Construction Contracts And Construction Contract Essay

1404 Words 6 Pages
In construction sector, construction contract will be used. Inside the construction contract, there mainly including length of project, complexity, size of project, and the price that has been agreed. In the case Modern Engineering (Bristol) Ltd v. Gilbert-Ash Northern (1974) AC 689, it mentioned that construction contract is for selling goods, services, and labour, which is lump sum price payable by installment according to the work done. This shows that the contractor have obligation to the employer to finish the work on time as the length of project have been mentioned in the contract. However, the delay of the working process may not is contractor’s fault only. Employer’s fault or other external factors can also affect the work finish late.

Background and context
Since construction contract can be quite complicated, there are some standard form of contract such as JCT Standard Building Contract 11(SBC) in order to help allocate the risk between parties equally and reduce the cost and time of negotiating.

In this case, the contractor did not complete the work on time. So, contractor has the liability to the employer. In order to prevent the delay of completion date, the contractor should carry out the work with good manner, use and supply good materials, and also finish the construction work, which meet employer requirements. Theses are all the implied terms in the JCT SBC 11.

According to the JCT SBC clause 2.4, the contractor has some…

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