Nature of Construction Contracts
Introduction
For this assignment the writer is going to discuss the nature and types of construction contracts and will explain the legal responsibilities of the various parties involved in the design and the construction process. Using different types of sources an explanation to the basic principles of contract law and how they apply. From doing this there will then be an explanation to what extent standard forms of contract are special types of contract. Contract that has been chosen is the JCT 2005 standard from of contract with quantities.
What is standard form of contract?
When it comes to standard forms of contract this is basically a standard type of contract that has been drawn up to be used
…show more content…
This therefore express the importance of selecting the correct procurement route so the level of risk can be evenly spread and the requirements of the client met in the way specified.
The following choices for procurement are:
Traditional – The client hires a project coordinator to design a project and then companies have an invite to tender.
Design and Build – The contractor is single point responsibility with the contractor, where they put across a design with a tender and if they are successful they win the tender.
Construction Management – this is where the contractor is brought into the design stage early and has an in-put into the design. The contract is not yet drawn up.
Management Contracting – this is where work begin before all design has been completed to contracts are drawn up in stages.
When choosing a type of procurement it is based on the clients experienced and knowledge of construction that the client has and there requirements. Once this has been decided then the relevant contracts can be drawn up outlining the relevant responsibilities shared and risk taken into consideration and also meeting the correct legislation and the Housing Grants, Construction and Regeneration Act 1996. With regards to the Housing Grants, Construction and Regeneration
The main point of this project is to find out the reason why accidents are still happening on construction in relation to Construction (Design and Management) [CDM] regulations. These Regulations originally came in to place in 1994 and then were heavily revised in 2007 when the regulations were brought together with the Construction (Health Safety and Welfare) Regulations 1996. The purpose of this review is to both further understand the CDM Regulations and investigate why accidents in construction are still occurring by looking at the following possibilities:
The client, Abbey University, will initially put together a procurement team to manage the procurement process. In respect of the Park Terrace project this is likely to consist of the Dean, Bursar and a Project Manager, together with the professional team consisting of the Principal Designer, Quantity Surveyor, Structural Engineer and Services Engineer. The procurement team will agree the most suitable procurement method, the tender rules and timescales, and ultimately choose which contractors will be invited to tender for the works. In order to choose suitable contractors Abbey University may consider contractors they or their professional team have used for similar work. Alternatively they may advertise the
Occasionally contractors will price the works without a bill of quantities, for example from drawings. However, re-measurement contracts, target cost contracts and even cost plus/prime cost contracts are also not infrequently used as a method of pricing. This method of contracting remains popular and in its favour it can be said that most employers and contractors would have experience of it. It is also thought that this route offers some price certainty if the design has been fully scoped out prior to construction (which is often not the case); and gives the employer greater control of the design as the employer controls the design team. This method also offers the advantage to an employer of having an independent professional in the role of the contract administrator monitoring the project (Nwachukwu, 2012).
Construction contract administration is associated with handling all aspects of contracts such as invitation to bid, bid evaluation, award of contract, contract implementation, measurement of work completed, computation of requisitions and payments, monitoring contract relationship, addressing contract-related problems, incorporating necessary changes or modifications in the contract, ensuring both parties meet each other 's expectations, and interacting with the contractor to achieve the contract 's objectives (Hinze, 2000).
Entire contract principle is an understanding and agreement that has always been a concern of many parties in the construction world. Construction activity is activities that constitute a complete unity and hard to be done partially. A variety of factors make a construction contract different from most other types of contracts. These include the length of the project, its complexity, its size and the fact that the price agreed and the amount of work done may change as it proceeds. In Gilbert-Ash (Northern) Ltd v Modern Engineering (Bristol) Ltd [1974] AC 689 at 717 Lord Diplock described a building contract as an entire contract for the sale of goods and work and labor for a lump sum
There are several parts to form a tender and to put in a bid to the client. In this section each part of the tender process would be explained in detail.
The purpose of this report is to summarize and analyze the various construction procurement methods used in the construction industry. This report was commissioned by SMRC medical research corporation. This report will identify a recommended method to the commissioner for the development of their new research facility.
The other method that was selected is a traditional form of procurement where the client will hire an architect for designing his house after having sited & purchasing a suitable area, then choose a main contractor for the project through competitive tendering method.
Professionals in the 21st century construction industry believe that for effective completion of a construction project, selection of a suitable project delivery system is essential. Design-bid-build (DBB) is one of the conventional project delivery methods extensively used in construction for defining contractual responsibilities to various parties involved in a construction project. However, with the advent of sophisticated technology and level of specialization required, a new project delivery system was introduced in 1990 by George Heery (chairman Bookwood Group) and Charles Thomsen (former chairman 3D/International) (McNall, 1998) . Initially, this project delivery system was introduced as “Concentrated Risk Contract” now recognized as “Design-build-Bridging” or “Bridging”. Bridging is a combination of design-bid-build and design-build project delivery system. The purpose of development of this project delivery system was to overcome flaws in the traditional DBB and DB.
2.3 Evaluate the effects of the following terms in the contract between Owner and Contractor of a Project P2.3
All construction projects in Hong Kong have in common a cast of key contract participants, consisting of clients, consultants (designers) and contractors. The aim of this research is to examine, from different points of view, these practitioners
The Client and Project Manager will then choose the Form of Contract to go to tender with.
Project Procurement • Seng and Yusof (2006) compared design and build contract with g ( ) p g traditional contracting method and found that the characteristics of design and build procurement method make it different from other procurement systems and are advantageous. advantageous Robinson (1987) compared different tendering procedures and contractual arrangements and found that the cost and time overruns were almost g negligible in projects executed by design and construct method.
Proposed contractor selection process e.g. open tender invitation, negotiation with short-listed contractors, framework agreements etc. Methods of evaluation/guidelines to be used e.g. lowest price/ best value and approach to scoring.
PRELIMINARY. CHAPTER I. CHAPTER II. CHAPTER III. CHAPTER IV. CHAPTER V. CHAPTER VI. CHAPTER VII. CHAPTER VIII. CHAPTER IX. CHAPTER X. CHAPTER XI. SCHEDULE. Of The Communication, Acceptance And Revocation Of Proposals. Of The Contracts, Voidable Contracts Ad Void Agreements. Of Contingent Contracts. Of The Performance Of Contracts. Of Certain Relations Resembling Those Created By Contract. Of The Consequences Of Breach Of Contracts. Sale Of Goods. Of Indemnity And Gurantee. Of Bailment. Agency. Of Partnership.