RESOLVING CONSTRUCTION DISPUTES IN ASIA REPRINTED FROM:

CORPORATE DISPUTES MAGAZINE JUL-SEP 2016 ISSUE

corporate disputes �������� ����������� CD

������������

www.corporatedisputesmagazine.com

������������������ �������

�������������������������������������������������� ������������

�������������������������������������������������������� ���������

�������������������������������������

www.corporatedisputesmagazine.com Visit the website to request a free copy of the full e-magazine

Published by Financier Worldwide Ltd corporatedisputes@financierworldwide.com © 2016 Financier Worldwide Ltd. All rights reserved.

corporate disputes

CD

2

CORPORATE DISPUTES Jul-Sep 2016

www.corporatedisputesmagazine.com

MINI-ROUNDTABLE

M INI-ROUNDTABLE

RESOLVING CONSTRUCTION DISPUTES IN ASIA

www.corporatedisputesmagazine.com

CORPORATE DISPUTES Jul-Sep 2016

3

RESOLVING CONSTRUCTION DISPUTES IN ASIA

MINI-ROUNDTABLE

PANEL EXPERTS Wendy MacLaughlin

Derek Nelson

Senior Vice President

Senior Vice President

Hill International (UK) Ltd.

Hill Construction Consultancy Pte. Ltd.

T: +44 7540 158 226

T: +65 9182 9350

E: [email protected]

E: [email protected]

Wendy MacLaughlin is a senior vice president at Hill International and co-head of International Expert Witness Services. She is a world-class programming expert, with over 20 years of experience in design, construction and planning on major infrastructure projects. Ms MacLaughlin is highly regarded by the barristers and solicitors she has worked with. She has experience as a party-appointed expert and has given evidence to arbitral tribunals on numerous occasions in London, Dubai, Australia and Stockholm.

Derek Nelson is a senior vice president at Hill International, based in Singapore. He has 35 years of construction industry experience and specialises in the identification and management of contract and commercial risks, the preparation, negotiation and settlement of claims for disruption, acceleration and prolongation and in the investigation, assessment and settlement of such claims presented by others. Mr Nelson is an accredited and certified testifying expert witness, accredited expert determiner and certified mediator.

Muhammad Ehsan Che Munaaim

Simon Longley

Senior Consultant

Senior Vice President

Hill International Consulting, Inc.

Hill International Consulting, Inc.

T: +971 56 729 0281

T: + 971 56 615 6437

E: muhammadehsanchemunaaim@hillintl.

E: [email protected]

com Muhammed Ehsan Che Munaaim is a senior consultant at Hill International with more than 10 years’ experience in both industry and academia. His areas of expertise include claims analysis, contract administration, quantity surveying, and adjudication. He is also a (part-time) Teaching Fellow in Construction Management and Surveying at Heriot-Watt University Dubai, where he teaches claims, FIDIC contracts and dispute resolution in the MSc in Construction Project Management and MSc in Quantity Surveying programmes.

4

CORPORATE DISPUTES Jul-Sep 2016

Simon Longley is a senior vice president at Hill International, based in Dubai, United Arab Emirates. A chartered quantity surveyor and barrister, he has more than 30 years of experience in construction consulting with a focus on complex, infrastructure and energy megaprojects worldwide. Mr Longley specialises in the strategic leadership, turnaround and recovery of distressed projects, particularly with regard to contract and dispute management for dispute board and other tribunal proceedings.

www.corporatedisputesmagazine.com

RESOLVING CONSTRUCTION DISPUTES IN ASIA

CD: How would you describe the construction dispute landscape in Asia? To what extent are these types of disputes becoming more prevalent in the region?

