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Session-05 Contracts Forms and Definitions

Contracts Forms and Definitions

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Yahya Alkhatib
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© © All Rights Reserved
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10 views

Session-05 Contracts Forms and Definitions

Contracts Forms and Definitions

Uploaded by

Yahya Alkhatib
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 24

Contracts Forms and

Definitions
Yahya Khatib
Contents
1. Author Biography
2. What is a Contract?
3. Discharge of Contracts
4. Conditions of Contracts
5. Contract Documents
6. Standard Forms of Contracts
7. Parties Responsibilities in Different Standard Forms
2 8. Q&A
Author Biography
Yahya Khatib
o Cost Consultant
o 15 years in Development, Project Management & Construction
o Certified Cost Professional, CCP (AACE)
o Certified Estimating Professional, CEP (AACE)
o Planning & Scheduling Professional, PSP (AACE)
o Charted Arbitrator, MCIArb (CIArb)
o Value Methodology Associate (SAVE)

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o Project Management Professional (PMI)
What is a Contract?
What is a Contract?
A voluntary arrangement

Between two or more parties

Enforceable by law

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What is a Contract?
Elements of a Contract?
Offer
Slightly differs between Civil and Common laws
Acceptance
Counter-offer revokes the original offer
Intention to create legal relation
Conduct of offer might be considered acceptance
Consideration

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What is a Contract?
Civil law: Common law:
Legislative decisions Judicial decisions
Generally codified Generally uncodified
Role of judges: inquisitorial Role of parties: adversarial
Decisions of legislators Significance of precedent

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What is a Contract?

Common Law
Civil Law
Common & Civil Law
Civil and common law jurisdictions (Source CIArb)
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What is a Contract?

Question:
What is the importance of Contract law?

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Discharge of Contracts
How Contracts are discharged
By performance (Majority)
Frustration
Mutual Consent
Unilateral Consent
Fundamental Breach
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Conditions of Contracts
1- General Conditions Dealing with:
General obligations of the contractor and employer

Documents describing the works and priority of documents

Design responsibilities – reasonable skill and care or fitness for purpose

Confidentiality agreements

Collateral warranties to tenants/funders and sub-contractors

Parent company guarantee

Performance bond

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Conditions of Contracts
2- Conditions dealing with possession and completion:
Ability of employer to delay possession

Ability of employer to suspend the works

Damages for delay

Items entitling contractor to an extension of time. Procedure to be followed

Definition of completion

Phased completion

Occupation by employer before completion

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Conditions of Contracts
3- Conditions dealing with the control of the work:
Procedure for issuing instructions changing the works

Procedure for confirming contractor’s proposals for executing the works

Procedure for nominating sub-contractors

Procedure for conducting or witnessing tests and inspections

Ability and procedure for removing unacceptable personnel

Procedure for expending provisional sums

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Conditions of Contracts
4- Conditions dealing with the payment:
Procedure for calculating, invoicing and paying amounts due

Definition of the due date for payment

Right of suspension for non-payment

Retention and how it is accounted

Procedure for calculating additional costs arising out of instructions

Ownership of works and materials/transfer of title

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Conditions of Contracts
5- Conditions dealing with statutory obligations such as:
Health and safety regulations

Changes to statutory obligations after date of tender

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Conditions of Contracts
6- Conditions dealing with Injury, damage and insurance such as:
Insurance of the works

Joint names/project insurance

Cover for employer’s losses

Professional indemnity insurance

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Conditions of Contracts
7- Conditions dealing with the termination such as:
Employer’s rights to terminate

Contractor’s rights to terminate

Compensation

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Conditions of Contracts
8- Conditions dealing with dispute resolution such as:
Adjudication

Mediation

Arbitration

Litigation

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Your e-certificate
Please register your details in the link (chat box)
Spell the name as you want to see in the
Certificate
Spell your email Correctly
Registration will close right after the session

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Contract Documents
Pricing Document like a bill of quantities

Drawings

Specifications

Contract (agreement and conditions), amended to incorporate the name of the


parties, the contract sum

Appendices

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Contract Documents
Letter of Intent
Instruct Contractor to proceed in long lead material/design

Legally binding

Contractor to be paid reasonable cost if no contract signed (Quantum


Meruit).

To be drafted carefully.

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Standard Forms of Contracts
E.g. FIDIC, JCT, NEC..

Tailored to fit Engineering and Construction Works

Tried and tested wording aims to reduce both negotiation time and cost

Reduces disputes during execution

Tested on thousands of projects

Most practitioners are familiar with them

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Parties Responsibilities in Standard Forms

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Question & Answers

?
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Yahya Khatib, BEng, MCIArb, CCP, CEP, PSP, PMP, VMA
[email protected]

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