Making some sense out of claims

Making some sense out of claims

The potential change in Security of Payment legislation, which is set to become law in Hong Kong later this year, will govern payments for construction work done in the public and private sectors, and will set out rules for when and how payment must be made. This is very similar to the UK legislation known as the Housing, Grants, Construction and Regeneration Act 1996, later updated and revised in the Local Democracy, Economic Development and Construction Act 2009. Was the UK legislation successful? The straight answer is yes. It promoted the flow of cash, which as we all know is the lifeblood of our industry, and it promoted that through statutory legislation in the 1996 and 2009 Acts. How will this operate in Hong Kong and whom does it affect? The objective of the Hong Kong legislation is to make money move freely and to stop unfair payment clauses. This means that ‘’Paid when Paid’’ contracts in which, for example, the subcontractor only gets paid when the contractor gets paid, will be unenforceable in court, arbitration or adjudication. Unreasonable payment periods – such as 90 days for interim payments – will no longer be allowed. All this can only be a good thing. In the public sector, the legislation will cover all construction contracts, regardless of value. In the private sector, however the legislation will apply where the contract for a new building has an original contract value greater than HK$5m ($644,000). When this applies to the main contract, it will automatically apply to subcontractors, too. This is a minor drawback, which begs the question of why the authors...
Quantum and Sinohydro sign Strategic Cooperation Agreement

Quantum and Sinohydro sign Strategic Cooperation Agreement

Quantum Global Solutions (Quantum) and Sinohydro Corporation (Sinohydro) proudly announce the signing of a Strategic Cooperation Agreement at the 8th International Infrastructure Investment and Construction Forum (IIICF) held in Macau. (Pictured from left: Sinohydro – Zhang Guodong, Deputy Director, Tianfu Yang – Chief Financial Officer – CFO, Quantum – Peter Murphy, Managing Director and Matthew Schofield, Executive Director). The Agreement between Quantum and Sinohydro creates a fully comprehensive construction consultancy solution that offers both parties the opportunity to focus on their individual areas of expertise while enhancing the overall service offering to current and future Sinohydro clients. ‘’Our business models align perfectly to create a long-term mutually beneficial strategic cooperation agreement’’ said Peter Murphy, Quantum Managing Director. ‘’Sinohydro is an internationally renowned contractor and a driving force behind China’s economic development. With their global portfolio of operations across engineering projects, power developments, transport infrastructure and civil works and Quantum’s experience working with major contractors ensuring potential disputes associated with mega-projects are avoided, or amicably resolved, we believe that together we can offer a unique solutions-based philosophy and substantial benefits to Sinohydro’s valued clients.’’ In reply, Sinohydro’s CFO, Tianfu Yang said, “Sinohydro is proud to announce our partnership with Quantum Global Solutions. Quantum is a leader in the construction consultancy industry and offer our organisation a wide range of services including Contractual and Commercial Consultancy, Planning, Commercial Claims and Dispute Resolution. With Quantum’s highly experienced UK qualified team of experts our agreement also includes knowledge sharing, training and consultancy support for the myriad of international projects we currently manage in over 80 countries.’’ About Quantum Global Solutions Quantum Global Solutions...
What is a Risk…?

What is a Risk…?

Last month we talked about “The Right Order”, placing our requirements and ensuring each piece of the jigsaw is delivered in the right sequence, but placing our requirements and delivering in the right sequence has pitfalls.  In basic terms these pitfalls are risks, but understanding what is risk and how we control risk is a different story altogether. The Oxford Dictionary defines risk as: A situation involving exposure to danger; and The possibility that something unpleasant or unwelcome will happen. Last month we discussed how we placed an order for a lovely steak dinner, obviously the steak needs to be cooked, this involves heat (a lot of heat) and to cook the steak to perfection the chef would use scalding hot oil and butter, how will the chef avoid being burnt, what are the risks … and how do we control them? So cooking a steak, with hot oil on a hot stove, is definitely a risk. In everyday life we go about our business, we get out of bed, we shower and dress, most get in to cars, trains or buses and go to work.  At work we start a normal work day; completing tasks and attending meetings, until it is time to go home.  We then travel home and spend the evening with family or friends, before we go to bed and start the day again.  What risks do we face each day? Do we know the risks and deal with them? Or, do we just not have a care in the world? Take driving a car for example, many countries provide cheaper car insurance if the...
Quantum sponsors GAR Live in Istanbul

