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Course work - Essay Example

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One of the most common types of contracts used when entering into these agreements is the new engineering contract. This type of contract…
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Download file to see previous pages... In regard to the NEC contracts, the issues that arise between parties involved in the contract are handled by the adjudicator (clause 91.1). The adjudicator will give his ruling after a maximum period of 4 weeks (Bennett 2001). During this time the parties must go on with their obligations as if nothing has happened as they wait for the ruling. Reasons for termination are outlined in clause 95(95.1 -95.6) that show the grounds that can be used by either party to terminate the contract.
Sacking of a contractor is the termination of the working agreements between them. The contract becomes null and void and the parties lose the working relationship they once had. Removal of a contractor is usually an extreme method of dealing with non-performance. This is despite the fact that it might lead to less headaches in regards to the particular contractor it has certain adverse effects (Rowlison, 2011). It is advisable to have the contractor on board until a particular project is finished then seeking legal redress thereafter. This protects the project manager from some legal hurdles.
To begin with, it is very difficult to fire a contractor. Once a contractor is fired, there is the issue of the unfinished work which is on a certain timeline. Getting a different contractor to finish the work can be a hassle given that other contractors will be wary of working with such a project manager (Bennett 2001). The project manager will have limited bargaining power and might not get the best that the market has to offer. This will therefore compromise the quality of the project.
Termination of a contract can be by two ways. This can be by using the terms of the contract or claiming that the behavior of the contractor is appalling and this behavior may imply that the contract does not exist. Termination by using the terms of the contract involves giving notice to the contractor as per the set guidelines in the contract (Rowlison, 2011).
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