Highlights
Statement
“The law of contract pervades all aspects of construction projects. Not only does it define and determine the nature of the relationships among Principal, Superintendents, Contractors, Consultants Suppliers, Sub Contractors, Financiers and others party to their various contracts, it is also relevant to a wide range of activities and relationships incidental to the main focus of the project.
The law of contract applies to the main construction contract, subcontracts for specific work, employer/employee relationships, insurance, sale of goods and land, hire purchase, corporations, partnerships and myriad other arrangements all of which impinge on the project in legal terms. An understanding of the law of contract is, therefore, essential to the understanding of construction law.” (Bailey & Bell 2011, 75)
Group Assessment Details
1) This is a group assessment where you will Work in Pairs (2 persons per group), but a maximum of 3 students in a group is allowed where a pair is impractical. Students not in a group by the end of Week 3 will be randomly assigned to remaining places.
2) This assessment requires you to investigate how contracts are managed in the industry, and report on your findings. You will need to prepare questions that cover the required Themes in Part A. It is important that you are well organised, can plan and communicate effectively within your group and with others in the industry. This will impact on the quality of your report.
3) For this assessment you will need to contact a company that engages in construction contracts, whether a building contractor or subcontractor. Note that you may contact more than one organisation/company, and then select the ones that suit.
You will need to contact organisations that have employees who are contract administrators. Many small contracting companies do not have contract administrators engaged specifically to administer construction contracts.
Large construction companies, and companies that specialise in contract administration and project management, are the best companies to approach. If you are having difficulties in gaining access to these organisations, you may wish to contact the Master Builders Association WA, or, the WA Property Council of Australia who represent developers. Start by searching within the organisation for a contact person who will be able to assist, then phone that organisation and arrange a meeting for an interview.
4) You will need to be prepared with questions to cover during the interview (themes given below).
5) Often, if you write/give an email address, you may not get a response. Far better is to make contact with a person in order to establish a meeting and engage with the person.
Part A: Interview Themes
In your group, work as a team to assign work and communicate regularly, in a collegial manner. Select an organisation (or organisations) to investigate and provide your critique to the questions and answers in the report on the following themes:
? Describe the types of construction contracts the organisation enters into. Provide a copy of the opening pages of a contract used by the organisation;
? Who within the organisation is responsible for contracts, and what the person does to ensure that the contract obligations are followed;
? Identify the person(s) you have interviewed (their roles) and identify any direct speech (quotes) provided to you in the interview;
? What type of problems arise under those contracts;
? How the organisation resolves disputes that arise under those contract(s); who the stakeholders are;
? Whether the organisation has advice to give to you on how a contract could be better managed.
NOTE:
Assuming a prospective interviewee has agreed to the interview, state how many questions there will be and what they are about. Keep the questions simple and relevant.
Part B: Review and Report
Based on your inquiry of construction contracts under Part A, review the information you have obtained by referring back to your lectures, textbook, tutorials and any relevant articles; this should form the basis for reporting on the information provided by the company (or companies) which you have spoken to. Include in your report a critical discussion and conclusion, and the importance of administering legal contracts in maintaining a viable construction business.
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