Malta Case Study
Title
Name
Author’s Name
Subject
Organization
1. What contractual issues should the contractor pay special attention to before signing the demolition contract?
Massive and sophisticated demolition work predates the establishment of the proposed developmental property on the Maltese islands. However, the construction sector in Malta is plagued by myriad constraints and limitations, rendering the nation acutely incapable of successfully conducting the demolition through local efforts. The staff at the disposal of even the largest demolition contractor in the nation consists of only 20 members, because of which it is ill-equipped to execute an undertaking of this stature and complexity.
Consequently, the demolition works will be performed by a foreign contractor that employs sufficient resources and has also solidified its reputation as an expert. Bids for the contract have been invited from major players in Italy, Russia, UK and Egypt. These potential contractors have been shortlisted by RB, which is the quantity surveying agency working on the project.
The requirements of the demolition contract are taxing and intricate, creating several critical points that the future contractor must survey comprehensively and carefully before taking up the contract. These contractual issues that must be given diligent consideration have been elaborated upon as under.
Firstly, the demolition budget is pre-determined at US $10 million. Within the constraints of this figure, the demolition contractor will be contractually obliged to carry out the assigned tasks, which include the main demolition, construction of temporary sites for workers, creating stringent protocol and mechanisms to ensure adherence of health standards as well as exhaustive site preparation to make the area completely ready for the construction work. Therefore, a thorough cost check becomes imperative for any potential contractor. The contractor must strategize and
Name
Author’s Name
Subject
Organization
1. What contractual issues should the contractor pay special attention to before signing the demolition contract?
Massive and sophisticated demolition work predates the establishment of the proposed developmental property on the Maltese islands. However, the construction sector in Malta is plagued by myriad constraints and limitations, rendering the nation acutely incapable of successfully conducting the demolition through local efforts. The staff at the disposal of even the largest demolition contractor in the nation consists of only 20 members, because of which it is ill-equipped to execute an undertaking of this stature and complexity.
Consequently, the demolition works will be performed by a foreign contractor that employs sufficient resources and has also solidified its reputation as an expert. Bids for the contract have been invited from major players in Italy, Russia, UK and Egypt. These potential contractors have been shortlisted by RB, which is the quantity surveying agency working on the project.
The requirements of the demolition contract are taxing and intricate, creating several critical points that the future contractor must survey comprehensively and carefully before taking up the contract. These contractual issues that must be given diligent consideration have been elaborated upon as under.
Firstly, the demolition budget is pre-determined at US $10 million. Within the constraints of this figure, the demolition contractor will be contractually obliged to carry out the assigned tasks, which include the main demolition, construction of temporary sites for workers, creating stringent protocol and mechanisms to ensure adherence of health standards as well as exhaustive site preparation to make the area completely ready for the construction work. Therefore, a thorough cost check becomes imperative for any potential contractor. The contractor must strategize and