Contract

The Reasons for Contracts To Be Necessary In The Construction Sector And What Are
The Essential Aspect That Must Be Captured In Construction Contracts
A Construction Contract is one of the most significant document which is required in all
aspects of the construction industry. This document should be written before the works has been
started because is it important to make clear what each party is getting themselves into before
they proceed any further into the works to avoid conflict .Furthermore the job would be protected
by the law of the country and not signing a contract is a violation of the law . If a contractor does
not sign the contract it allows them to come up with a never ending wish list and the
construction party can do work according to their feasibility because there is no legal binding.
The construction contract should consist of obligations ,duties , responsibilities and expectations
. Construction contracts are ,by and large , made ,interpreted and enforced in the same way as
any other contract , they contain details of whole deal and rescues the client or contractor in the
advent that any dispute may arise .It is important because it protects the contract acceptor from
continuous alterations to the original design ,hence being a mandatory requirement . The legal
contract is of equal importance from the contracting party's point view because they may take
the legal route whenever they feel that the actual work was not done according to the terms
preliminarily decided upon .
Apart from the general idea of a contract , construction contracts serve to specify the
work which is to be done by the contractor or subcontractor , it normally includes the required
quality and the time in which to complete various parts of the work. Construction contracts also
state the amount to be paid, how any variation are to be paid and when these payments are to be
made. They also describe which party is responsible for events which may happen outside the
parties direct control ,for example bad weather , access difficulties, local authority restrictions ,
changes in the law or unexpected poor ground conditions .Moreover they state who is
responsible for the various administrative or dispute resolution which may be needed , this may
also include obtaining consent , giving instructions ,making decisions about claims , appointing
adjudicators or arbitrators .Additionally Construction contractors may work in the favor of the
clients where defective work claims are concerned ; when the contractors money starts to dry up
it is common for them to try to cut corners by finishing the work in a cheap and poor manner.The
''Breach of contract" is also an important factor to pay particular attention to because it is
common for this to occur in many forms and fashions such as in time , quantity and in quality of
works ; It is important for the client and contractor to understand the consequences and
compensations for losses because of this said breach.
The important Standard forms of contracts which have to be observed in this essay are
RIA, ICT,FIDIC1999 and ICE and some of most Essential aspects that must be captured in
construction contracts in my opinion are as follows :
Offer
Acceptance
Legal Intentions
Consideration (or Deed)
Capacity to Contract
Possibility of Performance
Offer
The offer in law is both a statement of the terms in which a party is willing to contract and an
expression of willingness to do so if an acceptance is given of those terms..An offer will lapse in
the advent that the time for acceptance expires, if the offer is withdrawn before it is accepted; or
after a reasonable time in the circumstances.
Acceptance
An acceptance of an offer becomes effective when it has been communicated to the person who
has made the offer .
Legal Intentions
Usually this requirement is satisfied where the transaction is between two commercial
organizations. The parties may , however , not wish their agreement to be legally binding and if
they state so expressly then the court will give to this .
Consideration (Or Deed)
Consideration is the price paid for the promise of the other party .the price must be something
valuable , although it does not have to be money .
Capacity To Contract
The persons concerned must be of full age and of sound mind. They must be aware of what they
are doing in making the contract.
Possibility Of Performance
Means the contract must be possible to complete because legally binding contracts cannot be
undertaken to perform an impossible act.

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The Reasons for Contracts To Be Necessary In The Construction Sector And What Are

The Essential Aspect That Must Be Captured In Construction Contracts

Consideration (or Deed)

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