MINI-ROUNDTABLE

significant engineering challenges which push the boundaries of our technical capabilities; this often means that more risks are being passed to contractors who usually lack the ability to deal with them effectively and efficiently. This breakdown results in delays and cost overruns, which, in turn,

MacLaughlin: I would describe the construction dispute landscape as changing. We are seeing

if not properly addressed, can escalate into multimillion dollar mega disputes.

an increasing number of Singapore International Arbitration Centre (SIAC) arbitrations, particularly

Nelson: The dispute landscape in Asia has

those arising from investment by Asian parties in

become much more stratified. A number of

resource and infrastructure projects in Australia.

jurisdictions either have, or intend to, introduce

We expect to see disputes referred to adjudication

statutory adjudication for construction payment

increase over the next few years, as well as NEC3

disputes that are seeing a significant reduction

arbitrations as that form of contract becomes

in parties arbitrating subcontractor-contractor

prevalent in the region.

payment disputes during and at the end of a project in those jurisdictions. There has been a significant

Munaaim: Yes, I agree. The construction dispute

rise in contractor-employer Construction Industry

landscape in Asia is changing rapidly. We are seeing

Payment and Adjudication Act (CIPAA) claims at final

bigger, more expensive and complex disputes

account stage in Malaysia, which is likely to impact

arising, which take much longer to resolve. I believe

numbers further in that jurisdiction. That said, with

the reason for this change is simple – construction

the significant increase in investment in, for example,

projects in Asia are growing, due to the continent’s

power and infrastructure projects across the region

sustained advancement and infrastructure initiatives,

drawing together multinational parties to deliver

and, as a consequence, these kinds of disputes are

technically complex and challenging projects often

being generated. Some developing Asian countries

in constrained timeframes, the number and value of

like Malaysia and Indonesia are spending huge

international arbitrations has increased significantly

sums of money on ambitious infrastructure projects

across the main centres in Asia. There has been

that contain huge contractual and delivery risks.

a marked increase in foreign contractors entering

The scale and complexity of these projects pose

certain markets and that is breaking the natural reticence of local contractors pursuing formal action

www.corporatedisputesmagazine.com

CORPORATE DISPUTES Jul-Sep 2016

5

MINI-ROUNDTABLE

RESOLVING CONSTRUCTION DISPUTES IN ASIA

for recovery. Additionally, large government linked companies and employer organisations are facing organisations which are less swayed by concerns over future opportunity and more focused on losses today. That has contributed to the increase in the number of large value international arbitrations across the region. Longley: The Asia market is picking up with more

CD: What are the main dispute resolution methods that are usually adopted in Asia and how are these generally applied to the construction sector? Can you highlight any recent, high-profile cases which demonstrate how these methods have been applied? MacLaughlin: In my experience, traditionally

large-scale and complex infrastructure, power and

negotiation has been effective enough to negate the

transportation projects being taken forward across

need for expensive dispute resolution processes. If

the region. Such developments, however, bring with

a dispute is referred to arbitration, the negotiation

them an increased level of claims and disputes, for a

process will often carry on in parallel with arbitration

number of reasons. Where project participants have

proceedings which often leads to the matter getting

insufficient capacity and experience of tendering

resolved before the substantive hearing, but at

for and delivering such projects, allied with multi-

a point in time where the parties have a better

national joint ventures as contracting parties, the

understanding of the merits of their respective

diversity of risks that need to be identified and

positions.

managed for a project to be successful multiply greatly. And if project staff on both sides are not

Munaaim: The trinity of dispute resolution in

experienced in the administration of complex

Asia is made up of, in ascending order, negotiation,

projects, issues can quickly escalate into claims

mediation and arbitration, based on recent

or disputes. When disputes do arise, project staff

construction projects in India and Malaysia. Here,

may have limited experience of dispute boards,

there still exists an ingrained culture of non-

arbitration or local courts to resolve disputes

confrontation between employers and contractors,

efficiently and effectively. So throughout the

and in most situations both parties want to negotiate

construction process there is a huge learning curve

to resolve their disputes amicably because they

to be had by project participants. The challenge is to

know how damaging disputes can be to ongoing

learn quickly to avoid claims and disputes.

business relationships. If negotiation fails, a neutral third-party mediator is used to facilitate their

6

CORPORATE DISPUTES Jul-Sep 2016

www.corporatedisputesmagazine.com

RESOLVING CONSTRUCTION DISPUTES IN ASIA

MINI-ROUNDTABLE

discussions to reach an amicable settlement.

in Singapore through Singapore Mediation Centre

Arbitration is only used as a last resort, once

(SMC) have increased by 120 percent between 2012

all non-confrontational avenues are exhausted.

and 2015. An international mediation centre (SIMC)

Although, I must say, the trend is slowly moving

was opened in November 2014 and introduced

toward confrontational dispute resolution methods, likely because of the large amounts of money at stake. Adjudication is also coming to the forefront, which will eventually be an intervening mechanism between mediation and arbitration.

“Traditionally negotiation has been effective enough to negate the need for expensive dispute resolution processes.”

Nelson: Negotiation is the natural first step to settlement. Understanding, presentation and substantiation of entitlement and the consequences of

Wendy MacLaughlin, Hill International (UK) Ltd.

those issues in terms of time and money is often poor, which does not aid consensus and

integrated arbitration-mediation-arbitration services

settlement. There is a marked increase in facilitated

in collaboration with SIAC, a model particularly

settlement through mediation, neutral evaluation

suited to Asian sensibilities and one that found

and expert determination on key issues. That can

favour with 78 percent of users of international

help parties get to a negotiated position. Access to

arbitration. The numbers of cases being referred

statutory adjudication in selected jurisdictions and to

to arbitration across the main centres in Asia

dispute adjudication or review boards more widely

over the last 10 years have increased significantly.

on large international projects can also act to focus

That seems reflective of the significant levels of

the parties in reaching agreement before referral. A

investment across Asia and the draw of international

recent survey showed that international arbitration

organisations now delivering large complex

remains the preferred final dispute resolution

projects in the region. Particularly significant are

mechanism for 90 percent of users. A particular

the number of China International Economic and

feature of dispute resolution in Asia is the use of

Trade Arbitration Commission (CIETAC) arbitrations

mediation, either on its own or the midst of other

in China and the numbers through Hong Kong

formal dispute resolution processes. Mediation cases

International Arbitration Centre (HKIAC), both of

www.corporatedisputesmagazine.com

CORPORATE DISPUTES Jul-Sep 2016

7

RESOLVING CONSTRUCTION DISPUTES IN ASIA

which peaked in 2008/2009 but have since found favour in particular with Russian organisations. Numbers through SIAC have shown a steady rise as it finds favour with parties contracting internationally. Longley: For the bigger projects the main dispute resolution mechanisms, often in tiered dispute

MINI-ROUNDTABLE

CD: At the outset of a construction project, what considerations should be made with regard to potential future disputes? What components of the contract, such as pre-tender and post contract advice, risk assessments and delay analysis, should parties evaluate?

resolution procedures, are expert determination, dispute boards and arbitration. In addition, in certain jurisdictions, such as Malaysia and Singapore, there is statutory adjudication for payment disputes. Singapore is the centre of dispute resolution in the region for arbitration. In addition, Singapore has

“The construction industry is a fertile ground for disputes, given its unique characteristics.”

recently established an International Commercial Court. Dispute boards are the core feature of FIDIC-based contracts and will likely continue to grow in popularity and usage. However, unless experienced

Muhammad Ehsan Che Munaaim, Hill International Consulting, Inc.

