The Bespoke Conditions Of Contracts Construction Essay

The Bespoke Conditions Of constricts Construction EssayThis chapter focused on areas of Conditions of Contracts of betrothed Forms of Contract in the Dubai Construction Industry. The bespoke Conditions of Contracts prevalent were modified version of the Red Book. As a Dubai twist pains professional the idea was to investigate in depth of the bespoke Conditions of Contracts were vital and useful to the industry and in particular to the professionals in the industry. It was not anticipated that the current practice to be revised by this research. The real understanding of the issues was to investigate and analysis of the result that enable for a healthy awareness to the construction industry in Dubai.Study BackgroundThe construction industry has characteristics that separately are shared by other industries but in combination appear in construction alone (Hillebrandt, 1984 pg1). The UAE is one of the largest and straightaway growing economies in the Middle East. The country has wit nessed massive investment in the construction industry from some(prenominal) public and private enterprises in recent years. It outpaced Saudi-Arabian Arabia and became the largest construction market in the GCC region in 2008. Followed by Saudi Arabia, Algeria and Egypt the UAE accounted for nearly 20.3% of total construction industry in the region. Despite the sluggish maturement in 2009 amidst the global financial distress, the construction industry managed to record strong growth during 2007-2009 and contributed approx. 8% to the countrys GDP in 2009 (uae_construction_industry_outlook_2012.html).According to the new research explanation UAE Construction Industry Outlook to 2012, the UAE construction industry is anticipated to grow at a CAGR of around 20% during 2010-2013. Rapid economic development is the main factor driving construction activities and fundament development in the UAE. The UAE has drawn investments from all around the world. Most of the investments were gene rally focused on the development of infrastructure for tourism, hospitality, retail and healthcare industry. In addition, the efforts of the governing body to diversify its economy to free from oil- creationd enabled to boost other industries with adequate infrastructure that will enable investments in hereafter (uae_construction_industry_outlook_2012.html).The UAE will continue to develop despite the global economic slowdown, several projects in tourism, housing, industrial and commercial facilities, education and healthcare amenities, transportation, communications, utilities, ports and airports (uae_construction_industry_outlook_2012.html).As per the study conducted by Dubai Chamber of Commerce and Industry it was revealed that UAE was currently leading the current Gulf infrastructure and construction projects. The details appended below in table form as well as graphical presentations. The figures as per the study shows the UAE infrastructure, real estate and construction has vast opportunities for the construction industry professionals (Gulf News Sunday, August 1, 2010)Figure 1.1 stem Dubai Chamber based on data from mixed government agencies (Gulf News Sunday, August 1, 2010)Figure 1.2Source Dubai Chamber based on data from various government agencies (Gulf News Sunday, August 1, 2010)Table 1.1Aims and Objectives for the ResearchAimsTo study the bespoke Form of Contracts prevalent in Dubai to enable and test the selected hypothesis Employers in Dubai like FIDIC 1987 fourth magnetic declination (Red Book) than FIDIC 1999 first edition (New Red Book).ObjectivesTo compare and contrast all relevant Clauses of both FormsTo research and weigh the pro and cons of clauses in both FormsTo research the existing weakness and show how clauses are amended by various employers in the Conditions of Contract.To research the lines in the Form of Contracts and how it affects the Parties involved.To research how the RB is used in Lump Sum contracts.To test the hypoth esis Employers in Dubai preferred FIDIC 1987 Fourth edition than FIDIC 1999 First editionConstruction law and the efficacious systemThe term construction law is now understood universally to cover the whole field of law which directly affects the construction industry and the intelligent instruments through which it operates. Efficient and workable construction contracts requires that the needs of the construction process and should be taken into account by applying the principles of management. Construction law is, thus, an inter-active subject in which both lawyers and construction professionals, including managers, have an essential part to play (Construction Law by John Uff, Ninth edition 2005).Construction law and construction contractsThe term construction contracts has a statutory definitions covering most but not all types of construction work, and including both building and engineering work (Construction Law by John Uff, Ninth edition 2005).A contract is a binding agreem ent between two or more persons (such as individuals, businesses, organizations or government agencies) to do, or to refrain from doing, a particular thing in exchange for something of value. The Contracts generally can be written, using formal or informal terms, or entirely verbal. If one party fails to live up to its part of the bargain, theres a breach and certain remedies for solving the differences are available. The terms of the contract (such as who, what, where, when, and how of the agreement) typeset the binding promises of each party to the contract (http//law.freeadvice.com/general_practice/contract_law/contract_agreement.htm Accessed on 07 August 2010).HypothesisThe hypothesis of the dissertation is Employers in Dubai preferred FIDIC 1987 fourth edition (Red Book) than FIDIC 1999 first edition (New Red Book). In UAE most of the bespoke Conditions of Contract are modified based on FIDIC that could arrive based on the environment and nature of the Employer.The design New s Record publication states that 55% of the worlds major construction project (Blick J, 1999) is dealing with the Red Book. It is considered that the Red Book is commonly used as the base to create bespoke Conditions of Contract by the Employers.Outline MethodologyFourteen major bespoke Conditions of Contract prevalent in Dubai has been selected for analysis in detail. provided six numbers of bespoke Conditions of Contract has been selected including Abu Dhabi Employers bespoke Conditions of Contract. The Dubai Employers Conditions of Contract are based on RB and the Abu Dhabi Employers bespoke Conditions of Contract are based on NRB. The analysis will be focused on detailed study of the bespoke Conditions of Contracts and the result shall be discussed in brief at Chapter 5 analysis and presentation of demo and a detailed result shall be annexed in the Appendix to enable the reader to aware of the amendments and additional provisions in the bespoke Conditions of Contracts prevale nt in Dubai. The appendices shall be helpful for the reader in case the reader is dealing with any professional involvement in the construction industry of Dubai.The survey questionnaires have been forwarded to forty eight selected construction industry professionals in Dubai. The respondents are selected such as RICS qualified Chartered Quantity Surveyors, Resident Engineers, contrive Managers etc. to get the analysis of the responses questionnaires from senior level professionals in the Dubai construction industry.The United Arab EmiratesUnited Arab Emirates comprise Abu Dhabi, Ajman, Al Fujeirah, Al Sharjah, Dubai, Um Al Quwain and Ras Al Khaima. (http//www.worldatlas.com/webimage/countrys/asia/ae.htm Accessed 09 August 2010)Population 2,563,200Capital City Abu DhabiCurrency Emirati Dirham (AED)Languages Arabic (official), English, othersNational Day December 2Religions Muslim (96%), others Geographic Coordinates Latitude/Longitude (Capital City) 24 27 N, 54 23 Ethe statics is a s follows Coastline is 1,318 km 82,880 sq. km of land Highest Point Jabal Yibir 1,727 m Lowest Point Persian Gulf 0 m.(http//www.worldatlas.com/webimage/countrys/asia/ae.htm Accessed 09 August 2010)Figure 1.3 Map of DubaiFigure 1.4 Map of the United Arab EmiratesSource http//www.worldatlas.com/webimage/countrys/asia/lgcolor/aecolor.htmAccessed 09 August 2010The StructureThe structure of the dissertation comprises the followingThe abstractTable of pithAcknowledgmentChapter 1 IntroductionChapter 2 Literature reviewChapter 3 MethodologyChapter 4 Data collectionChapter 5 Analysis and presentation of evidenceChapter 6 ConclusionsChapter 7 Recommendations