The Joint Building Contracts Committee (JBCC) Principal Building Agreement is a document that is followed by building owners and industry participants to which portrays the consensus view of all the constituent members involved in terms of a fair contract. This document sets out “clear, balanced and enforceable procedures, rights and obligations which, when competently managed and administered, protect the employer, contractor and subcontractors alike” (JBCC, 2014). This essay aims to highlight the duties and responsibilities of the principle agent in the Joint Building Contracts Committee (JBCC) Principle Building Agreement, Edition 6.1. The essay will pay particular attention to the range of the principle agents duties, the pressure of the principle agent serving as both representative of the employer and as an independent professional, the nature of the …show more content…
According to the JBCC Principle Building Agreement, clause 1.1, the principle agent is “the entity appointed by the employer with full authority and obligation to act in terms of this agreement” (JBCC Principal Building Agreement, 2014). As stated, the employer appoints the principle agent, this principle agent has the primary function (in clause 6.3) of acting in a professional manner while overseeing the building works goes smoothly while still keeping in mind the employers best interests, needs and wants. A factor that strengthens the building contract is outlined in clause 6.6; it states that the employer must refrain from interfering or preventing the principle agent from exercising his/her reasonable professional judgment when performing their obligations. The principle agent can be
A basic definition for the procurement is “the way the building is realised” and “involves assembling and organising the skills and services of a team of construction professionals”. (the Construction Round Table, 1995). More precisely, the construction industry describes procurement as “a system that establishes the roles and relationships which make up a project organisation”; hence the overall organisation and communication structure for the management, administration and control of a project is established by the procurement system. (D.C.H Coles, 2010)
Contracts are an important part of everyday life. They are an essential part of business. As a student of a business law class, I will discuss in this paper several aspects of contracts. This paper will give a definition of a contract and the essential elements necessary to form a valid contract. It will briefly discuss breach of contract and the difference between a material breach and a nonmaterial breach of contract. Examples of legal and equitable remedies available for breach of contracts will be highlighted. Also, legal excuses for nonperformance or other grounds for discharge of contracts will be addressed. Finally, three types of common contracts personally and professionally encountered will be mentioned.
The contract seeks to protect and ensure that both parties have equal risks, however protects the architect
After the case of Ron Engineering, many transformations took place in the contracting laws of tendering. The contracts were given a brand new structuring and implementation which brought more transparency and reliability. The court established Contract A, which had be present prior to the construction contract—which was known as Contract B—where all the parties had beforehand thought was the exclusive contract concerned in the tendering process. Whenever an owner calls for bids, it proposes to enter automatically into a bidding contract i.e., Contract A. The contract automatically becomes a lawfully enforceable agreement as soon as the bidder submits its bid. In case the bidder’s offer is acknowledged, the owner and the bidder both then are contractually compelled by the tendering contract to come into the production contract i.e., Contract B.
In addition to their role as contract administrator the employer’s agent may furthermore have duties to undertake on the clients behalf preceding the contract being awarded. The employers agent is obliged to accept instructions from the employer, conversely in reality the employer’s agent will find many conflicts on interests between the employer and the contractor. Sutcliffe v Thakrah is the leading case on the Employers agents
Clough, Richard H, Glenn A. Sears, S K. Sears, Robert O. Segner, and Jerald L. Rounds. Construction Contracting: A Practical Guide to Company Management. , 2015. Print.
