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Construction contract
This article refers to the contract for the main contractor to construct the works (and on some
contracts also to design, operate and finance the project). For agreements for the appointment of
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Articles of agreement.
Contents
1 Introduction
2 Standard forms of contract in common use for construction in the UK.
2.1 JCT (The Joint Contracts Tribunal)
2.2 ACA (The Association of Consultant Architects).
2.3 Chartered Institute of Building
2.4 FIDIC (Fdration Internationale des Ingnieurs-Conseils).
2.5 NEC (The New Engineering Contract): Engineering and Construction Contract).
2.6 Other forms of contract
3 Contract conditions
4 Building information modelling (BIM)
5 Modified standard forms of contract
6 Bespoke contracts
7 Notes
8 Find out more
8.1 Related articles on Designing Buildings Wiki
8.2 External references
Breach of contract.
Contract conditions.
Contract documents.
Contract engrossment.
Contract execution.
Contract v tort.
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Introduction
The classic nineteenth century definition of a contract is 'a promise or set of promises which the
law will enforce' (Pollock, Principles of Contract 13th edition). That is to say, there is reciprocity
Skills gap
of undertaking passing between the promisor and the promisee. In contract, the rights and
obligations are created by the acts of agreement between the parties to the contractual
arrangement.
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industry.
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NB the JCT traditional forms of contract remain by far the most popular forms of contract in the
UK (ref nbs: National Construction Contracts and Law Survey 2012
(http://www.thenbs.com/topics/ContractsLaw/articles/nbsNationalConstructionContractsLawSurve
y2012.asp) ).
masonry dome.
Cohousing
Contract conditions
Contract conditions set out the principal legal relationship between the parties to a construction
project, determining the allocation of risk and consequently, price.
The adoption of building information modelling (BIM) on a project requires the definition of specific
obligations and liabilities, and limitations must be placed on the agreed use of the model. This is
generally achieved by adopting a BIM protocol. BIM protocols can be incorporated into contract
documents by the addition of a model enabling amendment such as that proposed in the CIC BIM
protocol.
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Bespoke contracts
24% of respondents to the nb National Construction Contracts and Law Survey 2012
(http://www.thenbs.com/topics/ContractsLaw/articles/nbsNationalConstructionContractsLawSurve
y2012.asp) indicated that they use purpose-written bespoke contracts. Not only is this
considered inadvisable because of the risk that bespoke contracts may not adequately or fairly
make provision for all circumstances, and that they are not supported by a history of case law,
but it is also a poor reflection of how inflexible and ineffective the industry perceives many of the
standard forms of contract to be.
Development House, Shoreditch
Notes
NB The first stage appointment of a two-stage procurement process might be made using a
separate pre-construction services agreement (PCA or PCSA), sometimes called early works
agreements, rather than under the provisions of the main, second-stage contract.
For a detailed description of the tender process for appointing the main contractor see the free
work plan stages:
Traditional contract: tender.
Design and build: tender.
Public project: tender.
Public project: PFI tender.
Construction management: tender.
Management contract: tender.
Buildings in film
External references
The London Government Taskforce: A Guide to standard forms of construction contract,
outlining key characteristics and components.
The International Bar Association: Standard forms: contract conditions
(http://www.ibanet.org/LPD/SEERIL/Intl_Construction_Projects/Standard_Forms/Overview.as
px) .
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