JIMMA UNIVERSITY INSTITUTE OF TECHNOLOGY SCHOOL OF GRADUATE STUDIES FACULTY OF CIVIL AND ENVIRONMENTAL ENGINEERING CONSTRUCTION ENGINEERING AND MANAGEMENT CHAIR Course: contracts and construction laws (CENG6223) Given by: Dr. Lucy Feleke

JIMMA UNIVERSITY INSTITUTE OF TECHNOLOGY SCHOOL OF GRADUATE STUDIES FACULTY OF CIVIL AND ENVIRONMENTAL ENGINEERING CONSTRUCTION ENGINEERING AND MANAGEMENT CHAIR Course: contracts and construction laws (CENG6223) Given by: Dr. Lucy Feleke PR.B . BY ETSEGENET H..

REGULATING DECISION SERVICES. BY ETSEGENET H.. Legal protection construction court decision Vector Image.

Presentation Outline. Introduction Revision about construction claims Revision about dispute *Decision definition *Decision services role of Decision in construction Steps to Making Better Decisions Regulating decision services Dispute resolution methods Arbitration Conclusion.

Introduction. Claim is defined as a request by either party to the contract, usually the Contractor, for compensation for damages. Claims in construction industry are associated with _ cost overruns, _mismanaged jobs, _legal entanglements , and wrong practices on the part of various contractors. The factors may also cause claims.  Poor or unclear tender and/or contract documents;  Poor or inadequate administration of responsibilities by stakeholders; Unforeseen or uncertain situations during execution of the Construction Project;.

According to MDB FIDIC 2010 sub clause 1.9 ( Delayed Drawings or Instructions ).

According to MDB FIDIC 2010 sub clause 2.5 (Employer’s Claims).

Cont.. The notice shall be given as soon as practicable and no longer than 28 days after the Employer became aware, or should have become aware, of the event or circumstances giving rise to the claim. A notice relating to any extension of the Defects Notification Period shall be given before the expiry of such period. The particulars shall specify the Clause or other basis of the claim, and shall include confirmation of the amount and/or extension to which the Employer considers himself to be entitled in connection with the Contract. The Engineer shall then proceed in accordance with Sub-Clause 3.5 [Determinations] to agree or determine ( i ) the amount (if any) which the Employer is entitled to be paid by the Contractor, and/or ( ii) the extension (if any) of the Defects Notification Period in accordance with Sub-Clause 11.3 [Extension of Defects Notification Period].

According to 20.1 MDB FIDIC 2010. If the Contractor considers himself to be entitled to any extension of the Time for Completion and/or any additional payment, under any Clause of these Conditions or otherwise in connection with the Contract, the Contractor shall give notice to the Engineer, The notice shall be given as soon as practicable, and not later than 28 days after the Contractor…… If the Contractor fails to give notice of a claim within such period of 28 days, the Time for Completion shall not be extended, the Contractor shall not be entitled to additional payment, and the Employer shall be discharged from all liability in connection with the claim..

Cont.. If the Engineer does not respond within the timeframe defined in this Clause, either Party may consider that the claim is rejected by the Engineer and any of the Parties may refer to the Dispute Board in accordance with Sub-Clause 20.4 [ Obtaining Dispute Board’s Decision ) ( Art. 3040. - Claim by sub-contractors or workmen.) Independent contractors or workmen employed under a contract of work and Labour relating to an fixed may claim against the person on whose behalf the work was done with a view to obtaining payment of their claims to the extent of the amount due by the client to the principal contractor on the day the claim is made.  Unresolved claims are the basis for the existence of construction disputes ..

Decision in general. Decision the action or process of deciding something or of resolving a question. "the information was used as the basis for decision" the ability or tendency to make decisions quickly; decisiveness. " she was a woman of decision“ Decision services A Decision Service automates a discrete decision-making task . It is implemented as a set of business rules and exposed as a web service..

What is the role of Decision in construction. The decision-making process is critical to the success of any construction project . Wrong decisions can be costly in terms of time, quality, cost and relationships. Effective time-management requires decisions to be assessed in terms of urgency and importance, and dealt with accordingly The decision making process is developed by setting the number of real-based alternatives related to relevant selected criteria. The construction projects are planned by the same principles as other projects, based on efficiency in terms of cost, schedule, quality, and risks..

Four Steps to Making Better Decisions. making good decisions up and down the organizational chart of a construction company, there is often little to no time spent working to improve decision-making . If you want to get your people focused on a sound decision-making process, teach and practice the following four steps to making better decisions . Step #1: Classify the decision Step #2: Recognize the decision-making opportunity Step #3: Determine what the right decision is, not just the acceptable decision Step #4: Make the decision BONUS Step #5: Decision review and evaluation.

Article of civil code of Ethiopia about decision.

The five most common causes MDB FIDIC 2010.pdf. The five most common causes MDB FIDIC 2010.pdf.

