The definition of a contract is 'a promise or set of promises which the law will enforce. That is to say, the contract can be defined as a legally binding agreement between two parties or exchange of promises whereby one party undertakes to provide something in return for something else from another party. In contract, the rights and obligations are created by the acts of agreement between the parties to the contractual arrangement. Contract conditions are to set out the principal legal relationship between the parties to a construction project, determining the allocation of risk, price and consequently. There is a need of contract in between the parties of construction industry to make sure the construction carry out smoothly and standardized. In the procurement of construction, contracts are including standard form, modified form and bespoke form. Modified form of contract is developed based on standard form of contract …show more content…
The BQ is a document prepared by the consultant team that provides project specific measured quantities of the items of work identified by the drawing and specification in the tender documentation. The quantities may be measured in number, length, area, volume, weight or time. Preparing a BQ requires that the design is complete and a specification have been prepared. The BQ is issued to tenders for them to calculate a total cost for carrying out the construction works and as it means all tendering contractors will be pricing the same quantities rather than taking-off quantities themselves, it also provides a fair and accurate system for tendering. The different form of contract will different of parties who involves in payment obligation. An example, in the PAM 2006 parties involves to pay are employer, architect, quantity surveyor and contractor butin the PWD 203A parties involves to pay are employer, contractor and superintending officer(SO) or SO’s
Within the Social Contract Theory, living within a society requires us to have rules and laws. This gives people the groundwork for how people and governments cooperate. Individuals receive stability when they live in a social structure. This gives them security from other individuals that may want to do them wrong. In order for them to receive this protection, they have to give up some freedoms, such as being able to steal without receiving punishment. Individuals need to commit to helping make society secure, and happy.
By eliminating uncertainty and ambiguity between the contractor and the contracting officers, the government could get rid of the divergent interpretations that inflate the cost. Realizing it is to the contractor’s advantage to pass on all expenses it can to the buyer in order to maximize profits every opportunity to clarify criteria for cost, reduce disagreement, and set clear limits are necessary. The difficulty in writing a contract to get rid of all unexpected cost is evident but doing it will cut down on the confusion over the life of the agreement. Defining costs allowed and which are not along with potential penalties for delayed service delivery will yield a better
A contract is an agreement that can be enforced in court and is formed by two or more parties who agree to perform or to refrain from performing some act now or in the future (Miller, Cross, and Jentz 289). In other words, it is a set of legal promises between two or more people or businesses. Contract law includes the elements of a contract, genuineness of assent, fraud, duty to disclose, disaffirmance and good faith. In order for a contract to be valid, there are essential elements that it must have. These elements include: an agreement, consideration, legality, and capacity.
The case presented is that of Sam Stevens who resides in an apartment. He has been working on an alarm system that makes barking sounds to scare off intruders, and has made a verbal agreement with a chain store to ship them 1,000 units. He had verbally told his landlord, Quinn, about his new invention and Quinn wished him luck. However, he recently received an eviction notice for the violation of his lease due to the fact that his new invention was too loud and interrupting the covenant of quiet of enjoyment of the neighbors and for conducting business from his apartment unit.
Quantity takeoff is an essential task in the construction process as it provides the basis for other construction tasks that follows. The building elements are measured and these quantities are then used to estimate the cost and the relevant workload involved. This information is then assembled in a Bill of Quantities (BQ). The BQ structures and organizes the information about measurements, productivities and costs, according to the construction task and considers the actual order of the construction process. For example, the foundational elements are under the same section in the BQ while the roof elements are under the same section in the BQ.
The social contract was first discussed by Thomas Hobbes. Hobbes was the foremost British philosopher of the 17th century. Hobbes explained what he called “the state of nature.” Now, to understand the state of nature, you first need to think of what life would be like if there were no way to enforce social rules, if there were no laws, police, or courts. This is what the state of nature would be.
A contract is an agreement which has its specified terms and conditions between two or more parties in which there is a promise to do something in return for a benefit.
The basic law of a contract is an agreement between two parties or more, to deliver a service or a product. And reach a consensus about the terms and conditions that is enforced by law and a contract can be only valid if it is lawful other than that there can’t be a contract. For a contract to exist the parties must have serious intentions, agreement, contractual capacity meaning a party must be able to carry a responsibility, lawful, possibility of performance and formalities. Any duress, false statements, undue influence or unconscionable dealings could make a contract unlawful and voidable.
A contract is an agreement between two parties in which one party agrees to perform some actions in return of some consideration. These promises are legally binding. The contract can be for exchange of goods, services, property and so on. A contract can be oral as well as written and also it can be part oral and part written but it is useful to have written contract otherwise issues can be created in future. But both the written as well as oral contract is legally enforceable. Also if there is a breach of contract, there are certain remedies for that which are discussed later in the assignment. There are certain elements which need to be present in a contract. These elements are discussed in the detail in the assignment. (Clarke,
The vendors will outline how the work will be accomplished, who will perform the work, and vendors experience in providing the service. Additionally, the vendors will be required to submit work breakdown structures (WBSs) as the hierarchy structure below and work schedules to show their understanding of the work to be performed and their ability to meet the project schedule. There are constraints to be included in the RFP and communicated to all vendors in order to determine their ability to operate within these constraints. The project schedule is not flexible and the contractor must complete the service within the established project schedule of 1 year. The contractor must support the approved project scope statement.
Estimates form the basis of tender comparison, so it should be as accurate as possible, if deficient the award settlement becomes arduous (Odusami & Onukwube, 2008). Accurate cost estimate for projects are tremendously essential to both the clients and the contractor. It provides the basis for the contractor to submit the tender and allows the parties to highlight the final cost of the project at an early stage. Essentially it is used for planning the entire project and helps during the execution phase (Akintoye and Fitzgerald, 2000). It has been pointed out that the building cost of the project usually differs from the estimated final cost and this is due to the variations (Oberlender and Trost,
What are the comparative advantages and disadvantages of contract employment versus at-will employment for an employer and employee?
Conventional Construction Contract mainly works on “design bid build”. Owner/Client have to appoint consultants to prepare details, tender documents, drawings, BOQ’s. Then contracts have to submit the tenders. Conventional contracts are also called traditional contracts. Contractors are not responsible for the design and other structural works.
...ndard school? Are you looking to build a low energy school with a limited number of sustainable elements to it? We have to get that philosophy agreed at the outset and getting some commitment from the authority to say, “Yes, well that’s the direction we want you to work” ... And I think that’s key. If you can set your parameters before you start putting pen to paper then you’ve got a really good chance of delivering what everybody wants.” (Bid Manager)
In general, there are different types of procurement type for various situations, due to no one method can be suitable under the all different construction project. In this case, there are four procurement paths, which are traditional, design and build, management and design and manage, which will be advised to use. However, each method has different advantages and disadvantages. First, traditional path is the tender documents have been prepared and then invite the tender and the employer appoints the contractor to construct the project. There are several advantages of this traditional route in the construction industry.