Termination Suspension Risks and Insurance

8/16/2019 Termination Suspension Risks and Insurance

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6CN011 Contract Law and

Dispute Resolution (Qatar)

Lecture 7

Termination / Suspension

Riss ! "nsurance

#$ %arc& #01#


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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


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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)


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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


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Rice ;


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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


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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


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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


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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


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Contractor can terminate t&e Contract'or se5eral reasons-

+Iercise- Jsin3 Clause 16:# discusst&ese reasons-

•1)


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•"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


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• 2'ter termination +mplo*er to (16:)-

– Return er'ormance Securit* toContractor

– a* t&e Contractor w&ere applicale


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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


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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


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• "' 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:


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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*


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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


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S&ort 4rea


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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


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22

Contractor"s actions concerningris!s

Contractor is liale 'or riss eIcept 'or

1:?+Icepted rissA8 or

#:Ne3li3ence o' t&e +mplo*er


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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


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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


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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


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#ntellectual $ #ndustry %ropertyight

• +mplo*er and Contractor toindemni'* eac& ot&er

• i:e: protect eac& ot&er a3ainstreac&es o' cop*ri3&ts


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+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


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Contractor to indemni'* t&e +mplo*era3ainst reac&es -

•%anu'acture use sale or import o'

an*


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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


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"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


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#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


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#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


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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

Termination Suspension Risks and Insurance

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