Assignment Sample SUR828 Contract Communication & Dispute Management

Introduction

A construction contract refers to an agreement, which sets out the terms and scope of works in a construction project. It can also be considered as a significant agreement between the parties or contractors who take part in the construction project. This contract defines the obligations, powers, duties and rights of those who are involved in this project and perform in this contract. Both parties agree to the construction by a legal process. It is agreements between the parties including clients, contractors, consultant relationship and others. This construction contract agreement has various clauses which define the contracts clearly includes, including the terms and conditions of the project. By evaluating the contract law, it can be understood that a contract is essential to maintain the safety of the project. It apportions the risk of construction. This study sheds lights on the management of disputes and contract communication.

The complex situation in construction claims

Complex situation

It takes plenty of time to conduct a project on construction. The law of contract applies when the parties enter into a construction contract because of the nature of their relationship. However, it needs to be distinguishing differently from the Tort Law as it applies to the individual person generally (Malta et al. 2018). The Law of Construction is required to apply in the construction project to ensure the success of this project.  The project goes through various legal procedures before starting the project. It needs a Construction Act and the consent of both the contractors. The Construction Act is amended in 2009, but it came into force in the year 2011. After it came into force, the act is applied into construction contract and ensures its safety. This law ensures safety and security, and it directly deals with the contractor (Malta et al. 2018). This law ensures protection from any type of harassment that may arise in future. This law is beneficial for the construction project as it made in a tough manner. This effective law of construction has a great impact on the construction project and helps to mitigate the issues in a legal procedure. This law ensures swift payment throughout the project besides, it also help to mitigate the disputes effectively. The provisions of this Construction Act include ‘stage or periodic payments’ and ‘the right to be paid in interim’.

Construction claims

A construction project goes through a lot of formal procedures. It takes much time to start over the construction. The agreement paper of the construction depicts all the terms and conditions of the project, which must be followed by all the stakeholders, including the contractors. The construction contract are entered into the project voluntarily when the different parties are agreed to be bound by terms and condition of this contract. The consent of both the contractors and the clients is needed in the agreement paper (McNamara and Sepasgozar, 2020). The construction claim can be described as the request of any of the party of the contracts. The contractor that stated about the compensation if any damages or any interruption happens during the project usually makes it. The “JCT Standard Building Contract” of 2016 is mainly planned for complex or large building construction projects. In this type of construction projects detailed provisons of contract are required. “The Standard Building Contracts” are appropriate for the projects procured through conventional or traditional method. In all JCT contracts the delay event is also known as ‘Relevant Event’ and the time extension can be described as ‘Adjustment of Completion Date’ (Malta et al. 2018). Every ‘construction contracts’ allow the contractors to extend the work duration and it is the responsibility of the contractors. This advancement is known as ‘extension of time’.

The Construction Act of 2009 (LDEDCA) has come into force in the year of 2011. This act is for the construction industry, and this act ensures the safety and security of the construction project (Legislation.gov.uk, 2021). This act is beneficial for both the contractors and customers. It helps to reduce any issues regarding finance or cash flow, damage related issues or other such issues. For example, the constriction contract such as NEC or JCT provide protection and safety to the main contractors, building employers and subcontractors in prevent the disputes of projects. Any legal issues related with the construction project is also mitigated by this act. The contractors get more favorable than other stakeholders do from this act. During the project, if any issue arises regarding damage or finance-related issues, this act helps to find out the solutions for the issues. The main contractors, subcontractors get protection by this act within the construction project (Legislation.gov.uk, 2021). In addition, this act helps to shift the risks from the projects. For instance, it helps to increase the certainty and clarity by ensuring swift payment in the supply chain of construction project. In addition, it helps to make adjudication accessible for resolving the disputes.

