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Construction Contract Essentials Guide

UAP DOCS SUMMARY
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0% found this document useful (0 votes)
26 views9 pages

Construction Contract Essentials Guide

UAP DOCS SUMMARY
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Section Summary Thing I like Things I Don’t Like Easy To Remember Items

SUSTITUIDO, KRISTINE MAE A.


Section I. Section I contains the entire list ⚫ Holds all parties ⚫ Those without a technical ⚫ List of documents that is
Definitions and of def inition and outlines the accountable to increas e or legal background may needed in the contract such as;
Documents dif f erent documents that make or decrease conf licts f ind these broad Agreement, General
up the construction contractual which may occur def initions conf using. Conditions, Special Provisions,
projects. This section provides between them. ⚫ Conf usions in def inition Specif ications, and Drawings.
clarity to issues to do with ⚫ Of f ers an organized may lead to dif f erent ⚫ Roles of parties involve in the
dif f erent people involved in the f ramework in respect to interpretation which can project such as, the owner,
project and documents that components of the cause dispute between Architect, Engineer, Contractor,
f acilitate work f low. This section contract that is usef ul in parties. and Sub-contractor.
highlight all document that are validation of ⚫ The party guaranteeing the
interconnected and they def ine agreements. contractor’s bond called surety.
the scope and specif ications for ⚫ Ensure consistency ⚫ Dif f erent bonds such as;
completion of the project. It also throughout all the Proposal Bonds where it
emphasizes that such papers, thus guarantee the bidder who will
def initions should be f ollowed encouraging project enter the contract is awarded,
in order to maintain clarity and requirement Perf ormance bond where the
productivity throughout consistency. contractor ensure the owner
construction. that the project will be done as
per contract, Payment Bond
where all the obligations arising
f rom the contract are paid, and
Guaranteed Bond where there
is a security f or the quality of
materials and workmanship.
⚫ In specif ications where the
detailed descriptions od work,
material and constration
methods are guaranteed.
⚫ Providing the outline of all the
procedural and administrative
aspects of the contract in
general conditions.
⚫ Special provisioons that allow
the client to modif y the contract
documents.
⚫ Force mejure which guaranteee
the contractor in case of events
beyond control such as natural
disasters that will af f ect the
project execution.
Section II: Laws, This section addresses the ⚫ This section establishes ⚫ There are too many legal ⚫ It emphasizes that the
Regulations, Site legal anf regulatory f ramework clear legal obligations of resposibillities f or the contractor must comply with
Conditions, that governs the construction both parties compliance contractor which requires local rgulations, state, and
Permits, and project. This outlines the list of with laws and them to have a additional f ederal laws and ordinance.
Taxes responsibilities of the regulations, thus cost f or expertise. This includes the provisions for
contractor regarding the reducing f uture legal ⚫ Inquiring permits cost saf ety standards,
compliance with local laws, site disputes. delays in the prooject environmental regulations, and
conditions, permits, and taxes. ⚫ Emphasizing the which cause the building codes.
It semphasizes the importance importance of contractor to delay and ⚫ That the contractor must
of local regulations and understanding the site greatly impact the project assess the physical condition of
inquiring the required permits to conditions that can af f ect timeline. the site that can af f ect the
ensure that the execution of the delays and saf ety issue ⚫ Changes in site condition construction, such as soil
project will not f ace conf lict in of the project. can greatly af f ect the condition and site accessibility.
the f uture. ⚫ Provides f ramework on project cost. ⚫ The contractor mus process all
obtaining necessary the premits and licenses
permits and licenses, needed f or the execution of the
ensuring that all the project, such as, building
document needed are permit, environmental ppermit,
met. and other permits required by
the local barangay.
⚫ The contractor must pay all the
taxes related to the project,
such as, materials’ tax and
other taxes imposed by local
gvernment.
⚫ The contractor must notif y the
client if there are changes, such
as, new regulations thaat will
af f ect the project during
construction
Section III: This section f ocuses on the ⚫ This section clear ⚫ Requires too much ⚫ The owner must provide the
Drawings and management and coordination guildines f or managing documentation which can contractor three sets of
Specif ications of drawing and specif ications project documentation, cause too much burden to drawings and specif ications at
f or the construction process. It and avoiding disputes the contractor. no chargewhich he obtain f rom
emphasizes documents for within the parties the architect. Additional copies
submitting, reviewing and involve. must be paid by the contractor.
adhering to these ⚫ Ensuring the owner that ⚫ The contractor must f ollow the
documentsensuring that the the project meets the drawings and specif ications to
project is executed according to quality standards. avoid discrepancies and
the design and quality ⚫ Addressing conf lict between the owner.
standards. discrepancies to reduce ⚫ The contractor must consult the
potential delays and/or architect who provide the
misunderstanding drawings and specif ication f or
between parties. any clarif ication to avoid conf lict
and additional costs.
⚫ All the discrepancies in the
drawings and specif ications
must be reported to the
Architect immediately to
resolve the issue.
⚫ The architect must provide
addition detail drawing and
instructions.
PULIDO, KYLE ROBERT A.
Section IV: Section IV outlines the Section IV's measures f or I disliked Section IV's ⚫ Contractors are required
Premises and management of premises and worker saf ety and comf ort, requirement f or contractors to to provide weatherproof
Temporary temporary buildings, requiring including adequate housing bear all utility bills, potentially temporary of f ices with
Structures contractors to ensure saf ety, and sanitary f acilities, were causing f inancial hardship f or utilities f or project
prevent overcrowding, and appreciated. The attention to smaller contractors, and the personnel, ensuring
provide weatherproof of f ices. saf e, weatherproof buildings harsh signage rules, which may smooth operations.
Temporary worker housing and site security was also limit their branding potential.
must be approved and have admirable. The meticulous Smoking on-site is strictly
basic sanitation. Saf ety handling of utilities and prohibited unless explicitly
measures, such as barriers and access equipment approved by the Architect
guard lights, are also required. demonstrates a strong
Temporary water, electricity, dedication to ef f ective site All temporary f acilities,
and telephone arrangement s management. such as housing, sanitary
are required, and contractors amenities, and roadways,
must provide saf e access must be properly
through temporary highways, constructed and
stairs, ramps, and elevators. maintained,

