PHINMA-UNIVERSITY OF RANGASINAN

COLLEGE OF ARCHTECTURE AND

ENGINEERING

ARC 155:cONSTRUCTION MANAGEMENT INTROPLCTION

RSW#4: CONSTRUCTION AGREEMENTS
PUE DATE: FEBRUARY 20,2022

BALAGOT, MARRIELLE M. ARKATHLEEN JERELL T- RAcs

UP-FBI-B3AR4-2 MONDAY/loCOAM-2:0PM
 IMPORTANCE OF CONTRACT DOcUMENT
WHEN ANY CONSTRUCTION OR ReAL ESTAre PROJECT IS

cONCERNED ,CoNTRACTS ARE AN IMRORTANT RART OF THE ROCESS.

A CONRACT PROVIDES IMRORTANT PROTEcIONS FORTHE R I S

T THE coNTRACT AND ROR BOTH CONTRACTORS AND HOMECWNERS
OR THE WNERS OF THE PROJT OR UILDING IF THE PROJECT

SA COMuERCIAL CONSTRUCTION PReCT.

IN GENERAL JCONTRACS PROMIDE CUrHES AND CeLIEATIONS
tHE RARNES HAVE AGREED TO BUr ALO PROVIDES PROTECiONS

Br THEIR OUGANCNBS.
rOR THE PARtIS F THEY BAIL TO APIDE

CONTRACTS INCLUDE DetaLS ABOUT THE PROJET AND THEN

WILL
THE WORK THAr WIL BE pCNE AND HCW cOMENSATION

TOTHE PROJECT.WHEN A CONTRACT

Be HAUOLED RELAED
HAS P E N BREAÇHED BY ONE OF
THE PARTES ,THE STtHER PARTY
WIL HAVE IMAPORTANT
LBSAL REMEDES OONSIPERR.
BE ABLE O S E B k coM-
THE NON-BREACHIJG PARTY MAr
THE FINANCIAL HARM URFERED;
PENSATORY DAMACES FOR
SPeFC
CANCEL,THE cONTRACT , OR REGUEST
ResCIND, OR
BREACH ING
PERRORMANCE THE CONTRACT, REQUIRING THE
UNDER THe CONTeACT.
PARY O PERKORM THEIR CBUGATIONS
RELATONSHIP IS eSSENTAL TO ANY
BECAUBE THE CONTRACT

CONSTRctiON P R a I T O R REAL ESTAE

BUSINES OPRORIUNITN,
DRAPT THE coNTRACT
PRRET T IS NECEssARY TO CAReFULLr

PRCCess cAN eE EetUL

ANDTRAINEDUIDANee THRCUGHOUT THE
INTHAt REGARD.
EFFECr1Ve cONTRACT TORAPIING CAN HELP AVOID CON-
TRACT OSRUTES DOWN THe ROAD, OWE/ER , rT IS PSIUALLr MFCRR
TANT O UNDERSTAND How p AboRess coNTRACT DSPUIES

AND A BREAcH OF cONTRACT. STH eONTRACT LAVW AND

CONSTRUCTION LAW ARE
COMPLE WHICH IS WHY IT IS

MPORtANT FOR THE PAKNes TO A CONTRACT TO UNDERSÄND

CONTRACt SASCS AND NHAT TOI F A CONTRACr S BREACHED
.CONTRACIS PRMEe á WRITTEN PoeUMENT THAr CUNES
THE FLL
UNPERSANDING F THE BEINeSs RBLATONHIP ANb
SCOPE OF THEe woRK soOTHAT NO CONE CAN CLAIM ANY
MSUNER
stANANG LATER COWN THE ROAD.
THET SPECARY ACTLY WHAT RIGHS ARe SPNG PUR

CHASEDAND WHsr RCHTS OU'RE RETANING

THEY 'Re BINDING AND LEGAUY ENRORCEABLE.
THEY PROTECr BoT rOU AND THE CLIENT
THEYSTIPULSTE HOW AND WHeN TOU E r aub, WHAT
NBBtS TOTRIesER THSr RAMENT,ANDWHAT RESCURCES

U HAVE I* THS CUENTS S t F S TOU

THY MINMIZE RISK.

