Essay Examples on Stern School of Business

Parties to a construction Contract

Parties to a construction contract are often still in the process of finalising contractual agreements when it becomes necessary to begin work on the construction itself This is due to the demand to start work quickly This work can include purchasing the materials readying the location and sometimes beginning the actual construction Jones Day 2013 recognised that where a contract has not been finalised parties tend to draft a letter of intent in order to begin the work as soon as possible for example by starting designing work or employing subcontractors Knack CFE and Vilmenay 2017 identified that letters of intent also serve to reduce the time and cost of reaching a contractual agreement and are a useful way to move negotiations forward However there are particular factors which need to be in place in order to create a binding construction contract intention on behalf of all parties to establish a legally binding agreement a clearly stated offer which includes all of the contractual terms and a clear acceptance of the offer Construction industry letters of intent can therefore result in some difficulties for the parties

1 pages | 367 words