All temporary structures


must be removed, and the
site must be cleaned
thoroughly bef ore f inal
acceptance.

Section V: Section V emphasizes the Section V prioritizes land and Section V's "Act of God" in ⚫ Contractors must provide
Protection of contractor's responsibility to environmental protection, damage responsibility is reliable watchmen to
Work and saf eguard employment and particularly f or trees and ambiguous and susceptible to protect the site and
Property property, including the owner's plants. It emphasizes strict interpretation, and there are no maintain f ire saf ety
property and materials, by f ire saf ety regulations, site specif ic sanctions f or non-
providing qualif ied watchmen security with watchmen, and compliance with protective Any existing trees and
and f ire saf ety equipment, holding contractors measures, potentially leading plants within the project
prohibiting smoking, accountable f or drainage to enf orcement f ailures. site must be protected,
conserving on-site items, and issues, demonstrating a clear and relocation, if required,
ensuring clear drainage understanding of must be done.
throughout the project to environmental
minimize damage. responsibilities. Contractors are
responsible f or ensuring
natural drainage remains
unimpeded
Section VI: Section VI outlines contractors' The f ocus on employing The provision allowing Workers must be competent, or
Labor, Work and responsibilities in labor, work competent workers and architects to demand changes they can be removed at the
Payments methods, and adjustments enabling the architect to in methods could lead to delays architect’s request.
during construction. It ensure quality work is if not managed ef f iciently. Def ective work must always be
emphasizes hiring skilled commendable. The 5% limit on work replaced at the contractor’s
workers, withholding payments, Emergency provisions quantity adjustments might be expense.
and maintaining construction ensure quick responses to too restrictive f or projects with Contractors can adjust work
benchmarks. Contractors must saf eguard lif e and property, substantial unf oreseen quantities within a 5% limit without
prioritize inspections and take showing a strong f ocus on changes. altering the contract price.
swif t action during saf ety. The 15-day limit f or Immediate action is required in
emergencies. The accountability f or adjustment claims could be emergencies without waiting f or
def ective work upholds high challenging in complex instructions.
It allows Owner to order extra standards and ensures that scenarios, particularly if Changes require written
work or scope changes, with only quality outputs are unf oreseen issues arise. authorization f rom the Owner.
Architect approval f or sub- accepted. Allowing outsourcing of extra Contractors can claim
surf ace conditions. The detailed process f or work might create conf licts if adjustments in cost and time f or
Adjustments must include handling changes ensures not clearly communicated to signif icant changes.
equitable costs, sureties' clarity and accountability, the Contractor. The Architect can authorize
consent, and perf ormance protecting both the Owner The 15-day window f or minor changes without extra cost.
bonds. and the Contractor. claiming extra costs might be Extra work is valued by lump-
Allowing claims f or too restrictive in complex sum, unit prices, or actual costs plus
The Contractor is required to equitable adjustments in cost situations. 15%.
inf orm the Architect of any and time is f air and practical, The obligation f or def ect Adjustment claims must be made
delays or extra costs, clean the given the unpredictability of correction within 60 days, while within 15 days, unless extended.
site, and issue a Certif icate of construction conditions. reasonable, could be Starts work within 7 days.
Completion upon substantial Minor changes authorized challenging f or extensive Monthly Payment Requests
completion. They must correct by the Architect without cost issues. include photos and documentation.
def ects within 60 days. implications streamline Payment delays if disputes Final payment requires As-built
decision-making. arise during certif ication. drawings, inspection certif icates,
The contract outlines The Owner’s right to Heavy dependence on the and clearance of all dues.
responsibilities f or work outsource unresolved extra architect’s discretion f or Retention release within three
completion, payment work avoids unnecessary payment and def ect decisions. months of f inal payment.
