i-law

International Construction Law Review

INTRODUCTION

HUMPHREY LLOYD

DOUGLAS S JONES

This issue contains a range of articles from all over the world. It begins in the Baltic, with an article (at page 134) about construction contracts in Lithuania, Latvia and Estonia. We are most grateful to the contributors: Dr Dalia Foigt of Foigt and Partners, Regija Borenius, who has been joined by colleagues Julija Kirkiliené, also of Foigt and Partners, who contributed to the part of the article that deals with Lithuania; Sigita Kravale, of Leipa, Skopina and Borenius, who contributed on Latvia, and Margus Mugu, of Luiga Mody Hääl/Borenius, who wrote on Estonia. The authors provide a doubly useful treatment of the subject since the position in each country is considered comparatively as well as specifically. Part 1 of the article is about the general construction conditions in each country. Part 2 looks at how contracts and subcontracts are affected by the laws of each country. There are differences which will need to be noted by anybody involved in work in any of these countries. Part 3 considers the distribution of risk between the parties by reference to the relevant provisions of the law. Part 4 covers the liability of contractors in each country but it also touches on important provisions—for example, in Latvia, it is a prerequisite for obtaining a construction permit that the contractor should have mandatory insurance of its civil liability. Part 5 deals with the liability of a client. Part 6 look at dispute resolution. In each country there are no special dispute resolution procedures. Accordingly disputes are commonly resolved by litigation (although this may well change). The authors have very helpfully provided references to websites where the texts referred to are available in English.
Our next contribution (at page 156) examines the new proposal of FIDIC for a Design, Build and Operate contract. Samantha Landsberry of Clayton Utz, Sydney, poses the question: “FIDIC Design Build Operate—Glitter or Gold”. In her contribution, the author takes over from where Christopher Wade took us in our last issue with his key introduction to the DBO form of contract (to be known as the “Gold Book”): [2008] ICLR 14. Samantha Landsberry considers the evolution of the Gold Book and the work of the task group that produced it and its position as a development of FIDIC’s existing suite of contracts. She provides a most detailed and valuable commentary on the points on which there have been changes from other contracts in the suite. She gives particular attention to innovations, such as the “Independent Compliance Audit” and “Long-term O & M Funding Mechanisms”. She notes also the changes to clause 20 which deal with dispute resolution. After an introductory survey, Samantha Landsberry turns to the practical operation and effect of new or substantially modified clauses in the Gold Book. There is a careful consideration of numerous provisions which will undoubtedly not only lay the foundations for discussions on the proposals but, we are sure, will contribute materially to the development and use of the Gold Book in whatever form it ultimately takes.

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