Construction Law/Failure of mechanism
one of the reasons time for completion may be called at large is the "failure of contractual mechanism".
i would like to have a clear definition of the concept of "Failure of contractual Mechanism", does it mean that the parties cannot solve the current situation -whatever it was- in accordance with the contract? or it means that the contract has no remedies for some events that gave rise to claims? or both?
please explain, Thanks :)
ANSWER: Dear Abed,
Thanks for your question.
My views are that it means the parties ,basically tilted more towards Employer, cannot solve the situation/events giving rise to 'at large' situation for some reason or difficulty.The contractual provisions and local law has remedies for most such events but some do need to be resolved through dispute resolution mechanism,which again is a contractual/applicable law remedy.
Does this answer your querry?
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QUESTION: i guess my introduction got your attention away from the main point that i seek. To put it simply, does "failure of Mechanism" mean that the contract has no remedies for a certain problem? does it relate to a specific situation or is this term -failure of contractual mechanism- called on any case where parties reach a dispute?
Thnaks for your time
Dear Abed Jaber,
Thank you for coming back with more specific point.
As i could understand, you are in-fact asking for a clarification of settlement of dispute mechanism provided in contracts. I am here considering FIDIC -IV and like to explain my understanding on the matter. In my understanding it only relate to settlement aspects in various steps to settle a dispute starting with Engineer's decision. The "failure of mechanism" is only limited or referred to first step failure and for which the only remedy is to go to the next step like DAB arbitration etc.
The contractual provisions can be expressed provision as well as implied provisions involving applicable law for which contract specifically mentions in FIDIC for priority consideration over expressed provisions in the contract. With this i hope i have expressed my understanding of the matter comprehensively.