The biggest event in the area of construction and law in Macedonia

The Law Firm of the year 2016 – Pinsent Masons from London, trough one of the leading lawyers in the world, regarding construction matters, Mark Harris, markSenior Partner, is coming in Skopje on 19 October.

No need of hype, he is not coming to defend or represent someone in court, he is coming together with his colleagues Georgina Reynard, Senior Associate, and Charles Blamire-Brown, Senior Associate, to moderate the first FIDIC Contracts training in Macedonia.

FIDIC is international Federation of engineers – consultants, founded in Geneva in 1913 and is currently represented in 97 countries, 60.000 construction companies and more than 1.500.000 professionals.

FIDIC is responsible for the codification (production) of one of the most utilized standardized form of Contracts regarding international civil construction projects in the world.

In this particular moment, in the world, as most used is the FIDIC contract – 1999 edition, but FIDIC is currently involved in the process of changing the condition of the contracts, and the participants in this training will have the opportunity, first – hand to learn about them.

One of the main goals of FIDIC is making choice and decision based on quality and no lowest price, which is why, in 2011 FIDIC published Guide for selection based on quality and Guide for procurement.

Pinset Masons is Associate FIDIC member and they are official consultants for the European International Association of Contractors. They are big international law firm with over 200 lawyers on three continents, in different jurisdictions and legal systems.

Mark Harris is one of the leading lawyers regarding civil construction matters and infrastructure projects, and one of the best 500 lawyers in England. He has over 25 years of experience in advising investors, contractors and consultants for procurement in Europe, Middle East, Africa, USA, Asia and Australia. He is known as expert for managing and resolving complex disputes. He also has experience in Committees for dispute resolution in international arbitrations, as International Chamber of Commerce in Paris, London Court for International Arbitration and UNICITRAL.

 

This training is organized by Construction Company Granit Stock Skopje on 20 October in M6 Educational Center in Skopje.

 

This is introduction training and is ideal for anyone who is involved, anyhow in construction projects in Macedonia, in the region and in internationally. As part of this training, there will also be a workshop, where the theoretical knowledge will be put in practice.

Big infrastructural projects may end with dispute and occasionally their resolution means long and expensive court or arbitrational proceedings, which’s whom final result is lost money and time for all parties.

In today’s world, among the civil construction companies, it is widely accepted the principal of “claim avoidance” instead of “dispute resolution”.  The “Claim avoidance” means hiring professionals for administration and management of contracts and procurement in the process of execution of the Project, and no hiring professional after escalation of the dispute.

One of the most interesting cases of professional administration in FIDIC contract is one of the biggest infrastructural ventures in the world – Panama Canal extension (Time of completion – 11 years, Built Concrete Cubic – 4.4 million, contracting price – 5.25 billion dollars). For this Project it was used FIDIC Contract (popularly known as – yellow book), where the Contractor not just for the construction, but also for the design. The extension of Panama Canal is 80 km, where currently are accounted 5% from the world trade. That is why it is said that this extension enabled doubling the capacity of the channel, because larger ships can use it also.

In the tendering procedure, the battle was between 3 consortiums. The Criteria for Selection of best awarded Bidder was: 55% – technical capabilities and 45% – price. As Best Bidder was selected consortium with leading contractor from Spain.

In the beginning of 2014, during the construction, dispute raised in connection with unexpected expenses in amount of 1.5 billion dollars. The Contractor hold the position that the Employer (Investor) did not make enough geological research on the land under which the extension of the channel should have been built, which in the end resulted with higher expenses for construction of the same. The Employer (Investor) on the other hand hold the position that the Contractor failed to submit sufficient evidence in favor of his claim, but at the same time the Investor declared that he will consider Contractor’s compensation claims because they were submitted in accordance with the mechanisms and conditions of the Contract. At that time, the Employer had already paid to the Contractor an additional 160 million US dollars as additional costs due to elevation in the prices of iron fittings, diesel, cement and labor.

