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Construction Law/Joint venture Consultancy Agreement

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Question
Dear Mr. Dowse,

I am currently managing a Design Consultancy Contract (joint venture between 02 companies).
While the JV parties had proposed a strong team to carry out the design services, i have noticed that only few people people is actually working in the project, which is causing delays. I have also come to know unofficially that the JV is no longer in place.

What could be the actions taken against the Consultant in this case. What FIDIC reference could be used. In the signed agreement unfortunately there is no such clause with regard to the JV.

What could i include in the contract agreement in the future to be able to take proper action ?

Thank you,

Answer
Dear Huwey,

Thank you for this question.

In view of your suspicions I suggest that you ask for a formal meeting with the JV partners to discuss your concerns.

The standard FIDIC contracts do not provide for JV arrangements; your contract will have to be bespoke but based upon one of the FIDIC standard forms. Your remedies will be both contractual and, depending upon your location, based in common law or the local legal code.

If the tender submitted by the two companies misled you there might be a right of action based on that; however I would need to know a lot more about the nature of the pre-contract discussions and the agreement that then followed.




I hope that this assists you.

Kind regards,
John Dowse
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Construction Law

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John Dowse

Expertise

Legal; contract interpretation; quantum; delay analysis. Practitioner in arbitration, adjudication and mediation.

Experience

Thirty-three (33) years experience in building and construction, at all levels both within contracting and consulting organisations. Practising arbitrator, adjudicator, and mediator. Faculty approved trainer for the Chartered Institute of Arbitrators. Lecturer on construction contract forms and dispute resolution practices.

Organizations
Chartered Institution of Civil Engineering Surveyors Chartered Institute of Arbitrators Institute of Directors Society of Construction Arbitrators

Publications
Various UK and International construction and legal publications.

Education/Credentials
LLB (Hons), Pg Dip (Legal Practice), MCInstCES MCIArb MIOD Barrister

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