Essay about Construction Contract And The Contract

1037 Words Sep 27th, 2015 5 Pages
Construction Contract Contract can be defined as a written or oral mutually binding promise which is agreed between two parties based on a certain conditions and policies. Construction contracts normally form by at least two reciprocal promises: the contractor promises, which refer to accomplish the works stated in the contract, and the client promises, which undertakes the owner to pay the contractor for carrying out the works agreed in the contract. In addition, the contract generally contains a number of other promises related to the parties’ obligations. The contract should be established based on the five key components of the legal relationship between the contractor and the client, namely the scope of work, the quality of the work, the project schedule, the project budget and eventually termination. Projects with long period of time (normally more than one year) and projects with value of more than 30,000$ are required to be in writing. Construction contracts are completed by a series of documents, such as drawing, general conditions of the contract and addenda which known as a contract documents. The contract documents describe the work that is to be performed by the contractor and the contractual relationship between the owner and the contractor in connection with that work (Kelly, 2013). Construction contracts can be set out within two categories, first the ‘industry standard contracts’ and customary contracts. The industry standard forms of contracts are mainly…

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