Vedera Limited

31/10/2021

EPC Turnkey Contract - PROCUREMENT SERIES 2

EPC turnkey contracts are usually procured on a lump sum basis. It should be remembered, however, that the contract should include the conditions in which the variations are calculated, the formulae used and based indices, as well as in what cases a variation should occur, should a deviation from the technical specification become apparent.
All tenderers should be advised of any local formalities and preferences by the employer, which is to be included in tenders evaluation.

To read the full post please visit: https://www.vedera-ccm.com/en/blog/epc-turnkey-contract-procurement-series-2
For non-obligatory discussion please get in touch with us: https://www.vedera-ccm.com/en/contacts/

EPC turnkey contracts are usually procured on a lump sum basis. It should be remembered, however, that the contract should include the conditions in which the variations are calculated, the formulae used and based indices, as well as in what cases a variation should occur, should a deviation from th...

03/06/2021

Commercial Negotiation- Contract Negotiation Series 7

What is the most important feature or character one needs to possess when it comes to negotiation. Someone would say, make the other side believe what we say and what we want. How would you make the other side believe what you say, so make them believe to accept it? Do you believe that? Do you know what the other side wants, why they want it and how your offer can add value to their business?
The most important thing when it comes to negotiation is to stop voices in your head, to stop the conversations having with yourself and just listen to what the other side is about to say. It seems so easy, however, is not easily achievable when it comes to it.

To read more about Contract & Commercial Negotiation please visit: https://www.vedera-ccm.com/en/blog/commercial-negotiation-contract-negotiation-series-7
You can always get in touch with us for a free non obligatory advise here: https://www.vedera-ccm.com/en/book-free-evaluation-advise/

24/05/2021

FIDIC suite of Contracts and Contract Administration.

There is a long-established tradition within English and other jurisdictions to use experienced contract administrator. This especially applies to comprehensive offshore and onshore engineering construction projects. We will see that between different FIDIC Books there is a small difference between the roles of contract administrator, and even you compare the same with the Silver Book for EPC turnkey projects, the contract administrator is not compulsory at all, but the employer administers the contract. Nevertheless, in the busy project environment nowadays especially with the rise of renewables projects and offshore decommissioning of 20 plus years old wind farms, as well as oil & gas projects, the usage of contract administrator become a common practice. Some, if not most of the experienced contract administrators have the knowledge and experience drafting master service agreements, statement of works, negotiating variations, change orders and special clauses. Overall, to manage the pre and post contract award.

To read more about FIDIC Suite of Contracts, Contract Administration please visit: https://www.vedera-ccm.com/en/blog/fidic-suite-of-contracts-and-contract-administration
Alternatively, you can always book a free non-obligatory chat, so we establish how to support your business, here: https://www.vedera-ccm.com/en/book-free-evaluation-advise/

There is a long-established tradition within English and other jurisdictions to use experienced contract administrator. This especially applies to comprehensive offshore and onshore engineering construction projects. We will see that between different FIDIC Books there is a small difference between....

15/05/2021

FIDIC Suite of Contracts Variation Clauses

With relation to EPC and turnkey contracts, it is the employer who usually approves contract variations. If we look at the other FIDIC suite of contracts, is the contract administrator who directly approves the variations. In those contracts, even the employer has no direct right to approve the variations. Coming back to the Silver Book, the contractor can at any time issue or suggest improvements to be made, in relation to:
- Accelerate project completion
- Increase project feasibility and cost
- Which the employer get direct benefit

To read more about FIDIC Suite of Contracts Variation Clauses please visit: https://www.vedera-ccm.com/en/blog/fidic-suite-of-contracts-variation-clauses
Alternatively, you can always book free non-obligatory chat here: https://www.vedera-ccm.com/en/book-free-evaluation-advise/

With relation to EPC and turnkey contracts, it is the employer who usually approves contract variations. If we look at the other FIDIC suite of contracts, is the contract administrator who directly approves the variations. In those contracts, even the employer has no direct right to approve the vari...

07/05/2021

Be Aware of What Contract Terms you Negotiate - Contract Negotiation Series 6

Nowadays many commercial negotiations between SME (small and medium enterprises) and big corporations fail, even between corporations themselves business negotiation failure is very common. The business development managers are lying about the product and its performance they want to sell. Most of the time, The BDM’s are not even aware of the client’s business and put fancy appealing performance so the customer acquires the product and sign the agreement. The same BDM’s, are not aware of how the product will perform after certain years of experience but they negotiate fancy agreement terms and agreement KPI’s which are far away from reality. At the same time, the BDM’S negotiate contract terms that are not fit for purpose and are taken either from the internet or not suitable for the same business. In those cases, the SMA or SLA are not matching the EPC, and as a result the warranty cost rocket up to the sky.

To read more about contract terms negotiation please visit:

Nowadays many commercial negotiations between SME (small and medium enterprises) and big corporations fail, even between corporations themselves business negotiation failure is very common. The business development managers are lying about the product and its performance they want to sell.

26/04/2021

The Psychology of Commercial Negotiation- Contract Negotiation Series 5

What are the main motivational factors driving negotiation? The strength and motivation of the negotiator highly depend on how close is she/he to achieve the goal of the bargain in commercial contracts or business deals. Negotiator usually starts with a strong positioning of what the party position is related to a particular goal or objective. It might be that this stage is equally spread among the parties, till the negotiator see the other side approach towards achieving the common objective. There might not be a question of achieving immediate agreement, but setting up favourable terms can be appealing.

To read more about the psychology of commercial negotiation please visit:

What are the main motivational factors driving negotiation? The strength and motivation of the negotiator highly depend on how close is she/he to achieve the goal of the bargain in commercial contracts or business deals. Negotiator usually starts with a strong positioning of what the party position....

