Blyth Wood Management Company Ltd

Running head: CONSTRUCTION CONTRACT
CONSTRUCTION CONTRACT
Name of the student
Name of the university
Author note

1
CONSTRUCTION CONTRACT
Section A
Answer to Question 1
Major construction undertakings are complicated agreement engaging diverse commerce
as well as several parties that are suppliers, sub-contractors, and sub-sub-contractors. Thus
despite the complication the general target is to conclude the undertaking within the specified
time1. Fulfilling the mutual objective is especially challenging due to the fact that the
construction undertakings are generally affected by the impacts of both internal that is the fault
of the contracting parties and external that is action and natural occurrences by the governmental
agencies or the third parties that are beyond the dominion of the parties. Thus all the influences
inclined to delay the conclusion of undertakings2.
For the purpose of providing proper incentives, however there require to be a proper device for
the functioning of the cycle of payment to be applied. This is clearly envisaged in JCT 2016
standard form of contract that is made in obedience with the Housing Grants, Construction and
Regeneration Act, 1996taht miscarries to cater to pay less intimation will imply that payment
should be made3. Despite having a high margin of consensus, contracting parties might have
1 Chappell, David.
Understanding JCT standard building contracts. (Routledge, 2017).
2 Lupton, Sarah.
Which Contract?: choosing the appropriate building contract.
(Routledge, 2019).
3 Brook, Martin.
Estimating and tendering for construction work. (Taylor & Francis,
2016).

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CONSTRUCTION CONTRACT
while negotiating the construction undertakings it is wise to facilitate for the probability of the
association of them turning sour4. This is the cause of the standard form of the construction
undertakings envisage conditions that entitle the parties to suspend the further conduct of the
liability under the agreement or bring the association to conclude by terminating the
arrangement. One of the entitlement that is guaranteed under the agreement is the right of the
contractor to suspend for non-payment. Consideration is given as the factor that provides the
legal impact of the contractual obligation that is conferring on the distinct parties as well as the
right to terminate or suspend the arrangement.
Suspension engage bringing the construction undertakings to the provisional standstill by
stopping for the particular period the conduct of the liability that is enumerated in the agreement.
The suspension of the undertakings is not designed as a permanent action. The significant
construction agreement must facilitate clear rules on the period the suspension of the contract
may last. The entitlement of the employer to suspend the arrangement is solely rest on the
agreement. There exist neither statutory right nor common law for the employer to suspend the
construction agreement. Nevertheless the entitlement of the employer is necessary permitting the
employer to stay its liability under the agreement without incurring expenses as well as finality
that arrives with the termination. It is significant at the stage of negotiation for the employer to
guarantee that the entitlement to suspend is involved in the agreement stipulations. It is also at
the phase that the employer must pact with several issues that are as follows. The contemporary
United Kingdom standard form of contract facilitates for the right of the employer to suspend. In
4 Thomas, Reginald William, and Mark Wright.
Construction contract claims. (Macmillan
International Higher Education, 2016).

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CONSTRUCTION CONTRACT
accordance to clause 3.10 of JCT Design and Build Contract, 20165 the employer in the
construction project may publish instruction with respect to the postponement of the project to be
implemented under the agreement. Thus it is clear that the right of the employer to interrupt is
not based on the mistake of either parties or the happening of the event. The clause empowers the
employer of the project to suspend at any point in time. The continuous duration of length as
enumerated in the particulars of contract that is implemented to clause 8.9.2 is the significant
term that is subject to the negotiation. It guarantees the maximum duration that is permissible of
the employer to postpone the work under clause 3.10 as the entitlement to postpone is not
unlimited.
Answer to question 2
In case the contractor under clause 8.9 has to dismiss the arrangement due to the
suspension that has been extended beyond the specified date the termination is classified as
arising out of default of the employer. This must authorize the contractor to lose of profit as well
as the damage. The contractor must be careful to cater intimidation necessary prior to the
entitlement to terminate is stimulated. It is generally applicable for the construction undertaking
to positioned obligation on the part of the employer in respect of the direct expense or loss
evolving from the suspension that involves remobilization expense. In the context of security of
materials the contracting parties must approve on the way of storing and securing the materials
for the construction undertakings to evade deterioration, damage or loss with the limit of liability
5 Adriaanse, Mr John.
Construction contract law. (Macmillan International Higher
Education, 2016).