Post by account_disabled on Mar 12, 2024 8:44:42 GMT
Construction contracts are, by essence, bound to suffer from disputes whether on a larger or smaller scale. In civil construction, there is no chance of not having to deal with controversies. The continued execution of contracts involving works, combined with the complexity of the work, supplies, unforeseen events, people involved and many other factors form a bubbling cauldron of impasses, which can be resolved peacefully or lead to contentious spheres.
For this reason, special attention should be paid to two matters: 1) the type of contracting and 2) the method of resolving disputes.
The construction market brings Portugal Mobile Number List together different types of agents who work in different disciplines. This interconnection of agents and disciplines occurs through contracts that radiate a colossus of obligations from a common center: the work. Thus, despite having different interests and autonomous corporate structures, the entrepreneur, the designer, the administrator and the builder converge in the intention of carrying out the work, granting each one the bonuses and burdens that derive from their own agreements and particular activities.
Considering the above scenario, it is up to the entrepreneur to evaluate the type of contracting that seems most convenient to him. If it is worth concentrating all duties on a single agent for the entrepreneur to complete the work, perhaps he should consider hiring a turnkey EPC (Engineering, Procurement and Construction) . In this case, the builder will serve as the sole focal point when undertaking the project, as it will assume all responsibilities for the complete supply chain (project, materials, equipment and work). The client or developer pays and the epcista builder does everything necessary to deliver the project. Note that, in this example, by assuming all responsibilities for the work, the builder's risks increase, which causes the contract price to increase.
If, on the other hand, the entrepreneur believes he is capable of playing a more participatory role in his own work, perhaps he can avoid the high prices of an EPC, and assume, for example, responsibility for the project. In this case, the builder will only have to build and, perhaps, supply one or another material. We are talking here about the construction contract.
And if the entrepreneur understands that he can immerse himself in his work, perhaps he can even take on a management role. Thus, the project owner would choose to engage a contractor to manage the execution, and to directly hire all other agents, such as material suppliers, construction company and designer. This reduces the exposure of contractors to the risks of the work, and, consequently, contractual prices.
Each of these types of construction contracts (and there are several others) represent different levels of risk to the parties. And, as has already been said, many of these risks could very well materialize and generate controversy. After all, controversies are the essence of construction.
Therefore, in addition to considering the different contractual formats before entering into them, it is essential to reflect on the dispute resolution methods that may best suit one or another business. What would be better for this or that contract? Common forum? Arbitration? Mediation? Compete on boards ? A mix between some of these methods.