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Analyze the contract documentation provided to you. In report format or table format, answer the following:
- Who are the key parties to the contracts? What are their roles and responsibilities? What are the key relationships formed? (This may be illustrated by a diagram)
- What form of contract is it? What significance has this in terms of administration of the contract?
- What documents form the contract?
- What are the key contractual dates? Explain why they are important.
- How will the contractor be paid and on what basis?
- What is the construction contract sum?
- What obligations does the construction contractor have within the first few days/weeks of the contract?
- How will variations be handled under the contract?
- How will disputes be handled under the contract?
- 10.What requirements are there for insurances?
- Are liquidated damages to be imposed and if so what is the quantum? How do you know this?
- What documentation protocols are required by the contract if any? Where is this stipulated?”
Answer: (Please note, this is only part of the answer and not the entire answer itself)
A construction contract is formed by a number of documents that are all geared towards making the construction project a success. An offer letter is first developed by the client tothe interested project manager. The letter is documented by the lawyers representing the MANAGEMENT 4 clients of the project and addressed to the project manager. The project manager is then required to present the acceptance letter back to the clients. This letter will indicate his/her interest in working for the clients and engaging in the project developed that has been proposed (Johnson 2012, p. 70). After the offer is accepted, the contract is formulated that will signify the union between the two parties to work together in developing the project. The contract will contain the various terms and conditions as presented by the clients. The project manager is expected to fully abide by these terms and conditions at all time while the project is ongoing. The contract should also contain a budget proposal for the entire budget. This explains the financial figures that the clients are willing to spend in the project development. However, these negotiations are done prior to making an offer on the project development….
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