What are the Basic Contract Documents ?
- 1. Contract Agreement A contract agreement defines the agreement between the client and the contractor in which the parties are specified and their responsibilities are defined in the construction process. ...
- 2. Scope of Work Definition ...
- 3. General Conditions ...
- 4. Special Conditions ...
- 5. Bill of Quantities ...
- 6. Work Schedule ...
- 7. Drawings ...
- 8. Technical Specifications ...
What are the components that constitute the contract document?
Valid Contract – What are the Elements of a Valid Contract
- Offer and Acceptance. The written document must express the intentions of both parties, meaning that it must highlight the material terms of the contract.
- Lawful. The contract must also be lawful to be legal. ...
- Legal Capacity to Contract. ...
- Understandable. ...
- Signed. ...
What is considered legal contract?
- Agreements that cannot be performed within a year from the date the contract was signed
- Contracts for the sale of goods exceeding $5000 4
- Contracts that involve the sale or transfer of land 5
- Promised made in consideration of marriage (prenuptial agreements, for example) 6
What is a standard construction contract?
Standard construction contracts, or construction agreements, are documents that put the obligations of both parties into writing, so the client knows what they should expect as far as work is concerned, and the construction contractor knows what to expect in terms of payment.
What is contract documentation?
contract documents. Those documents that comprise a contract, e.g., in a construction contract, the owner-contractor agreement, conditions of the contract (general, supplementary, and other conditions), plans and/or drawings, specifications, all addenda, modifications, and changes thereto, together with any other items stipulated as being specifically included.
What is the meaning of contract document?
Contract Document is the written documents that defines the basis of contract consisting of both parties' roles, responsibilities, and detailed description of the work or service such as drawings, specifications, procedures, any other conditions, as well as the commercial information including the prices agreement, ...
What are included in contract documents?
Contract Documents means collectively the Tender Documents, Designs, Drawings, Specification, Schedule of Quantities and Rates, Letter of Acceptance and agreed variations if any, and such other documents constituting the tender and acceptance thereof.
What are contract documents and why are they so important?
Contract documents are project documents that define the roles, responsibilities, scope of work, conditions, price, clauses, schedule, and any other job-specific information. They are written and serve as a legal definition of the contract.
What are the seven items of contract documents?
There are 7 essential elements an agreement must have to be considered a valid contract. The elements of a contract include identification, offer, acceptance, consideration, meeting of the minds, competency and capacity, and legality.
What are the 4 types of contracts?
4 Types of Construction ContractsLump-Sum Contracts.Cost-Plus-Fee Contracts.Guaranteed Maximum Price Contracts.Unit-Price Contracts.
What are the 3 types of contracts?
The three most common contract types include: Fixed-price contracts. Cost-plus contracts. Time and materials contracts.
Who prepare contract documents?
The tender sets out the formal wording which comprises the tenderer's offer to undertake the contract, the tenderer having to enter the sum price he offers.
What is the purpose of contract?
The fundamental purpose of every contract is to build business relationships and define the legal implications and obligations that each contracted party must deliver upon. The majority of contracts are created and agreed upon between businesses and organizations rather than individual people.
What is the difference between contract documents and construction documents?
based on my understanding, these two words are describing the same thing. If they are different, construction contract documents refer to the things prepared by the designer before the construction and project's contract documents refer to something may add to the original document during the construction.
What are the 10 essentials of a valid contract?
Essential Elements of a contract:Offer And Acceptance. A Contract always involves two or more parties where one proposes and other accepts. ... Lawful Consideration. ... Intention Of Giving Rise To Legal Obligations. ... Capacity. ... Free Consent. ... Lawful Object. ... Agreements Not Expressly Declared Void. ... Possibility Of Performance.
What is difference between agreement and contract?
An agreement is any understanding or arrangement reached between two or more parties. A contract is a specific type of agreement that, by its terms and elements, is legally binding and enforceable in a court of law.
