Agreement & Schedule of Conditions of Building Contract 2005: An Overview
A building contract is a crucial document that governs the relationship between a client and a contractor during a construction project. It outlines the scope of work, payment terms, and other essential details that both parties agree to abide by. The 2005 edition of the Agreement & Schedule of Conditions of Building Contract (ASBC) is a widely recognized contract used in the industry. In this article, we will discuss the key features of the ASBC 2005 and its relevance in today`s construction landscape.
Scope of Work
The ASBC 2005 clearly defines the scope of work that the contractor has agreed to undertake. It outlines the specifications, drawings, and other project documents that form part of the contract. The scope of work includes all materials, labor, plant, and equipment required to complete the project. The contract also specifies any exclusions and limitations that may apply.
Payment Terms
The payment terms in ASBC 2005 are straightforward and transparent. The contract specifies the contract sum, which is the total amount agreed upon for the project. The payment schedule outlines when payments are due, and how they will be calculated. The contractor is required to submit an interim payment application at regular intervals, which the client must approve before payment is made. The contract also includes provisions for variations, which are changes to the scope of work that may impact the contract sum.
Timeframe
The ASBC 2005 specifies a timeframe for completing the project, which is an essential aspect of any construction contract. The contract includes a start date and a completion date, which the contractor is bound to meet. The contract also includes provisions for extensions of time, which are granted in the event of delays outside the contractor`s control. The client has the right to deduct liquidated damages if the contractor fails to complete the project within the agreed upon timeframe.
Dispute Resolution
The ASBC 2005 includes provisions for resolving disputes between the client and the contractor. The contract specifies that any disputes should be resolved through mediation, and failing that, through arbitration. Both parties must agree to the appointment of a mediator or an arbitrator. The contract also specifies the governing law and jurisdiction, which is the law of the country where the project is located.
Conclusion
The ASBC 2005 is a standard building contract used in many countries around the world. Its key features, including scope of work, payment terms, timeframe, and dispute resolution, provide a clear framework for both clients and contractors to follow. The ASBC 2005 is an important tool for ensuring that construction projects are completed to specification, on time, and within budget. As an experienced copy editor, it`s important to ensure that all the information is presented in a clear and concise manner for easy understanding.