You are here:

Construction Law/Direct appointment contractor

Advertisement


Question
Dear Wael I hope this text finds you well ,

Im working in Dubai with interior project based on fidic red book1999 ... the owner decided to directly appoint a contractor for his work to avoid any delay during tendering stage.

He (owner) issued letter of award (LOA) to that contractor stipulating the amount of contract ... and duration and defining the scope.

the LOA has a condition which is:

the contractor will commence with stage 1 .. which is defined as general items (preliminaries) and the owner mentioned the amount and duration for this stage also this stage includes shop drawings.NOCs and bids for MEP and rest of work.

also the remaining works (apart of preliminaries) will be stage 2 which has also duration and amount defined but the owner stipulated in the LOA that if the priced BOQ which will be submitted on stage1 is not acceptable for him (the owner) then he(the owner) has the right to cancel the contract and compensate the contractor.

Now the owner asked the engineer to prepare a contract for the project both stage1&2.

the questions are as below:

1) what are the issues that the engineer care about in this scenario?
2) as obviously looked there is no tender documents as it is directly assigned contractor .. what will engineer embody into the contract documents? particular conditions and general conditions with specs and drawings and appendixes ? please advise
3) what if the owner in his LOA which has already sent to contractor what if he mistakenly wrote wrong statements ? what is the best way to rectify this error ? issuing new LOA or sending addendum? taking in mind that the engineer drafted that LOA on behalf of owner and the engineer must rectify this error,but trying to minimize the embarrassment how he will do it?

thanks and regards"

Answer
Dear Dzaie
you best bid is to consider the contract as a negotiated contract and to label the previous letter of award as a pre agreement then issue a contract document based on such signed LOA and other documents you can gather at this time. Most important you have to refer to FIDIC 99 as your General Conditions of the Contract. after such documents are gathered , have both parties signed on a conclusive agreement and insert a stamen in such agreement that says all previous agreements LOA or other documents are superseded and should be considered for reference purposes only.
I hope this gives you some way out.
good luck

Construction Law

All Answers


Answers by Expert:


Ask Experts

Volunteer


Wael Ghadban

Expertise

Will respond to queries related to Engineering Contracts subject to FIDIC or other Conditions, tendering and contracting, project management, residential and commercial construction, and general Civil Engineering questions. Can answer most questions related to aviation and airports as related to the Airports, Facility management.

Experience

Project construction and Management Civil Aviation - Airports Airport Pavement Design and Use Residential and commercial construction ICAO and FAA regulation

Organizations
-

Publications
-

Education/Credentials
MS Civil Engineering

Awards and Honors
-

Past/Present Clients
-

©2016 About.com. All rights reserved.