Effect of construction claim on the stakeholders

The stakeholders of the construction project are the contractors, clients, suppliers, customers and others. The entire construction project is done to the requirements of the customers or clients. The contractors look after the entire process, and the suppliers maintain the supply chain management for the construction project. The ‘construction claim’ refers to the request by the stakeholders to the contract for compensation of any damages of materials, which is caused by failure of any other party. The project manager helps to conduct the project with the team members (Artan Ilter and Bakioglu, 2018). This study highlights the fact that how construction law can be implanted on the construction industry to mitigate the issues. It also discusses that how the law provides safety and security in the construction project.

Current legislation

The construction contract was entered between the Ocean Green Plc and Avin a Laugh Contractor and this contract was implemented under the seal with the contract period of 24 months. The contract is comprised with residential development, which is associated with drainage and site works. The ‘Ocean Green plc’ was carrying out the work with the view to display the development as a addition in their portfolio (Legislation.gov.uk, 2021). On the other hand, ‘Alvin laugh contractors’ was appointed to complete the tasks by a ‘competitive tender process’ which is based on pricing document, specification designing the work extension required. Thus to conduct the project appropriate legislation is required to ensure safety and security of the project. Legislation can be defined as the governing body, which makes laws and brings into force of action for the society. It is a set of laws that have been passed in the parliament. The two houses of the UK parliament passed the laws for the citizen of the country.  It makes and shapes the laws according to the issue. At first, the House of Lords make bills; the bill goes into the House of Commons for the proposal (Legislation.gov.uk, 2021).

The Contract Act is mainly created on the basis of rules and regulation of the company or the organizations. The Law of Contract is applied to the construction contract and it is made between the entities. All the parties associated with this construction project has the liberty to agree with the terms and conditions of the contract. ‘The Construction Contract’ refers to the legal and mutual agreement among the parties, which is based on effective conditions and policies and recorded in a written document. It outlines the risks, scopes, duties, responsibilities of each and every stakeholders. It ensures the safety and security of the construction progress (Du Plessis and Oosthuizen, 2018). It can be said that this contract act favours the contractors as it helps the contractors to conduct the project swiftly by mitigating the disputes. With the help of this contract the contractors ensure safety and security of this project. Not only the contractors, the clients or the customers also are benefitted from the laws.

Legal issues

In this case study, several legal issues have been found. These legal issues can spoil the project. It has a great impact on the construction industry. Legal issues occur when disputes cannot be managed well. This case study is based on the construction law and its legal issues that result in a delay in the construction project. The issues that have been found in the case study are related to the finances or cash flows, supplies of the raw materials, supply chain management and other such issues (Lawsociety.org.uk, 2021). Several legal issues including damage of the property, breach of contracts and others can be seen in the construction projects. In addition, risks related insurance and contracts can also damage the projects. In a construction project where several parties agree to sign a contract for the development of project thus, several legal issues can be occurred in project. In this case study, there was a similar theme, which is running through the contract delivery. The contractors of this project are issuing several request for information on extension of work. However, architect of Ocean Green Plc issued formal order. During the project the contractors faced number of legal issues which leads to the delay in projects. Issues related time and delay hamper in this construction project. In this case study, both contractors and employers contribute in causing delay in the construction contracts. JCT aims to mitigate the issues related time and delay and helps to run the project steadily (CUN, 2017).

The JCT SBT 2016 contracts represent interest in construction industries. The JCT has helped by producing standard documentation such as, guidance notes, contracts which can be used in construction industry (CUN, 2017). This contract is primarily made between contractor and employer to ease the procedure of deliver the project. JCT contracts take into action some legal issues that occur during the construction project. This contract mainly works as a risk management in construction project. Litigation is necessary for conducting the construction project. The case is dealing with the issues of the stakeholders. The issues have been found regarding the land. Therefore, an effective lawsuit needs to be implemented to mitigate the legal issue (Voskresenskaya et al. 2018). There are several lawsuits that will be effective for this case study, including the “Injunction lawsuit”, “Adjacent lawsuit”. Before starting any construction project, it is essential to implement these lawsuits for smooth performance.

The injunction lawsuit is an order issued by the court for stopping the construction purpose for a certain purpose. Injunctions order sometimes cause material damages or monetary damages (Parliament.uk, 2021).

