Page 10 - Macau Building Development 2015 No 1

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Disputes resolution in Macau

Interview with Mr José Leitão

What is the current dispute resolution system for is that disputes are significantly more complex
Macau public works contracts? and require specialized knowledge in industry-
Public construction works in Macau are regulated specific issues that is sometimes difficult to find
by Decree-Law No. 74/99/M, which regulates in general Courts. In addition to this, a protracted
all aspects of public works contracts, from dispute regarding execution of the works bears
procurement procedures to contract dispute the potential for massive costs and delays, and
resolution. The current system of dispute the timescales for settlement of disputes require
resolution for any issues arising in relation to contractors to either assume significant costs and
interpretation of contract provisions or execution pursue their recovery for a significant amount of
of contract provides for a first tier of administrative time or to challenge Government decisions and
discussion of issues - which is subject to very short demands at the risk of potential damages for delays
deadlines - and, if this avenue fails to produce an in the event of unsuccessful claims. Essentially, the
understanding, mandatory submission of claims current system no longer speaks to the reality of
to the Macau Courts by way of a claim to be filed construction in Macau and requires updating.
within 180 days of receipt of the Administration's
decision regarding any contract issues, subject Is a change to this system necessary? If so, what
to prior reservation of rights of claim within a change should be considered?
deadline of 10 days. The general consensus from stakeholders and the
community in general is that the public works
Does the current system present any inconvenience/ procurement law requires substantial change. From
disadvantage? the procurement system itself to the way works are
The current system was implemented in 1999. managed and directed, there are numerous issues
Since then, construction in Macau has changed that require updating and improvement, which can
dramatically, and is now considerably more fast- only come from constructive dialogue between all
paced and sophisticated. The result of this change parties. On the specific issue of dispute resolution,