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Engineering and Construction

 
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THE IACCM CONSTRUCTION AND ENGINEERING NETWORK

The goal of the Engineering and Construction Network is to provide its members with an opportunity to become agents of positive change, innovation and evolution of the industry, promoting best practice in the fields of contract, commercial and relationship management.

This Network will provide opportunities and platforms for members to share ideas, discus challenges and explore new directions. It will initiate research, engage experts, innovators and exceptional professionals to share knowledge and experience related to key topics important to members working in this sector.

Meetings will be virtual (by phone or webinar) unless in specific cases there is an agreed wish to have physical meetings or workshops to develop specific initiatives.

Please take a minute to participate in the following survey https://www.surveymonkey.co.uk/r/engandconstrustioncommunity

 
 
Network Updates

Ask the Expert: *ASIA PAC Time Friendly* Why we need the right Commercial Model to Drive Collaboration

Why we need the right Commercial Model to Drive Collaboration?The benefits of collaboration are legion. In the IACCM research report “Unpacking Relational Contracts”, we see that the role of collaboration in commercial dealings is becoming even more important as the new economy embraces more volatility, uncertainty, complexity and ambiguity. How then do we ensure our commercial approach is crafted to maximise the value of collaboration and minimise leakage in our contracts? In this webinar we will explore why business as usual commercial approaches regularly fail to realise benefits, especially in complex environments.  We will explore how to craft a commercial strategy that is best suited to drive collaboration. This exploration will not just look at the contract terms and conditions but also effective market engagement and negotiation strategies. The webinar will close with an examination of how we can best integrate the commercial function with other organisational disciplines to ensure we achieve enterprise outcomes.      7:30 am Mumbai / New Dehli / Gurugram  9:00 am Bangkok 10:00 am Beijing / Shanghai / Singapore / Hong Kong / Kuala Lumpur / Manilla / Perth  12:00 pm Brisbane 12:30 pm Adelaide / Darwin 1:00 pm Sydney / Melbourne 3:00 pm Wellington / Auckland / ChristchurchOur Expert:John Davies, Principal Consultant, Parallax Project Management. John is a project and commercial manager who specialises in providing strategic commercial advice in complex environments. John has conducted extensive research into relational contracts and governance frameworks from both the buy-side and sell-side. John has authored collaborative contract better practice guides, performance-based contract evaluation guides, and tender evaluation guidelines for Federal and State governments.  John also delivers postgraduate courses in project management, contract law, and risk management at the University of New South Wales.   You can find John’s CV at LinkedIn.  https://www.linkedin.com/in/jdavies71/     The session will be recorded if you can not attend live, Simply register below for the recording.

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Honesty in Contracting

Conventional wisdom is that Sales and Marketing should extol the benefits of a product or service and avoid mention of any possible drawbacks or negatives. Those aspects are covered by the contract, typically in the form of limitations with regard to performance or use, but also in terms of potential recourse. In other words, we all know that sales people and marketing materials tell only part of the story and the contract often conveys a very different message.

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Are negotiators in the Western world stupid?

Are negotiators in the Western world stupid? This may seem a rather provocative question - but it is apparently a question frequently asked by business people in Asia, based on their experiences with counterparts from the Western world.

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Non-responsive Contractor

Few sub-contractors of an earlier project were due certain certified amounts as part of their Final Bills. However, the payments were not released due to non-submission of statutory compliance documents. It so happens that a few of these sub-contractors are now either not reachable / traceable and are not responding to any letters / emails etc. In such a context, how does the company remove the liability of payment due to non-response by the sub-contractor?

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China Belt and Road disputes set to fuel mediation's global rise

Singapore moves to take advantage of Asian growth as preferences shift away from arbitration. When in June a Kenyan court blocked construction of the country's first coal-fired power station, it was not only a blow for the project's Chinese backers, say lawyers, it was also a sign that China's so-called Belt and Road Initiative (BRI) might benefit from better dispute resolution.

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Warranty & Discontinuation of Product

Hi everybody, Now we have a situation here in terms of warranty and product discontinuation : A large facility was being constructed which required ~1500 architecturally exposed fixtures of a particular style/model. A Purchase Order was drawn up with terms of Warranty of 10 years. This was in 2014. Cut to 2019, replacement of 9 fixtures are required (5# attributable under warranty provisions + 4# misused by the Purchaser) and it is now learnt that the fixtures itself is discontinued from the product line since 2017. It is not possible to install 9 fixtures of a different model / look as these are architecturally exposed fixtures / products. The Supplier has politely declined to answer the conflict of giving a 10 year warranty ending 2024 and discontinuing the product in 2017. Q1: Advise on possible ways such a situation has been contractually dealt with. Q2: How can one estimate the damages towards default by the Supplier in committing to its obligations under the Warranty Period, since the product has been discontinued? Thanks in Advance

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