Construction

Legal framework

General construction law: What are the main sources of law that govern and regulate contracts for the design or carrying out of building works?
Licences and permits: What official permissions, licences or consents are required by a building or engineering contractor before it can start work?
Health & Safety: In this country, what are the main rules relating to health and safety on construction sites? Do these rules in any way relate to the use of the development after construction is completed?
Environmental assessment and sustainability: What type of legislation exists dealing with environmental issues affecting building works and with promoting sustainable developments?
Infrastructure and utilities: What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?
Obligatory requirements: Are any terms and conditions imposed or implied by law or mandatory in contracts for the design or carrying out of building works?

Forms of contract/procurement methods

Industry forms of agreement: Do any industry bodies, organisations or associations produce standard form contracts for use within the construction and engineering sectors? Are any international forms of contract ever used? How is the form of construction contract to be used selected?
Parties to a construction or engineering contract: Typically who are the parties to an engineering or construction contract or package of contracts and who is responsible to whom?
Allocation of risk: What risks in a construction or engineering contract are normally borne by the contractor? To what extent is force majeure relevant in such contracts?
Public procurement: Are public private partnerships (PPPs) common? Are they promoted or encouraged by the government?
'Fixed price contracts': Is it possible for parties to enter into a construction contract where the price to be paid to the contractor is fixed?
Insurances: What insurances need to be put in place by law or under a typical construction contract?
Security documents: Apart from the contract are any other documents commonly entered into by way of security – such as a guarantee from a building contractor's parent or ultimate holding company or a bond from a third party surety?

Implementing the contract

Payment: How are payments to contractors, design consultants and sub-contractors normally structured?
Delay: Is it possible for the parties to a construction contract to agree that the time/date for completion of the works is to be fixed? How would delay be dealt with?
Variations: How are variations to the specification for engineering or construction works normally dealt with?
Completion: Does the law state what has to be achieved before 'completion' of the building works can be certified and, if so, can this be overridden by specific terms in the contract? Who would certify completion of building works carried out in accordance with a construction contract?

Liability

Limitation period: During what period of time following execution of a construction contract may a party to that agreement bring a claim in the courts for breach of contract?
Developer's liability to end user: To what extent would a person who procures or carries out building works have liability for any physical damage or economic loss suffered by the end user(s) of the completed development? Can such liability be excluded in any way?
Other liability to end user: To what extent would an architect, another designer, the building contractor or any sub-contractor have liability for any physical damage or economic loss suffered by the end user(s) of a completed development? Can such liability be excluded in any way?
Rights of purchasers, tenants and banks: How are third parties who are not parties to the construction contract – such as purchasers, tenants and lending banks providing finance towards the development – afforded protection and given rights against the original designers and contractors involved in the design and construction of the project?

Dispute resolution

Dispute resolution in the courts: Which courts specialise or deal with construction disputes? Can decisions be appealed?
Arbitration: Is it common for construction disputes to be referred to arbitration? If so, how does arbitration compare with litigation through the national/federal courts?
Alternative Dispute Resolution Procedure (ADR): Is it common for construction disputes to be referred to ADR - such as adjudication, determination by an expert, mediation or conciliation? Is a form of ADR required by law, perhaps as a mandatory first step in the dispute resolution procedure?

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