Different types of Construction Contracts explained

A number of construction contracts exist to cement a projects agreement that revolves around construction or civil engineering works. It is advisable to consult an expert when it comes to drawing up construction contracts to ensure that they comply with traditional standard forms of contract and specifications in relation to aspects like time allocated to the project, payment terms, etc.

Types of construction contracts include:

Standard specifications include COLTO, which incorporates the “standard specifications for road and bridge works for state road authorities”, and can be applied throughoutAfrica. Experts in construction contracts will also refer to the South African Bureau of Standards for guidelines in this regard.

Experts may offer their services to draft contracts by being involved in the preparation and completion thereof, as well as providing input for subcontracts, joint venture and consortium agreements and professional services agreements. The correct documentation can win or lose tenders so these specialists also offer advice in this regard. They can study the legal and commercial conditions of invitations to tender, together with enquiry documents, and provide invaluable insights to the risks involved and how to manage them.

Construction contracts generally detail the legal “responsibilities and duties of employers (who commission work) and contractors (who carry out work)”. They are characterised by simple, easy-to-understand layout and language, and help facilitate a prosperous working relationship between the parties.

In this way, the compilation of such contracts contributes towards creating an enabling environment for reconstructionArticle Submission, growth and development in the construction industry.