Issue 8

In Doosan Babcock v Mabe, the English TCC confirmed that it may grant urgent interim relief in support of arbitration where necessary to preserve contractual rights. The case highlights that, even with on‑demand guarantees, courts may restrain a call where a beneficiary seeks to benefit from its own contractual breach.

Under Romanian law, "taking‑over" is governed by the construction contract, not the timing of a local authority Building Permit. Where the works are substantially complete and fit for their intended purpose, the employer cannot justify delaying "taking‑over" or continuing to levy liquidated damages due solely to third‑party approval processes.

Where a respondent fails to participate in arbitration, the validity of the final award will often turn on whether proper notice of the proceedings was given. Ensuring effective notification and compliance with due process is therefore critical, as deficiencies may jeopardise enforcement under the New York Convention.

In the UAE, the Engineer’s multi‑faceted role exposes it to contractual, tortious and statutory liabilities. Most notably, mandatory decennial liability for design or supervision defects cannot be excluded, making careful contract administration and adequate insurance essential.

Termination for convenience clauses are widely accepted internationally, but their enforceability and consequences depend heavily on the governing law. While many jurisdictions require the employer to compensate the contractor for costs and lost profit, others will enforce the clause strictly as drafted, even where no such compensation is provided.