Essay on Contract Practice in the Construction Industry

Contracts are part and parcel of business operations in the construction industry. They are the driving force behind many construction projects, and hence their role cannot be outlawed. In the construction industry, learning about contracts is, therefore, a basis for preparing a learner of the actual conditions set to be faced on the ground once one starts the practice. In construction, contracts seek to solve a wide range of issues that could have been possibly not been hard to execute without the use of contracts. The central purpose of a contract outlines all the parties involved in the construction process (Lowe & Leiringer, 2008). The contractor is at the discretion to choose whom to offer the duty. After being offered a duty, the contract outlines all the rights and duties of all parties to the contract. The contract upon agreement also allows a certain degree of risk where both parties agree and sign to it. A contract is a binding agreement of a working relationship where every party is expected to execute their duty within the stipulated guidelines

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When selecting a form of a contract, typical elements need to be considered by either party. These elements include; right and responsibilities and also the risk. Whereas both parties retain their own rights, a contract should ensure that the rights of each party are cheeked. Upon going against the agreement, the contract should, therefore, be used as legal evidence and could lead to prosecution.

Contracts come in different types bound within the conditions provided by the agreement. Among these includes the guaranteed maximum price contract, the lump sum contract, the Unit Price contract, the cost price contract, and the integrated project delivery. Before agreeing to any contract, the contractor should choose the type that suits them best. Financial interests need to be considered to ensure that the contractor is able to complete the project within the indicated time (Varnas, Balfors & Faith-Ell, 2009). Failure to choose the most appropriate form of the contract could lead to immense failure and consequently, loss of the contract. For instance, a contractor who is starting a new project may fail if they agree to the lump sum contract since their assumption may fail. It would have been better if such a contractor utilized the Unit Price contract where they would be paid in terms of the units of equipment they utilize.

In summary, while applying for a contact, a firm should ensure that they meet the threshold of requirements. Seeking legal assistance when conditions are not clear and also ensure that they follow a legal procedure while appearing. Avoiding to follow the right procedures would eventually lead to immense failure, loss of the contract, and even legal suits.

Managing People

Construction is one of highest professions that intensively make use of the human resource. Therefore, construction companies need to ensure that they follow legislations regarding managing their employees. Such legislations are covered in the employee Act where every employer is expected to treat their employees with dignity and also provide them with a safe working environment (Lowe & Leiringer, 2008). To maintain an appealing working environment, it is expected that an employer motivates the employees and motivates them through friendly working environments and ample communication.

Creating a safe working environment for workers is one of the best practices that turn an organization into a hub of employee satisfaction, and hence a harmonized working environment is witnessed. The construction environment is not in any way from other rational business environments (Isik et al., 2009). Human resource techniques include that motivate employees to include proper and timely payments, offering rewards to the best performing employees among other factors. A positive working climate in a construction environment results into a harmonious and good working environment where the successful realization of the organization's goal is realized.

With an improved working environment, workers are able to unleash all their potential which consequently reflects the performance of the organization. It is necessary to create a kind of competitive environment by use of techniques such as setting targets, conducting performance rewards and appraisals (Varnas, Balfors & Faith-Ell, 2009). For instance, when the best employees are rewarded, other employees automatically feel challenged and would want to be appreciated the following time. It, therefore, falls into place that the construction environment will emerge to be highly competitive among the employees (Isik et al., 2009). Training them concerning the dangers they are exposed to, how to avoid such, how to make saving everyday are also same other techniques that could enhance a good management of the human resource. By actively managing them, a construction company has the interests of the employees. On the other hand, the employees are motivated and will always work towards the best interests of the organization. Managing people is, therefore, a core idea in a construction environment.

Procurement and Tendering

Procurement and tendering are major concern in the handling of a project. Procurement and tendering can be described as a system used to select the most efficient and effective way to handle financial constrains which are most likely to affect a project (Varnas, Balfors & Faith-Ell, 2009). Major issues when choosing procurement and tendering method are; finishing the project on time, the cost of the project, performance, and quality of the project. There are various methods of procuring, and selection of a given method depends on the project.

