THE OBLIGATIONS OF THE CLIENT AND THE CONSULTANT IN LOCAL AND INTERNATIONAL ENGINEERING CONSULTANCY CONTRACTS - A COMPARATIVE STUDY

Abstract

The construction sector plays a key role in creating jobs and in improving the economy of both developed and developing countries, where many industries, corporations and business offices are linked to this sector.

Contracts related to construction projects sets out several obligations of the contracting parties, so the engineers' preparation of the construction related contracts, understanding of the obligations stipulated therein and avoidance to commit breach thereof, constitute an urgent necessity in light of the expected boom and significant increase in the turnover of the construction sector during the next few years.

In spite of the importance and the distinct standing of the engineering consultancy profession in the construction industry, some researchers argue that, in Egypt it does not have the proper legal regulation as in the developed countries. With regard to consultancy contracts, the Egyptian legal researches ignored some important points, such as the absence of clear regulations of the obligations of the client and consultant, and of express determination of the consequences in case of breach of those obligations by the parties.

Moreover, the researchers have not focused on how to achieve a balanced contractual relationship between the client and the consultant through the contract and to achieve the optimum format to reduce, as much as possible, the conflicts and disputes between the contracting parties under the consultancy agreement.

Accordingly, this research aims to study the consultancy contracts in Egypt through studying the contract issued by the Housing and Building National Research Center as a contract well recognized locally, to develop a clear perception of this contract and comparing it with the FIDIC consultancy agreement as a standard form of contract to determine whether or not there is a need to modify the current status of this Egyptian contract and the nature of this modification, if any.

The importance of this research, as a step in the way of engineering research that contributes to the studies related to consultancy contracts, stems from the scarceness od such type of research within the Egyptian industry.

The objectives of this research include four points which are summarized as follows: First: to identify the main obligations of the client and the consultant as stipulated under the Egyptian consultancy contract and as compared to the FIDIC consultancy contract. Second: to study and evaluate the Egyptian consultancy contract. Third: to determine whether or not there is a need to modify the obligations of the client and the consultant under the Egyptian consultancy contract. Fourth: to propose the necessary modifications to enhance the balance in the obligations of the consultancy contract in Egypt and to satisfy the expectations of all parties involved in the project.

The results of the research have shown that there is an urgent need to modify and add some provisions to many clauses which related to the obligations of the client and the consultant in the Egyptian consultancy contract. In addition, the Egyptian contract needs some additional clauses to fill the legal gaps to reach the balanced formula of the contract which contribute to the reduction of conflicts and disputes that may arise between the client and the consultant.