2011

Project Management

Construction contract administration and claim management

Contact details
Olga Arkhangelskaya
Head of Real Estate, Infrastructure and Government Sector in the CIS Tel: +7 (495) 755 9854 Olga.Arkhangelskaya@ru.ey.com

Maxim Lunkov
Manager, Head of Construction project management in the CIS Tel: +7 (495) 755 9767 Maxim.Lunkov@ru.ey.com

Performance of a construction contract is a complex process that requires ongoing management. In the Russian environment, relations between contractors involved in a construction project are affected by noncompliance with compulsory management control procedures and complex regulatory requirements related to different branches of law (civil, zoning, land). Generally, at a certain stage during the construction project, these factors give rise to disputes between the contracting parties. In addition, there may be conflicts with the government agencies regulating construction work and overall project acceptance. Continued efficiency throughout the construction project lifecycle therefore depends essentially on advanced managerial control, preventative action, diagnostics and problem solving. Therefore both contracting parties must take a proactive approach and file claims in a timely manner.

We use a combination of professional skills in our Construction Project Management group and lawyers employed in Ernst & Youngs Tax & Legal practice, which give us industry-specific insight into the construction business and the flexibility to take into account complex legal regulations. We offer our clients strong support throughout the construction project lifecycle, negotiation assistance, contractual administration and claim management.

Our services:
Recommendations on construction contract procurement and types of underlying contracts and agreements. Recommendations on contract enforcement and monitoring policies, including warranties and insurance. Construction contract administration, including contractual compliance control. Identifying potential claims (checking claims for compliance with applicable legislation and contractual terms and conditions). Developing negotiation strategies and tactics in the context of applicable legislation and civil transaction terms. Preparing claims to negotiate with contractors, including calculation of losses incurred through default on contractual obligations and drafting suggestions to remedy failure to meet contractual obligations. Preparing claims based on negotiations for formal submission to contractors. Collection of evidence, including assistance in technical expertise and preparation for potential litigation. Drafting ad hoc reports on disputable matters to enable pre-trial settlement subject to legislative requirements, contractual terms and factual circumstances. Representation of parties to a construction contract in administrative proceedings pertaining to state authorities (Federal Service for Environmental, Technologicaland Nuclear Control; Federal Fire Service; State Fire Control; State Construction Supervision Office). Representation of parties to a construction contract in judicial cases, tribunals and other quasi-judicial agencies (Federal Antimonopoly Service, Chamber of Patent Claims).

Ernst & Young Assurance | Tax | Transactions | Advisory

About Ernst & Young

Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 141,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential. Ernst & Young expands its services and resources in accordance with clients needs throughout the CIS. 3,500 professionals work at 18 offices in Moscow, St. Petersburg, Novosibirsk, Ekaterinburg, Kazan, Krasnodar, Togliatti, Yuzhno-Sakhalinsk, Almaty, Astana, Atyrau, Baku, Kyiv, Donetsk, Tashkent, Tbilisi, Yerevan, and Minsk. For more information about our organization, please visit www.ey.com. Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

Contacts
Almaty +7 (727) 258 5960 Astana +7 (7172) 58 0400 Atyrau +7 (7122) 99 6099 Baku +994 (12) 490 7020 Donetsk +380 (62) 340 4770 Ekaterinburg +7 (343) 378 4900 azan +7 (843) 567 3333 Kyiv +380 (44) 490 3000 Krasnodar +7 (861) 210 1212 Minsk +375 (17) 209 4535 Moscow +7 (495) 755 9700 Novosibirsk +7 (383) 211 9007 St. Petersburg +7 (812) 703 7800 Tashkent +998 (71) 140 6482 Tbilisi +995 (32) 43 9375 Togliatti +7 (8482) 99 9777 Yerevan +374 (10) 500 790 Yuzhno-Sakhalinsk +7 (4242) 49 9090

2011 Ernst & Young (CIS) B.V. All Rights Reserved.

Construction contract administration and claim management