realising it. We make contracts when we buy something or perform a service for money for example. Thus, on most days we will make contracts when we buy a newspaper or a book, get on a train or bus, buy petrol, buy a parking ticket, buy a coffee or a sandwich, go to a café for lunch and so on. Whenever people have a commercial agreement to carry out work for payment, they have a contract. The people or organisations that make the contract are called parties. The formation of the contract is based on an offer to do something (in our case to carry out design or construction work), an acceptance of this offer and consideration (payment in return for the design work or the construction work). There are a number of other requirements which will be explained below. In the construction industry we make a contract during the process of tendering and contractor selection as described in Chapter 5. Tendering is the industry word for inviting contractors to submit priced bids based on the employer’s tender documents.
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- An introduction to contracts
- Macmillan Education UK
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- Chapter 4