Construction & Engineering Law 2017
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ICLG The International Comparative Legal Guide to: Construction & Engineering Law 2017 4th Edition A practical cross-border insight into construction and engineering law Published by Global Legal Group, with contributions from: Advokatbyrån Hellgren Linander AB Matheson Advokatfirmaet Thommessen AS Mattos Filho, Veiga Filho, Marrey Jr e Allen & Gledhill LLP Quiroga Advogados Ashurst Melnitsky & Zakharov, Attorneys-at-Law City Development Law Firm Moravčević Vojnović i Partneri in cooperation Clyde & Co with Schoenherr COMAD, S.C. Nagashima Ohno & Tsunematsu Deacons Norton Rose Fulbright South Africa Inc. Duane Morris LLP Osterling Abogados FALM – Sociedade de Advogados, SP, RL Rose LLP Galadari Advocates & Legal Consultants SBH Law Office Kachwaha & Partners Simmons & Simmons LLP Kyriakides Georgopoulos Law Firm Skrine Lahsen & Cía. Abogados Stassen LLP Rechtsanwälte und Notare Makarim & Taira S. TUGA|ARAT Law Offices Mäkitalo Rantanen & Co Ltd, Attorneys-at-Law Wintertons Legal Practitioners The International Comparative Legal Guide to: Construction & Engineering Law 2017 General Chapters: 1 Some Thoughts on Contractual Interpretation – Tim Reid, Ashurst 1 2 Construction Insights in Africa: A Short Comparative Guide – Richard Dyton, Simmons & Simmons LLP 4 Country Question and Answer Chapters: Contributing Editor Tim Reid, Ashurst 3 Australia Clyde & Co: Kon Nakousis & Teodor Lomaca 10 Sales Director 4 Belarus SBH Law Office: Alexander Filipishin & Vitaly Tvardovskiy 20 Florjan Osmani 5 Brazil Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados: Account Director Oliver Smith Eduardo Damião Gonçalves & Thiago Moreira 28 Sales Support Manager 6 Canada Rose LLP: Peter A.K. Vetsch & Courtney C. Kachur 37 Paul Mochalski 7 Chile Lahsen & Cía. Abogados: Eduardo Lahsen Matus de la Parra Sub Editor & Pedro Mery Reyes 44 Hollie Parker Senior Editors 8 China City Development Law Firm: Cao Shan 51 Suzie Levy, Rachel Williams 9 England Ashurst: Tim Reid & Michael J. Smith 57 Chief Operating Officer Dror Levy 10 Finland Mäkitalo Rantanen & Co Ltd, Attorneys-at-Law: Aimo Halonen Group Consulting Editor & Ieva Kovarskyte 69 Alan Falach 11 Germany Stassen LLP Rechtsanwälte und Notare: Anne Schoenbrunn Publisher & Florian Diestelmann 74 Rory Smith 12 Greece Kyriakides Georgopoulos Law Firm: Elisabeth Eleftheriades Published by Global Legal Group Ltd. & Kimon Tsakiris 81 59 Tanner Street London SE1 3PL, UK 13 Hong Kong Deacons: Kwok Kit Cheung 89 Tel: +44 20 7367 0720 Fax: +44 20 7407 5255 14 India Kachwaha & Partners: Sumeet Kachwaha & Dharmendra Rautray 95 Email: [email protected] URL: www.glgroup.co.uk 15 Indonesia Makarim & Taira S.: Heru Mardijarto & Alexandra Gerungan 102 GLG Cover Design 16 Ireland Matheson: Rhona Henry & Nicola Dunleavy 109 F&F Studio Design 17 Japan Nagashima Ohno & Tsunematsu: Naoki Iguchi 118 GLG Cover Image Source iStockphoto 18 Malaysia Skrine: Janice Tay & Richard Khoo 124 Printed by 19 Mexico COMAD, S.C.: Roberto Hernández García Ashford Colour Press Ltd. July 2017 & Adrián Roberto Villagómez Alemán 131 Copyright © 2017 20 Norway Advokatfirmaet Thommessen AS: Jacob F. Bull & Henrik Møinichen 137 Global Legal Group Ltd. 21 Peru Osterling Abogados: Gabriel Loli León & Miguel Delgado Ramos 145 All rights reserved No photocopying 22 Portugal FALM – Sociedade de Advogados, SP, RL: António André Martins ISBN 978-1-911367-62-8 & Joana Maltez 151 ISSN 2054-7560 23 Russia Melnitsky & Zakharov, Attorneys-at-Law: Semion Melnitsky & Olga Kruglova 156 Strategic Partners 24 Serbia Moravčević Vojnović i Partneri in cooperation with Schoenherr: Slaven Moravčević & Ivana Panić 166 25 Singapore Allen & Gledhill LLP: Ho Chien Mien 173 26 South Africa Norton Rose Fulbright South Africa Inc.: Emmanuel Tivana & Daniel McConnell 180 27 Sweden Advokatbyrån Hellgren Linander AB: Bo Linander & Mikael Lindberg 186 28 Turkey TUGA|ARAT Law Offices: Şeref Can Arat & Umut Tuğa 192 29 United Arab Emirates Galadari Advocates & Legal Consultants: Thanos Karvelis & Niel Coertse 200 30 USA Duane Morris LLP: Charles B. Lewis & Jeffrey L. Hamera 207 31 Zimbabwe Wintertons Legal Practitioners: Edmore Jori & Farai Chigavazira 215 Further copies of this book and others in the series can be ordered from the publisher. Please call +44 20 7367 0720 Disclaimer This publication is for general information purposes only. It does not purport to provide comprehensive full legal or other advice. Global Legal Group Ltd. and the contributors accept no responsibility for losses that may arise from reliance upon information contained in this publication. This publication is intended to give an indication of legal issues upon which you may need advice. Full legal advice should be taken from a qualified