Review 2017

Author

Helder CARDEIRA

Society of Construction Law, Australia

Abstract

The benefits of BIM to the construction industry have been object to extensive research, but scarcely ever about the benefits of integrating BIM with Smart Contract, hence this discussion paper. Due to the lack of literature on the topic the purpose of this paper is to mainly highlight the possible benefits of integrating BIM with Smart Contracts and make recommendations for further research.

Keywords: Building Information Modelling,  Smart Contract, Construction

JEL Codes: K12, K22,  K24

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Author

Mehmet Gökhan BECK

Çevre Yapı, Istanbul, Turkey

Abstract

This paper aims to address the issue of subcontracting in works contracts and attempts to explore the essence, reasons and logic behind the limitations for subcontracting. An overview of the history and evolution of the relevant legislation is made with special emphasis to the origin of the subject, finding its roots on matters related especially to labor protection. Emphasis is given to the different modes evolved during the last decades especially with the introduction of the advanced communication and information technologies for the procurement,  subcontracting and employment relationships and mechanisms in the sector; compared to which the relevant legislation, regulations and contractual texts have failed to provide adequate descriptions, explanations and competences and remained primitive in meaning.

Construction works contracts mostly entail subcontracting limits in the form of a percentage of the total amount of the works contract. A review of the issue is revealing that there are several uncertainties, ambiguities and misconceptions on the descriptions, applications and evaluations with regards to the subcontracting issue. Studies of the literature and cases to  inquire  the reason behind the subcontracting limits generally produce conclusions to state that limits for subcontracting aim to enforce contractors to use mostly if not fully their own personnel, equipment and financial resources rather than transferring an unacceptable portion of their liabilities to others. On the other hand evaluation of the industry practice indicate that the construction industry is more and more depending on the expertise, specific machinery and equipment, specialized manpower and even more outsourcing of the administrative arrangements such as the construction and project management, financing mechanisms, accounting services etc. Most equipment, plant and materials procured do come with specialized manpower for the installation and operation of the same, thus even a simple procurement to constitute a component of the works can be considered subcontracting.

Keywords: Construction Contracts,  Subcontracting, Construction,

JEL Codes: K12, K1

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Authors

Bazil OGLINDĂ, 

Associate professor, Romanian-American University, Bucharest, Romania

Eugen SÂRBU

Lawyer, Oglindă&Partners, Bucharest, Romania

Abstract

A statistical study carried out in 2015 shows that 70% of contractors subcontract parts of the projects they have in execution, and another study from 2009 shows that in Germany subcontracting is found in 40% of construction contracts.

In Romania, construction contracts signed by public authorities are governed by the public procurement legislation, which over the years had a dynamic evolution.

A controversy, namely, the status and role of subcontractors in public procurement contracts gets another approach with the adoption of Law no. 98/2016 regarding public procurement.

Harmonizing the Law no. 98/2016 regarding public procurement with the EU Directive 2014/24 creates a favorable framework which is clearly defined for subcontractors. The law regulates general conditions, but also special conditions regarding subcontractors, recognizing the practical importance of this institution by regulating a distinct section that brings in premiere a number of extremely important issues concerning, especially, the practical problems involved in public procurement subcontracting.

In the field of constructions, the institution of subcontracting is very common, being used to increase the quality of construction works and to reduce execution costs by promoting competitiveness.

Keywords: Construction Contracts,  Subcontracting, Public Procurement,

JEL Codes: K12, K23

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