Developers are the first to be involved in the purchase of a parcel of land, financing and project feasibility. Once the use of the parcel is identified, a team of architects and contractors put together a set a drawings for building permit application. The local government jurisdiction then analyses the documents for code compliance to a set of building codes that has been created by even more engineers and government officials. Once approved, the drawings are released as approved documents for construction to contractors, subcontracts and engineers. During the construction process, the local government provides inspections to the project to ensure that the building is being completed per the specifications of the architect and engineer. Finally, the building is completed and approved for occupancy by tenants, who then hire insurance complies to insure their final product. The entire construction process is governed by a set of complex code requirements. Most typically from the International Building Code as written and adopted by the International Code Council. As stated in the introduction, these codes are the result of a generation of building disasters, which have been adopted by the States building division and enforced by the local jurisdiction. All parties in the process must interact with the code requirements, but
In the State of Idaho there are a variety of laws that protect the entities of the state and of those laws specifically help the vendors of Public Works Contracts. In the state of Idaho, some of the contracts that are being awarded by the vendors are being received by in-eligible representatives Construction Mangers or General Contractors by in-eligible meaning that CM/GC’s have not met the requirements of becoming an acquired bidder in the auctions. With the policy of Idaho Code 54-4511, protects the vendors from being sued by either firms or the property owners. In this law there are many requirements and many rules that the contractors must follow in order to execute an outstanding contracts. Meanings of having a maximum price, the amount of work that has to be done in a substantiate amount of time and determining how much how you can actually do at the maximum amount of price that was set by CM/GC’s.
The second problem arises during the time of handover of the project. This is the time where the contractors make the most nuisances and one will surely have to go through some legal hazards during that stage.
To bring this project to fruition and realize the gains projected, the following processes need to occur without incident: Alexander’s bid must be accepted by the seller, which requires that he obtain an appropriate mortgage, and avoid forfeiting his deposit, which could be something to the tune of $17,500 or more. For the closing sale of the property to go smoothly, there mustn’t be any lien issues from the existing bank withholding loan proceeds to the architect, since the construction was not finished. After this, the construction needs to be essentially error free and at an expedited pace to be complete by the four month timeframe set- and this is without a professional general contractor. Additionally, the job must not exceed the $165,000 figure that was given by a non-independent contractor, who very likely may have given a low-ball estimate to seem like an attractive candidate. The last architect was off by $115,0001, indicating that the scope of the work necessary to complete the job may be deceptive and much greater than anticipated, however there is no reserve beyond budgeted amount, making this possibly the hardest mission to accomplish. If, however, the project is completed within the four allotted months, and without going over budget, the next phase is filling vacancies, which Alexander is also planning to have accomplished by the end of the fourth month. This means that during the construction process, Alexander must also
Traditionally employers appoint professionals to manage construction and engineering contracts. Whether or not they are an ‘employer’s man’ has been the subject of much debate. The employer’s agent under the JCT performs all the duties of the employer on their behalf. As shown in article 3 of the JCT “shall have full authority to receive and issue applications, consents, instructions, notices, requests or statement and otherwise to act for the Employer under any of the Conditions” This leads to the Employers
Over the years the construction industry has developed a reputation for shady deals and untrustworthiness. Contractors specifically are the root cause of the mistrust between the industry and the public. When it comes to the relationships between contractors and subcontractors though there is still a mistrust even though both sides share the same unfavorable reputation. Often times contractors bully subcontractors into signing contracts that put them in very unfavorable positions. And after that subcontractors bully sub-subcontractors into signing equally unfavorable sub-contracts. However, not all contracts are terrible, what makes them so one sided are specific clauses that are inserted in an attempt to transfer responsibilities from the contractor to the sub and sub-subcontractors. Conditional payment and oversight responsibility are a couple of the types of clauses that attempt to do such work. Another clause in construction contracts attempts to protect the contractor and owner from each other with regard to change orders, it is included to force each party to put changes into writing. For the most part, no set of plans is perfect so inevitably changes must be made. So contractors and owners find themselves in yet another situation where both sides have the opportunity to be as unsavory as they can be. As the industry progresses into the future, many additional contract clauses will pop up. They will attempt to shift more responsibility and blame off the
In the paragraphs that follow I will address the issues such as evaluation of the contracts and decide if they will be governed under the common law rules or the Uniform Commercial Codes (UCC). The paper will also analyze the essential elements of an
In Clan Contracting Limited, the main stakeholders include the directors, the contracts manager, the technical manager, the project engineer, the accounts department, administration department, joiners, bricklayers, plasterers, labourers, concrete repair specialists and site managers. All of the stakeholders have communal organisational objectives to achieve the goals that conform with the mission statement of the company such as maintaining a high standard of professional work
For this assignment the writer is going to discuss the nature and types of construction contracts and will explain the legal responsibilities of the various parties involved in the design and the construction process.