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Legal Focus
JULY 2014
Construction
Continuing with the topic of construction, we hear from Renaud Dubois, Partner at Kramer Levin.
What are the main issues to be aware of within construction law in your jurisdiction?
Essentially, construction law issues can be classified into three categories: • Litigation related to the procurement of works, specifically issues relating to the problems of competition (pre contractual referrals)
• Litigation related to the financial implementation of contracts (litigation in establishing the general account, the additional costs of the company, claims for additional compensation, etc.)
• Litigation related to the technical implementation of contracts (contractual liability and legal manufacturer guarantee).
Accordingly, a lawyer involved in construction law should be able to assist and advise clients in these three types of problems and disputes, notwithstanding whether they are owners, companies or architects and/ or contractors.
What recent cases have you been involved in?
Kramer Levin’s Paris office represents owners, contractors and architects in these types of disputes.
Currently, we are assisting a French public institution being sued by a company to get additional compensation in connection with the construction of a nuclear installation.
We are also representing several companies in order to obtain additional compensation, which disputes are directed either against the owner or against the main contractor in the event of a subcontracting issue (i.e. plumbing works for the construction of an oil rig in Africa; civil works for the construction
of thermal power plants in the French overseas departments; air conditioning and heating works for the construction of office buildings in Paris; structural steel works for the construction of a tower in La Défense; air conditioning works for the construction of a mosque in Algeria; electrical works for the construction of an airport in Libya, etc.).
We are also advising an architectural firm in helping it prepare the financial statements of its contract to oversee the management of the construction of a large public facility in the city of Paris.
Finally, we are advising real estate companies and developers in the implementation of the responsibility and legal safeguards for manufacturers following disorders occurred after the receipt of works (i.e. office buildings in Paris, business premises for the construction of space equipment, exhibitions, etc.).
These disputes are held , depending on the matter, either before the State Court (Tribunal de Grande Instance and Court of Appeals for private matters, the Administrative Court and Administrative Court of Appeal for public work contracts) or before an Arbitrary tribunal (arbitration ad hoc or institutional, as appropriate).
Finally, in most cases, they often lead to expertise proceedings ordered by the judge.
What challenges and complexities do you face when dealing with legal issues surrounding the construction sector in your country? How do you navigate these complexities? How can you help your clients to avoid potential pitfalls?
Construction law cases are generally very technical.