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Construction Law/Offshore versus Onshore

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Question
Dear Sir,
Greetings

We are dealing with modified Fiddic silver book for Turnkey project.We invited bidder for maitenance of power stations one bidder offer the price for two options-;(1)Offshore Bid which was directly from spain (2)Onshore bid which was from Abudhabi both are managed by the same entity.The rate for offshore was comparatively less comapred to onshore is there any contractual problem to accept the lowest option.Please comment.

Answer
Hi Mr Junaidi,

I presume that you have performed pre-qualification stage and your bidders already pre-qualified, or you performed post-qualification, however at the end it does not make any difference. I understand, the said company offshore or onshore version are qualified for Job. I think this is the first criteria. The second criteria if off shore company is a legal entity in Abu Dhabi or not? Some tenders are open to international bidding, however some tenders required only local participation. Therefore, you need to check this criteria as well. Finally, you should be getting performance bond and other guarantees from the Contractor which you can call them in case of any dispute. Therefore, I do not expect any contractual problem,by accepting lowest option.

Best Regards

IRVALI

Construction Law

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ALI IRVALI

Expertise

FIDIC, Arbitration Procedures, Claim Management, Project Management.

Experience

I have experience of working at 6 countries in MENA region (algeria, Libya, Saudi Arabia, Oman, Pakistan)as the Regional Director and General Manager of a construction company. I have experience on various applications of FIDIC and construction law, arbitration procedures, claim management, project management.

Organizations
CEO of TURCON Construction presently. www.turcon.com.pk

Education/Credentials
M.S. Civil Engineer, Various Courses on Project Management, Seminars on FIDIC.

Past/Present Clients
National Highway Authorities of various countries, Water and Power Development Authorities, Karachi Port Trust, etc.

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