FIDIC Conditions of Subcontract as a Model for General Conditions of Subcontract in Pakistan

Volume 1, Issue 6, Page No 5-13, 2016

Author’s Name: Muhammad Umer Zubair^a),1, Hamza Farooq Gabriel², Muhamamd Jamaluddin Thaheem¹, Muhammad Bilal Khurshid¹, Ammara Mubeen²

View Affiliations

¹National Institute of Transportation, National University of Sciences and Technology, Pakistan

²National Institute of Civil Engineering, National University of Sciences and Technology, Pakistan

^a)Author to whom correspondence should be addressed. E-mail: uzubair.cem6@nit.nust.edu.pk

Adv. Sci. Technol. Eng. Syst. J. 1(6), 5-13 (2016); DOI: 10.25046/aj010602

Keywords: General contractor, Subcontract, General conditions, Subcontract

Download Now!

846 Downloads

Export Citations

Abstract

Fair allocation of risks in conditions of contract is pivotal for coordination, unhindered execution, dispute resolution and maintenance of positive relationship among the parties executing the contract. Pakistani construction industry despite subcontracting a large percentage of construction projects lacks standard conditions of subcontract and they are primarily based on the will of the prime contractor that is onerous for the subcontractor. Therefore in order to develop a model for the general conditions of subcontract in Pakistan the conditions proposed by Associated General Contractors of California, FIDIC in 1994 and 2011, Construction Industry Development Board Malaysia, American Institute of Architects and by the Government of Hong Kong were compared to determine the similarities and differences among them. Afterwards a questionnaire based on the significant provisions of these subcontracts was conducted in the construction industry of Pakistan to determine the appropriate conditions for model subcontract. The results of the survey were further subjected to discussions with the legal experts. Out of 35 suggestions made for the general conditions of subcontract 23 originated from FIDIC in which 20 are recommended by its 2011’s version. It can therefore be implemented in Pakistan with certain amendments and additions as proposed in light of conditions of other subcontracts and the results of the survey and discussions with legal experts.

Received: 21 October 2016, Accepted: 26 November 2016, Published Online: 25 December 2016

References (18)

Kishk, C. Ukaga, “The impact of effective risk management on project success”, in Proceedings of the 24th Annual ARCOM conference, (2008).
Song, J. Li, D. Wu, “Modeling the key risk factors to project success: A SEM correlation analysis”, in Cutting-Edge Research Topics on Multiple Criteria Decision Making., 544-551 (2009).
Schroeder, J. Alkemade, G. Lawrence, “Risk Management–A Key Requirement for Project Success”. Pharmaceutical Engineering (2011).
O’Reilly, Civil engineering construction contracts. (1999).
Likhitruangsilp, P.G. Ioannou, “Risk allocation in standard forms of general conditions for tunneling contracts” Building a Sustainable Future, 1250-1259 (2009).
Zaghloul, F. Hartman, “Construction contracts: the cost of mistrust” International Journal of Project Management, 21(6): 419-424 (2003).
M. Choudhry, et al., “Subcontracting practices in the construction industry of Pakistan”, Journal of Construction Engineering and Management, 138(12): 1353-1359 (2012).
Al-Hammad, “Factors affecting the relationship between contractors and their sub‐contractors in Saudi Arabia: About 70% of contract work is subcontracted in Saudi Arabia, this paper highlights literature search and pilot interview findings”, Building Research and Information, 21(5): 269-273 (1993).
Hinze, A. Tracey, “The contractor-subcontractor relationship: the subcontractor’s view”, Journal of Construction Engineering and Management, 120(2): 274-287 (1994).
Mbachu, “Conceptual framework for the assessment of subcontractors’ eligibility and performance in the construction industry”, Construction Management and Economics, 26(5): 471-484 (2008).
Enshassi, F. Arain, B. Tayeh, “Major causes of problems between contractors and subcontractors in the Gaza Strip”, Journal of Financial Management of Property and Construction, 17(1): 92-112 (2012).
Köksal, “FIDIC Conditions of contract as a model for an international construction contract”, International Journal of Humanities and Social Science, 1: 140-157 (2011).
Model conditions of contract between the contractor and subcontractor. Available at http://docplayer.net/21354288-Model-terms-of-construction-contract-between-for-subcontract-work.html, 2006.
Kelleher, G. Walters, Smith, Currie & Hancock’s common sense construction law: A practical guide for the construction professional. Hoboken, John Wiley (2009).
Hill, “What sample size is “enough” in internet survey research”, An electronic journal for the 21st century, 6(3-4): 1-12 (1998).
A. Dillman, Mail and internet surveys: The tailored design method. 2 (2000).
Globe, M.S. Bayliss, D.J. Harrison, “The impact of itch symptoms in psoriasis: results from physician interviews and patient focus groups”, Health and quality of life outcomes, 7(1): 1 (2009).
A. Murtaja, Investigation of FIDIC Clauses Dealing with Construction Project Performance, The Islamic University (2007).