Essay On Construction Contracts

Construction contracts or construction contracts can take many forms. Because building a house or a commercial building is an expensive exercise, it is obviously important that you get good legal advice, whether you are the owner or the builder. When entering into a construction contract, it is very important to understand the contractual relationship between the parties involved and the lines of responsibility of the administration. The following general classifications are typical:

They are mainly of several types, some of them are as follows. Traditional framework contract, multi-master contract, design and construction contract, management contract, fixed price contract, expenditure contracts plus reimbursable costs, measurement and value contracts or revaluation, contracts with objectives, complete and divisible contracts

Under a traditional framework contract, the employer initially hires a designer to design the project. Once this design is complete, the employer enters into a framework contract with a contractor for the construction of the entire project in accordance with this design. The contractor, in turn, subcontracts part of the work to several subcontractors, while remaining contractually liable to the

In this contractual agreement, the contractor accepts responsibility for all work, whether design or construction. In theory, the employer is relieved of all obligations other than acceptance of design recommendations and payment of work performed. Design and construction contracts are an excellent contract method used worldwide. As the name implies, this type of contract is used when design and construction are carried out simultaneously during the term of the contract. However, many homeowners tend to choose different contract methods because a design and build contract can present challenges and situations in which the final costs can not be easily determined or