198
Project Management in the Oil and Gas Industry
Supervision and Labors
Labor rules
Labors salary
Health and safety
Equipment and Materials
Construction procedure
Tests
Time Plan
Start time
End time
Performance rate oPenalty
Tests
Contractor responsibilities
Testing procedure and condition
Receive Projects
Receiving certificate
Operations manual to the owner
Fault Responsibility
Cost of repair
Tests after repair
Contract Value and Payment
Contract value
Down payment
Payment schedule
Change Order
Right to change
Methods of change
Present change
Value of change
Contractor Fault
Excuse
Contract termination
Pay at completion
Insurance
On design
Equipment
Labours oOthers
Force Major
Definition
Effects
Exemption from the delay and performance
Disputes and Arbitration
Method claim
Payment of the claim
Arbitration
Determine the courts in case of conflict
The laws governing the conflict
6.8 Arbitration and the Arbitrator
Arbitration is defined as an agreement to present the dispute between two
parties to a particular person or persons designated to provide a solution
to this conflict instead of going to the courts.
Tendering, Bidding, and Contract Traps 199
In
engineering projects, turning to arbitration as the dispute between the
owner (employer) and the contractor or the employer, consultant, has a spe-
cial nature in most cases and requires special expertise,
both technical and
legal, as the general interest of all parties is to end dispute in the shortest pos-
sible time because an increase in time negatively affects the whole project.
Partial arbitration, when the problem is between
the owner and the con-
tractor, is raised and presented to the consultant engineer, who will act as a
judge, and the technical and administrative arbitration will be done by him.
This is the first step to stop the conflict between the owner and the con-
tractor. So, in this case, a competent consultant engineer who has strong
experience and the capability to solve these problems will be very essential.
FIDIC contracts play a vital role and give power to the consultant engineer
when there is a requirement for the contractor. Therefore, the first and most
important step is to resolve the problem before it goes to the arbitration step.
Under the terms of FIDIC, the consultant
engineer should be within
84 days from the date for receiving an order from any one of the parties in
the conflict and the owner or the contractor should submit his decision by
written document.
This decision is enforceable even though it may not be final and the
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