Arbitration Practice in Construction Contracts

Question: Discuss about the Arbitration Practice in Construction Contracts. Answer: Introduction: First, the building permits to reconstruct the structure will need to be acquired. The renovation of the structure will mean that the structure will interfere with other structures which are around the location. The law requires the permit to be provided for the structure in order to enhance the personal safety of the people. The laws will also ensure that the people permitted to carry out the renovation works are qualified and that they will not interfere with the safety measures of other people. Contamination and dumping laws on the other hand will require to be adhere to. The laws on the dumping of the debris from the renovation will require minimum disposal on different location to enhance the safety of the others. In addition, the law states and provides the different locations where the disposal of the wastes has to be done to reduce the contamination of the environment. In addition, during the reconstruction, soundly equipment are used. Sound laws requires that minimum sound has to be provided to protection others from the interference. In addition, the law touches on the protection of the people on the site by providing the required personal protection against the sound to enhance their safety. The ventilation laws will enhance the lighting and air circulation on the building. According to this law, the renovation of the structure requires to have some key specification concerning the air circulation and light to suit the store specification. In addition, the law will be able to state the height of the building to enhance the movement of the people when the renovation is complete. Personal hygiene is another law which will require the reconstruction of the store to adhere. This will help to provide the hygienic condition, where the people working on site will be going for the short and long calls (Hughes, Murdoch, champion, 2015, p.31). In addition, this law will be able to state the state of the food and water which the people will be taking. Environmental protection laws are another set of rules which the building will need to apply and adhere to. These laws will state the relation of the structure with the existing environmental structure (Hughes, Murdoch, champion, 2015, p.71). For instance, in the extension of the different parts, the tree on the location can only be cut on the unavoidable circumstances. Other elements of the environment will need to be protected and the responsible personnel will have to make the application to get the necessary permit that they will protect the environment from the concerned authority. In addition, since this is a renovation works, the contravtor should be able to appky to the laws of drainage and especially when they uave to revonnect theor drainage to the existing one. According to the laws, the contractor should be able to state the way he or she would interfere with the functionality of existing drainage system if any. In addition, the laws require for temporary drainage system which is functional. The contractor should be able to make sure that the designs of the drainage is able to comply with the laws and therefore able to enhance the personal safety of the people. On-site Safety laws will enhance the safety of the people working on site. These laws will be able to touch on the different personal usage of tools and the need to have the proper protection wear for the people on site (Stephenson, 2012, p. 35). In addition, the responsible personnel and companies should be able to state their commitment in ensuring proper safety for all the people on site. The personal safety rules will include any relevant signing on different locations as well as the demarcation. Proper trainings for the workers is also part of the personal safety requirements which the construction site will have to adhere to. This will ensure that the workers are able to minimize the accidents on site. In addition, route access laws are others which the reconstruction of the building will have to comply with (Punmia, 2014, safety (Stephenson, 2012, p. 67). This will help to make sure that the extensions which will be made do not interfere with the existing routing. Moreover, the routing in the building will help to ensure that the different construction materials are able to move freely. The clear spacing for the materials on site should be achieved in order to minimize the accidents on the site. Lastly, since the works involves the reconstruction and renovation, fire safety rules have to be observed. The reconstruction will have to ensure that the proper fire fighting equipment and measures are adhered. The existing power supply measures which are meant to ensure that they don't cause any accidents will be required and that r safety is in accordance with the existing laws. Lump sum contract Contracts are legal abiding rules between the client and contractor providing the specification and conditions for the construction works. One of the major contract which can apply on this type of construction is the Lump Sum or fixed price contract type. This contract is best suited for this project since it has clear specification and the duration for the completion of the activities can be done. In this type of contract, the builder or contractor is able to assume all the risks related to the construction works. The abrupt changes on any work on site will be assumed by the contractor at any given time. Additionally, on this contract, full amount for all works is specified and any changes will not be presented to the client for additional cost incurred (Hughes, Murdoch, champion, 2015, p. 79). The defined works which has to be carriecontracts this project requires this type of contract. The renovation of the store will be carried out for a specific period and less interference with work will be required (Haidar, 2011, p. 54). This will prompt for use of this type of contract where the contractor has full control of the activities (Punmia, 2014, p. 67). The contractor will enhance the control of risks and ensuring that they do not go overboard of the stated amount. In the specification, the contract has to include the costs of the risks which he or she might incur since the contract will be unable to change once signed. This ensures that the contractor will be able to finish the stipulated work on the stipulated time. Cost plus contract. Cost plus contract is another type of contract which can be applied on this renovation construction activity. According to this contract, the client and the contractor has some specification which they have to carry out. On this contract, the actual costs, purchases or other expenses are negotiated through and the payments for the specific activities are agreed upon. Moreover, in terms of the risks, the costs of the risks will be shared according to the specific activities which the parties have agreed upon. In this contract, special information must be included on what different parties has to undertake and when they are expected to complete their work. This is because their completion will determine when others will have to start on their work (Haidar, 2011, p. 54). The negotiated price in the contract must include the contractors overhead costs and the profits. The risks will be in accordance with the density and level of activities which the parties are undertaking. The clients a s well has some risks which he or she has to assume. The clients has to select different contractors for the different activities. The risks will therefore be shared among the available contractors and the client according to the specified responsibility. The more the responsibility a contractor or client has the more the risks they bare according to the contracts specification. References Hughes, W., Murdoch, J. R., Champion, R. (2015). Construction contracts: law and management. https://search.ebscohost.com/login.aspx?direct=truescope=sitedb=nlebkdb=nlabkAN=981118. International federation of accountants. (2001). Construction contracts. New York, N.Y., International Federation of Accountants. Stephenson, D. A. (2012). Arbitration Practice in Construction Contracts. Hoboken, Spon Press. https://public.eblib.com/choice/publicfullrecord.aspx?p=180989. Punmia DR. B.C. (2014). A text book of Production Planning and Management. Haidar, A. D. (2011). Global claims in construction. London, Springer. https://public.eblib.com/choice/publicfullrecord.aspx?p=799017.