Construction Contracts in Japan - Key Differences between the Minkanrengo and FIDIC Red Book (1999) - PART THREE: Issues regarding financial exposure

Cashflow is the lifeblood of the construction industry. To maintain cashflow, one of the key concerns of owners/employers and contractors would be to manage the financial exposure of a project. Drafting clauses affecting the financial exposure of owners/employers and contractors, which in turn would have a trickle down effect on evaluation of progress claims and issuance of payment certificates, thus would be one of the issues at the forefront of the minds of owners/employers and contractors. In the final part of this three part newsletter series, the clauses related to the limitation of liability, retention monies and issuance of performance security in the “General Conditions of Construction Contract” (Minkan (Nanakai) Rengo Kyoutei Kouji Ukeoi Keiyaku Yakkan), otherwise known as the...To read the full article, please see the PDF file