Construction contracts. Author: Paweł Kotas, Polska
Construction as a service activity having many dimensions. Starting from ideas, thru find funds, investor, design construction, find contractor, phase of construction, meet the requirements which investment needs to be in use and complete facility.
All these aspects are associated with large amounts of documents, permits.
In this essay will be described various types of contracts between the investor and the contractor.
Contract is an agreement between two or more parties to do something for a consideration establishes the basis for a contract. Because of business aspects of contracts problems can be solved in the court.
Then the most important questions are: * Who are parties to a contract? * What are promises? * Other aspects of the contractual agreement.
Construction contracts structure the way in which construction is purchased. There are variety between construction purchasing system and buying something in a store for instance mobile phone or sofa. When we have the finished product available for our inspection, we can decide whether it meets our requirements. Since the final product is available, we can purchase it from a single store. With the construction it works different. The facility is purchased before it is „manufactured” based on set of drawings and work descriptors. Finally item requires the purchaser to coordinate many entities to include: * Designers * Contractors * Subcontractors and vendors
Major construction contract types
The most widely used format of contract is the competitively contract.
In public sector it is almost the only way to perform investment. The two main categories of competitively bid contracts are stipulated-sum contract and the unit-price contract. Both names refer to the method of quoting the price of work.
Another contract format is the negotiated contract. In this way it is investor who after
Bibliography: Construction Managment J.F.Collins