According to 20.1 MDB FIDIC 2010. If the Contractor considers himself to be entitled to any extension of the Time for Completion and/ or any additional payment, the Contractor shall give notice to the Engineer describing the event or circumstance giving rise to the claim . The notice shall be given as soon as practicable, and not later than 28 days after the Contractor became aware , If the Contractor fails to give notice of a claim within such period of 28 days, the Time for Completion shall not be extended, the Contractor shall not be entitled to additional payment, and the Employer shall be discharged from all liability in connection with the claim. If the Engineer does not respond within the timeframe defined in this Clause, either Party may consider that the claim is rejected by the Engineer and any of the Parties may refer to the Dispute Board in accordance with Sub-Clause 20.4 [ Obtaining Dispute Board’s Decision ]..

According to art.20.4 MDB FIDIC 2010. If a dispute arises between the Parties in connection with, or arising out of, the Contract or the execution of the Works, including any dispute as to any certificate, determination, instruction, opinion or valuation of the Engineer, either Party may refer the dispute in writing to the DB for its decision, with copies to the other Party and the Engineer. For a DB of three persons, the DB shall be deemed to have received such reference on the date when it is received by the chairman of the DB. The DB shall be deemed to be not acting as arbitrator(s). With in 84 days after receiving such reference, or within such other period as may be proposed by the DB and approved by both Parties , the DB shall give its decision , which shall be reasoned and shall state that it is given under this Sub-Clause..

Cont.. If either Party is dissatisfied with the DB’s decision, then either Party may, within 28 days after receiving the decision, give notice to the other Party of its dissatisfaction and intention to commence arbitration. If the DB fails to give its decision within the period of 84 days (or as otherwise approved) after receiving such reference, then either Party may, within 28 days after this period has expired, give notice to the other Party of its dissatisfaction and intention to commence arbitration ..

Construction dispute resolution. There are several methods of resolving disputes in the construction industry. They are classified, non-judgmental (amicable), and judgmental 1) Non-judgmental (amicable) Dispute resolution A ) negotiation, (compromise) B ) mediation, See Article 3307-Article 3317 of the Civil Code); and C ) conciliation See Article 3318-Article 3324 of the Civil Code);.

non-judgmental (amicable),. Where a Notice of Dissatisfaction has been given under Sub-Clause 20.4 above, both Parties shall attempt to settle the dispute amicably before the commencement of arbitration. However, unless both Parties agree otherwise, the Party giving a Notice of Dissatisfaction in accordance with Sub-Clause 20.4 above should move to commence arbitration after the fifty-sixth day from the day on which a Notice of Dissatisfaction was given, even if no attempt at an amicable settlement has been made. (20.5 Amicable Settlement ).

( PPA (Version 1, January 2006 ) - CONSULTANCY SERVICES.

Mediation and conciliation under CIVIL CODE. ( Art . 3307 –mediation ) - A compromise is a c:ontract whereby the parties, through mutual businesses, terminate an existing dispute or prevent a dispute arising in the future) (Art 3318 . - Appointment of conciliator) ( 1) The parties may trust a third party with the mission of bringing them together and, if possible, negotiating a settlement between them. (2) The conciliator may be appointed, at the request of the parties, by an institution or by a third party. ( 3) The person appointed conciliator shall be free to accept or to refuse his appointment..

2) the judgmental form of dispute resolution. A ) Adjudication ; is not yet legally recognized under the Ethiopian law except as provided under the PPA Conditions of Contract ; B) Arbitration _ (See Arbitral Submission: Article 3325-Article 3346 of the Civil Code & Article 315-Article 319, Article 350-Article 357 & Article 461(for foreign arbitral awards) of the Civil Procedure Code); C) Litigation_ With respect to Litigation ( the Court System or the Judiciary System: See Article 78-Article 82 of the FDRE Constitution );.

( PPA (Version 1, January 2006 ) - WORK SERVICES.

CONT.. The Adjudicator shall act as an impartial expert to resolve disputes between the Parties as rapidly and economically as is reasonably possible. Unless otherwise specified in the contract or in any applicable rules for adjudication:( ICB -Section 1) The Adjudicator’s role may include, but not be limited to, requiring and examining any relevant documents and written statements, making site visits, using his own specialist knowledge and holding a hearing; and The Adjudicator’s decision shall reflect the legal entitlements of the Parties and his fair and reasonable view of how the dispute should be resolved..

According to art.20.6 MDB FIDIC 2010 (arbitration) MDB FIDIC 2010.pdf.

Cont.. b ) if the Contract is with domestic contractors , arbitration with proceedings conducted in accordance with the laws of the Employer’s country. The place of arbitration shall be the neutral location specified in the Contract Data; and the arbitration shall be conducted in the language for communications defined in Sub Clause 1.4 [Law and Language]. The arbitrators shall have full power to open up, review and revise any certificate, determination , instruction, opinion or valuation of the Engineer, and any decision of the DB , relevant to the dispute. Nothing shall disqualify representatives of the Parties and the Engineer from being called as a witness and giving evidence before the arbitrators on any matter whatsoever relevant to the dispute..

Arbitration Civil Code (English).pdf. Arbitration Civil Code (English).pdf.

Arbitration. Typical steps in Arbitration are: Article 3325-Article 3346  Initiating the Arbitration ; Appointment of Arbitrator;  Communication ; Statement of Claim and Response;  Discovery and Inspection;  Exchange of Written Evidence;  Hearing;  Site Inspection;  Legal Submissions and  Award..

Conclusion Primer on Construction Arbitration slide taken.pdf.

Thank you for your attention.