(INT-3343) Claim Aspects in China
Author(s)/Presenters(s): Lan Zhang; Hao Hu; Shenjing Zhang
The US firm hire top of the attorney to draft the most strict contract in China and intend to transfer all risks to the Chinese General Contractors. However, the result is not what the client expected. How will the both sides defend themselves? This paper starts with a survey to US client in China and general contractors who have project experience with US clients. Analysis the reasons of claims. Based on general practice the means and ways that GC approach to the claims, the paper systematically suggest the contract clauses should be added in the "Red Cover Construction Contract" that might assist the client to avoid the huge claims from the general contractor. A case study will be presented to verify that these clauses are useful for both Client and GC.
(INT-3366) Preparation of Loss of Productivity Claims in Egypt
Author(s)/Presenters(s): Ahmed Gamal Aldeen AbdElmohsen, CCP
Although disruption claims are rampant in the construction industry, proving productivity loss is a challenge. In the absence of maintaining accurate daily records, contractors struggle to quantify a loss of productivity claim. To assist practitioners in preparing and assessing loss of productivity claims, several standards were developed, among which is AACE International's Recommended Practice 25R-03 ('RP 25R-03'). Although there has been published literature on these claims from an international perspective, little research is produced in relation to this claim in the Middle East North Africa (MENA) region. This paper sheds light on this claim in Egypt from a contractor's perspective. A case study is provided, where a loss of productivity claim is prepared in accordance with the guidelines of RP 25R-03 and the results are discussed. The paper concludes with a recommendation to contractors in Egypt applying this type of claim.
(INT-3381) Requirements for EOT: The Peru Public Contracts Case
Author(s)/Presenters(s): Guido J. Reyes
For the past 15 years, the Peruvian government has been developing and executing a variety of construction projects, some of them with moderate to high complexity and cost, therefore it is relevant to properly manage potential impacts or disputes between the parties during the construction of projects.
The objective of this paper is to determine if the Peruvian government's current contractual clauses address common potential disputes related to requests of extensions of time (EOT), to provide recommendations to streamline the approval process of EOT requests, and to mitigate potential disputes.
This research takes a qualitative approach that was implemented through the evaluation of Peruvian contract law and sample project contracts to understand the current state of EOT clauses. Likewise, relevant recognized knowledge used to mitigate potential disputes during construction was reviewed to identify recommendations for EOT clauses.
The result of the research is that the current Peruvian contract law and contracts provide limited guidelines to successfully manage and develop EOT request. This study provides recommendations to the Peruvian government and their contractors to implement contract clauses to reflect more advanced common knowledge and to streamline potential disputes related to EOT during the execution of projects.
(INT-3435) Successful Holistic Approach for Cost Optimization in a Mega Project
Author(s)/Presenters(s): Sahaiza Saat; Jesmin Jamel
The Pengerang Integrated Complex (PIC) is the largest greenfield downstream investment by PETRONAS in Malaysia at USD27 billion. Situated within Johor's Pengerang Integrated Petroleum Complex (PIPC), PIC consists of a Refinery and Petrochemical Integrated Development (RAPID) and supporting facilities, including centralized utilities, a raw water supply and treatment plant, an air separation unit, a cogeneration plant, a deep water terminal and a regasification terminal.
Aligned with PETRONAS group-wide transformation and cost reduction efforts in response to the massive oil price drop in 2014, PIC embarked on strategic CAPEX reduction initiatives to optimize cost and sustain the project delivery.
This was accomplished through rigorous value improvement practices, including optimization of its extensive project management organization, value engineering during EPCC phase, deferment of non-essential facilities and smart solutions for contracts and services.
The successful implementation of the initiatives resulted in overall CAPEX reduction, and also provided effective project stewardship and control, resource optimization, productivity increment, enhanced coordination and alignment within the project team as well as improving preparedness for facility operation.