is an extract from http://www.engineersireland.ie:

"The course addresses the completely different drafting of the four main contracts in the construction phase of the work. Obligations, risks and administration will be central to the course. Case studies are used to illustrate contract interpretation.

This is a practical course which emphasizes those areas that give most problems to the contract administrator additional payments, time programme and delay."

I hope this helps!