CONDITIONS OF CONTRACT

Conditions of Contract



Conditions of Contract

Q1Has a Dispute Arisen?

Yes! A dispute has definitely arise in this case as the initial offer made by the contractor was for a varying scheme and as the scheme has changed now it has brought a difference in the rate and according to his perspective new quotation should be made. According to the employer the contractor should quote according to the existing quotation with full filling the differences of amount per product.

A similar case was registered in the House of Lords between Alan and El Nasr. The contract was made according to which the supplier Alan had to sell 250 tons of coffee beans at 262 Kenyan shillings to El Nasr. The time at which the contract was made Kenyan shillings were equivalent to Pound Sterling but when the shipment was sent the value of pound dramatically fell incurring a loss of 165,530.5 pounds. This case was contested in the House of Lords where the supplier lost the case.This case is a Joint Case Tribunal contract made in the design and build contract. The deal has come to a point of conflict.

Q2Is the engineer correct to ask the price to be based upon the original bill rates?

To an extent yes the engineer is correct to ask the price according to the bill rates as the contract was awarded to the contractor upon the bill rates quoted earlier but as the fault turned out to be a technical and it required modifications therefore, the equipment needs to be readjusted and changed.

The engineer and the firm and take reference from the case of Stilk vs. Myrick. Stilk vs. Myrick is a similar case although not in the context of civil works. In this case the captain was accused that he had made a commitment that he will pay extra benefits to the remaining seamen for sharing the work load of the deserted seamen. The case was held in favor of the captain as it was the responsibility of the seamen to take the ship back to its port. Similarly it will be the responsibility of the contractor to use the same quotation for the modified construction plan.

Q3Is the contractor entitled to ask the state that the price for the works should be based upon a quotation?

Yes the contractor has the right to question the state to for pricing the work according to a new quotation. As the contract lies in the context of JCT. The contract is evaluated under design and builds contracts. According to these contracts the three sub types are package key or turnkey contract, Design and build contracts and Contractor's design for specific elements. In all the three contracts the contractor suggests the equipment used therefore he has the right to make a quotation for the pricing of the bill.

The contractor has all rights to demand for a new quotation as the engineer of the employer has suggested a totally new working scheme and the new working scheme will definitely ...