(11) Project Contract Flashcards
Importance of Relationships (inv..7)
- Investment in relationship prior to the contract is important.
- Research about the company.
- Visiting contractor’s site.
- Socialising with focus.
Importance of Relationships (ong..7)
- Ongoing relationship between the parties.
Importance of Relationships (proc..7)
Processes within the contract to nurture the relationship.
- Sitting on joint steering committees and other joint management
processes .
- E.g. sharing office space, regular meeting.
Importance of Relationships (con..7)
Contract in the legal jurisdiction of the client.
- Contractor should comply with the legal jurisdiction of the client if possible.
Importance of Relationships (acc..7)
Access to mutually agreed moderation or arbitration to avoid going to court.
Importance of Relationships (cou..7)
Court action is a last resort action (expensive and slow).
Importance of Relationships (ter..7)
Terms of contract.
Tension between contractors and clients.
Contractors - Maximum fair profit - Minimum fair scope and quality Clients - Maximum scope and quality - Minimum project cost
Agreeing agendas between contractors and clients (con..)
Contractor
- Good referee
- Recurring business
- Be more cost effective
Agreeing agendas between contractors and clients (cli..)
Client
- Less induction overhead for a known contractor
- Don’t waste time to search for contractors
- Confidence and Trust in the contractor
- Cost savings
What is a contract?
A voluntary, deliberate, and legally binding agreement between two or more competent parties.
Contracts are usually…
Written but may be spoken or implied, and generally have to do with employment, sale or lease, or tenancy.
5 Conditions for Legal Contracts (1)
There must be an offer.
- Offer and acceptance are required.
5 Conditions for Legal Contracts (2)
There must be consideration.
- An exchange is required (usually goods for money).
5 Conditions for Legal Contracts (3)
- There must be legal capacity.
- Those entering the contract must be legally able to do so.
5 Conditions for Legal Contracts (4)
- There must be legal purpose.
- The contract must be for something legal.