Archive for October, 2009

Adverse Physical Conditions in a Dredging Contract

Thursday, October 29th, 2009

The assessment of a dredging projects soil conditions are the most important factor to determine dredgeability, the choice of suitable equipment, production rates and ultimately the associated costs for the works.

A prudent tenderer when analysing the site data needs to be assured that the data has been collected and prepared by a competent soil investigation company in accordance with relevant international standards such as BS, ASTM or others.

Rather than rely on the basic adverse physical conditions clause in the case of significant capital works involving excavation of varying subsoil, weathered or solid rock it is suggested to apply reference conditions in the Contract based on the actual information from the soil survey transposed into production rates which can be easily measured and reviewed, beyond which the Contractor is entitled to claim for additional compensation.
Of the contracts available for use on dredging contracts only the FIDIC 1999 Red Book and the UK’s NEC 3 Engineering and Construction Contract deal with the broad concept of reference conditions.

The concept of how adverse physical conditions are dealt with verges on the holy grail of marine infrastructure projects. On the one side they are part of a Marine Contractors ‘must have’ clauses whilst it is often viewed by Clients as the equivalent of a ‘get out of jail free’ card. The balance of risk has been hotly debated and fought over the years with the results little published or revealed due to disputes being resolved in arbitration or adjudication.

Added to this mix are the notion of unforeseeability and what an experienced contractor can expect its no wonder that the vast majority of marine infrastructure claims revolve around the issue of sub-surface conditions.

Even a full-scale and technically perfect soil investigation can only test a fraction of the volume that is to be dredged by the Contractor. Combined with the fact that natural conditions like rock strength, grain size, permeability, plasticity, presence of rock outcrops or boulders (to name a few) vary enormously, it is no wonder disputes on dredging contracts often focus on soil conditions that are claimed to be different from what “an experienced Contractor could reasonably have foreseen” .

The basic principle of adverse physical conditions this that a contract clause will give the Contractor the “right to claim for additional time and money in case unforeseeable physical conditions which may occur, which were not reasonably foreseeable by an experienced contractor”. This simple principle is present in one way or the other in virtually every dredging contract.

A dual purpose lies hidden behind this contract principle, namely to :

  • Compensate the Contractor for encountering conditions more severe than could be derived from investigations available at the time of preparing his offer. Employers must not and should not expect the Contractor to gamble: Taking a risk provision covering for every imaginable situation would make an offer non-competitive, whereas the absence of a risk provision is a denial of the fact that dredging has significant uncertainties by its very nature. Employers tend to be overly biased towards achieving the lowest contract price for their work by passing all conceivable risk to the Contractor whether he is in a position to dealt with it or not.
  • Protect the Employer from Contractors who may try to claim additional compensation for interpretation or calculation errors mistakes made by the Contractor and resulting in a loss on the project. A loss in itself is no justification for additional compensation, and furthermore the Employer has very limited possibilities to assess the factual cause of the loss.

In between the relative simplicity of the two extremes lies a gray area, and it is here that disputes are generally fought out. The author supports the view that a sufficiently high threshold for additional compensation should be present, balancing the interest of the Employer (by not having to battle over every minor issue) and of the Contractor (by having capped his risk and defined additional compensation above threshold). It is further suggested that a risk matrix framework could be established to assess the magnitude of the additional compensation before award of the contract.

For more info on dredging contracts, and maritime contracts, kindly visit Kinlan Consulting, a specialist FIDIC Contract Consultant.

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Make it a Green Christmas and Stockpile Love not Landfill this Year

Wednesday, October 28th, 2009

green-christmasA mountain of Christmas gifts and goods make their way from and into homes each Christmas season. It is a harsh reality but, not long after the festivities subside, nearly all of those well-meaning gifts move rapidly on to mounds of landfill.

Slowing the migration is as easy as setting your family the Green Christmas Challenge to send as little as possible to landfill this Christmas. Inspired by the target of a close to empty wheelie bin, you will all make decisions that generate less waste.

Many actions contribute to celebrating a green Christmas, like opting for locally-grown foods to reduce food miles, switching to LED eco Christmas lights and donating gifts to charities. The massive amount of food, plastic and non-recyclable waste is the primary environmental problem, but it is a simple one for households to take on.