The traditional method is one of the procuring methods. A major feature of this procurement method is the separation of design from the actual implementation of the project. The project cost is known before the actual implementation of the project, but adjustment may be made as need arises. In simple terms, the traditional method involves design, bid, and implement. The most suitable contractor is chosen using the competitive tendering method. The method is simple to understand and implement by any client, but the fact that designs are separated from actual implementation makes the contract period to be prolonged.

Designing and building in this method it is the responsibility of the contractor to ensure that design and implementation of the project are undertaken. In return, the contractor sends an invoice of the total amount that has been used by the project. To get a suitable contractor, contractors are required to write down a proposal. The proposal should have; design of the project, and tender figure of the project (Harris & McCaffer, 2013). The contractor is appointed using the two-stage tendering method that is the contractor must be competitive but must preserve quality. The method is effective in risk management since the tenderer maintains a design liability insurance to cover for the risk. Choice of a suitable contractor brings challenges since tenders are working with different designs.

Management procurement in this method the client appoints a consultant who will produce a design of the project. The consultant also helps the client in selecting the management contractor through tenders and interviews (Waara, 2008). The management contracts payment is based on the work package and agreed on a fee. This method delivers high quality product however it requires experienced clients.

The public-private method this involves a partnership of public and private sector in to get all the facilities required in undertaking the project. The method is most effective in infrastructure development. This project takes the turnkey contract form, that is the private sector design and implements according to the public sectors specification and needs. The method is economic friendly and a proper mechanism for developing infrastructure

Programming and Planning

Construction is a process that involves countless instances of events. Therefore, as a competence requirement, it is important for and induvial to learn the art of planning for events and executing them using a laid-down structure. This competency requirement is core in the ideal construction environment seeing that planning has a long-run effect on the finances as well as other aspects of the organization (Fellows et al., 2009). Construction is about managing projects and allocating enough time to each of them in such a manner that despite the backlog of projects, there is a planned execution and every project is completed in time.

Principles of program monitoring indicate that every project deserves to be allocated its own resources, depending on urgency and the resources available. Therefore, projects whose urgency is greater need to be executed first (Waara, 2008). Planning should also take into account the time needed for the project to be completed and the complexity of the task.

A competent construction manager assesses planning and makes adjustments where need is in order to avoid chances of conflicts. The Grant chart is a leading factor in his or her analysis of planning. Whenever a program cannot be altered, the construction manager should seek ways to review available techniques in order to accelerate performance. Such a manager should also be efficient in handling instances of failure and developing new mechanisms to make a cover up for the lost time (Kibert, 2016). Providing corrective measures is, therefore, a practice that every construction manager needs to subscribe to. Such measures could lead to a shift in concentration, increasing the working time among other alternatives. While all this cannot be just achieved, it is notable that it can only be executed when the contractor's fist establishes the objectives of the project. Planning and programming, therefore, come as events that are in purpose with the projects objectives.

Construction Technology and environmental constraints

Construction technology is a skill that involves actual project running from inception to completion. A competent contractor has the ability to make a rough estimate of the turnout of events, the activities to be involved in completing the project, and the finalizing of the project (Fellows et al., 2009). This skill is not only local nut also extends to international practices that need to be followed. Construction is an activity that directly affects the environment. It, therefore, reflects that a rational constructor would appreciate this fact and follow environmental conservation regulations. Such regulations include managing the noise coming from the construction site, ensuring proper disposal of wastes and maintaining the whole process in an environmental-friendly manner.

Construction processes always utilize lots of resources and hence it is evident that lots of wastes are also recovered from the same. A credible constructor, therefore, finds ways to execute ideas that seek to evade the problem. This might be by designing solutions such as warehouses that have an ample dumping (Fellows et al., 2009). The constructor also needs to adopt construction frameworks that also solve the problem of dumping. An example of such is piling or which he or she may feel comfortable utilizing.

In compliance with measures of construction and environmental conservation, an eligible constructor should apply his knowledge and plan prior to execution of the project. By doing so, he has the capacity to advice workers and juniors on his planned solutions to the expected construction and environmental problems. However, these activities need to be conducted in an economically friendly manner.

Leadership

Leadership is an important requirement in all areas where there exists a human resource. People need no...