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Construction Law/PI for Cladding Works

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Question
A Contract under execution for the construction of a commercial building in the UAE, stipulates provision of PI Insurance by the Contractor for 'Contractor Designed Works'.
The Contractor's scope of work consists of carrying out construction according to design and IFC drawings issued by the Engineer.
However, detailed (or shop) drawings involving installation of items like metal/stone cladding/ glazing etc. have to be prepared by the specialist subcontractor in accordance with the general arrangement contained in the IFC drawings.
For such elements contained in subcontractor's shop drawings, like framework/fixtures etc.,subcontractors usually rely on their standard in-house designs.   
The Contract further stipulates that 'part of the Permanent Works Designed by Contractor' shall have to be approved by the Engineer.
Kindly advise whether works such as supporting frame/fixtures necessary to install cladding/glazing shall fall under 'Contractor Designed Works' or 'part of Permanent Works designed by Contractor', and shall make the subcontractor, and thereby the Contractor, liable to furnish PI Insurance for such works.

Answer
Dear Sarvesh,


Thank you for your question.

I believe there is no straight forward answer, but one should look in detail to each designed item.

Normally, Contractor should only be responsible for the concepts he designed, but not for the ones for which he prepares workshop/ execution drawing, as that is not "design" in my opinion.

If there are things not included in the design provided by Employer/ Engineer and a CONCEPT design is made by Contractor, then Contractor is responsible for that.

If for example a certain fixture is conceived by the Contractor, then it might be Contractor's responsibility to fix it/ repair it, etc, if it doesn't work.

But PI insurance is generally not for that, but for structural matters, or indeed, something that involves Contractor's concept.

Thus, to answer your question, in principle it is "NO", but be cautious and further check each item against Contract provisions.

Hope that helps, sorry I can not give a more definite answer in the given situation.  

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Florin NICULESCU

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Questions related to Civil Engineering Contracts, using FIDIC or other Conditions of Contract, concerning Procurement procedures and documents (pre-qualification, tendering and contracting) and Services/ Works Contracts implementation matters including Determinations, Payments, Time Extensions, VOs, Claims/Disputes. Additionally, questions related to dealing with International Financing Institutions. Can also answer questions in Romanian. Can not answer improperly formulated questions.

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Over 20 years of experience in the field of design, works supervision, construction, management of aid funds and technical assistance for various types of contracts implementation, including severe conflictual contractual situations leading to Claims and disputes. Claims/ Contract management, Disputes adjudication, Arbitration.

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Member of Romanian Professional Association of Roads and Bridges; Listed on President's List of Adjudicators of Romanian Association of Consulting Engineers www.aric.org Former member of the Disputes Resolution Board Foundation (DRBF) of United States – nominee on DRBF President’s Disputes Board Members List www.drb.org and of DRBF Chapter for Eastern Europe http://dabdrb.googlepages.com Former member of Polish Association of Consulting Engineers (SIDiR) – nominee on SIDiR President’s Disputes Board Members National List http://www.sidir.pl/sidir/index.php?action=czlonkowie&a2=r Member of “AllExperts.com” volunteers pool http://www.allexperts.com/user.cgi?m=4&expID=85358&catID=914 Member of the "Constructions Disputes Resolution Services” International Panel of Construction ADR Specialists" of United States www.constructiondisputes-cdrs.com

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- Graduate in 1994 the Construction Institute - Graduate of several FIDIC,Procurement and other courses - Graduate of first Disputes Board Members Mentoring Scheme (http://www1.fidic.org/resources/adjudicators/pupilage.html) - FIDIC Accredited Adjudicator

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- Several State organisations/Ministries , such as Ministry of Transport, National Admistration of Roads, Ministry of Regional Development (former Ministry of European Integration), Public Works and Housing, Central Contracting and Financing Unit in Romania and also in Turkey, Croatia and Macedonia - Numerous Western based private consultancy companies - full CV and other relevant information available at www.abinitio.ro

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