NATIONAL UNIVERSITY OF SCIENCE AND TECHNOLOGY

FACULTY OF THE BUUILT ENVIRONMENT

DEPARTMENT OF CONSTRUCTION ECONOMICS AND MANAGEMENT

Course code and title: BQS 2203 Construction Law II

Name of Lecturer: P. Banda (0771 034 042) Office Ceremonial Hall FD45

Contact hours: 4hours per week

Credits: NIL

Category: Normal course

Course summary

This course is a continuation from Construction law 1, covering in detail lectures and seminar
discussions covering in detail topics of contract, preparation of documents utilized by quantity
surveyors, engineers and architects which include proposals and bidding, technical
investigations, test reports and design documents.

AIM

The course aims at developing student’s skills and knowledge on contracts and preparation of
tender and other documents utilised on construction projects by various professional as well as
the legal implication and interpretation of such documents.

OBJECTIVES

On successful completion of the course the students should be able to:

 Comprehend legal processes involved in tendering construction projects and the formation
of the contract.

 Acknowledge how documents utilised by different professionals are prepared

 Understand the rights and duties of parties in a contract

 Describe various forms of construction contracts (insurance, bonds etc)

 Understand different contractual mechanisms and procedures (material ownership, Loss

and expense etc)
  Understand causes of disputes on projects and how to solve those disputes.

COURSE CONTENT

TENDERING AND CONTRACTS FORMATION

Areas to be covered include

 Requirements for the formation of contracts

 Tendering processes and procedures

 Legal issues in the tender process

 Tender documents

 E- tendering

CONSTRUCTION BONDS

Areas to be covered include

 Formation of contract

 Rights and obligations of parties in the contract.

 Legal principles of bonds

 Purpose of bonds in the construction industry

 Bonds used in the construction industry (tender bond/ bid bond, performance bond as well
as the payment bond.

 Conditions for the release of bond

 Defenses available in surety ship contracts

INSURANCES

Areas to be covered include

 Insurance contracts

 Liability of the parties to the contract

 General principles on insurances

  Importance of insurances

 Insurances in the construction industry

CONTRACTUAL MECHANISMS AND PROCEDURES

Ownership of materials

Areas to be covered include

 Provision of the contract on transfer of material ownership

 Ownership of materials on site

 Ownership of materials offsite

 Ownership and transfer of third part materials (sub contractor’s materials etc)

Certificates and payment

 Types of certificates

 Importance of such certificates in contracts

 Legal issues associated with certificates

Loss and expense claims

 Grounds for contractual claims

 Procedures in claiming

Liquidated damages and Penalties

Areas to be covered include

 Liquidated damages ( provisions under the contracts)

 Penalties

 Applicability of the above in the construction industry

Insolvency

Areas to be covered include

 The causes of insolvency

 Law of insolvency and the provisions under the contract

 The right of the parties in a contract

  Action taken in the event of insolvency

DISPUTES RESOLUTION

Areas to be under this section covered include

 Causes of disputes within the construction industry

 Disputes resolution methods

 Contract provisions on dispute resolution

Mode of assessment

Coursework - 40% (At least 1 individual assignment 1 group assignment and 1 test)

Examination - 60% (One written paper)

Reading list/References

Adrianse, J. (2010). Construction contracts law (3rd ed.). Palgrave Macmillian.

Ashworth, A. (2001). Contractual procedures in the construction industry (4th ed.). Pearson
Longman.

Bailey, J. (2011). Construction law (1st ed., Vols. 1,11,111). London: Taylor and Francis.

Chappell, D. (2012). Understanding JCT standard building contracts (9th ed.). Spon Press.

Duncan, C. (2009). Quantity Surveyor’s Pocket Book (1st ed.). Butterworth Heinemann.

Hackett, M., & Statham.G (Eds.). (2016). The Aqua Group guide to Procurement, Tendering and
contract Administration (2nd ed.). U.K: Wiley- Blackwell.

Hughes, W., Champion, R., & Murdoch, J. (2015). Construction contracts: Law and
management (5th ed.). Routledge.

Jack, R. B., & Phil, G. (2008). Contract Practice for Surveyors (4th ed.). Butterworth-
Heinemann.

Murdoch, J., & Hughes, W. (2007). Construction contracts law and management (4 ed.). Tylor
and Francis.

Uff, J. (2013). Construction law (11th ed.). Sweet & Maxwell.

Yates, J. K. (2010). Engineering and construction law and contracts (1st ed.). Prentice Hall.