Sit the team down before Christmas and speak about methods of reuse, reduce and recycle. Here are some ideas to get you started…

Good for the environment plastic-free picnics
Disposable plastic plates and cups are created from petrochemicals, so pollution is made in their manufacture and when thrown-away they sit in landfill forever. Opt reusable plates that you wash up or use palm leaf plates, a stylish plant alternative. They add a chic eco friendly style to your festive table and can be put onto your garden as mulch, instead of in the bin.

Trim a living tree
When Santa arrives in his carbon-neutral sleigh, surprise him with a live Australian Wollemi pine tree. This recently discovered tree is now obtainable in nurseries. A potted Wollemi can grow with your family to be trimmed year after year. Or, why not a tradition to find a lovely Eucalyptus branch that can be composted when the Christmas festivities are over.

Wrap it again
A good stretch the budget and save piles of waste is to wrap presents in newspaper, magazines and even junk mail. For kids use the comics, for car lovers use the motoring pages. Rather than wrapping, place gifts inside reusable shopping bags, or sew cloth bags from festive Christmas material that your family can re-tie with ribbon every year. For an additional special Green Christmas touch, Earth Greetings make stunning post consumer waste wrapping paper with Australian Christmas designs printed with vegetable inks.

Detour past the bin
, is this Christmas gift finish up in the bin within some weeks? If yes, decide something else. The old saying quality not quantity is a good friend of the planet. Even the cheapest items use the planet’s limited resources, energy and water to manufacture. Instead of buy a risky gift, consider a gift voucher or make a donation to a charity on behalf of the person. Should you receive an unsuitable gift, pass it straight on to a charity like the Salvos.

A green Christmas gift for your garden
Food scraps make up a large portion of rubbish and once in landfill they generate methane, a concentrated greenhouse gas. Compost at home instead and turn leftovers into fertiliser for your garden. The Bokashi composting bin is a popular system that sits conveniently in your kitchen.

Packaging-free paradise
Picture a paradise where Christmas morning is free from mounds of discarded plastic packaging. It takes a little extra thought and effort. Locally made and hand-made Christmas gifts are to be over-packaged. A trip to the local Farmer’s Markets will also help you stock up on fresh festive food with minimal packaging.

As opposed to talking rubbish; this Christmas, your family will soon be asking is this for landfill, recycling or composting? And the joy of accomplishing your challenge will bring good tidings to all.

Biome Eco Stores is a chic retail outlet with a conscience. Firmly committed to eco friendly principles, Biome offers a unique and meaningful green Christmas collection for gifts and decoration.

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New Guinea - Island Paradise

Tuesday, October 27th, 2009

new-guinea-flagNew Guinea is the world’s second largest island, and is in addition one of the world’s last, vast and remote wildernesses. With a complex political history, this great island is divided. The western half, is now called Papua, a region of Indonesia, while the eastern half, Papua New Guinea or PNG, has been an independent country since 1975.

New Guinea is step in the Pacific Ring of Fire, and endures sporadic volcanic eruptions, earthquakes and occasional tsunamis. A mountain range rises across the length of New Guinea and deep rainforest is all enveloping.

The island contains an astonishing wealth of natural features, some protected by National Parks and UNESCO Man and Biosphere Reserves, but huge swathes of it are unmapped and virtually unreachable. The primary cities of both countries are, naturally, on the coast, but there is little in the way of roads or infrastructure. Travel is mainly by boat. Rivers criss-cross the whole region or you can travel on foot, or by plane

New Guinea is inhabited by about 1,000 different tribes, speaking a similar number of languages. Tourists are few, mainly visiting the extraordinary Dani culture, in Papua’s stunning Baliem Valley. Despite being nominally Christians, the Dani live traditionally.

Men wear penis sheaths, ladies wear short skirts, made of orchid fibres, worn beneath the buttocks. This high valley, surrounded by mountain peaks, is a vision of incredibly fertile cultivated fields. The Baliem River provides fish, and pigs are essential, being consumed at every ceremony.

In PNG the major attraction is the tribal hunter-gatherers who live along the banks of the island’s longest river, the Sepik. This culture is intrinsically entwined with crocodiles, and the men’s huge scarification reflects the animal’s scales.

Living in communal longhouses, Sepik River people are famous for their wood-carvings. Varying in style from village to village, nearly all of these find their way into the truly great museums of the world.

If you’re looking for cheap flights and cheap airfares to plan your family holidays, make sure you talk to Flight Centre.

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