Resolve Business Disputes and Select and Prepare a Construction Contract Lesson Six Cert IV - M. S. Martin March 2012

Todays Lesson Continue on Chapter Two - Contracts – Activity 7 Questions – Roles in Contracts – Staging in Contracts – Complete a standard contract to a specific job Where could disputes arise from the above ? Cert IV - M. S. Martin February 2012

Roles in Contracts - Definitions The Principal - is the person, government organisation, company, business or other group wanting construction work done The Superintendent - is a person appointed in writing by the Principal – For example if the Principal is a home owner they might appoint a person, including an Architect as their Superintendent. A Government Dept. may differ The Contractor - in building contracts is the party engaged to do the job by the Principal Cert IV - M. S. Martin January 2012

Roles in Contracts - continued Sub-Contractors - The Contractor may engage Subcontractors. Common in the building industry as specially trained people are required to do specific jobs. Cert IV - M. S. Martin January 2012

Stages of a Contract Using Lump-sum sample Cert IV - M. S. Martin January 2012

Progress Claims The value of work for a period of time stages of construction Agreed time of month, or at agreed stages of Work Under Contract. Variations All contracts include a clause or clauses for variations Ensure written approval for all variations written out However, they will have restrictions (see text for further explanation) Rise & Fall Like variations, but apply to changes in costs Note: These are added provisions in a contract Applied in different ways, but typically formula based, so it can be added to each claim Practical Completion A critical stage contractually, Job Complete all bar defects Typically supported by a “certificate of practical completion” Defects Liability Period The time period where defects must be completed You should specify a period, if not default is 12 months Typically money can be withheld until defects are completed & signed off Final Certificate & Final Payment

Lets look at Completing A Contract For the purpose of the exercise, we are going to use our previous example of: Mal set of Drawings Top floor fix out work Use the list of items from the previous exercise (list from full documents) Use this list as your job We will use the OFT Contract $25, plus in the back of your notes Complete the contract item by item Cert IV - M. S. Martin January 2012

Signatures ? Do you really sign it first ? But lets decide on a figure $,$$$.$$ that we will use for our job? Cert IV - M. S. Martin January 2012

Checklist Although this is structured for the owner, it is relevant to you and good practice in general Cert IV - M. S. Martin January 2012

Details Fill out as if it were a real job. Make up missing details Cert IV - M. S. Martin January 2012

To be continued next week Cert IV - M. S. Martin January 2012

References Competency text for ‘Resolve Business Disputes and Select and Prepare a Construction Contract’ Web sites as listed below: html Cert IV - M. S. Martin January 2012