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Nature of contract in construction
Nature and structure of construction contract
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Recommended: Nature of contract in construction
There are various forms of contract used for building and civil works in the rapidly booming construction industry. This contracts forms are used according to the size, value and the type of project.
Standard form of contracts:
These documents contain, sets of standard printed conditions and terms drafted by legal representatives working generally with the profession and within the industry.
FIDIC - Condition of Contract (Used for International Contract).
JCT - Joint Contract Tribunal.
ICE - Conditions of Contract for civil engineering works published by the Institute of Civil Engineers and Federation of Civil Engineering Contractors.
NEC – New Engineering Contract.
ICTAD/SBD - Institute for Construction Training & Development (Used
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Characteristic of FIDIC form of contract:
Overall
FIDIC books define the role of the engineer essentially as the representative of the employer.
Quality control
Certifying of the works and remedying of any defects by Providing instructions and details of modifying drawings. (Sub-clause 3.3)
Conducting management meetings with the contractor.
Contractor sends all required design information, procedures and related documents and attends inspections and works testing before covering up.
Time and money
Certifies sums due by acting as the certifier.
Provide the rights for the Contractor to claim for extension of time / additional money under the Contract, with the respect of related risks happened by the Employers errors in the Setting Out data (Sub-Clause 4.7), errors in the Site data (Sub-Clause 4.10) and unforeseen Site risks (Sub-Clause 4.12).
Health and Safety
Contractor should take all reasonable precautions to maintain the health and safety under Sub-Clause 6.7 [Health and safety].
Termination
If the contractor fails to carry out the obligations of the contract, the engineer notices the contractor under Sub-clause 15.1 [Notice to correct] by providing a reasonable
1.4 – State why and when health and safety control equipment, identified by the principles of protection, should be used relating to types, purpose and limitations of each type, the work situation, occupational use and the general work environment, in relation to:
Section 8 of the Safety, Health and Welfare at Work Act (2005) puts the onus on the employer to ensure systems of work that are planned, organised, performed, maintained and revised as appropriate so as to be, so far as is reasonably practicable, safe and without risk to health. Section 19 of the Act requires the employer to conduct a risk assessment of work activities and Schedule 3 of the Act provides the general principles of prevention to ensure the safety of employees in the workplace.
-Court must be convinced that failure to comply with an agreement will lead to one of the parties to suffer prejudice. Court will protect innocent party, will provide remedy
...hing that was not ever the easiest type of contract to navigate but over the years the requirements have continued to get more complicated and require a lot of additional effort on the contract and the contracting officer. A contracting officer does not just accept the data supplied by the supplier as acceptable. A contract officer will have to perform due diligence and verify the information submitted. This means that the contracting officer will have to verify the material costs, the labor costs, the travel costs, and any of the data supplied.
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.
The importance of lien services in the construction industry cannot be ignored. Even the smallest of construction projects go through the same process, protocols and procedures in order to complete successfully. In order to ensure that all the paperwork involved is current and in order and that all the parties involved in the project such as contractor and suppliers are paid for their services, many company offer their services. They exist solely to protect the rights their lien rights.
The main important role of the Project Management in the construction industry is to make everyone work towards the same goal that must be aligned with the strategic objectives of the company. One of the most relevant differences between any Project Management and the ones working on the Construction industry is the knowledge and skill in certain areas related to the field, it is essential to have a good understanding of construction methods, materials, scheduling and blueprint reading as well as knowledge in communication and leadership skills. In construction technology plays an important aspect to considered, for a Project Management it is important to be updated in any new technology used by construction companies. (Dykstra, 2011)
Formalities – if formalities are prescribed for the formation of the contract , they must be observed.
This work is delineated by the “make work” and the “buy work” of the project. With this delineation comes a different way in which legal aspects will be applicable to the project. With “make work” the amount of details required in the statement of work (SOW) is significantly less than that of the “buy work” (Fleming, 2003). Fleming (2003) stated that the tolerance for error is significant and self-correcting when dealing with “make work” that is kept in house.
Licensing is a requirement of local authorities for these professionals to operate in their areas. Insurance and bonding protect you and the company against issues if damage or other issues occur during the job. Guarantee Quality All work comes with a guarantee of quality when you employ professional building contractors. With this assurance, if there is a problem, the workers will come back to your house and correct the issue. On the other hand, if you choose to go it alone, you will be out additional money at times, when issues occur on a project.
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,
Every one of them have their own role, duties and responsibilities when working at the place of the work. Worker is the one that work under the operate of the contractor on the site. For those the worker that have huge experience, knowledge and appropriate skill, he or she can conduct the work. Furthermore, worker are provided with safety and health training and supervision to make sure all of them can work without risk to their personal health, aware of the risk at the workplace and also must follow all the rule and procedure that are already fix by OSHA. Co-operate between the worker and the duty holder are important at the site too.
Ensuring the health and safety of employees is of primary importance to the Organization. Organization is committed to maintaining safe facilities, sponsoring appropriate training programs, and providing necessary safety equipment. In addition, Administration and staff shall cooperatively develop appropriate procedures and regulations for ensuring employees' health and safety, with special emphasis on the handling of potentially hazardous equipment or substances and for investigating and reporting any accidents and mishaps. All newly employed staff shall be required to comply with the physical examination. Every employee must provide annually, at a minimum, an updated health history of current health problems.
In today's time of raising globalization, economies determined by benefit and yearly turnover are on the ascent which thusly prompts the advancement of agreement work. The arrangement of utilizing contract work is predominant in most commercial ventures in diverse occupations including talented and semi gifted employments. It is additionally normal in farming and related operations and to some degree in the administrations division. Representatives, who don't work straightforwardly for an association, however are utilized by a firm that has an agreement to do particular work for the association is known as contract workers. A laborer is considered to be utilized as Contract Labor when he is contracted in association with the work of a station by or through a Contractor. Contract workers are aberrant representatives; persons who are enlisted, administered and compensated by a Contractor who, thusly, is remunerated by the stronghold. Contract work must be utilized for work which is particular and for positive span. Contract work, all around is not borne on pay move or is paid specifically. The thought of agreement work can undoubtedly be understood from the accompanying case – let us accept that An is an industrialist who needs to assemble a manufacturing plant for which he enlists a singular, B to accomplish the occupation. B, thus procures other individuals X, Y and Z to deal with building the processing plant. It is worth noting that that X, Y and Z require not so much be enlisted by B with the assent of A. A may not even think about this agreement however B going about as a middle person has entered into an agreement with the previously stated people to accomplish A's work. These individuals X, Y and Z who have no...
... is why is important to have larger engineering firms with more engineers working side-by-side so that there is team work and issues can be taken care of immediately.