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A REMINDER ON PAY LESS NOTICES

October 2017

A reminder of the detail required to be included in Pay Less Notices was set out in Lord Bannatyne’s opinion in the Scottish case of Muir Construction Ltd v Kapital Residential Limited [2017] ScotCS CSOH 132. The parties negotiated and entered into a “Settlement Contract” which contained provisions for Kapital to withhold retention money until the completion by Muir of any outstanding defects.

Martin Campbell, Managing Consultant at HKA, explains when preparing a payment notice or pay less notice, an Employer or Contractor must ensure three key steps are complied with to successfully withhold monies.

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WATCH OUT, WATCH OUT … CONCURRENT DELAY IS BEING STRUCK OUT!

October 2017

The subject of concurrent delay has been before the English courts on many occasions. The conventionally accepted approach of dealing with concurrency was described by Dyson J in Henry Boot Construction (UK) Ltd v Malmaison Hotel (Manchester) Ltd (1999) 70 Con LR 33 as follows: “… if there are two concurrent causes of delay, one of which is a relevant event, and the other is not, then the contractor is entitled to an extension of time for the period of delay caused by the relevant event notwithstanding the concurrent effect of the other event.”

David Gainsbury, Executive Director, discusses the case that sees the fall of concurrent delay.

 

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THE ANALYSIS AND VALUATION OF DISRUPTION

September 2017

Disruption is loss of productivity, disturbance, hindrance or interruption to a Contractor’s normal working methods, resulting in lower efficiency. HKA Partner Derek Nelson provides valuable insight into the analysis of this common yet notoriously difficult to prove source of claims for additional time and cost. The paper examines commonly used methodologies and highlights cause and effect between poor record keeping, global claims and diminished prospects in courts or ADR proceedings. Derek introduces readers to the “triad of proof” necessary for successful disruption claims.

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Prolongation Cost Claims – The Basic Principles

August 2017

HKA Quantum Expert, Craig Enderbury, sets out the basic principles of prolongation cost claims using a simple and hypothetical example. He highlights the common pitfalls of assuming time equals money and the misguided application of rates and prices from preliminaries schedule of rates/bill of quantities.

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THE PROVISIONAL SUM LOOPHOLE IN THE MIDDLE EAST

June 2017

Provisional Sums or Problematic Sums! Daniel Rimmer, Managing Consultant with the HKA Dubai team, describes the time and money risks associated with the commonplace practice of inserting provisional sums under FIDIC forms of contract in the region.

Peer reviewed by Jeffrey Badman (Senior Vice President) and James McCarthy (Vice President), the article is due for publication in ME Consultant – September 2017.

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THE CHANGING LANDSCAPE OF PROJECT FINANCING

April 2017

Earlier this year, HKA was invited by mass media giant Thomson Reuters to participate in a round table discussion on the use of Public-Private Partnerships within the Gulf Cooperation Council (GCC). The discussion examined the success of this procurement model to date, how such structures could be used in the future to ease budgetary pressure on government finances, and how the approach could act as catalyst to re-invigorate the wider construction market. HKA’s Andrew Ward, Director, Middle East Advisory, based in Dubai, UAE, joined representatives from the legal, financial, technical and commercial industry to discuss these and other key strategic issues for the GCC and wider Middle East region. The results of the discussion and set out in the attached paper.

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Opportunity and Risk in Project Data

April 2017

This paper looks to inform AEC business leaders considering investment in building information modelling (BIM) enabling technology or searching for answers as to why perceived benefits have not been realised. It introduces Construction Informatics as the application of advanced technology and knowledge management to built assets, concepts including informational liquidity and how a data epiphany is key for leaders looking to capitalise on the unparalleled opportunity of 21st century project delivery.

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QUANTIFYING DISRUPTION WITH THE SYSTEM DYNAMICS MODEL – A BRIEF EXPLANATION

March 2017

Disruptions frequently lead to the project schedule and subsequent completion date slipping, as well as cost overruns from inefficiencies. Quantification of disruption often remains problematic, leaving the analyst with a degree of uncertainty. In this article, HKA’s Thomas Hofbauer and Nicole Mörchen briefly discuss how system dynamics methodology can be used to quantify disruption with regard to the time and cost of projects.

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