By Davenport, Philip; Uher, Thomas E
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Additional resources for Fundamentals of building contract management
In doing so it formulates key objectives such as cost, time, quality and functional requirements. It also defines important design parameters such as: 31 Project lifecycle FundamentalsText2proof2009:•Fundamentals/text • • • 6/5/09 4:10 PM Page 32 physical scale, shape and aesthetics of the proposed structure technical, operational and environmental requirements performance requirements. 3 A feasibility study A feasibility study is a process that attempts to assess whether or not the proposed development scheme or schemes will meet the objectives of the project as they have been defined.
After that the directors are replaced by a liquidator and only the liquidator can make contracts on behalf of the company. Similarly, when an administrator is appointed to a company, any dealings must be with the administrator rather than the directors. A receiver is a person appointed by a creditor or creditors to receive (for the benefit of a specific creditor or creditors) all moneys paid or payable to a company and the receiver is usually given sole right to manage the company. A company under administration or receivership may sometimes trade its way out of trouble, but more often administration or receivership precedes winding up the company.
Such a document is called a ‘formal instrument of agreement’. There is an unfortunate practice in the private sector of the principal telling the contractor to proceed before the contract is evidenced in writing. The principal then attempts to negotiate the conditions to finally bind the parties. It is too late. A contract usually exists and if it does not, the contractor would have a right to be paid a reasonable price for all work done (a quantum meruit) on the basis of the principal’s instruction to proceed.
Fundamentals of building contract management by Davenport, Philip; Uher, Thomas E