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Construction contract - Essay Example

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It conducts the drafting of documents in areas such as civil engineering and construction projects. The purposes can be obtaining tenders, awarding and administrative…
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Construction contract
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Download file to see previous pages The implementation of the NEC contracts has resulted in great benefits in terms of time, money and quality both nationally and internationally. The NEC documents are essentially different in approach to many other procurement contracts. This approach is seen in the drafting of the contract. Where the traditional approach to a contract showed the adversarial relationship between the client and the contractor, the NEC approach to contracts promotes a collaborating approach that has a consistent record of submitting projects in the given time, and on budget (Bennett and Baird, p30).
The NEC is a unit of standard contracts with three key characteristics that exist in each document. Firstly, it promotes good management and shows the relationship and the work between the two parties in the contract. Secondly, the NEC can be used for a variety of commercial situations as they support a variety of types of work regardless of the location. Lastly, NEC is a clear and simple contract which is drafted in easy language and simple words so that it is easy to understand for all parties. The contract in regard of the whole project comes with notes for guidance and flowcharts showing the details of the procedure of the project (Gibson, p77).
Compensation events are those events that lead the contractor to be compensated for any change in price and as well as the completion date, if that event is not the contractor’s fault. The consequence of the compensation event is that the contractor has to allow additional payment and additional time. In some rare cases, these compensation events may also result in reduced payments. The basis on which the contractor is paid for the compensation event is the actual and forecast cost of the project.
All the compensation events are mentioned in the contract under the core clauses where the contractor and ...Download file to see next pages Read More
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