Turnkey project execution with consortium contracts

Posted by : Srinivasan on March 12th, 2019 in Procurement Process and Contracting

Designation : Advisor Project & Contract Management

Introduction Most Engineering Procurement Construction (EPC) turnkey projects are exposed to a number of uncertainties/risks. The market situation however generally does not support full provision for all evaluated risks in the financial calculations. Most project owners and investors prefer a single (techno commercially capable & experienced) contractor to execute their entire project on a turnkey EPC basis so as to have clear single point accountability for performance, project cost and risks. Since such turnkey projects require a wide variety of skills, equipments etc, the EPC contractor has to sub contract several portions of the work. The EPC contractor is thus liable to the project owners for non performance of his sub contractors. Many of the sub contractors do not accept all the terms of the main EPC contract. Thus while project owners have single point accountability, the EPC contractor is burdened with substantial risks. Even major EPC companies are hesitant […]

Arbitration & Its Application To Infrastructure Sector

Posted by : Devul Dighe on February 26th, 2019 in Legal

Designation : ADV & CS

Arbitration is in simple terms a method of alternate dispute resolution by an impartial third person(s) who adjudicates upon the dispute between parties. It is basically to resolve disputes outside the courts, which are usually long drawn battles, with sanction of law which is binding upon the parties. It is done by consent of the Parties. What kind of disputes can be submitted to arbitration? All disputes of Civil Nature can be submitted to Arbitration. A Criminal case cannot be submitted to Arbitration. This is so in view of the phrase “disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not” as embodied in Section 7 of the Arbitration and Conciliation Act, 1996 (‘the Act’). In criminal cases there is no legal relationship between parties and also a criminal act is considered as crime against the society. Infrastructure disputes […]

Incremental improvement through Navigation Audits

Posted by : Lamech Castelino on January 15th, 2019 in Navigation Audit

Designation : Technical Consultant- Navigation Simulation, Mooring Analysis, Port Compliance and approval at Independent Consultant.

Seafarers have always been engaged in a dangerous profession and though much progress has been made in this age of satellite technology, many of the risks remain and incidents still frequently occur on the high seas and in the approaches to ports. Just in the last few weeks we have seen four major casualties. Historically shipping has been a high-risk enterprise with many ships being lost close to port. One of the greatest risks that ship owners, seafarers, charterers or even a port operator takes is that of a navigation incident leading to a major casualty. Incidents come in many forms: collisions, groundings, anchors dragging etc. The industry needs to reflect further, how is it that ships with advanced navigation systems and sophisticated communication technologies still find themselves involved in groundings, collisions and other incidents? Planned, periodic and snap audits have a place in reducing the number of such incidents […]