Management Contracting Essay Example | Topics and Well Written Essays - 1000 words - 2

Management Contracting - Essay eventGenerally, management companies wish to formulate standard form of nips as it has a wide range of farseeing term benefits. This paper will advise the client about the significance of having a decent announcement before getting strait into the construction work. It will also explain the impact of such claims on both the company and client. Since the client wishes to tie the arriveors down with low fixed prices and another(prenominal) similar restrictions, it is better to design an schematic standard form of contract. In the opinion of Beard, Loulakis, and Wundram (2001, p.347), the standard form contracts assist the parties to contract with economical and convenient way of mental process. The authors add that these types of contracts aid both the parties to minimise the costs associated with the lawyering for every posterior contract in the fundamental law of new projects (ibid). Since standard form contracts do not allow upgrade negoti ation on formed contracts, both the parties can take advantage of the reduced transaction costs. Similarly, this established contract reduces the possibilities of unforeseen anomalies and thereby it would help the client to save unexpected costs that may welcome in the future. The client gives great emphasis on time and it can be achieved by the formation of a standard form contract. ... When the project owner or client gives a valid word meaning to the offer, the contract comes into force. The court has developed some additional terms for the standard term contract in order to protect the interests of both the parties. It would be difficult for the large-scale construction management organisations to represent wear out contracts for every individual. Therefore, a standard form of contract helps the unassailable to escape from the troublesome difficulties of negotiation and other legal formalities. Similarly, it provides conveniences to client also. The standard form contract o bliges the firm to give reasonable admit to the client at proper times regarding necessary information. It is also held that the notice should be contemporaneous with the contract so that it would save the client from additional liabilities. Likewise, the client will be legally protected if the firm makes a fundamental breach of the contract on the strength of sub-clauses. In addition, the standard form contracts maintain many provisions that would satisfy the interests of both the parties. For instance, Murdoch and Hughes say that JCT SB 05 is a standard building contract which necessitates the appointment of an architect or contract administrator who has some strictly defined powers such as issuing of certain instructions on behalf of employer and also certification of payments, the quality of work, and the contractors performance (Murdoch & Hughes, 2008, p.106). In addition, it includes certain fluctuation clauses which save the parties from losses associated with fluctuations i n money market and changes in governmental regulations. There may be variations in labour prices, tax rates, and raw material costs which would