Quantum sponsors GAR Live in Istanbul

Quantum Global Solutions (Quantum) is proud to confirm their partnership with the 5th Annual Global Arbitration Review (GAR) LIVE as Associate Sponsor. The event will be held at the Shangri-La Bosphorus, Istanbul on the 15th of June 2017. GAR Live attendees will be invited to join a series of five industry workshops discussing topics such as: ‘Are procedural innovations always helpful, or just in part?’, ‘How to do 3rd party funding?’ and, ‘A mock arbitration – The dos and don’ts of cross examination’. Following the agreement Colin Russell, Quantum’s Regional Director said, ’’As demonstrated by the opening of our Istanbul office Quantum is fully committed to supporting the Turkish construction industry and contractors working globally. We are proud to sponsor the 5th GAR Live event which will bring together key construction and legal minds to discuss issues affecting our industry at this time. Quantum strongly believes in knowledge sharing and partnerships and this event provides a fantastic platform to share ideas and developments in the industry.’’ Quantum is acknowledged as one of the leading management consultants dedicated to serving the interests of the international construction and engineering industries. In addition to regular industry presentations, Quantum is also actively involved in the presentation of training courses and mentoring programmes. Global Arbitration Review (GAR) was launched in 2006 and is the leading resource on international arbitration news and community intelligence. GAR Live events are innovative and interactive, encouraging audience participation throughout. Topical discussions are followed by a symposium session with submitted questions and a live debate. Some of the leading figures in international arbitration gather in the world’s major cities to debate...
Quantum Dubai’s Junavie Mumar appointed Lighthouse Club Administrator

Quantum Dubai’s Junavie Mumar appointed Lighthouse Club Administrator

Making time for community and knowledge sharing activities is an integral element in Quantum’s corporate philosophy.  Quantum is therefore proud to announce the appointment of Junavie Mumar, as Committee Administrator for the Lighthouse Club Dubai. The Lighthouse Club Dubai is a social networking venue for people in the construction industry based in Dubai.  Local events include the monthly social event at Doha Offshore Sailing Club, the Curry Club and other activities such as golf days which are organised to promote networking opportunities, recruitment and encourage team work and support, for people and organisations in the construction sector. In highlighting Junavie’s commitment to the community, Ian Maund – Quantum Regional Director UAE said, ‘’Despite her recent relocation from Doha to Dubai and a hectic work schedule, Junavie (pictured with Derek King, Chairman Lighthouse Club Dubai) still makes time to help others in our community.  With her strong administrative skills and proactive nature, we are particularly pleased that the Lighthouse Club Organising Committee has appointed Junavie as their new Administrator.  I know she will work extremely hard to support the organisation and its...
Quantum participates at 8th IIICF in Macau

Quantum participates at 8th IIICF in Macau

Quantum Global Solutions (Quantum) have confirmed their participation at the 8th International Infrastructure Investment and Construction Forum (IIICF) (http://en.iiicf.org/) to be held at the Venetian Hotel, Macau on the 1st and 2nd of June 2017. Founded in 2010 by the China International Construction Association (CHINCA) with the approval of the Chinese Ministry of Commerce, the IIICF is an international forum focusing on the investment and construction of infrastructure projects with over 8,000 attendees from 100 countries attending previous events. Confirming Quantum’s attendance Managing Director, Peter Murphy said, ‘‘Chinese construction contractors are responsible for developing some of the most ambitious multi-million dollar construction projects being undertaken in China and around the world.  The recent ‘Belt and Road’ international conference in May was attended by 29 state leaders and more than 1,000 foreign government representatives.  Previously known as “One Belt, One Road”, the initiative is being spearheaded by the Chinese government to improve trade and economic integration across Asia, Europe, and Africa. The strategy uses free-trade agreements and infrastructure projects – including roads, ports and railways – to create a modern Silk Road spanning some 65 countries, which have a combined gross domestic product (GDP) of US$21 trillion. It includes both an economic land “belt” through Eurasia, and a maritime “road” to connect coastal Chinese cities to Africa and the Mediterranean. Our attendance at IIICR consolidates our commitment to expanding our services and supporting our Chinese partners opening new offices to meet the requirements of existing and future clients working globally. We welcome all attendees of IIICR to visit our stand number 5 to learn about Quantum’s unique services and meet our executive team...