15/3/2006 (Q4.) Explain in detail the essential components of an effective modern form of construction contract. The essential components of an effective modern form of construction contract are listed as follows: The Articles of Agreement between two parties is embedded in the construction contract. This is a normal way to create a legal binding relationship. If one party fails to comply with the construction contract, the other party will have the remedy and the remedy should be stated in the construction contract. The Conditions of Contract is a essential component inserted in the construction contract. Generally, the Conditions of Contract consist of General Conditions of Contract and the Special Conditions of Contract. The General Conditions of Contract list out definition of construction members who will enter in the construction project. In addition, the responsibilities, obligation and rights are written down in the General Conditions of Contract. The Special Conditions of Contract will be listed out for the
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This note was uploaded on 07/30/2011 for the course ECON 101 taught by Professor Wong during the Spring '11 term at HKU.