CONSTRUCTION CONTRACTS

Construction Contracts

Construction Contracts

Question 1

Construction Tender and Contract

The contract for construction of works is the document signed by the Contractor and the Builder. The contract should describe what work must be performed and how it made the payment thereof. Jobs are often complex and involve many operations different, requiring the builder to purchase a multitude of materials and various manufactured items and the use of a wide range of machines and the cooperation of people of different trades. There are many ways to contract the payment of a construction. These differ primarily in the form of payment of the construction is done (Hackett, 2006, pp. 34). Each of them determines the Builder a strategy different from the time of scheduling the process constructive and especially when setting priorities in the implementation of various work units.

Design and construction of the form is very popular for the purchase of construction work and JCT standard form for the design and construction of the work of established and used widely. In 2005 the court produced the contracts involved in the design, construction and amended contracts along with the design, construction and subcontracting. There are also now two decades of management and new forms of interim payments and instructions. It is evident that construction company-client exchange relationships involve highly human asset specificity and a significant amount of uncertainty and occur in different frequencies. A different frequency of occurrence of exchange relationships does not change the fact that price is not an efficient mechanism for governing such exchange relationships since not only once-in-a-life-time clients but also the most experienced repeated clients cannot rely solely on price for governing their exchange relationships with construction companies (Owen, 1998, pp. 234) . Under these conditions, clients adopt a number of procedures to address the problem of safeguarding exchange relationships and particularly their investments and themselves against any opportunist acts of construction companies.

Clients, even those that are frequently involved in construction projects, commonly use pre- or post-qualification procedures to safeguard their exchange relationships against acts such as opportunism, claims, disputes, bad faith, etc. Clients are commonly involved in the process of soliciting information regarding prospective construction companies' behavior from their prior clients, designers, subcontractors, sureties and its compliance with regulations that are imposed by governmental regulatory bodies (Uff, 2005, pp. 245). The construction contract of a particular work requires the Constructor to do the work and the Contractor or Owner to pay. The contract should therefore describe in detail what to build, and how they will pay for the buildings. For this, the contract must include:

Project

It is appropriate that part of the contract the entire project, because if it is a good project, it includes not only the description and detailed graphics of each and every one of the work to be done, but also conditions, quality of execution, and forms payment of each of the units. It also allows the builder to get a clear idea of ??what the ultimate goals of what is going to do ...