Experience of conclusion and performance of engineering, procurement and construction contracts in post-Soviet countries
Experiencia de celebración y cumplimiento de los contratos de ingeniería, compras y construcción en los países postsoviéticos
Abstract
The main purpose of the article is the analysis of properties and risks arising during the conclusion and performance of engineering, procurement and construction contracts (hereinafter referred to as EPC contracts) in Ukraine, Kazakhstan, Russia and Belarus, notwithstanding the current situation with military aggression and sanctions. The methodological basis of the study consists of the comparative legal and structural-logical method, systemic analysis and synthesis. It also describes the ways of relevant adaptation of EPC contracts in accordance with the requirements of the legislation. In addition, the authors have studied in detail the legal instruments that could help the contracting parties to establish the control due to occurrence of risks in different jurisdictions of the post-Soviet space. Finally, it was concluded that the application of EPC contracts, in the countries of the post-Soviet space, is connected with the presence of high level of political risks that should be taken into account when carrying out large-scale infrastructural projects. The results of the study will be useful to practicing lawyers, students and scientists who are interested in the examination of public relations in the field of civil works with some political influence on the development of this sector.
Downloads
References
CHUMACHENKO, Igor. 2015. Contracts in the field of construction. Legal issues of construction. Publishing group “The Lawyer”. Moscow, Russia.
GODDARD, Inna. 2019. EPC/EPCM-contracts as a tool for contractual regulation of international construction. Available online. In: https:// www.academia.edu/35649963/%D0%95%D0%A0%D0%A1_%D0% BA%D0%BE%D0%BD%D1%82%D1%80%D0%B0%D0%BA%D1%82 %D1%8B_pdf . Consultation date: 18/05/2022.
HRITSYSHYNA, Maryna. 2021. Worth its weight in gold: features of concluding supply and installation contracts for wind turbines. Mind. Available online. In: https://mind.ua/openmind/20224385-na-ves-zolota- osoblivosti-ukladannya-dogovoriv-postachannya-ta-ustanovki-vitrovih- turbin. Consultation date: 18/05/2022.
IDAYATOVA, Ardak. 2019. “Peculiarities of FIDIC Contracts Adaptation to the Kazakh Legislation” In: PETROLEUM No. 6. Available online. In: https:// www.aequitas.kz/upload/files/publications/2020/PETROLEUM6% 28120%292019.pdf. Consultation date: 18/05/2022.
INTERFAX. 2022. EU Sanctions on LNG and refining commodities works for contracts executed before February 26. Available online. In: https:// www.interfax.ru/world/843222. Consultation date: 18/05/2022.
JONES DAY. 2022. Political Risk Insurance May Cover Business Losses Resulting from Russia’s Invasion of Ukraine. Available online. In: https:// www.jonesday.com/en/insights/2022/03/political-risk-insurance- may-cover-business-losses-resulting-from-russias-invasion-of-ukraine. Consultation date: 18/05/2022.
LYPAVSKYI, Vladimir. 2020. The White book of Structuring, Conclusion and Performance of EPC-and EPC (M) Contractsv.2.0. Ostlegal. Available online. In: https://ostlegal.ru/wp-content/uploads/2020/08/ost-book- web_l.pdf. Consultation date: 18/05/2022.
OBERKOVYCH, Sergiy. 2019. EPC contracting in Ukraine: implementation features and risks. GOLAW. Available online. In: https://golaw.ua/ insights/publication/epc-contracting-in-ukraine-implementation- features-and-risks/. Consultation date: 18/05/2022.
OSTRYNSKYI, Vladyslav; NYKYTCHENKO, Nataliia; SOPILKO, Iryna; KRYKUN, Viacheslav; MYKULETS Vitalii. 2022. “EPC-contracts using in renewable energy: Legal and practical aspect” In: Amazonia Investiga, Vol. 11, No. 52, pp. 309-317.
SABIROV, Kamal. 2018. “Some of the features and issues of legal adaptation of the FIDIC contract forms in Kazakhstan” In: Official Journal of the Institute of legislation of the Republic of Kazakhstan. Vol. 53, No. 4, pp. 177–183.
SABIROV, Kamal; KONUSSOVA, Venera; ALENOV, Marat. 2020. “Between freedom of contract and the principle of good faith: an inside view on the reform of private law of Kazakhstan” In: Observare Universidade Autónoma de Lisboa. Vol. 10, No. 52, No. 2, pp. 141-151.
SUKHOSTAVETS, Inna. 2019. FIDIC contracts. Practical application in Ukraine. Liga 360. Available online. In: https://jurliga.ligazakon.net/ ru/analitycs/186294_kontrakty-fidic-prakticheskoe-primenenie-v- ukraine. Date of consultation: 18/05/2022.
SUKHOSTAVETS, Inna. 2021. FIDIC contracts in Ukraine as an inevitable process. Yridichna Gazetta Online. Available online. In: https://yur- gazeta.com/interview/kontrakti-fidic-v-ukrayini--vzhe-nevidvorotniy- proces.html. Consultation date: 18/05/2022.
