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Construction Contracts

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Construction Law (218.764 - Construction Law)

   

Added on  2021-09-14

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CONSTRUCTION LAW 32 CONSTRUCTION LAW 1 Construction Law Student’s Name Institution Affiliate Date Construction Law Introduction Construction Contract The agreement which occurs between two particular individuals that the contractor and an employer with the aim of constructing, repairing, modifying and renovating any particular structure for a period of time for a price and based on set standards is referred to as the construction contract. Law, Currency and Language 1.4.1 According to the clause, the New Zealand law shall be used to govern the contracts 1.4.

Construction Contracts

   

Construction Law (218.764 - Construction Law)

   Added on 2021-09-14

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CONSTRUCTION LAW 1
Construction Law
Student’s Name
Institution Affiliate
Date
Construction Contracts_1
CONSTRUCTION LAW 2
Construction Law
Introduction
Construction Contract
The agreement which occurs between two particular individuals that the contractor and
an employer with the aim of constructing, repairing, modifying and renovating any particular
structure for a period of time for a price and based on set standards is referred to as the
construction contract. It is a requirement that both the employer and contractor signs the contract
and later the terms of the particular contract should be complied with by all the parties.
The contracts which relate to the construction projects often come with a certain level of
risks. Such risks are typically distributed among different during the construction process.
However, the different construction professionals who comprehend some of the standard terms
of a construction contract have got less related to the signing of certain contracts which are
poorly written.
Law, Currency and Language
1.4.1
According to the clause, the New Zealand law shall be used to govern the contracts
1.4.2
The contacts shall be payable in New Zealand currency and this will also include the
prices of the particular contract. Such rates and prices will include the goods and services tax.
1.4.3
The English language will be used for all the communications between the engineer,
contractor, and principal.
Construction Contracts_2
CONSTRUCTION LAW 3
Comment
The contract will be done in English as gvoern3d by the New Zealand laws. Also, the
prices will be done in New Zealand currency.
Contract
Type of Contract
2.1.1
According to the clause, under certain special conditions, the contract will be considered
as a lump sum contract.
2.1.2
All the obligations as contained in the contract will be fulfilled by the contractor.
Comment
The contractor will carry out all the obligations in the contract.
Lump sum Contract
2.2.1
The sum indicated in the contract which is subject to the certain adjustments made in the
contract will be considered as a lump sum contract price.
2.2.4
In the event that there is a discrepancy identified in the schedule of prices, there will be
notification by either by the contractor or the engineer.
2.2.5
A variation may be considered in the event that a more important discrepancy has been
identified.
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CONSTRUCTION LAW 4
Comment
Lump sum contract is the price stated in the contract without taking into account the
adjustments.
Measure and Value Contract
2.3.1
The price of the contract will be estimated on the basis of measured quantity and this is
according to the value and measure of contract.
2.3.3
An intention to measure the contract work shall be given in notice to the contractor by the
engineer. A representative will act on behalf of the contractor when necessary.
2.3.5
In the event that there are errors contained in the tendered schedule, there shall be an
adjustment in the tendered sum by the engineer.
Comment
The value of the contract work shall be measured by the engineer through a notification
of the contractor.
Documents Prepared by the Engineer or Principal
2.7.1
On the request of the copies of the contract including the specifications and drawings, the
contractor will provide them to the engineer.
Construction Contracts_4
CONSTRUCTION LAW 5
Documents Prepared by the Contractor
2.8.1
The contractor will issue certain specifications and drawings to the engineer when
applicable.
2.8.3
A copy of the specifications and drawings will be maintained by the contractor especially
that relating to the on-site.
Comment
The contractor will issue certain documents at the request of the engineer.
Bonds
3.1.2
The principal will be provided with a security and this will be in the form of a
contractor's bond by the contractor in two months of the date of tender acceptance.
3.1.4
Before the surety and the contractor have been executed, there will be no payment made.
3.1.8
In the event that the contractor fails to carry out the obligations in the contract, there will
be an estimation of the cost of remedy by the engineer to compensate for loss or damage caused
to the principal.
3.1.10
The contractor shall bear all the costs relating to the contractors bond.
Comment
The contractor shall bear all the bonds
Construction Contracts_5
CONSTRUCTION LAW 6
Subcontractors
General
4.1.1
There will be no subcontract entered into by the contract without the consent of the
principal.
4.2.1
A section of the contract can be subcontracted by the contractor especially to the
subcontractors indicated in the tender for the contract.
Comment
There are subcontracts which are allowed but only with the consent of the principal.
General Obligations
General Responsibilities
5.1.1
The key responsibilities of the contractor will entail providing services, labor transport,
temporary works and all that which is required to complete a contract work.
5.1.4
In the event that the contractor is charged with the design of the contract work, he or she
shall conduct certain design work with diligence, skill, and care.
Comment
The key general responsibilities of the contract work should be done with care, skill, and
diligence.
Construction Contracts_6
CONSTRUCTION LAW 7
Contractor’s Representative
5.2.1
According to this clause, all the necessary supervisions shall be done by the contractor of the
contract work.
Separate Contractors
5.5.1
Based on the clause, there can be certain arrangements made by the contractor for a
contract work which has not been set on site. Such a work can be done by an individual
appointed by the contractor under certain special conditions.
Comment
A separate contractor can be arranged by the contractor.
Care of Site and Works
5.6.1
All the contract works shall be made cared for by the contractor and this shall be from the
time the contractor will gain possession of the site.
5.6.4
All the loss and damage at the construction site will be paid for by the contractor
especially those arising out of his or her obligations.
Comment
The contractor has to care for contract works and site.
Construction Contracts_7
CONSTRUCTION LAW 8
Protection of Property and Persons
5.7.1
According to the clause, the contractor is in charge of the contract works and hence he or
she will maintain order with the aim of ensuring that property and persons are protected.
5.7.6
The contractor will protect the site through erection and maintenance of the site.
However, when such structures will no longer be needed they will all be removed.
Comment
The contractor shall provide protection to the property and persons in the construction
site.
Setting out
5.8.1
The setting out of the contract work shall be done on the basis of the instructions,
information issued by the engineer and the contract by the contractor.
5.8.4
The engineer will have access to the setting out of the contract work. The responsibility
of the contractor will not be interfered with when the engineer checks the position set out made
by the contractor.
Comment
The contractor will set out the contract work.
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