As we know, contracts are made between the parties (such as the employer and the contractor; or the contractor and sub-contractor) and they contain terms which give the parties both rights and obligations. If a term is broken, then this is likely to be a breach of contract. In a construction contract these terms will normally be written down and can be found in the conditions of contract, the specification, the contract particulars, the works information, details and dimensions shown on the drawings and so on. Hence, there will usually be many thousands of terms. In a simply drafted contract there may be no procedures within the contract itself for resolving difficulties. However, because construction is a complex affair, with thousands of terms in the contract (including dimensions shown on the drawings and so on), it is very easy to break a term. There would be no sense in construction professionals having to go to court over such breaches. As a result construction contracts usually contain procedures such as compensation events in NEC3 ECC for resolving the day-to-day difficulties and problems that arise on most projects. These procedures were covered in detail in the chapters on NEC3 ECC and JCT SBC contracts.
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- Dispute resolution
- Macmillan Education UK
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- Chapter 27