professional when dealing with specific situations. WWW.ICLG.COM EDITORIAL Welcome to the fourth edition of The International Comparative Legal Guide to: Construction & Engineering Law. This guide provides corporate counsel and international practitioners with a comprehensive worldwide legal analysis of construction and engineering laws and regulations. It is divided into two main sections: Two general chapters. These chapters focus on: contractual interpretation; and construction insights in Africa. Country question and answer chapters. These provide a broad overview of common issues in construction and engineering laws and regulations in 29 jurisdictions. All chapters are written by leading construction and engineering lawyers and industry specialists and we are extremely grateful for their excellent contributions. Special thanks are reserved for the contributing editor Tim Reid of Ashurst for his invaluable assistance. Global Legal Group hopes that you find this guide practical and interesting. The International Comparative Legal Guide series is also available online at www.iclg.com. Alan Falach LL.M. Group Consulting Editor Global Legal Group [email protected] Chapter 1 Some Thoughts on Contractual Interpretation Ashurst Tim Reid of claims or complaints registered with the FSA, the Financial Introduction Services Ombudsman or any other Authority against the Company, the Sellers or any Relevant Person and which relate to the period Contracts in the construction and engineering sector typically prior to the Completion Date pertaining to any mis-selling or contain a number of different contractual mechanisms to manage suspected mis-selling of any insurance or insurance related product risk, including warranties, indemnities, and limitation and exclusion or service.” clauses. In Wood v Capita Insurance Services Limited [2017] UKSC 24, the English Supreme Court was asked to rule on It was accepted by all that the clause was open to interpretation. the meaning of an indemnity provision forming part of such a Competing interpretations were argued for: complex risk allocation regime. Although not a construction case, BY CAPITA BY THE SELLERS the decision is useful as it illustrates the current approach of the (1) all actions, proceedings, (1) all actions, proceedings, English courts towards contractual interpretation when a clause has losses, claims, damages, costs, losses, claims, damages, costs, competing meanings. charges, expenses and liabilities charges, expenses and liabilities suffered or incurred, and suffered or incurred, and In line with the principles most recently restated by the Supreme (2) all fines, compensation or (2) all fines, compensation or Court in Arnold v Britton [2015] UKSC 36, the Supreme Court remedial action or payments remedial action or payments confirmed that the court will look to both the language used imposed on or required to be imposed on or required to be (textualism) and the commercial context in which it was drafted made by the Company following made by the Company (contextualism) in order to ascertain the objective meaning of the and arising out of claims or [and in each case:] clause in question. The decision demonstrates the importance complaints registered with the FSA, the Financial Services A. following and arising out of of careful drafting and of ensuring that your contract works as a Ombudsman or any other claims or complaints registered cohesive whole. Authority against the Company, with the FSA, the Financial the Sellers or any Relevant Services Ombudsman or any Person other Authority against the Company, the Sellers or any Background (3) and [in the case of both (1) Relevant Person and (2)] which relate to the B. (i) and which relate to the Capita bought a specialist classic car insurance company (the period prior to the Completion Date pertaining to any mis-selling period prior to the Completion ‘Company’) from Mr. Wood and two others (the ‘Sellers’) under or suspected mis-selling of any Date (ii) pertaining to any mis- a sale and purchase agreement (the ‘SPA’). Under the terms of the insurance or insurance related selling or suspected mis-selling SPA, the Sellers: product or service. of any insurance or insurance related product or service. ■ Gave warranties to the effect that the Company was not in breach of any regulations or laws and they were unaware of any action or claims against it. Written notice of a warranty The Sellers’ more restrictive interpretation would mean Capita claim had to be given to the Sellers within two years, could not recover under the indemnity unless there had been a claim otherwise they were time-barred. made against the Company, or a complaint registered. Since Capita ■ Indemnified Capita in respect of losses derived from the mis- had referred the Company themselves to the