processes, and quality delays. Stringent requirements f or
assurance. Contractors must The clear def inition of extensions, requiring written
start work promptly and adhere "substantial completion" bondsmen consent.
to the agreed timeline. (98% completion) provides a
Extensions may be granted practical benchmark.
with proper documentation. The structured process for
Liquidated damages apply if handling def ects and making
project isn't completed on time. good ensures accountability
Payments are progressively and quality.
based on work completed, with The Owner's ability to use
f inal payment contingent on portions of completed work
contractor documentation. while retaining rights to claim
Contractors are liable for damages is f air and practical.
correcting def ective work within The requirement f or site
a year. cleanup emphasizes
prof essionalism and
readiness f or occupancy.
Clear timeline and
scheduling guidelines.
Provision f or time
extensions in case of
unavoidable delays.
Regular payments based
on work progress.
Requirement of as-built
drawings and documentation
f or transparency.
Release of retention within
a reasonable period af ter f inal
payment.
HIZON, RALPH LAWRENCE
Section VII: This section outlines the ⚫ Defined ⚫ Ambiguity in ⚫ Contractor's
Contractor– relationships and Responsibilities: Enforcement: Responsibility: The
Separate responsibilities between the Clear delineation of There’s insuf f icient contractor is responsible f or
Contractors– main contractor, separate roles f or contractors clarity on how overseeing the work of sub-
Sub-Contractors contractors, and sub- and sub-contractors disputes between contractors.
Relations contractors involved in a ensures contractors will be ⚫ Sub-Contractor Approval:
project. It aims to def ine roles, accountability. enf orced or resolved Sub-contractors need the
resolve conf licts, and ensure ⚫ Coordination beyond the architect’s owner’s approval bef ore
collaboration to achieve the Emphasis: The mediation. starting work.
project’s goals. contractor's role as ⚫ Sub-Contractor ⚫ Coordination of Work:
the central Independence: Sub- The main contractor must
coordinator contractors may f eel ensure smooth coordination
promotes ef f iciency overly restricted under between separate
and minimizes the contractor’s contractors and sub-
conf licts. authority, potentially contractors.
⚫ Conflict Resolution limiting their innovation ⚫ Payments: The contractor
Mechanism: The or f lexibility. must ensure sub-contractors
architect’s are paid in a timely manner.
involvement in ⚫ Contract Terms Apply:
resolving disputes Sub-contractors must
f osters f airness and comply with the same
transparency. contract terms as the main
⚫ Liability contractor.
Assignment:
Holding contractors
responsible f or their
sub-contractors
ensures quality and
adherence to the
project plan.
Section VIII: - This section ⚫ Right to Request ⚫ Work Suspension ⚫ Suspension of Work: The
Suspension of outlines the procedures and Clarifications: Risks: The ability to owner can suspend work if
Work and guidelines f or suspending or Contractors can suspend work could necessary, but the
Termination of terminating a construction request clarif ication lead to project delays contractor will be paid f or
Contract contract. It details the f rom the architect on if abused or not work done up until that
conditions under which the unclear plans or adequately mediated. point.
owner or contractor may instructions. ⚫ Liens Against the ⚫ Contract Termination:
suspend or terminate the ⚫ Work Suspension Owner: The process The owner can terminate
work, the rights and Clause: Contractors could harm the the contract if the
obligations of both parties in are empowered to owner's f inancial contractor f ails to perf orm
such events, and the suspend work due to standing if not properly their duties.
processes f or resolving delays or non- managed or justif ied. ⚫ Reasons for Termination:
f inancial settlements and compliance by the Termination can happen
liabilities. The section owner, ensuring due to f ailure to f ollow the
emphasizes accountability, f airness. contract, poor perf ormance,
f airness, and adherence to ⚫ Payments and or delays.
proper documentation and Liens: Contractors ⚫ Notification: The
notif ication procedures. are protected contractor must be notif ied
through mechanisms bef ore termination, giving
that ensure timely them a chance to address
payments f or issues.
completed work. ⚫ Payment Upon
Termination: If the contract
is terminated, the contractor
is entitled to payment f or
completed work.

