Construction Contracts : A Formal Contract

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2. Part A Construction contracts can be initiated and formed in many ways with the most accepted and popular method being a standard formal contract such as JCT, NEC, FIDIC, LOGIC etc. however there is an alternative method which is not as widely accepted which is a 'letter of intent ' It is normally used to describe a letter from an employer to a contractor indicating the employer 's intention to enter into a formal written contract for works defined in the letter, and probing the contractor to commence those works before the formal contract is implemented. This is a risky way to form a contract as there is no legally binding document tying the employee to the work he has been asked to carry out, that is why a formal contract such as…show more content…
A letter of intent should be checked regularly, with emphasis on the recording of dates. The best solution however is to replace with a fully formed contract such as JCT. Fig. 1. Working relationship between parties involved 3. Part B The clerk of works duty is to act as the architect’s eyes and ears on site, while carrying out a thorough inspection of the day to day progress on site guaranteeing the work is carried out in accordance with the contract particulars, ensuring that the level of workmanship on site is maintained and also that the materials being used are of the highest possible standard attainable, however he does not possess the right to issue any instruction to the contractor as he is on site only in an inspection capacity and if he does issue an instruction then under clause 3.4 of JCT 2011 (SBC/Q) any instructions/directions given to the contractor by the clerk of works shall have no effect unless the Architect/Contract Administrator has power to alter that part of the project and then confirmed the instruction in writing within two days of it being given. Therefore any instruction/direction given then confirmed shall from the date of issue be classed as direction given by the Architect/Contract Administrator not the clerk of works. fig.1.1 – Process for carrying out Instructions So the contractor should not have carried out the work described in the direction until written
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