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

  Cases of ramzi yousef and the terrorist attacks

Compare and contrast the cases of Ramzi Yousef and the terrorist attacks on September 11, 2001. Discuss how their cases exemplify the threat of international terrorism in the United States

  Discuss the relevant rules of law

In April 1970, Bronsen died, and his heirs sued the officers of the university to have title to the manuscript determined. Decide if title passed from Bronsen to the university. Discuss the relevant rules of law

  Identify potential benefits and limitations within proposal

Identify potential benefits and limitations within your proposal. Determine legal and ethical challenges that your proposal could trigger

  Was it ethical for normandale to sell the alleged knock-off

mathis inc. is a designer and manufacturer of womens clothing and specializes in high-end womens winter fashions.

  Employers often want to find out if their workers are

privacy and technology in the workplace please respond to the followingemployers often want to find out if their

  What did the supreme court decide

What was the legal issue in this case? What did the Supreme Court decide? What does this case reveal about the conditions under which affirmative action is legal

  Write about legal regulation of conducting business overseas

Write about legal regulations of conducting business overseas and The ethical code of conduct for employees and vendors.

  Research paper related to workplace security

You will be submitting a short research paper related to workplace security, specifically appropriate responses to threats to safety and security, or a topic of your choice

  The city has passed a local ordinance that states the

consider the following scenario you are the chief of police of a 100 person department that is responsible for a city

  Amy asks sue to drop off a package at the down town

Amy asks Sue to drop off a package at the downtown office of Federal Express for overnight  delivery. Since Amy has a billing account with Federal Express, Sue was not required to pay any fees when dropping off the package. However, because the Feder..

  Discuss the strengths and weaknesses of field

discuss the strengths and weaknesses of field research.determine whether field research is appropriate for your

  How have the cpsc and the fda affected you as a consumer

How have the CPSC and the FDA affected you as a consumer? Give at least three specific examples. In your opinion, how effective are these agencies in ensuring product safety and quality

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