DAB practitioners are appointed, there is the potential for poor decisions. In this regard,

MacLaughlin: The contractual dispute resolution

the Persero case, decided in the Singapore courts,

clause should suit the manner in which the parties

considered the issue of enforcement of a DAB

wish to deal with disputes that may arise during the

decision and ruled that there is an ‘inherent premise’

execution of the project. This could be using tiers

that a DAB decision can be enforced by a partial

of dispute resolution that may include any senior

award in arbitration, a ruling that has been subject

management meetings, early neutral evaluation,

to much comment and criticism by commentators in

the use of a project DRB, or a direct referral to

other jurisdictions.

arbitration or the courts. Pre-tender advice on those provisions is essential for the parties to understand

8

CORPORATE DISPUTES Jul-Sep 2016

www.corporatedisputesmagazine.com

MINI-ROUNDTABLE

RESOLVING CONSTRUCTION DISPUTES IN ASIA

the options available and to agree the process that

with any likely dispute that would arise under their

best suits how their organisation, both at project

contract.

and corporate levels, wishes to deal with disputes. In relation to delay, the parties should consider

Nelson: The practice of putting large

carefully the effect of any strict notice requirements

infrastructure projects out to 12 contractors to

and their ability to comply with these in the fast track

tender at a cost of over US$1m each is astonishingly

project environment, the appropriate level of project

wasteful. Two-stage selective tendering with a

controls on cost and schedule that will stand them

requirement for detailed planning, programming

in good stead in the event that the effect of a delay

and risk assessment up front would leverage

event has to be demonstrated for the purposes of

off the contractors’ expertise coupled with early

securing extensions of time.

contractor involvement to collaboratively identify principal constraints and issues together with their

Munaaim: The construction industry is a fertile

proposed solutions and management. Identifying

ground for disputes, given its unique characteristics.

those matters early and aligning the project

The best way to deal with future disputes is to

delivery across all parties to clearly manage those

prepare early, although sometimes at considerable

sensitivities would give transparency and assist in

initial cost. This, however, can save future cost and

the active resolution of the same before they have

time when disputes are eventually referred to for

the potential to generate potential future disputes.

formal resolution under the contract. Contractors

Ensuring that the contract structure is appropriate

should establish a contract and commercial

is a given. Applying a project oversight function,

department at the outset, which during construction,

whether through a DRB mechanism or a project

is responsible for monitoring potential events which

neutral function which regularly reviews issues as

may escalate into disputes, collating records and

the project progresses, and gives an independent

preparing documents for submission for resolution

opinion, or if necessary a decision, is an effective

under the contract. Employers should appoint a

approach to assisting the parties in addressing

contract administrator in the beginning whose main

matters when they arise.

role is to monitor events to prevent them from escalating into disputes during construction. Both

Longley: Large and complex projects are now

parties must also ensure that their dispute resolution

being undertaken in the region but the market in

provisions are appropriately drafted in accordance

some jurisdictions is presently not sophisticated or experienced enough to deal with them. Tender

www.corporatedisputesmagazine.com

CORPORATE DISPUTES Jul-Sep 2016

9

MINI-ROUNDTABLE

documents are sometimes incomplete or contain

and fully assess tenders from all aspects – technical,

errors and omissions. Employers may seek to have

commercial, contractual, legal, time, cost, and so on

contractors assume risks that should normally be

– as well as more specific issues, including cultural,

carried by the employer. Contractors often give

local legal customs and requirements, worker and

insufficient consideration to contract terms and

visa rules and regulations, importation requirements

conditions, sometimes leading to the failure to

and the like. However, in my experience, contractors

recognise the greater risk transfers, the introduction

frequently do not sufficiently consider and risk

of time-bars – or more usually reducing the time

assess all such issues, instead pricing the work

period for the giving of notice. We also see the

but leaving contractual considerations and dispute

introduction of complex procedural steps to become

resolution procedures way down the list of items to

entitled to time and or money, among other issues.

check and risk assess.

