Contract Practice - principles of contract law

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Mind Map by alison_patey0437, updated more than 1 year ago
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Created by alison_patey0437 over 7 years ago
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T017 & T016 Mind Map on Contract Practice - principles of contract law, created by alison_patey0437 on 04/21/2013.
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Contract Practice - principles of contract law
1 Types of FIDIC forms of contract?
1.1 Red Book
1.1.1 Civils - Architect/ Emp. design
1.1.1.1 Traditional
1.2 Yellow Book
1.2.1 M&E
1.2.1.1 D&B
1.2.1.2 e.g. water treat. plant
1.3 Silver Book
1.3.1 Turn key
1.3.2 EPC
1.3.3 e.g. pharmaceutical, Oil & Gas etc.
1.4 Green Book
1.4.1 Minor Wks
1.4.2 Short Form
1.5 Pink Book
1.5.1 Multilateral Dev. Banks (MDB)
1.6 Gold Book
1.6.1 Design Build Operate (DBO)
1.7 Orange Book
1.7.1 Cond. for D&B & Turnkey
1.8 White Book
1.8.1 Consultancy services agreement
1.9 Basic principle
1.9.1 eng. employed as EA + Representative.
1.9.2 Provisions
1.9.2.1 Nom Subbies
1.9.2.2 Settlement of disputes
1.9.2.3 EOT
1.9.2.4 LD's
1.9.2.5 Contract split into 2 parts
1.9.2.5.1 Part 1
1.9.2.5.1.1 General applicability
1.9.2.5.2 Part 2
1.9.2.5.2.1 Optional Clauses specific 2 each project
2 Different types of Stand. form of contract
2.1 FIDC
2.1.1 International Federation of Consulting Engineers
2.2 JCT
2.2.1 Joints Contract Tribunal
2.3 NEC/ ECC
2.3.1 New Engineering Contract/ Engineering & Construction Contract
2.4 ICE 7
2.4.1 Institution of Civil Engineers
2.5 PPC 2000
2.5.1 Project partnering contract
2.6 DOMI
2.7 IChemE
2.7.1 Institution of Chemical Engineers
3 PPC 2000 & TPC 2005
3.1 PPC 2000
3.1.1 Implemented by Assoc. Consulting Arch (ACA)
3.1.2 1st cont. 2 make partnering a contractual framework.
3.1.3 Sets out formal procedures
3.1.4 Each member of team becomes party 2 cont.
3.1.4.1 Contract. obligations
3.1.4.2 Multi-party contract
3.1.5 Project Partnering Contract
3.1.5.1 Born from Egan report 2000 (construction task force)
3.1.6 Used in single projects
3.2 TPC 2005
3.2.1 Term Partnering Contract
3.2.2 procurement for term wks & services
3.3 Differences between PPC & other Stnd form of contracts
3.3.1 Team based approach
3.3.2 integrated design/ supply & construction process (collaboration)
3.3.3 Incentives - pain & gain
3.3.4 Non adversarial problem resolution
3.3.5 VE & VM - PPC recognises
3.3.6 Core Group - operate early warning systems 4 prob & review issues early
4 Legal Requirement of a contract
4.1 1. offer & acceptance
4.1.1 There must b an offfer and it must be accepted
4.2 2. Acceptance by the other party
4.2.1 showing acceptance e.g. orally, writing or implied through conduct
4.3 3. Consideration of the offer
4.3.1 is the feat. that distinguishes a bargain from a gift. it is the price that each party ask of the other in return for entering into an agreement. Contract has to show that a price was paid
4.4 4. Intent to form a contract
4.5 5. Legality of contract
4.6 6. Capacity to make an agreement
5 Assumptions in a building Cont.
5.1 contract is entire in legal sense
5.2 contract with a 'break-clause' is not standard.
5.3 Only one MC
5.4 Contract price is more important than period.
5.5 Client is contractually passive during construction
6 Major UK Acts on construction sector
6.1 Housing, Grants, Construction, Regeneration Act 1996
6.1.1 Updated: Local Democracy, Economic Development and Construction Act 2009
6.2 Scheme for Construction Contracts Regulations 1998
6.2.1 if the contrcact between 2 parties does not comply with all req of HGCRA Act/no adj provision agreed = Scheme 4 construction contract default
6.3 Contracts (right of 3rd party) Act 1999
6.4 Civil Procedural Rules 1999
6.5 Arbitration Act 1996
6.6 The Construction (Design and Management) regulations - CDM 1994
6.7 The Latent Damage Act 1986
6.8 Unfair Contract Terms Act 1977
6.9 Defective premises Act 1972
7 Letter of Intent (LOI)
7.1 Definition
7.1.1 the expression in writing of a party's present intention to enter into contract at a future date.
