Prior to entering into any construction contracts, all parties
want to ensure the contract has been drafted in their favour.
However, before drafting and negotiating a “dream”
contract, it is important to select the correct form of
contract.
So what are the key considerations when selecting a
contract?
- Type of Project – What project is
being developed e.g. shopping centre, power plant, hospital,
school, railways etc?
- Size of Project – Small, Medium or
Large? You can measure this by the type and number of parties
involved, the value of the project and work required, or the
duration of the project.
- Location of Project – Is it a
national or international project? City project or small town? If
it's national you're more likely to use JCT or NEC,
whereas for international FIDIC or IChemE are preferable.
