1. ((Organizing relationship between the Owner and Contractor involved in construction project at Palestine))
By:
Maw`ed Abu Shamleh
Malaak Hamaydi
Supervisor:
Eng. Reema Nassar

2. Outline Introduction Objectives Literature Review Methodology
Data analysis
Conclusion
Recommendations

3. Introduction
The construction industry is a sector of the economy that transforms various resources into constructed physical economic and social infrastructure necessary for socio-economic development.
Civil engineering construction is an important area of the construction industry. This area specializes in building, roads, bridges, tunnels, and other infrastructure.

4. Introduction (cont.)
Any construction project typically involves a number of parties with different interests in the completed works. The main parties are contractor, owner and designer. every party has an important role in development of the construction process.

5. Statement of the problem
Construction sector in Palestine suffers from many problems , The majority of these problems summarized in the disputes that occur between the owner and contractor which have an adverse effect on the construction project.

6. Project objectives
Identify the duties and responsibilities of the owner and contractor to be able to investigate the familiarity of the two parties with the rules implemented by FIDIC.
Clarify the disputes that occur between them and the causes of these disputes.
Organize the relationship between the two parties to avoid the conflicts in future projects.

7. The relationship between the parties according to FIDIC

8. The responsibilities of two parties:
Owner :
Provide the tender documents
Right access to the site
Financial arrangements
Receipt the completed work

9. Contractor :
Execution and completion the work.
The quality of work
Remedy any defects in the work
Submit details of the arrangement and methods that proposes to adopt for the execution of the works.

10. METHODOLOGY

11. Methodology

12. Data Analysis
In order to achieve the project objectives, data was collected by making interviews with the both parties, then analyze the results according to FIDIC.

13. Interviews
Interviews were prepared as a part of this research and made with two parties, owner and contractor.
The interview consists of two sections:
Familiarity of FIDIC
Disputes

14. Analysis of Contractor`s interviews
The majority of contractors approved that they have an adequate experience in FIDIC but they see that it is unfair, prejudice contract because FIDIC consists of some Gaps such as:
Currency fluctuation
Supervision

15. Analysis of Contractor`s interviews
From the analysis of the interviews, the contractors mentioned some existing disputes that faces with the Owner such as:
Financial Disputes
Specification Disputes
Variation Order
Operating and maintenance Disputes
Supervision Disputes

16. Analysis of Owner`s interviews
The majority of Owners approved that their experience in FIDIC is sufficient and enough.
From the Owner`s opinion, FIDIC is fair, equitable and reserves their rights all the time.
Owners have no recommendations on any item of FIDIC because it’s a thoughtful contract.

17. Analysis of Owner`s interviews
From the analysis of the interviews, the owner mentioned on some disputes that faces with the Contractor such as:
Time and delay disputes
Variation Orders
The lack of contractor̕ s experience in (FIDIC)
Manipulation of some contractors of specification that are agreed of parties

18. Discussion of results according to FIDIC
After studying the terms of FIDIC, it was noticed that it is possible to avoid all these problems by referring to it.
Among these problems, which was carrying an equitable solution in FIDIC:
Currency fluctuation
section 13.8:
" Adjustments for changes in cost"

19. Appointment of Engineer “Engineer’s Duties and Authority”
section 3.1:
“Engineer’s Duties and Authority”

20. "variation procedures”
Variation Order
section 13.3:
"variation procedures”

21. Conclusion
In conclusion, the main disputes which occur between the owner and contractor are supervision, variation order and lack of experience in FIDIC.
The majority of these disputes could be avoided by reading FIDIC carefully before signing at any construction project.
All notes of the parties on FIDIC had been refused , and was emphasized that FIDIC is legal, fair and equitable contract to all parties

22. Recommendations Organizing workshops for both parties
Organizing training courses on the rules of FIDIC contracts
Establishment of a national committee for the construction sector
Adjust the supervisory process according to the requirements
Allocation a separate and specialized department for supervision engineering in the municipalities.

23. Recommendations
Rehabilitation of the supervisors offices that are non- qualified to work
Engineer must read the tender carefully and understand its public and private conditions.
Owner should make sure that the tender is ready for execution, by making sure the following: permits, required licenses or approvals, sufficient detailed drawings
The Contractors must early make sure the availability of supplies and materials to be implemented according to specification