A variety of factors make a construction contract different from most other types of contracts. These include the length of the project, its complexity and its size, and the fact that the price agreed and the amount of work done may change as it proceeds. As a result, the allocation of these risks is a very important part of the contract since these factors always result in additional costs being incurred. This inevitably raises the question of who should pay or bear these extra costs.The structure may be a new building on virgin ground. It may involve the demolition of an existing building and its full reconstruction. It could involve partial demolition and rebuilding, or the refurbishment and extension of an existing building or structure. This may be mostly below ground (in which case it is engineering) or above ground (in which case it is building). Building, however, includes foundations and other underground works. A building contract can consist of activities and services carried out both above and below ground level.
Swipe to navigate through the chapters of this book
Please log in to get access to this content
To get access to this content you need the following product:
- The Nature of Construction Contracts
- Macmillan Education UK
- Sequence number
- Chapter number