Construction Contracts / Edition 2

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Overview

Serving as a tool and a guide for construction contracts, the broad presentation of information within this book is clear and easily referenced. Construction insurance, subcontracts, international construction, dispute resolution methods, professional ethics, and construction safety are but a few of the related topics addressed. Practitioners will also find the numerous legal cases and provisions to be particularly valuable. The discussions are germane to contract disputes and will give a greater understanding of the role of the judiciary in the construction industry.
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Product Details

Meet the Author

Jimmie Hinze, (University of Florida at Gainesville) is the Director of the School of Building Construction.

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Table of Contents

Preface
1 Description of the Construction Industry 1
2 Construction Contracting Methods 11
3 The Nature of Contracts 19
4 Issues Concerning Real Property 30
5 Agents 46
6 Forms of Organizations 55
7 Contract Disputes and Torts 68
8 Surety Bonds 74
9 Acquiring Contractor Services 93
10 Construction Contract Documents 120
11 Unit Price, Cost-Plus, and Lump Sum Contracts 138
12 Changes 147
13 Changed Conditions 157
14 Matters of Time 166
15 Payments 194
16 Warranty 202
17 Construction Insurance 210
18 Subcontractors and Subcontracts 234
19 International Construction Contracts 262
20 Methods of Dispute Resolution 271
21 Professional Ethics 293
22 Construction Safety 308
23 Labor Relations in Construction 318
Glossary 329
Appendix 337
Answers to Selected Review Questions 377
Index 431
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Preface

The construction of various types of facilities often represents the culmination of the efforts of several designers. In fact, most projects undertaken by designers are ultimately constructed. Most construction projects begin with the award of a construction contract. This contract becomes the underlying foundation for the relationship that will exist between the various parties involved in the project. Thus knowledge of contracts is beneficial to virtually all parties involved in the construction process. This book will provide information of general interest to anyone working with construction contracts.

This book was written to serve as a learning tool and a reference guide for construction contracts. The fundamentals of contract law are presented, along with an indepth treatment of the construction topics that most frequently result in litigation. In addition, an overview is provided of other important construction-related topics, including the procurement process for construction contracts, methods of dispute resolution, surety bonds, construction insurance, construction safety, and construction labor laws. This second edition incorporates some of the changes that have occurred during the past decade.

In comparison with other books on contracts, two distinguishing features of this text should become apparent. First, this text includes summaries of a large number of legal cases involving construction and discusses many topics that are germane to contract disputes. Well over 100 cases are described to help illustrate key points. These cases will also give the reader a greater understanding of the role of the judiciary in the construction industry. The reader will also appreciate the frustration that some contracting parties have had with decisions made by the courts. In some cases different interpretations merely reflect differences in the courts, while in other cases they reflect differences in statutes. In spite of some differences, most court decisions tend to be reasonably consistent. An understanding of how judicial decisions are made will give the reader insight into how the facts of a particular situation may be interpreted in a court of law.

The second feature not found in most texts is that many contract provisions are isolated for the reader. These provisions help the reader recognize the importance of the particular wording that is used in contract documents. Some of these provisions are presented to illustrate provisions that are in common usage, while others are presented to show exceptional provisions, particularly those that shift responsibility or risk. While the provisions that are presented use primarily terms such as owner and contractor, in actual usage, many terms are used in lieu of owner, including owner's representative, architect, contract officer, agency, department, division, city, county, and district.

Chapter 1 provides a description of the construction industry, including its size and importance to the U.S. economy. Chapter 2 describes the different contracting arrangements most often encountered in construction. Chapters 3 through 6 provide background information on the fundamentals of contracts, the role of real property laws in construction, the difference between agents and independent contractors, and the significance of different forms of organizations. Chapter 7 introduces the topic of torts. Chapter 8 describes bid bonds, performance bonds, and payment bonds, Chapter 9 describes how construction contracts are generally awarded. Various contract documents are discussed in Chapter 10. The methods of payment for construction contracts are discussed in Chapter 11. Chapters 12 through 16 cover topics that are common to many construction disputes, including changes, changed conditions, delays, payments, and warranties. Chapter 17 describes the various types of construction insurance. Chapter 18 discusses the role of subcontractors. Chapter 19 presents an overview for some for the major issues commonly encountered in international markets. Chapter 20 discusses the resolution of disputes by methods such as negotiation, partnering, arbitration, mediation, dispute review boards, and minitrials. Chapter 21 presents basic issues involving ethics that may be faced by construction professionals. Chapter 22 describes safety in the construction industry and related legislation. Chapter 23 presents terms related to labor relations and introduces the more important laws that have a direct impact on the construction industry.

Many individuals contributed to the successful completion of the first edition of this book. Particular appreciation and gratitude are expressed to Bryce Coleman, William Shirk, Jennifer Tada, Paul Prost, and Kyle Hansen. Gratitude is also expressed to Richard O'Cull, James Franken, Randy Zuke, and Julie Dickens for their assistance. I continue to offer my sincerest thanks to Neal Benjamin for his many years of guidance and counsel. The second edition was similarly the result of guidance and input from several individuals. My sincerest gratitude is extended to Steve Auld, Michael Wozney, Jim Dunn, Michael Cook, James Milward, Debra Bosma, John Gambatese, Andrea Johnson, Sherwood Kelly, Leon Wetherington, Norma Andersen, and Ken Andersen. I also want to offer my personal thanks and gratitude to the reviewers, Roy E. Evans-Purdue University, David R. Fritchen-Kansas State University, Richard E. Mayo-Arizona State University, and Jim Rowings-Iowa State University. Their input was thoughtful and helped improve the final product.

Jimmie Hinze

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