Arguably, the single most important document within a construction project is the main contract between the Client and the Contractor. This contract governs almost every aspect of the works and the legal relationship between the parties, including the terms of the agreement and remedies for adverse outcomes. A well-drafted standard form of contract will remove most ambiguity and increase the likelihood of the works programme progressing on time and budget without disputes arising.
It cannot therefore be understated how important it is to get the contract right, especially on larger and more complex projects.
In its most basic form the contract describes the terms of the appointment including the identities of the contracting parties, detailed description of works to be undertaken, value of the works and basis of measurement, timescales of when the completed works (or sections of the works) will be delivered, payment terms and more generally the rights, obligations and responsibilities of the parties. In describing the rights and obligations the contract allocates risk between the Client and Contractor in the event of unforeseen circumstances.
There are a number of standard forms of contract including the suites published by: the Joint Contracts Tribunal (JCT), New Engineering Contract (NEC) and Infrastructure Conditions of Contract (ICC). The Client and their advisors should ensure that they select a form of contract that is suitable for the type of works being undertaken and the procurement strategy being adopted. The parties to the contract should understand what they are signing up to and the risks rights and obligations placed on them.
Doyen Land advises Clients on contracts and contract administration on all types of real estate projects. If you feel this would help your organisation please call us on 0207 947 4 947.