Similar examples can be found in many construction projects like:

·         Three Gorges Dam in China – the biggest dam in the world (Time for completion – 17 years; Price – 22 billion dollars)

·         Tunnel Marmara in Turkey – connection between the Europe and Asia ( Length 47 miles under the sea; Time for completion – 9 years; Price – 4.5 billion dollars);

·         New Trade Center in New York – tallest building in the western hemisphere (Time for completion – 7 years; Price – 3.8 billion dollars);

And mutual for all these projects is that they are all financed by huge investment banks through standardized tip of contracts.

Key for success of these Contracts in international frame is in the balanced approach to the roles, responsibilities and obligation of the contracting parties, as well as the resource allocation and risk management.

One of the specific characteristic of the General Conditions of the Contract is the equality between the parties, which means that during the execution of the works, in case of misbalance of risks between the parties, there are mechanisms in the Contract that can level back the risks

The General Condition of FIDIC Contracts are accepted and harmonized with The World Bank, European Bank for Development and Reconstruction and European Investment Bank.

 

It is very important that in Macedonia, the biggest construction company, with yearly experience in civil construction and infrastructural projects in the country and abroad, is organizing this training in order to share its knowledge and experience.

denis

Denis Rizaov

L.L.B.

FIDIC Contracts manager&claim manager at Construction Company Granit Stock Skopje

New contract signed

GD Granit AD Skopje has signed a Contract with the Public Enterprise for State Roads of Republic of Macedonia. Contract name: Restoration and Rehabilitation of state road A1, section Negotino -Demir Kapija.

The value of the contract including VAT is 305,620,000 denars. The performance deadline is 42 months.

Working under the FIDIC “Rainbow” Suite of Contracts

Seminar overview

FIDIC is the leading standard form of construction contract in use on international projects, as well as being the favoured form of major development banks such as the World Bank and European Bank for Reconstruction and Development. Understanding the philosophy, structure and risk allocation in these contracts is essential for anyone working with this form.
This seminar, delivered by Pinsent Masons LLP – Associate members of FIDIC and official FIDIC advisors to the European International Contractors Association – will provide an introduction to the FIDIC “Rainbow” Suite of Contracts and explain some of the key practical, legal and contractual issues arising under this form. The seminar will also include a detailed review of the key concepts of “Time” and “Money” before concluding with a practical review of the claims and dispute resolution procedures under FIDIC.
Delivered from a practical legal perspective, this seminar will highlight international best practice in using this form of contract and include an interactive workshop session based on real life examples.
As FIDIC prepares to issue new editions of its Red, Yellow and Silver books, this seminar will also look at the changes which may be made to these contracts.

Who Should Attend

Because of the prevalence of the FIDIC form of contract (including contracts based on the FIDIC form), this seminar will be ideally suited to anyone involved in construction and engineering projects, both within Macedonia and internationally.
The session will be of particular interest to contractors, engineers, employers’ representatives and any other parties involved in construction and engineering projects.
As well as being of interest to those who already work and are familiar with the FIDIC form of contract, this seminar will also provide a useful introduction to those new to this form of contract.

For more information please click here.

Notice to the shareholders: Dividend payments

We inform the shareholders that the Company will commence with the payment of the dividend before 15.09.2016, as a date determined with the adopted Decision for payment of the dividend no.12-9141 on the Shareholders meeting for 2016. The payment will begin from 26.08.2016

For the need of timely completion of the information of the shareholders, for the payment of the dividend for 2015, the shareholders need to submit a copy of document stating the bank account number and copy of identity card with signed statement (attached).

Shareholders who have received dividend for the previous years, if the information are still valid, do not need to re-submit these information.

The information should be submitted at the following address:

GD Granit AD Skopje

Dimitrie Cupovski 8, Skopje

– for dividend 2015

For any additional information reach: 02 3218 713

DECISIONS FROM THE 2016 SHAREHOLDER MEETING

Granit AD Skopje on this year’s meeting of shareholders for 2016 adopted the following decisions:

1. Decision on adoption of the Annual Accounts for 2015 (download PDF),

2. Decision on adopting the Consolidated Financial Statement of GD Granit AD Skopje for 2015 (download PDF)

3. Decision on adoption of the financial reports of GD Granit AD Skopje in 2015 (download PDF)

4. Decision on adopting the Annual report on the operations of GD Granit AD Skopje for 2015 (download PDF)

5. Decision on adopting the Audit report on the Annual accounts and financial reports of GD Granit AD Skopje for 2015 (download PDF)