TEUSH, Svitlana. 2013. Application of FIDIC contracts in Ukraine. Problems and prospects, No. 23 (365). Available online. In: https://yur-gazeta. com/publications/actual/zastosuvannya-kontraktiv-fidic-v-ukrayini. html. Consultation date: 18/05/2022.
TEUSH, Svitlana; KLEE, Lukas. 2018. “Legal aspects of using FIDIC contracts in international construction projects in Ukraine” In: The International Construction Law Review, Vol. 35, Part I. Available online. In: https:// www.i-law.com/ilaw/doc/view.htm?id=385880. Consultation date: 18/05/2022.
THE CABINET OF MINISTERS OF UKRAINE. 2021. On amendments to the general conditions for the conclusion and execution of contracts in capital construction. No 224. Available online. In: https://zakon.rada.gov.ua/ laws/show/224-2021-%D0%BF#Text. Consultation date: 18/05/2022.
THE INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS. 2019. The FIDIC Golden Principles. First Edition. Geneva. Available online. In: https://fidic.org/sites/default/files/_golden_principles_1_2. pdf. Consultation date: 18/05/2022.
THE MINISTRY OF ARCHITECTURE AND CONSTRUCTION OF THE REPUBLIC OF BELARUS. 2021. Methodological recommendations for the application of standard FIDIC contracts taking into account the requirements of the Republic of Belarus legislation in the field of construction (No. 67). Available online. In: http://mas.gov.by/uploads/ files/guidelines-for-the-application-of-fidic-model- contracts.pdf. Consultation date: 18/05/2022.
THE NATIONAL ASSEMBLY OF THE REPUBLIC OF BELARUS. 1998. The Civil Code of Republic of Belarus (No. 218-З). Available online. In: https://kodeksy-by.com/grazhdanskij_kodeks_rb.htm. Consultation date: 18/05/2022.
THE NATIONAL COMMISSION FOR STATE REGULATION OF ENERGY AND PUBLIC UTILITIES. 2022. Regarding the change of the installed capacity of power generating equipment for “Dtek tiligul wind power plant” LLC (No. 583). Available online. In: https://www.nerc.gov.ua/ acts/pro-vnesennya-zmini-do-dodatka-do-postanovi-nacionalnoyi- komisiyi-shcho-zdijsnyuye-derzhavne-regulyuvannya-u-sferah- energetiki-ta-komunalnih-poslug-vid-25-sichnya-2022-roku-124. Consultation date: 18/07/2022.
THE PARLIAMENT OF THE REPUBLIC OF KAZAKHSTAN. 1994. The Civil Code of Kazakhstan (No. 269-XIII). Available online. In: https://adilet. zan.kz/rus/docs/K940001000_. Consultation date: 18/05/2022.
THE STATE DUMA OF RUSSIAN FEDERATION. 1994. The Civil Code of Russian Federation (No. 51-ФЗ). Available online. In: http://www. consultant.ru/document/cons_doc_LAW_5142/. Consultation date: 18/05/2022.
THE UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY. 2022. Certification of force majeure regarding military aggression of the Russian Federation against Ukraine. Available online. In: https://ucci. org.ua/uploads/files/621ce831ac29f951072237.pdf. Consultation date: 18/05/2022.
THE VERKHOVNA RADA OF UKRAINE. 2003. The Civil Code of Ukraine (No. 435-IV). Available online. In: https://zakon.rada.gov.ua/laws/ show/435-15#Text. Consultation date: 18/05/2022.
UNIDROIT. Principles of International Commercial Contracts. 2016. Available online. In: https://www.unidroit.org/wp-content/uploads/2021/06/ Unidroit-Principles-2016-English-bl.pdf. Consultation date: 18/05/2022.
VARAVENKO, Viktor. 2019. “Legal regulation of change management in an international investment construction project: a comparative legal analysis of standard FIDIC contracts and Russian law” In: International Law and International Organizations. No. 2. Available online. In: https://cyberleninka.ru/article/n/pravovoe-regulirovanie-upravleniya- izmeneniyami-v-mezhdunarodnom-investitsionno-stroitelnom- proekte-sravnitelno-pravovoy-analiz/viewer. Consultation date: 18/05/2022.
VOLOVYK, Oksana. 2013. “The evolution of the purpose of contract law through the prism of the economic approach: (history and modern trends)” In: Bulletin of the High Council of Justice. Vol. 14, No. 2, pp. 125-137.
YESIMKHANOV, Yerzhan. 2013. “Application of EPC-contracts in the Republic of Kazakhstan” In: Journal “KazServicе”. Vol. 3, No. 3, pp. 68-78.
Copyright
The authors who publish in this journal agree to the following terms:
The authors retain the copyright and guarantee the journal the right to be the first publication where the article is presented, which is published under a Creative Commons Attribution License, which allows others to share the work prior to the recognition of the authorship of the article work and initial publication in this journal.
Authors may separately establish additional agreements for the non-exclusive distribution of the version of the work published in the journal (for example, placing it in an institutional repository or publishing it in a book), with an acknowledgment of its initial publication in this journal.
This work is under license:
Creative Commons Reconocimiento-NoComercial-CompartirIgual 4.0 Internacional (CC BY-NC-SA 4.0)