Legal Tips and Tricks for Capital Projects

Abstract

This paper will consider some of the most common causes that result in major capital projects running into difficulties - including time pressure, inadequate planning, scope changes and communication failures – and will discuss potential ways to mitigate the risk, and help reduce the prospect, of future issues arising and how best to address them if they do (inevitably) arise. In particular, this paper will explore possible internal arrangements – including the involvement of the legal function at all stages of a project (from inception through procurement, execution and finalisation) - and contractual mechanisms which can be used to speed up decision making, reduce the length and complexity of negotiations, manage unexpected events and avoid commercial issues escalating into legal disputes.