CONTRACT

BBCCPP
1. Construction Contract
• A contract is a legally binding or valid agreement between two parties.
• A construction contract is a mutual or legally binding agreement between
two parties based on policies and conditions recorded in document form.
• The two parties involved are one or more owners, and one or more
contractors. The owner has full authority to decide what type of contract
should be used for a specific development to be constructed and to set
forth the legally-binding terms and conditions in a contractual
agreement.
2. Contract drawings
• Construction drawing is the general term used for drawings that form
part of the production information that is incorporated into tender
documentation and then the contract documents for the construction
works.
• This means they have legal significance and form part of the
agreement between the employer and the contractor.
3. Contract Sum
• The contract sum is the price agreed with the contractor and entered
into the contract.
• The agreed contract sum should be calculated and checked very
carefully as errors are deemed to have been accepted by both parties.
4. Contract Bill
• A contract is a written agreement between a client and a provider
(contractor).
• The client, who is the owner of a job or project, requests a product or
service.
• The provider, bills the customer for the product or services that you
provide under the contract.
5. Liquidated Damages
• Liquidated Damages are pre-determined damages mentioned in the
construction contract agreement.
• Both parties to the contract agree to this amount as the amount to
recover if the contract is breached.
• Usually Liquidated Damages are recovered by the Employer if the
contractor fails to substantially complete the work within the
stipulated time for completion.