Академический Документы
Профессиональный Документы
Культура Документы
Question 1: Describe the primary rights and the primary duties of both an owner and a
contractor in a stipulated-sum contract.
Few things are absolute. Diversity and the difference are the norms.
- Construction Contracts, Collier, Keith.
Such is construction, binding Man with all forms, moods, shapes of grief that have within which
passeth show, these but the trappings and suits of woe. Which means the construction-built
environment field is consistently inconsistent in its execution with what the design plans
specify. It is best to present a contrast to understand the risk a building presents as opposed to,
say, a coffee machine. A building by its nature involves a greater amount of time, investment,
labor, regulation, and paperwork. The quantitative components of a building are bigger than a
coffee machine by a factor of 10. Consequently, this is why stipulated or lump-sum contracts
exist. To grant an owner with a piece of paper that affords them a sense of security; a peace of
mind to console them in the valley of darkness. For, as it is written, those who sow in peace
reap a harvest of righteousness.
The risk and gain to be had in a building is so great and so life-changing and so final, with
pursuant generations often clashing over who gets what when their sire passes from nature to
eternity, that owners of the land (that the facility shall be built over) often want to retain as
much control and oversight that they can over the process of construction. Owners, especially
the overeducated ones, are not dumb. They know that contractors can drive up costs (and their
profits) considerably by using more expensive materials or a more roundabout drawn-out
method of construction, for example.
Before we continue any further, let’s examine what to stipulate means in the first place.
To stipulate means to make an expressed demand for some term in an agreement. This is why
owners go for this sort of deal, as it gives them a sense of autonomy and control over the
project. Regardless, this contract shall never (ever) benefit the owner if the owner does not
meet the requirements (duties and obligations) that it carries within itself. For it is written:
Question 4: Describe the legal background and aspects of changes in the work in a lump sump
contract.
Common law, borne of precedents from previous cases, govern much of construction law and,
consequently, lump sum contracts. However, as common law is based on tradition or how
things have always been done from a historical and empirical standpoint, statutes are beginning
to invade the realm of common law. In other words, laws from legislative statutes now play a
greater role in the establishments of rules and practices in the construction industry. In
addition, new advances in the construction field has left common law inadequate in
determining the correct way of exceeding the mandate since there are often no precedents
when it comes to new technology. This applies more with projects that stray from the beaten
path and lay the burden more on the designer.
Regardless, at the end of the day the legal background of lump sum contracts gives an
advantage to the owner rather than the contract. However, if the owner fails to meet the
requirement (failing to provide site surveys, for example) then they are liable under the law.
Any party that breaches the contract, has to pay the price by common law or statutes, as is
increasingly the case.