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Construction Law Update

Construction Law Update aims to provide you with interesting articles on topics of relevance to the Hong Kong and Asia Pacific construction industry.

A recent Hong Kong case emphasises the need for lawyers to beware ambiguity when drafting contracts. Ed McMullen runs through the rules and peculiarities of local contract interpretation.

A new feature of the civil justice reform system came into effect on 1 January 2010, nine months into the revamp. Steven Yip and James Yeung report that the introduction of mediation, as prescribed by Practice Direction 31 (PD 31), is expected to have a profound impact on the way parties conduct cases.

A recent English case has delivered a timely warning on the wording of a commonly used contract phrase, which Steven Yip and Malcolm Chin believe reiterates the need for caution in contract construction.

While continuing volcanic eruptions in Iceland have been playing havoc with air travel, it is the commercial implications of the flight bans that will create long-term damage. Elisabeth Ellis, Ben McLeod and Thomas Keenan discuss the options available to avoid or mitigate these most unforseen circumstances.

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While many large-scale infrastructure projects outside China are financed with project finance, contractors it has been little used within China so far. Chinese contractors who want to compete in international markets need to be familiar with the mechanics of project financing, how and why it is used in infrastructure projects and understand the implications for contractors.

In December 2009 world leaders from 190 nations will congregate in Copenhagen to negotiate an agreement on greenhouse gas reductions post-2012 when the Kyoto Protocol expires. We provide an overview of climate change policies and legislation in developing Asian countries and consider their likely negotiating positions at the Copenhagen talks.

The outcome of Hong Kong Housing Authority v Rotegear Corporation Ltd will comfort employers of nominated subcontractors but it prompts reflection on the different ways of engaging subcontractors in Hong Kong, and how this can affect the rights and remedies parties have during the course of construction work.

In this article we outline the operation of the Building Energy Efficiency Funding Schemes and how private building owners can seek funding to improve energy efficiency.

The complexity of the issues, long timeframes and the attendant use of volumes of documents and may witnesses means that it can take lot of time and money to resolve construction disputes in court. The Civil Justice Reform, which came into effect on 2 April 2009 aims to reduce delay and legal costs of construction disputes in the Hong Kong High Court. We discuss the impact of the new rules and offer high-level strategic comments running construction disputes.

This issue discusses a number of cases in relation to fairness in tender submission, the meaning of repudiation and consequential loss, and the principles for assessing damages for defective work.
This edition of Construction Law Update covers programming and critical path analysis, recovery of staff and management costs and the latest update on our Construction team.

A recent decision in the Hong Kong Court of Appeal shows that it is necessary to check for, and remove, any inconsistency between contractual documents, even if the contracting parties think they are unlikely to be of any significance.

Alliance contracting has become increasingly common in Australia and the United Kingdom and now there is growing interest in Hong Kong. Properly understood, alliancing adds to the range of project delivery methods available to the public and private sectors although parties should remain cautious about entering into an alliance arrangement if this is not what they intend.



© Minter Ellison 2010

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