Category Archives: Construction & Infrastructure

Application of FIDIC templates in Kazakhstan

Application of FIDIC templates in Kazakhstan

In its practice, Linkage & Mind has not infrequently come across applications of FIDIC templates in major construction projects in various industries. FIDIC templates were normally used where the contractor was a foreign company and/or the project was financed by international financial institutions[1]. In this context, the Kazakhstan party quite often tried to change the structure and contents of the contract in an attempt to harmonize it as much as possible with the Kazakhstan law and practices. In the end, the contract contained a great number of amendments and exceptions to the General Terms and Conditions set out in the FIDIC templates, and the pattern of relationship between Customer and Contractor was significantly changed from the conventional pattern described in the FIDIC templates.

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Administrative barriers restricting business development (continuation)

Following up upon administrative barriers restricting business development, we offer to consider following cases from our practice.

  1. Licensing

Dealing with the cases on the licenses in construction sphere, we can provide following example, which demonstrate vague provisions regulating the license issues in Kazakhstan.  Well, in case of obtainment the license in construction sphere (for design works or for installation and civil works)applicant shall meet the qualification requirement on presence of minimal material and technical equipment.  The matter is interpretation of the word “minimal”, who determinates minimal rate and quantity.  In other words, negative circumstances for applicants like rejection in issuance of the license happened due to inaccurate wording of legislation acts.

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