Construction Business and Law

Running head: CONSTRUCTION BUSINESS AND LAW
Construction business and law
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2CONSTRUCTION BUSINESS AND LAW
Answer 3
There are various rights and obligations which are provided under the JCT standard
form of contract for the contracting parties. The primary parties which have been identified
through the case studies as the contractual parties are the group of inexperienced builders and
the contractors to whom the development work will be allocated. The main powers,
liabilities and obligations which arise under the JCT contract are elaborated below.
The primary obligation of both the parties is to ensure that they comply with the terms
and conditions provided through the contract. In case compliance is not ensured, it would
lead to the breach of contract resulting in legal implications. As stated by Lai, Huang and Li
(2014), the contractor has the obligation of supplying the employer with a full priced copy of
bills of quantities. The employer has an obligation to provide the contractor with documents
describing and showing the requirements for the contraction and design of the designed
portion of the contractor. In response to the requirement of the employer, it is the duty of the
contractor to provide the employer with documents describing and showing proposal of the
contractor for the contraction and design of the designed portion. It is the responsibility of the
contract under article 1 to ensure that the construction work is carried out in compliance with
the contract. It is the right of the contractor to receive and the obligation of the employer to
provide the sum which has been provided through article 2 of the contract. Both the parties
have the right to refer any dispute to adjudication. Again, as per Hyndman (2015), the parties
also have the right to refer a dispute to arbitration in accordance with the provisions of clause
9.3 to 9.8 of the JCT 2005. It is the duty of the contract to ensure that the work is carried out
by a diligent, careful and timely manner. They have the right to include their own designs in
the contract. If they are to provide an own design to the employer, they also have to provide
the quotation for the designing portion. Under the joint fire code, the employer and the
contract can share joint liability. It is the responsibility of the employer to produce