3.

Project Delivery Methods, Contract Terms, Project Documentations and Quality

Assurance Systems
CONTRACT ENVIRONMENT
 Construction is product oriented activity.
 It has many dimensions.
 One dimension is Business
 Business world is structured by contractual relationships and busines aspects of
construction require the establishment of legally binding relationships.
 So, construction firms are referred as “contractors.”
 A construction contract is a legally binding agreement between two parties on
the details and cost of a construction project.
 This type of contract covers very expensive, complex projects and simple renovations.
 Construction contract includes three basic elements: project scope, schedule of work
and payment details…