6. Decision on adopting the Supervisory Board’s Report on the Annual accounts and financial reports for 2015 of GD Granit AD Skopjе (download PDF)

7.
Decision on adopting the Internal Audit Annual report for 2015 (download PDF)

8. Decision on approving the work of the Company’s Management and Supervisory Board members (download PDF)

9.
Decision on distribution of profits of GD Granit AD Skopje for 2015 (download PDF)

10.
Decision on dividend payment for 2015 (download PDF)

11.
Decision on selection of auditing firm to audit the annual accounts and financial statements of the Company for 2016 (download PDF)

12.
Decision on amending and appending the Articles of Incorporation of GD Granit AD Skopje (download PDF)

13.
Decision for selection of a new independent member of the Supervisory Board of Granit AD Skopje (download PDF)

 

ANNUAL SHAREHOLDERS MEETING 2016

 

Granit AD Skopje, informs shareholders that this year’s meeting of shareholders for 2016 will be held on 14.06.2016 year at 12:00 o’clock in Hotel Granit in municipality Kozle.

Public call for the shareholders of Granit AD Skopje for shareholders meeting 2016. (download PDF)

Materials for the agenda items:

1. Annual account of GD Granit AD Skopje for 2015
– Balance Sheet (download PDF) and Income Statement (download PDF)
– Draft decision on adoption of the Annual Accounts (download PDF),

2. Consolidated financial statement of GD Granit AD Skopje for 2015
– Consolidated Balance Sheet (download PDF); Consolidated Statement (download PDF)
– Draft decision on adopting the Consolidated Financial Statement of GD Granit AD Skopje (download PDF)

3. Financial reports on the operations of GD Granit AD Skopje for 2015
– Consolidated report (download XLS); Unconsolidated report (download XLS)
– Draft decision on adoption of the financial reports of GD Granit AD Skopje in 2015 (download PDF)

4. Annual report on the operations of GD Granit AD Skopje for 2015 (download PDF)
– Draft decision on adopting the Annual report on the operations of GD Granit AD Skopje for 2015 (download PDF)

5. Audit report on the Annual accounts and financial reports of GD Granit AD Skopje for 2015, individual (download PDF) and consolidated (download PDF)
– Draft decision on adopting the Audit report on the Annual accounts and financial reports of GD Granit AD Skopje for 2015 (download PDF)

6. Supervisory Board’s Report on the Annual accounts and financial reports for 2015 of GD Granit AD Skopje (download PDF)
– Draft decision on adopting the Supervisory Board’s Report on the Annual accounts and financial reports for 2015 of GD Granit AD Skopjе (download PDF)

7. Internal Audit Annual Report
(download PDF)
– Draft decision on adopting the Internal Audit Annual report (download PDF)

8. Draft decision on approving the work of the Company’s Management and Supervisory Board members (download PDF)

9. Draft decision on distribution of profits of GD Granit AD Skopje
(download PDF)

10. Draft decision on dividend payment
(download PDF)

11.Draft decision on selection of auditing firm to audit the annual accounts and financial statements of the Company for 2016
(download PDF)

12. Draft decision on amending and appending the Articles of Incorporation of GD Granit AD Skopje
(download PDF)

13. Draft Decision for selection of a new independent member of the Supervisory Board of Granit AD Skopje
(download PDF)
– Proposal for Selection of a new independent member of the Supervisory Board of Granit AD Skopje (download PDF)
– CV of the proposed independent member of the Supervisory Board of Granit AD Skopje (download PDF)

Instructions for participation in the Assembly:
Authorization proxy (download PDF), power of attorney for legal entities with the instructions (download PDF), power of attorney for legal persons (download PDF), power of attorney for individuals (download PDF).
A letter of notification to individuals (download PDF), notification letter for legal entities (download PDF)
Application (download PDF)
Asking questions (download PDF)
New entries (download PDF)