Section IX: This section outlines the ⚫ Safety Emphasis: ⚫ Indemnity Clause: ⚫ Safety Precautions: The
Responsibilities obligations, responsibilities, The contractor’s The contractor’s contractor is responsible
and Liabilities of and liabilities of the contractor obligation to maintain indemnif ication of the f or saf ety on-site and
Contractor and and owner during a saf ety on-site and owner can sometimes must f ollow saf ety laws.
Owner construction project. It comply with local f eel overly one-sided, ⚫ Accident Responsibility:
includes provisions on laws is crucial f or especially f or The contractor is liable f or
accident prevention, worker and public unavoidable incidents. accidents, injuries, or
damages, insurance, bonds, protection. ⚫ Final Payment damages caused by their
liens, disputes, and ⚫ Insurance Withholding: work.
arbitration. Requirements: Requiring lien ⚫ Insurance: The contractor
Mandatory releases or bonds must maintain insurance to
insurance liability, bef ore f inal payment protect against bodily injury,
f ire, perf ormance could delay payments death, or property damage.
bonds minimizes unnecessarily, ⚫ Guarantee: The contractor
risks f or all af f ecting the guarantees their work f or at
stakeholders. contractor's cash f low. least one year and must
⚫ Guarantee Bonds: ⚫ Architect’s Decision repair any def ects at no
Guarantee bonds Power: The cost to the owner.
ensure the quality of architect’s decisions ⚫ Dispute Resolution:
materials and on disputes being Disputes can be resolved
workmanship, f inal and conclusive through arbitration if needed.
protecting the owner. may f eel biased
⚫ Arbitration Clause: without proper checks
Formal arbitration and balances.
processes provide a
structured approach
to resolving disputes
without litigation.

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