Global economic challenges affect every link in the contract chain. These changes may be felt differently by the MEP contractor or the developer, the main contractor and their sub-contractors but neither they, nor the designers, architects, surveyors or any other industry professionals involved are immune, and nor is the customer or end-user. Everyone involved in construction is a stakeholder and, perhaps uniquely as an industry, the fortunes of hundreds if not thousands of people can be changed overnight as the result of cash flow problems on an individual project.
Risks are generally financial. They affect financing and cash flow. For example, the rapid escalation in the cost of raw materials, can drain all profit for the main contractor who employees hundreds of labourers on his projects.
We aim to minimise the risks and we have extensive experience of the standard forms of contract used in the region (typically FIDIC) and the issues faced by all parties to those contracts. Our Construction Lawyers in Abu Dhabi draft and negotiate main contracts, sub-contracts and consultant appointments, as well as the anciliary documents such as funder warranties and consultant novation documents.
Our focus is on:
In our many years in practice, our team have seen most sorts of commercial crises, and can help to obviate their effects at the early stages of a project through sensible contract drafting to keep a project healthy. We can assist during the lifetime of a project to help ensure that contractual steps are correctly followed.
All of us are subject to global economic climate changes. Developers and contractors are no exception, and therefore neither are the designers, architects, surveyors and other industry professionals involved.
For example, a hotel project might be badly affected if the tourist industry is blighted by recession, but it may fail completely if interest rates, inflation or supply shortages hit. These can affect financing and cash flow, cause the rapid escalation of the cost of raw materials, and drain profit from the main contractor.
There are some steps that can be taken to reduce the detrimental effect of unavoidable risks:
Our team have seen all sorts of crises and can help at the early stages of a project with sensible contract drafting that is most likely to keep the project alive.
We can also take a role during the lifetime of a project to ensure that contractual steps are followed.
We can assist in the early resolution of disputes.
We can advise you which battles to fight hard, and which ones to settle.