Construction Contract

Construction Contract Assignment A normal contract is an agreement with specific terms to do something in return for something and follows the procedure of offer, acceptance, consideration, contractual intention and form of contract. A standard building contract in essence has a lot of similarities however there are four main differences making it ‘special’. A normal sale of good contract has a visible end product, in construction on the other hand it’s a concept to start with; this creates a large number of risks unlike normal contracts. Intervention of statutes is another point that differentiates a standard building contract from a normal contract. The final two points are that there are multiple professions involved within a construction contract and also unlike normal contracts a tendering process is required with a construction contract. A standard construction contract can be defines as ‘an entire contract for sale of goods and work and labour for a lump sum price payable by instalments as the goods are delivered and the work done. Decisions have to be made from time to time about such essential matters as the making of variation orders, expenditure of provisional and prime cost sums and extension of time for the carrying out of work under contract. – Lord Diplock The Joint Contracts Tribunal (JCT) covers standard building contracts and ’represents a wide range of interests in the building and construction industries. It produces standard forms of contract, guidance notes and other standard documentation for use in the industry. The intention of the JCT is that the contracts generated by them represent a balanced allocation of risk between the parties’ (OutLaw, 2010). A normal contract will contain a few legal backdrops of common law and statutory rules. The huge difference making a JCT standard building contract ‘special’ is that it will take into account all of them, from: The sale of goods act 1979, The supply of goods and services