Contractor on a standard-form building contract

Assignment Help Business Law and Ethics
Reference no: EM13933948

Task 01

"Although not essential, it is common practice when procuring a building to appoint the contractor on a standard-form building contract."(Murdoch J and Hughes W (2008) p101).

But some parties, particularly in housing construction market, use ad-hoc contracts which are prepared based on their own terms to suite their own needs.

JCT, NCE, FIDIC, ICTAD are examples of standard-form of contracts.

Discuss why standard-form contracts should be preferred over ad-hoc contracts.

Task 02

ABC Construction Ltd receives a letter from XY Developers:

Re: The Design and Construction of XY Homes

We refer to your tender dated 7th June 2014 regarding the construction of XY Homes. As per the decision taken by our board of directors, it is our intention to award carrying out of subject works to you. However, as certain decisions still pending with the board regarding Employer Supply Materials, further negotiations will be carried out in order to agree the final contract price. You are instructed to mobilize immediately as timely completion is paramount. Please be informed that the damages for delay will be  Pounds 50 per day.

Yours faithfully

Richard Butler

Chief Executive

XY Homes

ABC Construction Ltd started mobilizing and made arrangements by sending purchase orders to material suppliers and letter of intents to sub-contractors. When ABC Construction Ltd requested the advance payment be paid, XY Homes refused claiming there was no contract existing.

Analyse the situation and advise ABC Construction Ltd.

Task 03

Once parties enter in to a contract they need to identify precisely what obligations it imposes on them. For that they need to understand the terms it includes. There are three types of contractual terms included in contracts:

i. express terms which are contained in the main contractual document itself

ii. those (also express terms) contained in other documents to which the main contract document refers

iii. terms which are implied by law

iv. legal liability under the law of tort.

Explain the main obligations that construction contracts impose on parties with reference to above different types of terms and the liability.

Task 04

Part II of the Housing Grants, Construction and Regeneration Act 1996defines 'construction contract' as any agreement in writing, or evidenced in writing, under which a party does any of the following:

  • Carries out construction operations.
  • Arranges for others to carry out construction operations (for example through sub-contracts).
  • Provides labour for the carrying out of construction operations.

Most of the standard forms of Construction Contracts include the following documents;

i. Articles of Agreement

ii. Particular and General Conditions

iii. Specifications

iv. Drawings

v. Bills of Quantities

vi. Schedules.

Explain the significance of above documents with reference to the definition of 'construction contract' in Part II of the Housing Grants, Construction and Regeneration Act 1996.

Task 05

"It is well known that The Contracts (Rights of Third Parties) Act 1999 grantees the third party's rights unlike earlier days. In the meantime several requirements have to be fulfilled in the contract and therefor the application is limited. Under the construction contract the customers may sue the contractor directly along with seller of the building. It is necessary to ensure the third party's right under the construction contract in terms of ensuring quality and sound construction. In the meantime is criticized there is no useof the above Act where the Act cannot be applied if its jurisdiction has not been recognized in the contract and the restrictions imposed in the Act.It could be criticized that still there is no development in law for the protection of the third party's rights".

Critically examine the provisions of The Contracts (Rights of Third Parties) Act 1999 and comment its application in the construction contract.

a) FIDIC Standard Form of International Construction Contract (the Red book 1999)

b) JCT Standard Form of Building Contract Private Edition with Quantities  2011

Reference no: EM13933948

Questions Cloud

Enactment of the sexual offences act 2003 : 1) Phillips. Walsh and Dobson referred to the outcome of Hinks [2000] (2001) 2 A.C. 241 as "a horror". (E. Phillips, C. Walsh and P. Dobson. Law Relating to Theft (Cavendish, 2001, 43))
Mitigate and remediate cyber attack : Write about how to mitigate and remediate cyber attack. This is to be written as a technical paper, with a graph showing the rate or the growth of cyber attacks. below is the format and the marking scheme.
Floor or on low-level brackets in the lounge : Eight surround-sound speakers which had rested on the floor or on low-level brackets in the lounge. These had been described as "bringing cinema quality sound to the comfort of your own lounge".
Enter the following headings for the horizontal statements : Enter the following headings for the horizontal statements model onto a blank spreadsheet.
Contractor on a standard-form building contract : "Although not essential, it is common practice when procuring a building to appoint the contractor on a standard-form building contract."(Murdoch J and Hughes W (2008) p101).
What does the us-epa consider to be hazardous waste : Write a 1200-1500 word report on the following: What does the US-EPA consider to be hazardous waste? Are there any discrepancies in the regulations?
Finding a comprehensive treatment program for patients : Finding a comprehensive treatment program for patients suffering from insomnia when traditional psychotherapy and or medications is of no help.
Statements of cash flow different for the two businesses : Prepare an income statement, balance sheet, and statement of cash flows for each of the companies.
The time of the american revolution : Part I: First, put yourself into the time of the American Revolution. What role would you play in the events - for example, a leader, a rebel, a supporter, an artist? You get to decide. How will you respond to the American Revolutionary efforts?

Reviews

Write a Review

Business Law and Ethics Questions & Answers

  Examine the proposed business ethical problem

Examine the proposed business ethical problem that the Brazilian Federal Data Processing Service is presently experiencing. Determine whether you agree or disagree that Brazil's problem is an ethical one that should be corrected. Provide a rationa..

  Why is rifling present in the bore of the barrel

Why is rifling present in the bore of the barrel? What is the purpose of rifling? Compare and contrast a revolver versus a semiautomatic handgun. How is the caliber of a handgun determined? Explain the difference between a bullet, shell casing, and a..

  Discuss the major disadvantages of the uniform crime report

1.discuss the major disadvantages of the uniform crime report as a source of crime. what do you understand by the term

  How should the firearm found on the scene of the crime

How should the firearm found on the scene of the crime be handled by the investigator? Explain. What dangers do you think exist with regard to evidence contamination? Explain

  How can the behavior on the part of the opposite-gender

you are the commander of the patrol division of a medium-sized metropolitan city. you have 33 patrols out on the 10

  A new business owner

A new business owner of a residential and commercial carpet cleaning service The executive director of a nonprofit organization serving homeless individuals

  How can cultural differences derail an alliance team

How can cultural differences derail an alliance team? What can be done to prevent cross-cultural problems and unmet expectations from keeping an alliance team from being effective

  Health insurance portability and accountability act

After witnessing your presentation to the staff of Lincoln Terrace Community Hospital, the chief executive officer is impressed and asks you to conduct more in-service training regarding a current case against the hospital. You are given the details ..

  Excel corporation agrees to sell the latest version of its

1. which of the following is a true statement?a - building contractors and subcontractors are usually not independent

  Types of explanations of police deviance

List and describe the three types of explanations of police deviance

  Tyler makes three points about procedural justice

tyler makes three points about procedural justice judgments that are central to public evaluations of the police and

  Alan allen aged 32 applies to the sheriff for a permit he

familiarity with the elements of negligence is crucial to the personal injury paralegals knowledge base. also important

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd