Chapter 1 Introduction to Construction Industry 1
Chapter 2 The Parties To The Contracts 3
2.1 Employer 4
2.2 Contractor 6
2.3 Contract Administrator 9
Chapter 3 Procurement Methods of Construction Contracts 13
3.1 General Contracting 13
3.1.1 Background 13
3.1.2 Basic Characteristics of Traditional General Contracts 15
3.2 Design and build 19
3.2.1 Background 20
3.2.2 Features of Design and Build Contracts 20
3.3 Management contracting 25
3.4 Construction Management 28
3.5 EPC 31
Chapter 4 Tendering and Contract Formation 34
4.1 Agreement 34
4.1.1 Offer 34
4.1.2 Acceptance 35
4.2 Contracts made by tender 37
4.2.1 Purpose of tendering 38
4.2.2 Tendering procedures 38
4.2.3 Legal analysis of tenders 44
4.2.4 Problems in the constitution of bids 45
Chapter 5 Contract Terms 51
5.1 Express Terms 51
5.1.1 Terms and representations 51
5.12 Contract documents 53
5.1.3 Priority of documents 58
5.2 Implied Terms 62
5.2.1 Implication in law 63
5.2.2 Implication in fact 64
Chapter 6 Contractor's Obligations 66
6.1 Standard of work 66
6.1.1 Workmanship 67
6.1.2 Standard of materials 68
6.1.3 Suitability of materials 68
6.1.4 Suitability of the building 68
6.2 Statutory obligations 70
6.2.1 Contractor's duties 70
6.2.2 Divergence between statutory requirements and contract 71
6.2.3 Emergency work 71
6.3 Co-ordination and Management 73
6.3.1 Control of persons on the site 73
6.3.2 Exclusion of persons from the works 74
6.3.3 Antiquities 74
6.3.4 Testing and approvals 75
6.4 Transfer of materials 76
6.4.1 General position 77
6.4.2 Contract provisions 77
6.4.3 Retention of title 78
Chapter 7 Employer's Obligations 80
7.1 Implied obligations 80
7.1.1 Non-hindrance and co-operation 80
7.1.2 Specific examples of non-hindrance and co-operation 81
7.2 Express terms of Employer's Obligations 84
7.2.1 Payment 84
7.2.2 Necessary Nominations 85
7.2.3 Site Obligations 85
7.2.4 Insurance 85
7.3 Responsibility for the Contract Administrator 85
7.4 Responsibility for site conditions 88
7.4.1 Contractor's Risk 88
7.4.2 Employer's Responsibility 89
Chapter 8 Time 91
8.1 Commencement 91
8.1.1 Possession of the site 91
8.1.2 Date for possession 92
8.1.3 Deferred Possession 92
8.2 Progress 92
8.3 Completion 94
8.3.1 Meaning of Completion 94
8.3.2 Date for Completion 95
8.3.3 Delay in completion 95
8.3.4 Sectional completion and partial possession 95
8.3.5 Effects of completion 96
8.4 Contractor's Obligations after Completion 96
8.5 Extensions of Time 98
8.5.1 Grounds for extensions of time 99
8.5.2 'Relevant events'as a ground for extensions of time 99
Chapter 9 Payment 106
9.1 Employer's obligations to pay 106
9.1.1 Contract price 106
9.1.2 Time of payment 106
9.1.3 Effect of certificates 107
9.2 Contract sum 107
9.2.1 Definitions in the contracts 107
9.2.2 Permissible changes 108
9.3 Variations 109
9.3.1 The need for variations 109
9.3.2 Definition of variations 110
9.3.3 Issuing variations 111
9.3.4 Valuing variations 112
9.4 Fluctuations 113
9.5 Retention money 114
Chapter 10 Role of the Contract Administrator 117
10.1 Contract administrator as the employer's agent 117
10.1.1 Extent of powers 117
10.1.2 Functions and duties 120
10.2 Contract administrator as independent adjudicator 123
10.2.1 Certification 123
10.2.2 Other decision-making functions 125
10.2.3 Liability for negligent decision-making 125
Chapter 11 Subcontracting and Nomination 129
11.1 Outline of Subcontracting 129
11.1.1 What is construction subcontracting 129
11.1.2 Reasons for subcontracting 129
11.1.3 Types of subcontractors 130
11.2 Domestic subcontractor 132
11.2.1 Selection of domestic subcontractors 132
11. 2.2 Relationship between the main contractor and subcontractors 134
11.3 Nominated Subcontracting 136
11.3.1 Why Nominate 136
11.3.2 Difference between nominated subcontractors and domestic subcontractors 136
11.4 Payment to subcontractors 139
Chapter 12 Suspension and Termination of Contract 142
12.1 Suspension of Work 142
12.1.1 Suspension by Employer 142
12.1.2 Suspension by Contractor 145
12.2 Termination of Work 147
12.3 Termination by Employer 148
12.3.1 The Event Incurring Termination for Default 149
12.3.2 Steps of Termination for Cause Taken by Employer 151
12.3.3 Termination for Convenience 153
12.4 Termination by Contractor 156
Chapter 13 Alternative Dispute Resolutions 159
13.1 Definition of ADR 159
13.2 Features of ADR 160
13.3 Forms of ADR 162
13.3.1 Negotiation 162
13.3.2 Conciliation 162
13.3.3 Mediation 163
13.3.4 Dispute Adjudication Board 164
13.4 The Mediation/Conciliation Agreement 167
13.5 The Procedure of DRB/DAB 168
13.5.1 Selection and Appointment of Dispute Board Members 168
13.5.2 Dispute Board Rules 168
13.5.3 The Work of the Dispute Board 168
Chapter 14 Arbitration and Litigation 171
14.1 Arbitration 171
14.1.1 Advantages of Arbitration over Litigation 171
14.1.2 Disadvantages of Arbitration 176
14.1.3 Arbitration Institutions 177
14.1.4 Choosing of Arbitrator 180
14.1.5 Duty of Arbitrators 181
14.1.6 The Arbitral Proceedings: 182
14.2 Litigation 189
14.2.1 Litigation or Arbitration 189
14.2.2 Process of Litigation 190
Glossary 197
References 210