OIFFERENT TYPES OF CONSTRUCTION CLCSE aUJr

CONSTRUCTIONN PROJECT CLOSEOUT 1S A VERY
COMPLEX PROCESS. IT COVERS A WIDE RANGE OF AREAS
YOU NEED TO TACKLE IN ROR
SUCCaSsFUL PROJECT
COMPLLETION.
PROJECT CLOSESUT-DURING THIS
STEP,YOURE HANO-
LING THE DcUMENTS THAT WIL CONFIRM
OU*VE MEr
ALL PROJECT REQUREMENTS . IT 15 ESSENTIAL THAT
YU
CHECK ANY CHANGE REoUESTS AND REVIEW OUR INI-
TAL DOCUMENTATION.THAT WAr, YOUCAN BE REASSURED
ALL WORK HAS BREN COMLETeO,AND YOCU'VE FULFILLED
YOUR CBLIGATIONS. WHEN OU'RE STARNNG THIS
PROCESS ,ONE THING TO CONSDER ISTO INVEsT IN
GOOD SCETWARE THAT WIL OPTIMIZE YOUR
ORK-
FLOW AND HELP YU TRAek ONN MPORTANT PAFER
WORK
CLIENT CLOSESUT ~THS s AN EXcsuLENT OPFORTUNtTY

T PREsENT YOwRSELF AS AN ORcANIZED , RELIAae,AD

CUSTOMER-FCBED CNTRACTOR.DURING THIS STEP

OU SHOULD GVE THE CLIENT ALL NECESSARY AFERWORK
INCLLDING ARRATIS, RECORDS OF PROET CHANGES,
ND EUIMENT INROk MATION. YOULL UNDOUBTE Y IMCr

THEIR SATISRACnON LEeLS IR OU CAN PROVIDE AN IN-

pEPTH OVÆREW OF THE PROJBCT AND ASSURE THEMM

YOUVe oONE EVERYTHING ATORDING TOTHE CONTRACT.

ADDTIONALLY, OU CAN ALSO ASK FOR FEEDBCK AND

ADDRE<S ANY FINAL CeHCERNS CLINIS MAY HAVe.THIS

wLL SERME OU AS A GUIDE RORoUR RrURE ReSECTS
BUTALSO BOOST THE IMPRESON OU'E MADE CN YOUR

CLIENTS.

ORCA1zATIONAL CLOSoUT-THIS PART OFTHECLOBr

WILL RENUIRE REMOVANG OUR EQUPMENT AND MROES

WHEN THEY°LL HAVe TO LSAVE THE SITE AND PELEcaTE
THEM TO OUR OTHER PRJEcas, YUUWIuASO HAVE TOb

DOINVENTURY FOR OUR OLS AND ESUPMENT rO

MaKE sURe aERY AEET 5 AccNTED FROR. CU OT
wANT TORIS cLeNT COMPANTS AND PROJECT CBAS

At THE LAST MINUTE s A S 6 UU HONt REMOE AN

KCAVATOR EROM THE SthE . TAKE GREAT CARE TAT ALL

YOUREUIPMBT AND WoRKOROE ARE REMOÆD

BEPORE YOUR CLIENT SELS THE FINAL PROJCT.
 SUECONTRACTÜR CLoKOUT- BEFORE YOU PAY YODKK
SWBCONTRACKRS,YOU MUST VERIFY THAT THEIR WORK VMAS
COMPETED AND HAS cONSISTENTLY MET THE REOUIRED
ALNY STANDARDS.ADDItONALLY , IF THERE AREANY
CHANGEOROERS, MAKE SURE THEr'RE ALSO COMFEED
ERORE RE_ESING YOUR WBCONTRACTRS .CNCE
OU
REMEW THEIR WORK AND ARE SATISFIBb WiTH T,caAÆR
ANY RATMENT AMCUNTS AND
INVOICES CU WE THEM
YOU CAN ALSO PROMDE
THEM wrTH FEDBACK FOR THE XE
AND MAKE A Lst CE
SUCoaNTRACTORS OU°O LIKE TO ORK
wH IN THE FOTURE.
TEAM CLOSECUT- THE FINAL STEP
AM AND STOcONSULT YOUR
EALUATE THE S CESS OF TH ACAEcT HING
GOoD cOMMUNICATON wT4 CUR TEAM
NOT
CAN NSURE OURE
MAKING THE SAME MStAkE IN THE FUTURE .ASO
T HELPS TO SHOW
APPRBCKAION FOR THER CONTRIBJNON
TO THE PRRECT. YOUR TEAM WILL
CERTAJNLY BE MORE
SACER TO WRK WTH YOU ON THE NEXT
PROJB IE YOU
SAY a SIMPLE THANk Y