In international contracts, parties seek above all predictability and effective control of risk. One of the most powerful contractual mechanisms to achieve both objectives is to include a pre-agreed damages clause, commonly referred to as a liquidated damages or penalty clause. Such provisions fix in advance the sum payable where a party fails to perform […]

Delay claims are among the most common and contentious issues in international construction arbitration. Whether the project involves an industrial facility, a power plant, an infrastructure network, a data centre, or a residential complex, the reality is familiar to anyone in the industry: projects often take longer than expected.[1] When delays have significant financial consequences, […]

Construction projects are inherently complex. They often bring together multiple parties, detailed contractual frameworks, and technically challenging issues that can lead to high-value disputes.[1] In the construction industry, arbitration is frequently chosen for its neutrality, flexibility, and enforceability across jurisdictions. However, the costs of construction arbitration can be substantial and at times unpredictable, occasionally rivaling […]

The NEC family of contracts, short for New Engineering Contract, is a suite of standard forms of contract originally developed under the auspices of the Institution of Civil Engineers (“ICE”). NEC is designed for construction, engineering, and infrastructure projects and is used widely in the UK public sector. Its use has also expanded globally, particularly […]

Construction contracts do more than set out scope, price, and timelines – they also determine how risks are allocated between the parties.[1] Risk allocation is often described as the “soul” of a construction contract because it defines who bears responsibility when projects face design errors, cost overruns, delays, or unforeseen site conditions.[2] The Fédération Internationale […]