Main Contract Details Flashcards
What is the Contract Start Date?
When the Contract is signed
What is the date of Possession ?
When the Contractor can begin the project on the site.
The Contractor gains temporary rights of the land to allow for Construction.
What is the Practical Completion Date and what does it include?
When the majority of the project has been completed and the client can start using the site. Site possession is handed back to the client. A practical completition certificate is also issued
What is the Completion Date?
When the Defect Period (specified in the brief) is over. A certificate is provided to the client.
What is the Defect Period?
In-between the practical completion date and completion date. The purpose is to complete any minor works such as installing blinds in a room.
What is the Tender Period?
A submission such as a price and programme made by the Contractor in regards to supplying the goods and services for the project. The tender period varies upon procurement.
What is a Letter of Intent?
A document outlining an agreement between two or more parties before the agreement is finalised. A letter of intent is based upon Quantum Meruit.
What is the Article of Agreement? What are the Articles of Agreement?
Core statement of what the parties have agreed
Parties to the Contract: Who the offeror and offeree is
Recitals: Description of what is required and what has been achieved. First six recitals apply to all. Seventh to tenth recitals apply ONLY when the contractor is to undertake design works.
What is an Invitation to Tender?
An invitation for the other party (usually the Contractor) to make the offer
What is an Offer?
When you return a Tender. It becomes legally binding, if accepted
What is an Acceptance?
An unqualified acceptance of the offer. Unqualified acceptance is when the Client must pay the full amount as specified in the bills
Forms of acceptance?
Written
Oral
By Conduct (hand shake)
What are the results of an offer?
Offer expires
Offer rejected
Offer withdrawn
Counter-Offer
Name 5 risks of a Contract
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Why is a contract important?
Protects the client with:
Liquidated Damages
Insurance
