i-law

International Construction Law Review

MANAGING LEGAL RISK TO MINIMISE DISPUTES: DESIGN RISK, UNFORESEEABLE GROUND CONDITIONS AND TIME FOR COMPLETION – THE BRAZILIAN LAW OVERVIEW1

ALEXANDRE AROEIRA SALLES

MARIANA BARBOSA MIRAGLIA

Founding Partner and Partner, Aroeira Salles Advogados2

I. INTRODUCTION

This article provides an overview of the legal background and key principles for risk management involved in construction law under the perspective of Civil Law, and, more specifically, Brazilian law.
Before the main topics are considered it is important to first make a very important distinction. Brazilian construction law is essentially divided into two different systems – public and private. In Brazil, the public system is generally more relevant due to the strong participation of the State in the national development. In fact, there are several examples of public construction contracts among the major projects developed in Brazil during the last 40 years.
The key principle that should be understood in relation to public contracts in Brazil is that the regime grants the Public Administration the power to modify several aspects of the contract in benefit of the public interest, for example, to terminate the contract or to modify its scope.3 The Federal Constitution does, however, protect the original economic-financial balance of the contract, which must be maintained, even if the Public Administration exercises one of its prerogatives of modification.4 This regime, therefore, establishes the need for an equivalence of

5

The rest of this document is only available to i-law.com online subscribers.

If you are already a subscriber, click Log In button.

Copyright © 2024 Maritime Insights & Intelligence Limited. Maritime Insights & Intelligence Limited is registered in England and Wales with company number 13831625 and address 5th Floor, 10 St Bride Street, London, EC4A 4AD, United Kingdom. Lloyd's List Intelligence is a trading name of Maritime Insights & Intelligence Limited.

Lloyd's is the registered trademark of the Society Incorporated by the Lloyd's Act 1871 by the name of Lloyd's.