Key Parties in Construction Contracts

Key Parties in Construction Contracts

Construction projects involve various parties, each playing a critical role in ensuring the successful completion of the project. Understanding these roles is essential for assessing who is at fault in the event of a dispute arising out of a construction contract.

The Employer

The employer, also known as the client, purchaser, or developer, is the party for whom the work is carried out. The employer's responsibilities include financing the project, defining project requirements, and overseeing the overall progress. Employers may hire a professional team to:

• Design the project.

• Select a contractor through a tendering process.

• Negotiate and agree on the building contract.

• Administer the building contract until completion, ensuring compliance with statutory or technical requirements.

The Contractor

The contractor, often referred to as the main contractor, agrees to carry out the construction work. They may perform the work themselves or use sub-contractors for specific tasks. There are two primary procurement methods:

• Traditional Procurement: The contractor implements the design produced by the employer or their professional team.

• Design and Build Procurement: The contractor takes on design responsibility under the building contract, offering more autonomy in completing the works.

The Architect

Architects are typically engaged to design the works, translating the employer's brief into detailed plans and specifications. Their role often extends beyond design to include:

• Obtaining planning permission.

• Preparing tender documents.

• Recommending and reviewing contractor bids.

• Acting as the lead consultant to ensure the designs of all professional team members are integrated.

The Engineer

Engineers are responsible for the structural integrity and technical aspects of the project. They work closely with architects to ensure that the design is feasible and meets all safety standards. Engineers may be directly appointed by the employer or subcontracted by the architect.

The Quantity Surveyor

Quantity surveyors manage the financial aspects of the project. Their responsibilities include:

• Preparing cost estimates.

• Managing budgets.

• Valuing completed work for payment purposes.

• Ensuring cost control throughout the project.

Sub-Contractors and Suppliers

Sub-contractors are hired by the main contractor to perform specific parts of the work, such as electrical installations or plumbing. Suppliers provide the necessary materials and equipment for the project. Both play vital roles in the execution of the construction plan.

Legal Implications

Each party has contractual obligations that must be met to avoid legal disputes. Clear communication and detailed contracts help define these responsibilities and ensure smooth project execution. In cases of disagreement or non-compliance, seeking legal advice can help resolve issues effectively.

Conclusion

Understanding the roles and responsibilities of each party in a construction project is crucial for its successful completion. Employers, contractors, architects, engineers, quantity surveyors, sub-contractors, and suppliers must collaborate effectively, with clear contracts guiding their interactions. For professional assistance and legal support in construction projects, our team is here to help.

For tailored advice and legal support on construction matters, please contact Klitos Platis by email at klitos@kleanthousplatis.com.

The content of this article is valid as of the date of its first publication. It is intended to provide a general guide to the subject matter and does not constitute legal advice. We recommend that you seek professional advice on your specific matter before acting on any information provided. For further information or advice, please contact Klitos Platis by email at klitos@kleanthousplatis.com.