Contract management masterclass

Challenges of Contracting under FIDIC in the SEE region

On 04 April 2019, Karanovic & Partners organized a contract management masterclass, titled Changes of Contracting under FIDIC in the SEE region. The event was held at the Karanovic & Partners office premises in Resavska, and was attended by representatives of renowned companies, as well as various professionals from the legal and real estate industries.

Milan Lazić, Senior Partner, and Milica Savić, Senior Associate*, discussed the issues of time-related claims and how the extension of time should be managed in order to mitigate additional costs and damages.

Ana Luković, Senior Associate*, emphasized that one of the most important causes of variations are inadequate designs or the lack of details in drawing the documents, which results in a lack of informed decision-making at the beginning of the projects, further resulting in delays and additional costs. That is why the employer’s involvement at the beginning of the project is crucial to minimize changes in later stages of development.

Milorad Gajić, Senior Associate*, outlined the practical problems and challenges for contractors when facing acceleration request from the engineers. This topic sparked a debate among participants and guests, in terms of what situations provide the engineer with a possibility to demand the acceleration, and, on the other side, what are the rights of the contractor when facing unreasonable or ungrounded acceleration requests.

The participants elaborated on some frequently asked questions about the application of FIDIC terms in the region and globally:

  • What are the main Contract Management Obligations;
  • What are the key novelties introduced by the 2017 FIDIC Suite;
  • Variations Claims under FIDIC, causes and effects, and how to evaluate them;
  • Time related Claims – Dark Arts; and,
  • Quantum and how to establish damages and losses in construction and engineering disputes: quantification, substantiation and causal link (and avoiding global claims)

“It was a privilege to join Karanovic & Partners and c at the FIDIC workshop on 4 April 2019 and share experiences in contracting under FIDIC in the SEE region and further afield. Contract management is coming into sharper focus with the amendments introduced by the 2017 edition of the FIDIC suite and the march in the sector towards innovation and increasing collaboration. It is all the more important therefore to have opportunities to share experiences and best practice. I very much look forward therefore to participating in the next workshop,” said Charles Blamire-Brown, Partner at Pinsent Masons.

 

*Independent attorney at law, in cooperation with Karanović & Partners.