16/04/2021

The Psychology of Negotiation- Contract Negotiation Series 4

There is a lot of information about business tools and templates related to commercial and business negotiation and much has been written about how to choose the right negotiation strategy. Nevertheless, the core of negotiation and the psychological factors that drive the same cannot be found in the commercial negotiation strategy, nor the tools used. How the main players’ emotions change their behaviour in the middle of the process and how this affects the final result? At the end of the day getting the deal is highly dependent on player’s emotional intelligence and their self-esteem that is driven by their motivation and to the biggest extend their fear.

To read more about the psychology of negotiation please visit:

There is a lot of information about business tools and templates related to commercial and business negotiation and much has been written about how to choose the right negotiation strategy. Nevertheless, the core of negotiation and the psychological factors that drive the same cannot be found in the...

11/04/2021

Bid Desirability - Contract Negotiation Series 3

There are many factors on which the business desirability and bid success probability are dependent. If it’s to consider that the bid value will be increased to a level that is acceptable to the management, then there are actions which party needs to perform to maximise the success probability. Concerning bid desirability in Contracts and Commercial negotiations the below areas and factors need to be considered, encompassing four main areas;

To read more about Contract Bid Desirability please visit - https://www.vedera-ccm.com/en/blog/bid-desirability-contract-negotiation-series-3

05/04/2021

Offshore Contracts. Knock-for-Knock Regime - Series 2

Since the knock-for-knock regime is aiming to provide a practical scheme, the claims are not usually included within. Claims and dispute resolution needs to be dealt with the usual way and discover the root cause for the same. Nevertheless, there is no one size fits all, and each prospect needs to be looked at individually.
In some agreements, there are specifically excluded claims, where the agreement usually specify claims excluded from the knock-for-knock scheme. In this case, these claims are to be managed with the usual fault-based legal regime. Accordingly, the parties may wish to have extended liability that goes over the knock-for-knock regime and cover claims that are not covered by the scheme.
A close look at some of the clauses from the knock-for-knock regime become clear that the same does not always provide full coverage or a proportioned approach. In such cases the clause state that each party shall indemnify and ''hold harmless'' other party from liabilities arising from such claims, or arising out of the party's performance.

To read more about Offshore Contracts and Knock-for-Knock scheme, please visit:

Since the knock-for-knock regime is aiming to provide a practical scheme, the claims are not usually included within. Claims and dispute resolution needs to be dealt with the usual way and discover the root cause for the same. Nevertheless, there is no one size fits all, and each prospect needs to b...

29/03/2021

Offshore Contracts. Knock-for-Knock Regime - Series 1

Avoiding any complexities with offshore contracts, which usually arise from loss of life, injuries, and property damage, the parties agree to accept losses to their property and own personnel, regardless of the blame. An example may be given with the Piper Alpha disaster where claims were made against 24 different contractors and many more subcontractors. Therefore, to avoid such complication, parties agree to accept their property losses under the knock-for-knock regime.
The knock for knock clauses in the offshore contracts exists for the apportioned risk related to losses arisen as a matter of accident or negligence, which are supported by mutual indemnities.

In the way where ''loss lies where it falls,'' the fault-based clauses are replaced by knock-for-knock clauses. The Knock-for-knock regime is an alternative way to allocate the risk between involved parties in the offshore contracts within the oil & gas and renewables sectors.
Knock-for-knock clauses bring certainty and clarity in the contract for the benefit of the parties and their insurers, as well as fewer possibilities for dispute between parties as there are established liability.
The below characteristics are attributable to the knock-for-knock regime, which is usually existing in offshore contracts as LOGIC or BIMCO and many others.

To read more about Offshore Contracts and Knock-for-Knock scheme, please visit -

Avoiding any complexities with offshore contracts, which usually arise from loss of life, injuries, and property damage, the parties agree to accept losses to their property and own personnel, regardless of the blame. An example may be given with the Piper Alpha disaster where claims were made again...

22/03/2021

FIDIC Administration and Contract Claims Series 1

It is a fact that most of the contract claims come out of vague contract terms and conditions. It is also known that the contract administration is greatly efficient in way to respond and resolve contract claims. It is a matter of fact that contract disputes can be very costly for the owner and contractors, as well as any third parties involved. Parties would benefit the most from having a contract administrator, managing all records as soon as anything becomes evident.
It is known that the contract documents, the agreement, the general terms and the specification with the scope of supply will form the basis of any claim related to the particular contract. Therefore the same will contain the drawings and responsibility matrix from the contract and related specifications. The claim may also include other documents and communication between parties, tender documents and proposals, which all form the claim resolution.

To read more about FIDIC administration and claims, please visit:

It is a fact that most of the contract claims come out of vague contract terms and conditions. It is also known that the contract administration is greatly efficient in way to respond and resolve contract claims. It is a matter of fact that contract disputes can be very costly for the owner and cont...

17/03/2021

FIDIC Force Majeure Clauses and Contract Disruption

Force majeure events in the contract come usually under common law (NOTE: this would heavily depend on jurisdiction which parties chose for the Contract to be enforced) and exist to protect the parties, otherwise, the contract would come to an end. The contractor might be able to extend the time under specific clauses from the contract, but this doesn’t end the same between the parties. Under FIDIC/SF98, the force majeure clause is defined that; ‘’An event of circumstances that make the party’s performance illegal, and that is beyond the party’s reasonable control’’
FIDIC/M&E87, also defines force majeure as an event or circumstance that is beyond the party’s control.

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Force majeure events in the contract come usually under common law (NOTE: this would heavily depend on jurisdiction which parties chose for the Contract to be enforced) and exist to protect the parties, otherwise, the contract would come to an end.