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EG7036: Jim Akis Khan decided to develop one of his lands in South East London and wants 4 units of 3-bedroom terraced houses to be built there. He intends to rent three houses and live in one: Business Procurement and Contractual Practice, UOEL, UK

Learning outcomes

  • Identify and evaluate standard forms of contracts used in construction and demonstrate a critical review
  • Assess & compare and contrast various construction contracts and their application for different construction projects.
  • Compare, select & evaluate different procurement processes and critically evaluate their effects on construction projects
  • Analyse contractual terms and clauses in construction contracts and critically interpret the results in relation to the construction projects
  • Demonstrate the choice of dispute resolution in construction contracts and critically evaluate it

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Questions

Question 1

Jim Akis Khan decided to develop one of his lands in South East London and wants 4 units of 3-bedroom terraced houses to be built there. He intends to rent three houses and live in one. He is busy, not an expert in construction but not a novice, happy to accept a reasonable amount of risk but wants a reasonable level of involvement in the project. However, he is a keen environmentalist and does not take interior decoration lightly. He has secured a loan from the bank for the houses he intends to rent.

Task

A) As a Senior Commercial Manager and Legal advisor, advise him on the most appropriate procurement method(s) and type(s) of contracts to be adopted in the project(s) with adequate justifications.

Question 2

A) The nature of construction projects means that if improperly managed, it can result in various types of tort. Using examples of associated construction phase activities and case laws (and primary legislation and secondary legislation where applicable), discuss, at least, three torts (civil wrongs) that can occur in the construction phase of projects. Also, evaluate the possible defences to these torts.

Question 3

JCT SBC/Q 2016, NEC4 ECC and FIDIC Red Book (1999 or 2017) make provisions for handling delays caused by employers and those that are the fault of the contractor or the client (or employer) for example exceptional adverse weather events. Critically evaluate these provisions in these three forms of contract including how they are handled and the implications e.g. when the contractor can claim for an extension of time and/or money. It is expected that you make reference to the relevant clauses in each standard form of contract and that relevant case laws are used where possible.

Question 4

A) You are Senior Commercial Manager and two interns asked you to evaluate any ‘Multi-tiered Dispute Resolution Mechanisms’ (legally binding and non-binding) stipulated in the JCT SBC/Q 2016. It is expected that you will make reference to the relevant clause in the contract and case laws.

B) Discuss the principles of NEC contracts. (5 marks)

C) Discuss the contribution of Donoghue and Stevenson to the tort of negligence

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