Adjunction lawsuit is a legal decision issued by the court. In case of any argument or conflict, the court passes judgment to mitigate the issues (Lawsociety.org.uk, 2021).

Analytical review of current legislation

Current legislation can be defined as the modified laws, which have been passed in recent times to handle the illegal issues of society. The modified or reformed laws can be more suitable for this case study to reduce the legal issues within the construction industry. It is important for the construction industry to amend the modified laws, which are suitable for this construction project (Passera et al. 2017).

Evaluation, interrogation and commercially viable approach

Critical evaluationAt the centre of the risk management of a project, there is dispute management. The industry of construction needs to focus on the most essential quality of management, which is risk management (Agha et al. 2021). JCT contracts works as a risk management in construction project. The standard format of JCT contracts help to mitigate the risks in this project (Noruwa et al. 2020). In addition, it ensures that the risks are split equally by both the parties so that the terms are not favourable than other. It provides protection over project issues and offers assurance to both the parties. The present project deals with the residential development with associated site works and drainage.  Ocean Green Plc is the client who has appointed the contractors to conduct the project and they conduct the project by collaborating with JCT SBC 2016 contract.

However, they raised concerns over contaminated ground, which was because the ground was used previously. This delayed the work of excavation for four weeks until the investigation was conducted. The fertile land should not be allowed for the construction of residential buildings (Świerczeket al, 2018). In addition, the issue related to money and the paper works are required to be assessed for reducing any future conflicts. The construction companies need to sort out any document-related issues associated with the procedures of the construction. JCT contract can help in this project as it works as a risk management and resolve any disputes that occur during the project. This contract contains provision reagrding how to deal with disputes (Noruwa et al. 2020). In addition, JCT contracts can also be used in protecting the employers from the contractors. Furthermore, this contract is outlined in a way that depicts that provisions of agreements are covered by dangers in the construction industry and thus, it helps to mitigate the risks. All the legal rules and regulations required to be checked before starting the construction work, or failing to this might give rise to any future risks. This will save the contractors from any future issues related to time and finance (Malta et al. 2018).

Dispute management is a method that aims to discredit the issues arising from the project which includes disputes among the workers, discrepancies regarding time management (Collins, 2021).

  • Intervention
  • Documentation of work
  • Conference
  • Pilot project run
  • The hiring of dignified lawyers

Law experts will be required for the contractors and the owner of the land. Both the law experts will be required to construct some significant questions that must be valid and should be based on the construction of the residential building (Lotfiet al. 2018). From both, the parties’ answers will be obtained and recorded and further steps will be taken based on the practice.

Resolution of disputes

Adjudication mainly designed to provide cash flow remedy quickly during a construction project. It is concluded by an “adjudicator” who makes decisions on different parties associated with the construction project (Balogun et al. 2017). It makes decisions until the dispute is determined finally through the legal procedures and attributes agreements. Adjudication also defined as a statutory and contractual procedure and helps to mitigate disputes in the construction project swiftly.

ADR (Alternative dispute resolution) can be defined as a process with the help of which the engaged parties are able to resolve the disputes even without any trial (Dupont et al. 2018). ‘The Alternative Dispute Resolution’ process include ‘arbitration’, ‘mediation’, ‘collaborative law’ and ‘neutral evaluation’. With the help of this process the disputes in this project can be mitigated. ADR has now become more popular in construction industry and with its multi channels it mitigates the disputes in the construction project successfully.

The disputes can be resolved to identify the issues of land and property. The disputed property can be resolved to identify the buyer’s issues and further steps in justifying the issues (Csilla, 2019). Moreover, it is significant to identify the several steps in developing the mitigating actions. The disputed property can be identified to the development of law and legal justifications in this context. The contracts are regarding legal terms in engaging the injunction approximately. In addition, with the help of ADR the disputes can be mitigated. The effective process such as, ‘collaborative law’, ‘neutral evaluation’, ‘arbiration’ and ‘mediation’ can be helpful for minimizing the disputes in the construction project (Dupont et al. 2018). It can be identified to analyze the dispute resolutions for engaging the development of laws and legal actions to mitigate the issues. The identification of dispute resolution can boost the property in case of buyer’s class and development of property (Kane, 2018). The UK has shown the essential cases to remind the constructions between the types of the construction industry. Due to the verbal communication gap, the issue can be identified to analyze the disputed property in the case of the construction industry (Świerczek et al. 2018). The property laws include the parties of the clients with construction acts.

