Question

(Define and provide real world construction
examples for each):

1. CONSTRUCTIVE CHANGE;

2.DETRIMENTAL RELIANCE;

3.CONSTRUCTION CHANGE DIRECTIVE;
4. DELETION CLAUSE;
5.ACCORD AND SATISFACTION.

Answer 1

1. CONSTRUCTIVE CHANGE :

A constructive change is a situation where a contractor conducts work outside the provisions of the contract,
withouta formal order under the change clause, either because of an informal order from, or because of, the
buyer's error. This is also a transition where buyer and seller are unable to find agreement.
Such changes could lead to requests / conflicts.
The primary way of dealing with these conflicts is through negotiation. When this doesn't work, the buyer or seller will then go through the steps of Alternative Dispute Resolution ( ADR).

Examples of constructive changes :
* failure to inspect;
* due to defects in the design;
* overzealous inspection; and
* erroneous interpretation of the contract, which results in increasing cost...

2. DETRIMENTAL RELIANCE :

Detrimental reliance is a legal concept under the law of contracts.
Detrimental reliance is a term commonly used to force another to perform their obligations under a contract, using the theory of promissory estoppel. "promissory estoppel", When a promise or obligation is not kept and relying on the promise was a reasonable decision on the part of the reliant person. This is often an issue discussed in regard to oral contracts.

Examples Of detrimental Reliance :
Just Imagine that a customer promises a small business owner to pay for a service but the customer refuses to pay once the service are rendered. The business owner will have to show that he has every reason to believe that the lack of payment is hurting him and that he is being treated unjustly. He relied on the customer to pay him for a few months of work and now he is in financial trouble because the customer has not paid. This was detrimental to his company and the way he worked.

3. CONSTRUCTION CHANGE DIRECTIVE :

A Construction Change Directive is an alternative mechanism for directing the contractor to perform additional work to the contract when time and/or cost of the work is not in agreement between the owner and the contractor performing the work.

Examples Of Construction Change Directive :
The Construction Change Directive form states that after a document has been signed by the State and obtained bythe contractor , the contractor must comply with the changes to the design.
To be successful, Certain directives require a signature from the owner and the architect.

4. DELETION CLAUSE :

A Deletion clause is a provision in an construction agreement that permits any part or either of party, to delete/remove any clause into agreement, which is made by or between, at any time before its expiration date.

Example Of Deletion Clause :
Agreement made by and between owner of property n builder, to construct or renovate something into property, but at laer stage if non satisfication or other reason, if either of parties remove/delete certain condition then its known as deletion of clause into real world construction.

5 ACCORD AND SATISFACTION

An Accord and Satisfaction is a legal contract under which two parties agree to discharge a tort claim, contract or other responsibility for an sum based on conditions that vary from the initial contract or claim number. An Accord and satisfaction are also used to resolve legal cases before they are brought to court.

Examples Of Accord & Satisfaction :
A builder is contracted to build an Property owner a garage for $30,000.
But, At later stage a mutual settlement agreement, the builder accepted $24,000 as full payment.
Thereby, a new contract was formed by offer, acceptance, and consideration, well known as Accord & Satisfaction.