7.1.2 can be binding or non-binding
7.2 Why is a LOI issued?
7.2.1 obtain necessary approvals & permissions
7.2.2 Anticipate delay in prep of a contract
7.2.3 Need 2 obtain long lead in times for plant & equipment
8 Common contract documents
8.1 Conditions of Contract + amendments 2 stnd. forms
8.2 Prelims
8.3 Contract Sum analysis/ BQ/ Sch of wrks
8.4 Dwgs, Spec, Sch, reports
8.5 ext. building info.
8.6 Any CDP elements
9 ICE Conditions of Contract
9.1 7th form published in 1999
9.1.1 Maj civils projects
9.1.2 re-measure contract
9.1.2.1 paid for actual work done
9.1.3 no reference to contract sum
9.1.3.1 rather tender price then contract price
9.2 there is an ICE Minor Works
9.2.1 Less than £100k & 6mths
9.3 Contract between promoter & contractor
9.4 Engineer has own contract
9.4.1 no obligations/ rights in main contract
9.4.2 engineer performs function of CA + QS
9.4.2.1 Known as Engineers representative
10 JCT
10.1 Widely used and well know
10.2 Main parts of JCT Contract
10.2.1 Recitals
10.2.2 Articles
10.2.3 Contract Particulars
10.2.4 Attestation
10.2.5 Conditions - divided into 9 parts
10.2.6 Schedules
10.3 main types of JCT contracts
10.3.1 SBC
10.3.1.1 SBC/XQ
10.3.1.1.1 Traditional
10.3.1.1.2 Lump sum
10.3.1.2 SBC/Q
10.3.1.2.1 Traditional
10.3.1.2.2 Adjustable
10.3.1.3 SBC/AQ
10.3.1.3.1 Traditional
10.3.1.3.2 Re-measureable
10.3.2 IFC
10.3.2.1 Traditional
10.3.2.2 Adjustable
10.3.3 MW
10.3.3.1 Traditional
10.3.3.1.1 short duration, small , simple
10.3.3.1.2 up to £150k
10.3.3.1.3 short & easy
10.3.3.1.4 Limited claim provisions
10.3.3.1.4.1 no fluctuations
10.3.3.1.5 Dwg/Spec & /or Work Sch
10.3.3.1.6 When is it not suitable?
10.3.3.1.6.1 client wants BQs
10.3.3.1.6.2 Wks require named specialists
10.3.3.2 Adjustable
10.3.4 D&B
10.3.4.1 D&B
10.3.4.2 Lump Sum
10.3.4.3 use?
10.3.4.3.1 contractor resp. 4 D&B
10.3.4.3.2 CDP form basis of project
10.3.4.3.3 no mention of Architect or QS - EA
10.3.5 IFC(D)
10.3.5.1 D&B
10.3.5.2 Lump Sum
10.3.6 SBC (D)
10.3.7 MW(D)
10.3.7.1 D&B
10.3.7.2 Lump Sum
10.3.8 MPC
10.3.8.1 D&B
10.3.8.2 Lump Sum
10.3.8.3 Use?
10.3.8.3.1 significant in size & complexity
10.3.9 Measured term contract
10.3.9.1 use?
10.3.9.1.1 maintainence/ minor wks undertaken reg basis
10.3.9.1.2 agreed on sch of rates
10.3.9.1.3 let on fixed or fluctuating basis
10.3.9.1.4 break provisions for terminating early
10.3.10 Agreement for Named/ Nominated Subbies
10.3.11 management contract
10.3.12 Construction Management Contract
11 Roles and Responsibilities of parties
11.1 Client
11.1.1 different roles for different procurement routes
11.1.2 Generally
11.1.2.1 responsible 4 deciding what he wants as the finished product
11.1.2.2 setting budget limits
11.1.2.3 briefing consultants
11.1.2.4 make sure design meets requirements
11.1.3 Traditional Procurement
11.1.3.1 contractually passive as most things rest with CA
11.1.4 D&B procurement
11.1.4.1 the client team is placed with the contractor
11.1.4.2 gets advice from a EA
11.1.5 Enter text here
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