Therefore, a first step is for contractors to properly

10 CORPORATE DISPUTES Jul-Sep 2016

www.corporatedisputesmagazine.com

MINI-ROUNDTABLE

CD: Have any recent regulatory and legislative changes had an impact on dispute resolution practices within Asia’s construction sector?

interest in statutory adjudication, with a government consultation document issued recently. As for international arbitration, legislation was recently amended to permit foreign arbitrators and lawyers to enter Malaysia and participate in arbitral

Munaaim: Some interesting regulatory and

proceedings without a work permit. With its

legislative changes have recently taken place

common law tradition, low costs, geographical

in Asia with respect to dispute resolution. The

location and transportation links, Kuala Lumpur will

introduction of statutory adjudication in Malaysia

be an attractive alternative seat for international

by way of security of payment legislation has

arbitration. As for mediation, Singapore introduced

provided an avenue for swift and cost-effective

its IMC in 2014 to provide mediation services aimed

dispute resolution. Hong Kong has also shown

at resolving cross-border commercial disputes,

www.corporatedisputesmagazine.com

CORPORATE DISPUTES Jul-Sep 2016 11

RESOLVING CONSTRUCTION DISPUTES IN ASIA

MINI-ROUNDTABLE

which complements its international arbitration

spread to other institutions. A recent decision in

centre and increases its dispute resolution offerings

Singapore’s Court of Appeal, PT Perusahaan Gas

to international parties.

Negara (Persero) TBK vs. CRW Joint Operation, that a tribunal’s interim or partial award on a respondent’s

Nelson: The sea change legislation introduced

obligation to promptly pay the sums in a DAB

into Singapore and Malaysia, with interest being

decision under the FIDIC Conditions of Contract

expressed elsewhere, is statutory adjudication.

for Plant and Design-Build 1999 is immediately

After a slow start in Singapore, that has had the

enforceable under the Singapore International

effect of changing the local dispute landscape

Arbitration Act is set to have a marked impact on

in both Singapore and Malaysia with a marked

the dispute resolution process for construction and

increase in the numbers and value of disputes

infrastructure projects where FIDIC is the default

being referred. Established in January 2015, the

form in use. A claimant can seek enforcement

Singapore International Commercial Court, with 27

of the DAB decision through an interim arbitral

‘international judges’ on its bench, is hearing its

award pending final resolution of the merits of the

first case, which includes a construction dispute,

underlying dispute, which markedly reduces cash

between an Australian and an Indonesian party in

flow issues stemming from a potentially long and

Singapore. This is the first of its type and it will be

drawn-out arbitration. While the case is only binding

interesting to see how that develops. The ICC Court

in arbitrations seated in Singapore, the decision is

of Arbitration announced that it will publish the

likely to be persuasive elsewhere.

names of arbitrators and who the chairman is; that provides transparency and may affect who parties

Longley: Malaysia and Singapore now have

choose for their case. In addition, the ICC announced

statutory adjudication that addresses payment

that it will reduce the fees paid to tribunals that fail

disputes, and Singapore has recently established

to submit a draft award within three months of the

an International Commercial Court. This latter

last substantive hearing or post-hearing submission.

innovation could have far reaching effects if it

Tardy arbitrators may see their fees reduced from 5

proves successful in handing down speedy and

percent to 20 percent or higher, depending on the

authoritative rulings. International contracting parties

length of delay. There is no indication that decisions

desire certainty in the interpretation and application

on whether to reduce fees will be made public but

of provisions, such as contained in the FIDIC suite of

the policy does seek to address a particular issue

contracts, across jurisdictions. Because arbitration

for parties, an approach which is thought likely to

proceedings remain private, there is no corpus of

12 CORPORATE DISPUTES Jul-Sep 2016

www.corporatedisputesmagazine.com

RESOLVING CONSTRUCTION DISPUTES IN ASIA

MINI-ROUNDTABLE

decisions that provides contracting parties with the

may hamper its use. DRBs should be used in large

certainty they desire. If the International Commercial

construction projects and are ideally constituted

Court can fill this void, not only will contracting

at the start of the project in order for the panel

parties be able to enter into contracts with greater

to become accustomed to the characteristics

certainty as to the interpretation, application and

of the project and the parties involved. Early

effect of contract provisions, but the decisions

implementation allows parties to utilise the full

and awards handed down by dispute boards and

benefit of the DRB process.

arbitral panels will be also become more consistent.

