What is a Contract?

К О Н Т Р А К Т Ы

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преподавателем английского языка

ГБПОУ «Нижегородский Губернский колледж»

Кузнецовой Светланой Ивановной.

брит.    [ˈkɒntrækt] 

амер.     [ˈkɑːntrækt ]

The word “Contract” is derived from the Latin word “Contractum” meaning Drawn down.

Contract consist of an agreement between two or more parties under certain terms and conditions whereby one party undertakes to execute works or to supply materials at specified rates and the other party undertakes to make necessary payments for the work completed by the first party.

WRITE

contract  Synonyms

bond ,  guarantee ,  covenant ,

  deal ,  guaranty ,  surety ,  warranty

Definition of  contract

A business arrangement for the supply

of goods or services at a fixed price

Словосочетания

breach   of contract — нарушение контракта    material   breach  of contract — существенное нарушение контракта    to  celebrate  a contract — заключать договор    contract  clause  — статья договора    clause  in contract — пункт, статья, условие договора    to  complete  a contract — выполнять договор    to  abrogate  /  cancel  /  repudiate  a contract — аннулировать контракт, расторгнуть соглашение    to  breach  /  break  /  violate  a contract — нарушать условия контракта    to  carry  out /  execute  a contract — выполнять условия договора   

A contract document consists of following types of papers: 1. Conditions of contract 2. Technical  Specifications 3. Bill of Quantities or BOQ 4. Contract Drawings 5. Form of contract Note: Language for all the documents should be exact , so that, later on the meaninings may not be  wrongly interpreted.

Specifications

The specifications amplify (magnify) the information given in the contract drawings and the BOQ. These describe, in detail, the work to be executed under the contract and nature and quality of materials and workmanship. The specifications also give details of any special responsibilities to be borne by the contractor in addition to the general conditions of contract. The use of a particular standard like British, American,  European , etc. helps considerably in this respect. It ensures the use of good quality materials complying with the latest  requirements  prepared by expert technical committees representing Users, Produces, Research workers and other interested.

1. Conditions of Contract

Conditions of contract are classified into three categories.

Conditions of Contract

Conditions of contract are classified into three categories:

• General Conditions of contract.

• Additional Conditions of the contract.

• Special conditions of work.

1. General Conditions of contract

These conditions, in some form, are to be specified for nearly all types of the works. These define generally the terms under which the work is to be carried out like the relationship between the  engineers , the contractor and the client , the powers of the engineers and the terms of payments etc. Various clauses dealing with contract laws are incorporated in the general conditions o the contract.

2. Additional Conditions of the contract

These conditions are related to the type of project. Conditions left in general conditions of contract are specified in additional conditions of contract. These conditions generally differ from project to project and are mainly related with specifications to be used, ways of testing, start of work, and other relevant work.

3. Special conditions of work

These include some information about  the site  and the work, provisions of facilities at the site, site office, availability of surveying instruments drawings and site order book (to note instructions from the engineer) at the site, sign boards, materials and machinery issued by the department, advances, and other related terms.

Note: all conditions or circumstances, which can give rise to a dispute later on, should be well settled in the contract agreement. These agreed solutions of various conditions become contract law.

Contract Drawings

Contract drawings illustrate the details and scope of the works to be executed under the contract. They must be prepared in sufficient details to enable the contractor to satisfactorily price the BOQ ( bill   of   quantities — сводная смета,специфика объёмов работ).

The contract drawings will be subsequently used when executing the works and may be supplemental by further detailed drawings as the work proceeds.

Full description and explanatory notes should be entered on the drawings to avoid any sort of confusion.

Bill of Quantities

(how can we explain the contract documents in civil engineering)

The BOQ consists of a schedule of items of works, to be carried out under the contract, with quantities entered against each item, the quantities being taken in accordance with the standard methods of measurement of civil works. One of the primary functions of a BOQ is to provide a basis on which tenders can be obtained and when it is priced, it provides a comparison of various tenders received. For a building, BOQs are given separately for each storey and separately for different types of works.

1. BOQ for civil works 2. BOQ for public health engg. Works 3. BOQ for electrical works 4. BOQ for gas works

Form of Tender (Formal Agreement) 

It constitutes a formal offer to execute the contract work in accordance with the various contract documents for the contract price as quoted in BOQ. It usually includes the contract period within which the contractor is to complete the work.

The contractor is generally asked to enter into a bond whereby he provides to sureties who are prepared to pay upto 10-15% of the contract price if the contract is not carried out satisfactorily or a bank guarantee.

All parties signing a contract

must do so

of their own free will.

Difference between Voidable and Void Contracts

A voidable contract occurs when one of the involved parties would not have agreed to the contract originally if he had known the true nature of the all of the elements of the contract prior to original acceptance.

With the presentation of new knowledge, the aforementioned party has the opportunity to reject the contract after the fact. Alternatively, a contract is voidable when one or both parties were not legally capable of entering into the agreement, such as when one party is a minor.

In contrast, a  void contract  is inherently unenforceable. A contract may be deemed void should the terms require one or both parties to participate in an illegal act or if a party becomes incapable of meeting the terms as set forth, such as in the event of one party’s death.

Forcing someone to sign a contract under duress may result

in a voided contract

(аннулированный контракт).

Marriage involving someone under the age of 18 is a voidable contract

( оспоримый контракт)