Coherent analysis

Construction claims

The construction claims is a request of one of the parties of the contract who agreed to sign a contract or agreement for a certain purpose. It ensures safety for any kind of construction purpose. In this industry, every rules and regulation must be followed carefully. Otherwise, it can cause any type of damages internally or externally (Hayati et al. 2017). All the stakeholders play an active role in this industry. Suppliers, constructor, clients, investors, contractors all are actively participated in doing any project. Thus, any type of risks can be occurring at any time. The issues regarding finance, supplier of raw materials and other such issues can occur. In this case study, too, there would be many issues, including communication gap, fraud, issues regarding land and many more. Therefore, it is important to mitigate these issues for conducting a smooth project of construction. The causes of construction claim can be identified as variations, late supply, extension of time, delay in completion the project, cost and others (Frame and McEwen, 2018). It refers to the request by any of the parties involved in this project for damaging property, delay in projects and other such related issues.

Resolution of disputes

It is also important to resolve disputes regarding the land or property. A disputed land cannot be used for construction purpose. A disputed land can be regarded as the land that has several flaws, including papers issue, seller and buyer issues and many more (Schmitz and Rule, 2019). In the construction industry, the issues regarding disputed land can also be reduced. The legislative proposals need proper verification before taking any steps. In this case study, the Ocean Green Plc can implement these legal procedures for mitigating the legal issues. In addition, uses of ADR would be effective to resolve the disputes. The communication gap among the stakeholders must be mitigated for smooth performance in the project (Hasanzadeh et al. 2018).

Recommendation

It can be recommended to the contractors of this project to use JCT SBT 2016 contract to ensure the success of this project. The JCT contract works as a risk management and help this project to reduce the risks that may occur in this project. In addition, implementation of ADR will also be effective for resolve the disputes effectively. It is recommended to the contractors they must be followed the contract act, industry act, and several lawsuits to mitigate the issues in the construction project. Thus, it is important to maintain the legal procedures for smooth performance and the risk of internal and external damages.

Conclusion

From the above study, it can be concluded by saying that it is important to mitigate the issues in the construction project. This study mainly focuses on several laws such as Contract law, Industry Act, Injunction and Adjunctions lawsuits, Industry Act, and other acts that are effective for this case study. The legal issues of the construction project are needed to mitigate for smooth performance. It is extremely important for the contractors to take proper steps, which would be beneficial for the project and help to mitigate the legal issues. This study has all collected information about the company act, industry act; by implemented this act, the contractors can perform the construction project effectively. Furthermore, examples of correspondence such as, extension of time, loss, expenses, variations and others can also be the reasons for delay in project.

References

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Artan Ilter, D. and Bakioglu, G., 2018. Modeling the relationship between risk and dispute in subcontractor contracts. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction10(1), p.04517022.

Balogun, O.A., Anzari, N. and Thwala, W.D., 2017. Adjudication and arbitration as a technique in resolving construction industry disputes: A literature review. In Proceedings of the Sixth International Conference on Advances in Civil, Structural and Environmental Engineering. ACSEE.

Collins, P., 2021. Taking an action reflective assessment approach when teaching dispute management. Journal of University Teaching & Learning Practice, 18(1), p.8.

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CUN, K.C., 2017. CONTEMPORANEOUS RECORDS IN CONSTRUCTION CLAIM.

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Dupont, P.L., Kirk, E., McDermont, M. and Anderson, B., 2018. Promoting access to injustice? Alternative dispute resolution and employment relations in the UK.

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