CD: In your opinion, how effective are expert panels and dispute review boards (DRB) at resolving construction disputes in Asia? In what circumstances can a well-run DRB assist a construction project?

“The International Commercial Court could have far reaching effects if it proves successful in handing down speedy and authoritative rulings.”

Munaaim: The Asian manner of

Simon Longley, Hill International Consulting, Inc.

resolving disputes provides a perfect platform for the use of DRBs, a type of nonconfrontational dispute resolution. The Ertan

Nelson: DRBs, and similar third-party expert

Hydroelectric project is testament to that – 40

oversight, are very effective in providing guidance,

disputes were resolved at the DRB stage without

opinion or decisions that focus the parties and allow

further reference to arbitration. There is evidence

them to resolve issues early and remain focused on

to suggest that DRBs are gaining momentum and

the delivery of parties’ respective obligations. In light

are used in Asia, to some extent, especially in large

of the Singapore Court of Appeal’s decision in the

construction projects. However we have seen, in

Persero case concerning the enforcement of a DAB

some cases, parties still prefer domestic, standard

decision through an interim arbitral award, where

forms of contract that simply do not provide for the

that approach finds favour with other tribunals,

DRB as a mechanism of dispute resolution and this

that certainty has the potential to underscore DABs

www.corporatedisputesmagazine.com

CORPORATE DISPUTES Jul-Sep 2016 13

MINI-ROUNDTABLE

RESOLVING CONSTRUCTION DISPUTES IN ASIA

as a quick and interim dispute mechanism with enforcement teeth. Longley: In our experience, dispute boards are

CD: What general advice can you offer to parties embroiled in a construction dispute in Asia, in terms of managing the process and reaching a timely resolution?

very effective at resolving disputes finally, cheaply and quickly, often meaning contracting parties

MacLaughlin: Understand the merits of your

can implement decisions during the currency of a

dispute, the drivers of each of the parties’ business

contract – unlike in arbitration where awards often

decisions in relation to the dispute, and the strength

follow the completion of the project and therefore

of the records upon which you are reliant. These

cannot affect ongoing project progress. However,

are the key factors in my experience that will

such outcomes are critically dependent on the

influence how quickly a dispute can be resolved cost

parties being able to operate the DAB procedures

effectively.

effectively and, more importantly, the DAB members being experienced, qualified and competent to hand down decisions that parties’ recognise as being bona fide. Any shortcomings in these dependencies can impair the quality of DAB decisions and give rise to later arbitrations and court cases, such as in the Persero cases.

“Disputes are expensive and represent a major distraction from the party’s core businesses.”

Clearly, parties obtaining training, advice and support in DAB procedures and in appointing experienced and qualified DAB members would go a long way to addressing these sorts of concerns.

Derek Nelson, Hill Construction Consultancy Pte. Ltd.

Another factor worth bearing in mind is that effective dispute boards are also able to play a

Munaaim: Disputes can take months, if not years,

dispute avoidance role by giving opinions on issues

to be resolved, and it is to both parties’ benefit

that could otherwise become disputes.

to avoid disputes if possible. Clients should avoid going down the formal dispute resolution route,

14 CORPORATE DISPUTES Jul-Sep 2016

www.corporatedisputesmagazine.com

MINI-ROUNDTABLE

RESOLVING CONSTRUCTION DISPUTES IN ASIA

but this is not always possible. I think the involved

– either direct employment or consultant. Advice on

parties have to take a step back from the front line

dispute board members, procedures or other ADR

to be able to examine the situation objectively. They

mechanisms could also be provided, in addition to

should obtain advice from lawyers and construction

wider training, advisory and expert service offerings.

consultants to know where they stand contractually and commercially, so that they will have an idea of the possible outcomes of their dispute resolution. From there, they can manage their expectations, participate knowledgeably in the process, and work

CD: How do you envisage the outlook for construction disputes in Asia? What trends and developments do you expect to see in the months and years ahead?

