The Joint Contracts Tribunal

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)

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ii) When dealing with customers, Eden Sounds prefer to use a “Standard form contract”. Explain what a ‘standard form contract’ is, and list the advantages to both parties in using them.

In this method, the design and the construction roles are combined into a single responsibility and the team is referred to as the Design Build Contractor. The architect is under contract to the contractor and not the owner. The advantages of this method are that the owner is dealing with one contract for the design and construction and does not get involved in the details of the design and construction. The design can be accomplished according to the budget and easily be changed if necessary. Since the maximum price is set in an early stage, this method is faster than the design-bid-build and the construction manager method. However, there are drawbacks to this approach. Since the architect and contractor report to the design/build firm, a conflict is created between the owner and the design/build firm. Also, as the design and construction roles are part of the same team, this can lead to a disadvantage. As the owner is no longer dependent on the architect, the architect’s judgement is no longer provided to the owner and this leads to quality control problems. (what I think if this is the best method or

This paper includes a description of the procurement planning process. The most valuable output of the plan procurement process will be identified. Furthermore, the various contract types will be explained. A source criterion that would be applicable to any project will be described and three criteria that would apply to most projects will be identified. An analysis of the ethical

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.

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.

Two basic types of competitively bid construction contracts are lump-sum and the unit-price contract. The lump-sum contract is when the contractor agrees to complete all work for a pre-determined price including profit and the contract. The unit-price contract is when the contractor quotes work on units separately instead of entire project. Price is based on units of work performed, and cost varies depending on the quantities of units. Building the piers to support a large suspension bridge will

In Carr v J.A. Berriman Pty Ltd, the principal entered into a contract with a builder for the construction of a factory. Two breaches by the principal caused the builder to seek to terminate the contract; a failure to deliver the site in the condition specified in the contract and a unilateral decision to remove from the contract the fabrication of steel framing. It was the second breach that was decisive in the view of the High Court in finding that the termination was effective. In its reasons, the Court noted that the loss of the fabrication represented about one quarter of the builder’s estimated profit on the entire project and the removal from the contract of that percentage of the overall value was a substantial breach.

In construction projects, mostly the firms (in this case the firms become client) do not have the skills or develop skills inside the firms to undertake the projects due to amount of the projects should be conducted or the complexity of the projects (Reve and Levitt, 1984). Therefore, the economic decision to conduct the projects is to procure them to third parties. However, more commonly the client agonize the final quality of the projects will meet standard requirements. Thus, impacts to involvement of complex contracts of construction procurement.

Turnkey contract is an agreement that contractor complete the project and hands it to the client in fully operational state. Turnkey contract is the contract that the client contracting with one party only in the whole project until the project is complete. Normally the developer or contractor is separate with the client, and they will only ‘turn the key’ to the client once the project is completed and it is fully operational. This type of agreement is suitable for construction project in the range of single building to large-scale development. It is different from traditional lump-sum contract which the client agrees to pay the contractor to complete a project that is built in contractor’s specification and

This essay will examine how to best prepare a contract administration plan. The contract administration plan will examine different methods used in preparing a plan. This essay will explain how important it is to have technical and other support of personnel, the importance of surveillance, and to determine what functions need to be delegated, identify qualified personnel as well as authorized, it is necessary for the Contracting officer to be represented in administering contract requirements. Also there will be a discussion on what is determined

To select a suitable procurement strategy for a construction project, there are some issues which need to consider. From all of those issues, there are 3 big issues that mainly affect the selection decision which are time, cost and quality. There is several type of procurement strategy available in market that commonly used for construction project and each of the common method will be analyze and compare to find the most appropriate method for this project. The choice of procurement strategy is very important to the success of a construction project. Therefore, the characteristic of each strategy have to analyze and also its relative advantages and disadvantages. A recommendation of most appropriate procurement

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.

This practice note sets out a number of fundamental legal and business considerations and issues to address in the context of a project finance transaction.