Architecture / June 26, 2018 /
The payment arrangements adopted on a contract directly affects the level of risk borne by the contractor. Where the contract is let on the basis of a drawings and specification lump sum the contractor assumes the risk for both the quantity and pricing. In lump sum contacts based on bills of quantities and remeasurement contracts the contractor assumes the risk for the pricing only. With reimbursement contracts the client assumes the risk for the quantity and pricing. The payment arrangement, therefore, directly motivates the contractors efforts to carry out the work in an efficient and economic manner. This in turn has a major impact on the final price paid by the client.
Buildings affect everyone and can intrude on the freedom, privacy or rights of individuals. Statutory legislation regulates many activities of those who wish to build. Planning legislation controls the appearance and intensity of planning of buildings and may limit the extent of development on particular sites. Building control legislation establishes minimum standards and requires that buildings are safe and efficient to use. Safety legislation sets out to eliminate accidents to persons in the course of constructing the building. Environmental legislation protects society and wider environment from potential negative effects of the development process.