Type of Form of Contract in Construction Industry

Hello every one, today article related with Form of Contract in Construction Industry. It's is most important thing because of those form of contract provide obligation, instructions, condition for the parties who are involved in construction contract. Another term use in industry for form of contract is "condition of contract".

Type of Form of Contract in Construction

Normally, form of contract is a standard document or just like a standard guidelines. In this guidelines also include difference Clauses, Sub-clauses with their instructions and explain lot of terms from that Clause's. The standard form of contract is a standard document containing terms and conditions on which they contract with their customers. Although, we need form of contract to approach their contract properly. The individual must usually take it or leave it probably because the supplier is the only supplier in the market.

For example, you have no choice but to sign on the standard form contract if you want to advertise in, say, newspaper or TV station even though if you don't agree with some of the terms.

One of the problems with standard form contract is that the dominating party tries to exclude liability for the terms in the contract.

Type of Standard Form of Contracts

ICE Condition of Contract.
FIDIC Condition of Contract.

NEC Condition of Contract.

JCT Condition of Contract.

ICTAD (CIDA) Standard Bidding Documents.

I think now you have an idea about "what is a standard form of contract in construction" then we will discuss each above type of Standard Form of Contracts".

ICE Condition of Contract

The ICE Conditions of Contract (CoC) were published by Thomas Telford on behalf of the Institution of Civil Engineers (ICE), the Association of Consulting Engineers (ACE) and the Civil Engineering Contractors Association (CECA). The first edition was published in 1945 and the seventh and final edition was published in 2001. During this time it was the dominant form of contract for civil engineering.

FIDIC Condition of Contract

FIDIC is a French language acronym for Fédération Internationale Des Ingénieurs-Conseils, which means the international federation of consulting engineers. It was started in 1913 by the trio of France, Belgium and Switzerland. The United Kingdom joined the Federation in 1949. FIDIC is headquartered in Switzerland and now boasts of membership from over 60 different countries.

I am not going to talk too much about FIDIC form of contract that because I have published an article "A brief introduction to FIDIC Contracts" then read about that.

NEC Condition of Contract

NEC was first published in 1993 as the New Engineering Contract. It is a suite of construction contracts intended to promote partnering and collaboration between the contractor and client. It was developed as a reaction to more traditional forms of construction contract which were seen by some as adversarial. The third edition, NEC3 was published in 2005. NEC is a division of Thomas Telford, the commercial arm of ICE.

JCT Condition of Contract

The Joint Contracts Tribunal (JCT) was formed by the Royal Institute of British Architects (RIBA) in 1931 when the first JCT standard form of building contract was issued (although the forms were not referred to as ‘JCT’ until 1977). JCT became a Limited Company in 1998.

It now produces a range of standard forms of contract for the construction of buildings accompanied by guidance notes and other standard forms of documentation, such as:

Consultant agreements.
Sub-contracts.
Sub-sub-contracts.
Design agreements between an employer and a specialist designer.
Forms of tender for main contractors, sub-contractors and sub-sub-contractors.
Forms of contract for the supply of goods.
Forms of bond.
Collateral warranties.

ICTAD (CIDA) Standard Bidding Documents

This standard document is used in Sri Lanka for government and private sector project. Published by Institute for Construction Training and Development (ICTAD), now it's called as a construction industry development authority (CIDA). Most of CIDA guideline are similar pattern with FIDIC form of contract. Now days, ICTAD has seven publication related with difference construction contracts.

There are as follows.

ICTAD/SBD/01 Standard Bidding Document for procurement of work

ICTAD/SBD/02 Standard Bidding Document for procurement of work for major contracts.

ICTAD/SBD/03 Standard Bidding Document for procurement of work for minor contracts.

ICTAD/SBD/04 Standard Bidding Document for procurement of work for design and build contracts.

ICTAD/SBD/05 ඉදිකිරීම් ටෙන්ඩර් පිළිබද සම්මත ලේඛ්‍යය, කුඩා පරිමාණයේ කොන්ත්‍රාත් සදහා.

ICTAD/SBD/06 Standard Bidding Document for procurement of work for shopping procedure

ICTAD/SBD/07 Standard Bidding Document for procurement of work for construction related plant.

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Wednesday, October 16, 2019

Type of Form of Contract | FIDIC Books