Construction law - standard form contracts Essay

Construction law - standard form contracts - Essay Example Comparison is made in the context of provisions such as Design Changes, Delays and Disputes, Payments, and Dispute Resolution. The first version of the National Engineering Contract came into being in 1991 under the name New Engineering Contract and was used for a number of projects, particularly in South Africa (Smith 1999, p.250). The contract was different in many respects from other similar contracts and therefore it was criticized by many in the initial periods of its inception. With its new version came into force as NEC3, its popularity has widenened. Established in 1931, Joint Contracts Tribunal (JCT) has much experience and resources in the field of construction industry. Its resources include standard forms of contracts, standard documentation, and other guidance notes. JCT was incorporated as a company limited by guarantee in 1998. Thereafter, it has been the responsibility of the company to look after the JCT Council and producing suites of contract documents for the use of construction industry (Mulcahy 2008, p. 165). Under this contract, the contractor is obliged to design the works of the project in conformity to the project information supplied by the employer (Clause 21, p.7). The contractor is also responsible to ensure that that the project design is accepted by the Project Manager. Sometimes, the project manager may not accept the design in case the design is not prepared in accordance with the work information and / or relevant legislation. The contractor needs to commence the works once the consent from the project manager as to the acceptance of work design is received. One of the provisions of this contact grants authority to the employer, to use the design so prepared for purposes in connection with construction, use, alteration or demolition of the project work. In case, it is not allowed, it will be separately stated in the contract. It is also notable that the project manager is given the authority to accept or reject the design after a careful scrutiny of the same. Joint Contract Tribunal 2005 As per the provision of JCT 2005, the preparation of the work design is the responsibility of the contractor like that of NEC3. The provisions of this contract stipulate that the contractor is required to prepare and submit the project design before the administrator/architect appointed by the employer. It also states that the design should be prepared in such a way that it meets all the requirements as mentioned in the Employer's work requirement. Once the design is prepared, the same is handed over to the architect for scrutiny. The architect, within 14 days of acceptance, should give the design back to the contractor after putting his comment on one copy of the original design. Three comment grades are usually used under this contract, namely A, B, and C. The mark 'A' signifies that the contract can commence the work as per the work requirements with the same design and no change is needed. The mark 'B' implies the design need not be changed, but works have to be carried out as pe r the comments put forward