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When work on a construction site has started long before a formal contract has been drawn up and signed, the parties may have made an agreement to negotiate; or the employer or architect may have written a letter of intent to the contractor. Explore an - Essay Example

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What is important is that there is a meeting of the minds between the parties. Nevertheless, since the memory of man cannot be trusted or relied upon at all times, there are instances when contracts have to be in writing in order for the…
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When work on a construction site has started long before a formal contract has been drawn up and signed, the parties may have made an agreement to negotiate; or the employer or architect may have written a letter of intent to the contractor. Explore an
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Download file to see previous pages [internet]). The compulsion for contracts to be in documented properly s more imperative in construction agreements because these usually involve significant or huge amounts of money, not to mention the usually lengthy period of construction and the efforts of all those involved in the project. Furthermore, construction covenants normally have a lot of regularly common details that include specifications on materials, labor, time-frame from commencement to completion to turn-over or delivery, penalties in case of delay, stipulations regarding defects in construction or inferior quality in the works undertaken and on so many other aspects for which the terms and conditions must be meticulously addressed and monitored. It will be disastrous if the mistakes or flaws are discovered when the building has already started to rise and the concrete elements have already dried.
It may be noted though that even if no contract yet has been finalized for a building project, the builder and the client normally do some preparatory and preliminary transactions which already entail some jobs and some funds. While these initial steps do not yet constitute the whole terms and conditions of the entire formality, the petty inter-actions are enough evidence of the business relation between and among all the persons and entities concerned. Necessarily and as a matter of course, once the ultimate contract is perfected and consummated, these small pieces of complements can be incorporated therein or can be construed as being so incorporated. There are also incidents in which a letter of intent is first transmitted by one party to the other which serves as a proposal. Certain types of letters of intent have an accompanying acceptance or approval caption and blank space where the addressee may affix his signature which act is deemed as a badge of absolute and unconditional approval to everything that is set forth. The offer made in a letter of intent may also be ...Download file to see next pagesRead More
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