toward the resolution. Munaaim: I predict that multi-million dollar Nelson: Disputes are expensive and represent a

disputes will continue to rise. Given its economic

major distraction from the party’s core businesses.

diversification and social infrastructure, many more

Seeking an early independent opinion or evaluation

megaprojects will be introduced in Asia. Existing and

can be invaluable. Parties may find themselves in

future megaprojects will generate bigger and more

dispute for years, expending an inordinate amount

expensive and complex disputes that simply will

of time, effort and money trying to resolve the issues

not allow parties to negotiate, and because of this,

between them, which in effect only entrenches their

I foresee that international arbitration will become

positions. In such cases, an independent review

a common feature in dispute resolution in Asia,

might reveal that a far lower value of the claim is

given the transnational nature of these projects.

capable of support, allowing the matter to be settled

I also envisage other countries, especially those

within weeks.

with common law roots, dipping their toes into statutory adjudication, which would be a positive

Longley: Obtain early independent advice on the

development. Adjudication would filter out disputes

merits of the issue. Is there a reasonable prospect of

leaving those which are not suited for resolution

success or not? All too often, a contractor pursues a

through a rigid scheme, to be referred to arbitration.

weak case, ultimately to the detriment of the project,

Hong Kong and Singapore will likely continue to be

management time and expense and potential

the preferred seats for arbitration in Asia, and Kuala

relationships and further work opportunities. If an

Lumpur will be waiting in the wings as a rival for

issue has merits, then engage professional expertise

these seats.

to draft a robust claim or dispute submission www.corporatedisputesmagazine.com

CORPORATE DISPUTES Jul-Sep 2016 15

MINI-ROUNDTABLE

RESOLVING CONSTRUCTION DISPUTES IN ASIA

Nelson: One size does not fit all. Having a range of mechanisms appropriate to addressing the nature

cancellation and termination of projects is fertile ground for disputes.

and complexity of the issues between parties will remain key to successfully solving the various

Longley: I suspect that until the wider Asian

business problems faced by parties on projects.

market has gained experience in the tendering,

Those solutions need to be pragmatic. I see an

award and delivery of major projects there will be

increase in the use of tiered resolution mechanisms

multitudes of disputes that will end up in dispute

in more complex projects. Having bid a project, often

boards, arbitration or court for resolution. Far-sighted

against stiff competition, international contractors

parties will seek to improve its chances by obtaining

are increasingly being squeezed between GLC

independent expert advice and support, engaging in

employers and a local procurement chain. How

focused training initiatives and undertaking research

they deal with each is quite different and there is

in the wider disputes market. However, economic

a real danger that they are left holding liability in

pressures are likely to mean parties persist with

the middle. In certain sectors, dispute avoidance

unrealistic and overly-optimistic expectations and

behaviour is being driven by the oil price and a lack

thus provide the basis for an extensive disputes

of cash in the sector, which is unlikely to change

market. CD

in the near future; conversely, the postponement,

16 CORPORATE DISPUTES Jul-Sep 2016

www.corporatedisputesmagazine.com

EDITORIAL PARTNERS

E D I T O R I A L PA RT N E R

w w w. h i l l i n t l . c o m

Hill International Hill International is a world leader in providing construction claims and consulting services. Public- and private-sector clients have engaged us on some of the world’s largest and most Over the past four decades, Hill has participated in over 50,000 disputes valued in excess of US$100bn. Today, we are the largest construction claims practice with the most experience and the greatest depth of resources and capabilities in the world. We hire the best professionals, understand our clients’ needs and objectives, and make a full commitment to each and every project in which we are involved.

KEY CONTACTS

complex engineering and construction projects. Wendy MacLaughlin Senior Vice President London, UK T: +44 7540 158 226 E: [email protected]

David Merritt Senior Vice President Dubai, UAE T: +971 50 265 8664 E: [email protected]

Derek Nelson Senior Vice President Singapore T: +65 9182 9350 E: [email protected]

Hill International The Global Leader in Managing Construction Risk