Question

QUESTION 2:

a) Critically examine the following terms in the context of contract management

i. implied and express terms in contract

ii. An article of Agreement in contract and why do we need them in contract?

iii. An appendix (contract particulars) and addendum

iv. Insolvency and termination of contract under JCT

b. Compare and contrast the followings: practical completion and Sectional Completion and their impact under the JCT 2011 SBC/Q.

Answer 1

Contract Lifecycle Management is the Management of contracts from vendors, partners, customers, or employees – and at its most basic, contract management software can be defined as an electronic version of a filling cabinet. It supports the entire customer and contract lifecycle which covers any process that contributes, creates or utilizes contract data. Effective Contract Management requires an understanding of every step in the contract process, including any step that contributes, creates, or utilizes contract data

2)An agreement is the second essential step in creating a contract. An agreement represents the acceptance of an offer made by another party. When an agreement is reached, it means that the two parties to a contract have agreed to terms and have decided to become bound to perform the actions in the contract

3)Parties can add to a contract by way of an appendix. This method is used to explain the terms or words and concepts in the contract. ... However, an addendum to a contract is an addition to a contract that is a separate agreement and that can alter a contract. It must contain its own consideration to be a valid addendum.

4)

if an insolvency occurs (within the defined terms as described in the contract) the parties will need to consider whether to terminate the contractor’s employment for insolvency. The employer should be certain that the contractor is insolvent before terminating or the employer may be in repudiatory breach of contract.

Under the JCT provisions, termination for insolvency allows the employer to employ others to complete the works and make good any notified defects. On termination, the contractor has to provide the employer with its design documents, assign supply agreements and sub-contracts, if required to do so, and remove plant and equipment when required.