Category: Contracts

Contracts: What is a Construction and Engineering Contract?

Any contract is an agreement between two parties which can be legally enforced.

The Traditional Construction Contract.

In such a contract the employer contracts with an architect or engineer to carry out the design. The architect or engineer, acting as the agent of the employer, supervises the construction of that design. The contractor enters into a contract with the Employer.

There is no guarantee given by the employer to the contractor that the design can be built.
In carrying out the work, the contractor employs both subcontractors and suppliers of services, goods and equipment.

What is different about a Construction Contract?

contracts for specialist contractors, contracts advice for specialist subcontractorsA variety of factors make a construction contract different from most other types of contracts. These include the complexity of the project, its size and duration, and the fact that the price agreed and the amount of work done may change as it proceeds.

The structure may be a new building on virgin ground. It may involve the demolition of an existing building and its full reconstruction. It could involve partial demolition and rebuilding, or the refurbishment and extension of an existing building or structure.

This may be mostly below ground (in which case it is engineering) or above ground (in which case it is building). Building, however, includes foundations and other underground works.

A building contract can consist of activities and services carried out both above and below ground.

StreetwiseSubbie has been providing expert Contractual and Commercial consultancy services to all types of Specialist Contractors in Construction and Engineering for over thirty years.

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