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ch2_delivery_2 - 3 Contracts Contract is any formal...

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3 Contracts Contract is any formal agreement to do work, provide services, or deliver materials or products. A contractual agreement may be spoken but is recommended to be written if for significant monetary sums. A prime contract is between two principal parties. A subcontract is between a principal party and a subsidiary parties. Offer, acceptance, and consideration (money) are viewed as the key elements in a legally binding contract. 33
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General contract: Agreement for total project construction To deliver the building as described in the contract documents Prime construction contract: An agreement directly between a contractor and an owner General contracts typically are prime contracts Sometimes mechanical contracts and specialty trade contracts are also prime, depending on PDS and local statutory requirements. Subcontract: An agreement between a prime contractor and a trade of specialty contractor Sub-subcontract: Agreement between a subcontractor and another specialty contractor (second-tier subcontractor) 34
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