Our Motto is to: <ul><li>Produce a Quality Construction Project </li></ul><ul><li>On Time </li></ul><ul><li>Within Budget ...
Agreement <ul><li>Document that represents and reflects the legal contract between parties and is traditionally made betwe...
Purpose of the Agreement <ul><li>The purpose of the agreement is to record in written form those items agreed to by the ow...
For Agreement to be Valid it Must Contain <ul><li>The Date of the Agreement </li></ul><ul><li>The Names of the Contracting...
General Conditions READ THE CONTRACT THE  WHOLE  CONTRACT THOROUGHLY !
General Conditions definition A document called the “General Conditions” is used to define the responsibilities of the par...
<ul><li>Should be used in its entirety </li></ul><ul><li>Changes done only through Supplementary Conditions </li></ul><ul>...
The General Conditions Should Include: <ul><li>Definition of  Contract Documents </li></ul><ul><li>Document Precedent </li...
General Conditions  Subject  Areas <ul><li>Legal definitions of terms used in the contract </li></ul><ul><li>Correlation a...
<ul><li>Extensions of time reasons  </li></ul><ul><li>Right of the owner to terminate the contract </li></ul><ul><li>Right...
<ul><li>Lines, grades, and surveys; who perform and who pays </li></ul><ul><li>Defective work or materials </li></ul><ul><...
General Conditions  Subject Areas  Continued... <ul><li>Stop notice procedures </li></ul><ul><li>Liquidated damages for de...
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04-Nature of Contracts.ppt

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04-Nature of Contracts.ppt

  1. 1. Our Motto is to: <ul><li>Produce a Quality Construction Project </li></ul><ul><li>On Time </li></ul><ul><li>Within Budget </li></ul><ul><li>Complete it Safely </li></ul>
  2. 2. Agreement <ul><li>Document that represents and reflects the legal contract between parties and is traditionally made between Owner and the Contractor. </li></ul>
  3. 3. Purpose of the Agreement <ul><li>The purpose of the agreement is to record in written form those items agreed to by the owner and the contractor. It constitutes legal evidence that a contract exists and forms the basis for its enforcement. </li></ul>
  4. 4. For Agreement to be Valid it Must Contain <ul><li>The Date of the Agreement </li></ul><ul><li>The Names of the Contracting Parties </li></ul><ul><li>The Scope of Work </li></ul><ul><li>Time Limitations </li></ul><ul><li>Contract Considerations </li></ul><ul><li>Payment Conditions </li></ul><ul><li>Reference to Other Documents </li></ul><ul><li>Signatures </li></ul>
  5. 5. General Conditions READ THE CONTRACT THE WHOLE CONTRACT THOROUGHLY !
  6. 6. General Conditions definition A document called the “General Conditions” is used to define the responsibilities of the parties affected by the Contract and describe the guidelines that will be used in the administration of the contract.
  7. 7. <ul><li>Should be used in its entirety </li></ul><ul><li>Changes done only through Supplementary Conditions </li></ul><ul><li>Should-not be retyped </li></ul><ul><li>Use Standard Forms by the GSA, USCE and DOTs </li></ul>General Conditions Standard Forms
  8. 8. The General Conditions Should Include: <ul><li>Definition of Contract Documents </li></ul><ul><li>Document Precedent </li></ul><ul><li>Duties and Responsibilities of the parties </li></ul><ul><li>Duties and responsibilities of the Design Professional </li></ul><ul><li>Subcontractors </li></ul><ul><li>Separate Contractors </li></ul><ul><li>Time aspects of the contract </li></ul><ul><li>Payments and Completion </li></ul><ul><li>Insurance and Bonds </li></ul><ul><li>Change in the work </li></ul><ul><li>Arbitration and Termination of the Contract </li></ul><ul><li>Miscellaneous Provisions </li></ul>
  9. 9. General Conditions Subject Areas <ul><li>Legal definitions of terms used in the contract </li></ul><ul><li>Correlation and intent of the documents </li></ul><ul><li>Time and order of the work </li></ul><ul><li>Assignment of contracts </li></ul><ul><li>Subcontracts </li></ul><ul><li>Where to serve legal notices </li></ul><ul><li>Authority of the Architect/Engineer </li></ul><ul><li>Change orders and extra work delays </li></ul>
  10. 10. <ul><li>Extensions of time reasons </li></ul><ul><li>Right of the owner to terminate the contract </li></ul><ul><li>Right of the contractor to terminate the contract </li></ul><ul><li>Right of the owner to take over work </li></ul><ul><li>Obligations of the contractor </li></ul><ul><li>Supervision by the contractor </li></ul><ul><li>Handling of claims and protests </li></ul>General Conditions Subject Areas Continued...
  11. 11. <ul><li>Lines, grades, and surveys; who perform and who pays </li></ul><ul><li>Defective work or materials </li></ul><ul><li>Materials and workmanship </li></ul><ul><li>Provisions to allow access to all parts of the work </li></ul><ul><li>Inspection and tests; how administered and who pays </li></ul><ul><li>Coordination with other contractors at the site or nearby </li></ul><ul><li>Suspension of all or part of the work </li></ul>General Conditions Subject Areas continued...
  12. 12. General Conditions Subject Areas Continued... <ul><li>Stop notice procedures </li></ul><ul><li>Liquidated damages for delay </li></ul><ul><li>Right of owner to withhold payment </li></ul><ul><li>Provision for public safety </li></ul><ul><li>Changed conditions (unforeseen conditions) </li></ul><ul><li>Estimates and progress payments </li></ul><ul><li>Final payment and termination of liability </li></ul><ul><li>Protection and insurance </li></ul><ul><li>Disputes; settlement by arbitration </li></ul>

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