What are the 8 elements of a contract?
Essential elements of a valid contractOffer and Acceptance.Intention to Create Legal Relationship.Capacity to Contract.Genuine and Free Consent.Lawful Object.Lawful Consideration.Certainty and Possibility of Performance.Legal Formalities.
What are the 5 essential elements of a construction contract?
5 Key Elements Every Construction Contract Should Contain1) The project's scope. ... 2) The cost and payment terms. ... 3) The project's time frame. ... 4) Protection against lien law. ... 5) Dispute resolution clauses.
How do you prepare a contract document?
Preparing Contract (Tender) Documents for Construction ProjectsInstructions to tenderers.General and particular conditions of contract.The specification.Bill of quantities or schedule of prices.Tender and appendices.The contract drawings.
What are tender and contract documents?
Basically, tender documents and contract documents refers to the same set of documents. But the major distinction is that the former is the appropriate title for the document before signing the contract and it is being used to select a suitable contractor to execute the works.
What documents should I ask for when hiring a contractor?
Before you hire an independent contractor, you need to have three important documents: A W-9 form with the person's contact information and taxpayer ID number, A resume to verify the person's qualifications, and. A written contract showing the details of the agreement between you and the independent contractor.
What is a construction contract?
A construction contract that includes typical contract documents is a legal agreement between the client and the contractor that describes what and how to be constructed. It is a commitment for both the contractor and the client that defines terms related to the executed work, price, and the amount of compensation.
What is contract management?
Contract management includes preparation, analysis, and execution of contracts to guarantee functional and economical performance is increased, and risks are decreased. If a contract is created poorly, one or all parties might lose a high amount of money and resources. When managed efficiently, contract management provides a good business relationship and high profitability to the parties. Depending on the size of an organization, a lawyer can be employed to ensure the precise wording for contracts. It is obvious that the preparation of an effective contract is one of the most important steps for successful project management.
What is a master format?
MasterFormat is produced by the Construction Specification Institute (CSI) to organize specifications for commercial and institutional building projects. It provides standardization and facilitates communication among parties involved in construction projects.
What is technical specification?
Technical Specifications describe the materials, workmanship, and equipment required for a task. Typically technical specifications describe the end product, therefore, the client should describe them clearly before the tendering stage. Every little task should be specified and deviation limits should be determined in technical specifications.
What type of contract should a construction project have?
Each construction project should have a contract and each contract should include basic contract documents. Although there are a lot of construction contract types used in the industry, certain types of them are preferred by contract managers. Below are some of the most common types of construction contracts; Lump-Sum/Fixed Price.
Why is contract management important?
When managed efficiently, contract management provides a good business relationship and high profitability to the parties. Depending on the size of an organization, a lawyer can be employed to ensure the precise wording for contracts. It is obvious that the preparation of an effective contract is one of the most important steps for successful ...
What is the purpose of civil works contract?
The main purpose of this process is to make sure that the objectives of the contract are met on time and the value is earned. There are several types of contacts used in various industry projects. Civil works contracts are the most complex ones throughout the world. Thus, they require the most challenging practices.
What is joint venture contract?
This contract is used by two or more parties to provide for their mutual rights and obligations in forming a joint venture.
When is a contract between owner and consultant used?
This contract between owner and consultant is used for any sized project when the consultant does not have a predefined scope of services.
What is a developer builder architect contract?
This contract between developer-builder and architect is used for any sized single family residential project where architect’s services are specifically for developing a prototype.
What is A110 contract?
This contact is a stand-alone agreement with its own internal general conditions and is intended for use on custom residential construction projects. A110 may be used for custom residential projects where payment is based on either a stipulated sum or the cost of the work plus a fee, with or without a guaranteed maximum price.
What is the AIA document G701?
AIA Document G701™-2017 is used for implementing changes in the work agreed to by the owner, contractor, and architect.