Lydia Kwasba
The recommended type of contract is the JCT Design and build contract 2016 due to the selected procurement route, the nature of the project as well as the Client
The JCT Design and build contract 2016 is recommended to KID Development rather than a bespoke form of contract. As a result, tendering contractors will not be required to employ legal counsel to help understand the particulars of the contract, the contract will be in compliance with the UK law, so in any situation of a dispute, there will be clarity on the specific meanings of any policies within the contract and precedent cases to refer to. if a dispute arises, the particular interpretations of any policies within the contract, as well as previous cases to refer to, will be clear. The NEC contract is an alternative conventional type of contract; although in the UK JCT is regarded as a more standard form of contract, and contractors are much more inclined to have JCT expertise than NEC.
Advanatges of the JCT contract
Fixed-price lump-sum contract - cost analysis and tendering
The contractor bears the risk of the ground. The JCT contract payment part is straightforward, all in one place clause 4 and simple to follow.
Design Risk the JCT contract features a clear interaction between the Employer's Requirements and the Contractor's Proposals, as well as a lot of writing.
Detailed insurance information in clause 6 and Schedule 3 this is critical since the project includes both renovation and new construction elements.
Although this technique has flaws in terms of quality, KID Developments ought to be capable of overcoming this because the design/needs employers will already be finished and in great detail. The client will benefit from a fixed pricing and price certainty, as well as the convenience of dealing with a single point of contact. However, it may result in lesser quality, but this is not considered a problem owing to the high degree of design employer's demand that has already been fulfilled. A retention percentage or a retention bond should be included in the contract. In the case of substandard work, this will give coverage for a percentage of the contract price.
The second step of the two-stage procurement and tendering procedure will include the introduction of this contract type. A pre-construction service agreement will be part of the first step. If KID Developments is dissatisfied at the conclusion of stage one, they can hire a new contractor; however, this may damage the integration and continuity, which is a critical aspect of successful project delivery.