HNC CONTRACTING MANAGEMENT

HNC Contracting Management

HNC Contracting Management

Introduction

As per contract condition the passing of the Contracts (Rights of Third Parties) Act 1999 provides an opportunity to simplify this area, but at the moment this piece of legislation has not been widely adopted by the construction industry. The HNC in Contracting Management is an industry centred qualification developed by industry for the industry. Instead, the standard form of building contract, Private with Quantities 1998 edition issued by the Joint Contracts Tribunal (hereinafter called JCT 98) and the Institution of Civil Engineers Condition of Contract, Measurement Version, seventh edition (called ICE 7th) specifically excluded the application of the Act from these forms. However, the Standard Building Contract With Quantities 2005 edition (SBC/Q 2005), called JCT 05, makes provision for parties to use the Act as an alternative to using collateral warranties.

The roles of the principal parties involved in the contract

The HNC in Contracting Management is a recognised qualification delivered on a scheme where credits are gained by successful completion of nine units each of which is assessed on course work submitted.

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.

Contractual and procedural relationships in the contract

The usual approach in books on contract law is to deal with this topic after discussing formation and before dealing with the terms of the contract. The approach taken here is to deal with it as part of the discussion of standard forms and the tendering process itself. It was commented earlier that parties use 8 Construction Contract Law standard form contracts because they bring certain commercial benefits. The question of whether those documents are incorporated into the contract may prove crucial. Parties often make reference in contractual documents to the contract being 'subject to conditions available on request'. Such a reference, when brought to the notice of the other party, is sufficient to incorporate the current edition of those conditions of contract. This rule was decided in Smith v. South Wales Switchgear Ltd [1978] 1 All ER 18. The structure may be a new building on virgin ground. It may involve the demolition of an existing building and its full reconstruction. It could involve partial demolition and rebuilding, or the refurbishment and extension of an existing building or structure. This may be mostly below ground (in which case it is engineering) or above ground (in which case it is building). Building, however, includes foundations and other underground works.

The consequences of non-compliance to contractual obligations in the contract

A building contract can consist of activities and services carried out both above and below ground. The term 'construction contract' or 'construction law' is used throughout this book. The term includes contracts for building works and as well as engineering contracts. Chitty on Contracts introduced for the first time in 1999 a chapter on ...