nature of construction contracts
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 for different projects and can be used universally through the industry. Bunni, N (1986) Risk and insurance in construction states “Standard forms of contract have been developed in construction by commercial organisations for the purpose of providing a balanced distribution of risk, for efficient distribution of contractual duties”. Bunni states that standard forms of contract are for the purpose of dividing up risk for the parties involved in the contract. However as this is a standard from of contract every project is different so the contracts are adapted to meet the needs of all the parties involved.
The benefits from having a standard form of contract is that they are used consistently as a guideline and adapted to the different projects, with meeting the requirement of all parties that are involved. The type of contract which the writer has chosen to use is the JCT 2005 standard form of contract, the particular type is designed for the Design and build procurement route.
Before the type of contract can be decided, the choice of procurement route needs to be chosen so the correct form of contract can be used. As stated previously to what type of contract that will be used in this assignment it is a design and build
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 for different projects and can be used universally through the industry. Bunni, N (1986) Risk and insurance in construction states “Standard forms of contract have been developed in construction by commercial organisations for the purpose of providing a balanced distribution of risk, for efficient distribution of contractual duties”. Bunni states that standard forms of contract are for the purpose of dividing up risk for the parties involved in the contract. However as this is a standard from of contract every project is different so the contracts are adapted to meet the needs of all the parties involved.
The benefits from having a standard form of contract is that they are used consistently as a guideline and adapted to the different projects, with meeting the requirement of all parties that are involved. The type of contract which the writer has chosen to use is the JCT 2005 standard form of contract, the particular type is designed for the Design and build procurement route.
Before the type of contract can be decided, the choice of procurement route needs to be chosen so the correct form of contract can be used. As stated previously to what type of contract that will be used in this assignment it is a design and build
References: Bunni, N (1986). Publisher; Spoon Press, Place of Publication; London. Risk and insurance in construction. 2nd ed, p215. Eggelston, B (1997). Publisher; Blackwell Publishing, Place of Publish; Oxford, Liquidated damages and extension of time in construction contracts, 2nd ed. p252. JCT (2005) Standard building contract with quantities, Revision 2 2009. Morledge, R, Smith, A, Kashiwagi, D (2006) Publisher; Blackwell, Place of Publication; Oxford, Building Procurement, p6. Murdock, J, Hughes, W (2008) Publisher; Taylor and Francis, Place of Publish; New York, Construction Contract Law and management, p102. O’Reily, M (1999) Publisher; Thomas Telford Publishing, Place of Publish; London, Civil Engineering Construction Contracts, 2nd edition, p3.