Construction Contracts in Context Essay Example | Topics and Well Written Essays - 4000 words

Construction Contracts in Context - Essay Example Hoover‘EmUp PLC (‘Hoover’) brought out share of SkyHigh Project Limited (‘SkyHigh’) which was a middle sized contraction company. The initial designs were done by PrimeDesign Partnership (‘PrimeDesign’). Hoover had a lawyer who helped him in his projects. The lawyer usually goes through his paper to be updated with the agreements he is in. During one particular diligence exercise he noticed that Hoover had misstated some of his documents. Being a written contact it might give the opponent a good hand in case of a dispute. The statements brought him into a big problem for design defects were noticed in the building. When Hoover noticed the problem he blamed it to PrimeDesign. The use of different legal issues in construction was the only way they have to meet their claims2. A good construction contract should be able to adhere to the Legal issues related to construction. Different contractual and legal issues were noticed in the case. Legal issue discovered during the investigation of the case3. The first issue was the one that deals with contractors and subcontractors. The issue deals with matters concerning what contractors are held liable during the building process4. It states that contractors and subcontractors are liability in automobile, commercial general and worker compensation/ employers’ liability. Hoover being the employer of PrimeDesign he is protected by this law. He has the right to sue PrimeDesign and claim for compensation. He can use the advantage of this law to ensure that SkyHigh has been compensated completely or partially for the design problem which is expensive. Another issue is in term of risk of the property or the builder. Risk of property of builder section tackled accidents that may lead damage of property or bodily damage. The decisions are made based on different considerations. Location of the project, type of project, cost associated with the project, type of contract, owner’s desires