Contracting & Construction

Contracting and construction refer to the legal and operational process in the construction industry. Contracting involves an agreement between two parties (such as an owner and a contractor) to define the terms and conditions of a particular construction project, while construction refers to the actual engineering and construction process of the project.

Construction Contracting:

  1. Construction contracts: are legal agreements that define the relationship between the owner and contractor, including project details, party obligations, timelines, payments, termination clauses, and more.
  2. Types of Construction Contracts: There are various types of construction contracts, including fixed-price contracts, cost-plus contracts, unit contracts, and design-build contracts, each with its own advantages and disadvantages.
  3. Contract Elements: The contract must include essential elements such as capacity, agreement, cause, subject matter, and form, in addition to the terms specific to each project.
  4. Importance of the contract: The contract defines the rights and obligations of the parties, protects their interests, and contributes to regulating the workflow.

Construction in the construction sector:

  1. Construction phases: The construction phases include planning, design, obtaining permits, implementing construction work, finishing works, and delivery.
  2. Construction parties: Multiple parties are involved in the construction process, including the owner, contractor, architect, structural engineer, subcontractors, and government agencies.
  3. Challenges in Construction: Construction projects may face challenges such as delays, design changes, increased costs, non-compliance with specifications, and safety risks.
  4. The Importance of Supervision: Construction supervision ensures the quality of work, adherence to standards, and achievement of desired objectives.

The Relationship Between Contracting and Construction:

  1. Integration: Contracting is the first step before construction, as it defines the conditions that must be adhered to during the construction process.
  2. Assurance: The contract provides legal assurance to both parties, protecting their rights and obligations during project implementation.
  3. Control: Through the contract, the owner can control various aspects of the construction process, such as costs, quality, and time.
  4. Evaluation: The contract can be used as a tool to evaluate the contractor’s performance and hold him accountable for any shortcomings or negligence.