With an appropriate dispute resolution clause, contractors, subcontractors and suppliers can avoid putting their disputes in dispute. The agreement is the most basic document in a set of construction contracts. This is essentially the «contract», a basis on which the rest of the details of the project are built. This document sets out the general purpose of the contract and the price of the contract. Although not always included, this document gives the contractor the official mandate to perform any task and deliver any material that will be included in the construction project. It is an organizational document that provides a systematic way to organize all the information in the different sections of the contract. The general conditions of the AIA stipulate that the contractual documents are complementary. None of the contractual documents has a higher value than another — no priority is given. But during the design, there is a decidedly one-sided emphasis on the drawings. Perhaps because drawings embody the aesthetics of design, perhaps because architects are visual beings, perhaps because of the education and training that architects receive, perhaps because it has always been so.
Additional design documents may be added, para. B example the main format plan, depending on the client, project type and/or location. MasterFormat is created by the Construction Specification Institute (CSI) to organize the specifications of commercial and institutional construction projects. It ensures standardization and facilitates communication between parties involved in construction projects. This part of the construction contract agreement contains a breakdown of all the elements involved in the construction project and their costs. The cost estimate can be detailed per item in a document that combines specifications and costs, or in a flat-rate form that does not specify individual elements. According to the Construction Specifications Institute (CSI) contract letter axiom, «say it once and in the right place», it is necessary to indicate in one place what constitutes the contractual documents (in preference to the owner-contractor agreement). In order to increase the potential for uniform interpretation, the list of contractual documents should be complete and unambiguous and should not contain documents which should rightly not be contractual documents. Contract management includes the preparation, analysis and execution of contracts to ensure that functional and economic performance is increased and risks are reduced. If a contract is poorly drafted, one or all parties can lose a large amount of money and resources. With efficient administration, contract management offers the parties a good business relationship and high profitability. Depending on the size of an organization, a lawyer may be appointed to ensure the accurate formulation of contracts.
It is obvious that preparing an effective contract is one of the most important steps for successful project management. The delay in a project is directly related to the increase in expenses and a lump sum compensation could be granted. A written contract would be able to allocate risks to save time and money in the execution of the project. Contracts are the means by which project risks are allocated and addressed. The contract form used for each project is critical to the project`s potential for optimal performance and execution. Thus, a poorly formulated contract is an obvious risk that the contracting parties bear throughout the duration of the contract. While a good contract document provides a clear roadmap to avoid and resolve most of the problems that may arise during the contract currency, gives the parties control over how to deal with the problem, avoids the imposition of standard legal provisions, as well as the waste of time and effort, protecting the interests of the parties and increasing the success rate of the project. Specifications — the other contractual documentIf the drawings are the silver standard of the design documents, the specifications are the platinum standard.
The relative value is based on the time and effort required to create documents of equal importance in the context of construction contracts. Every construction project should have a contract and every contract should contain basic contractual documents. Although there are many types of construction contracts in the industry, some types of them are preferred by contract managers. A contractual agreement defines the agreement between the customer and the contractor in which the parties are specified and their responsibilities in the construction process are defined. It is the essential document to which other contractual documents are attached or to which reference is made. A standard document such as AEOI contacts can be used for the agreement. Each construction project must include a series of drawings or plans. The drawings give a simple overview of the project as a whole.
They must be presented to the contractors before construction begins. It is advisable that parties entering into a significant financial transaction have a written contract. When we consider a construction project, various stakeholders/parties such as owners, architects, consultants, contractors and suppliers, etc. are involved. Each stakeholder has defined roles and responsibilities and the performance of the stakeholders leads to the realization of the construction project. The performance of these stakeholders depends on various internal and external factors, which in turn lead to the success or failure of the project. Therefore, a construction project is a complex system composed of different stakeholders and their respective outcomes, and involves a reasonable number of responsibilities associated with financial and performance risks. .