By R A Ribeiro
ISBN-10: 0080530990
ISBN-13: 9780080530994
ISBN-10: 0750624981
ISBN-13: 9780750624985
Engineering Contracts is meant in the event you desire to collect talents in drafting, negotiating and dealing with advertisement and engineering contracts. It goals to convey a special method of the topic; combining the conventional criminal standpoint of the legislations of agreement with the desires of the industrial supervisor or engineer who's looking strategies to technical and advertisement difficulties. The context during which these Read more...
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Extra resources for Engineering contracts
Sample text
The reason for this is that different types of tests have different consequences, particularly as to payment and acceptance, and the distinction should be clearly made in the contract. Tests or inspection before delivery These should be provided for in the contract if the purchaser requires such tests or inspections: normally a purchaser of goods or services has no rights of testing or inspection prior to delivery. This is because such 32 Structuring contracts matters necessarily have disruptive effects and possibly have cost implications, and therefore have to be expressly agreed upon by the parties if the purchaser is to have any such rights.
Ltd v. The Queen (1973) there had been a tender for the construction of a postal terminal in Canada. The tender was to include the supply and installation of mail handling equipment, which was to be done through a sub-contractor, so the tender included a figure for supervision and overheads and profit. The tender figure was on the basis that the sum for the supply and installation of the handling equipment would be approximately $1150000. In the event there was a 'change order' which required the equipment to be of a specification for which the sum required by the subcontractor would be in excess of $2 000 000.
No valid charge or trust had been created in favour of the contractor, and consequently the contractor's right to the retention fund was unsecured, whereas the bank was a secured creditor. Performance bonds or guarantees Due to the drawbacks of retention money, from a contractor's point of view, a contractor may wish to negotiate an alternative form of security for the employer which may serve wholly or partially as a substitute for retention money. This is the performance band or guarantee, which is a financial guarantee for due performance of the contract, and which is given by a bank or insurance company or other surety.
Engineering contracts by R A Ribeiro
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