Explain can be issued either with a statement

 Explain and define what is meant by a Letter of Intent. In a building construction contract, what are the circumstances under which it may be issued, what may be its objectives and what are the principal matters that it should contain?   A Letter of Intent is typically written by an employer (the client) to a contractor or architect indicating the employer’s intention to enter into a formal written contract for works described in the letter, and often asks the appointed to begin on works specified before the formal contract is executed. The letter of intent is not legally binding in terms of a contract, however, if they contain an agreement to negotiate or a non-disclosure agreement then they can be legally binding. The letter can also be seen as binding if it is too similar to a contract and so it is enforceable by the courts for the remuneration as well as the act.   It is important to note that, unlike the contract, which is a bilateral agreement, a letter of intent is a unilateral agreement in which one party confirms to enter into a contract with another party. It has to contain an instruction to act and a confirmation of consideration as payment.   A letter of intent operates in three different ways:   As a non-binding statement of intention As an in between contract that governs the parties relationships’ until a formal written contract is delivered As a final contract, which includes the intended terms and conditions of the formal written contract   It can be issued either with a statement saying that work should begin while the main documents are being finalised or a limit of money might be set in which the subcontractor will have to adhere to.   Letters of intent aim to clarify the complexities within the transactions, provide safeguards in the negotiations, officially declare interest or intent and with that confirmation of consideration (payment) and to allow work to begin quickly based on the trust of the involved parties. The main contractor first signs the letter before it is sent to the employer or client   1.5           What are the principal factors that determine the choice of a particular contract form and an appropriate procurement route? Clearly explain all of the issues:   When the architect and client are forming their contract, they need to consider the priorities of the project in terms of time, cost and quality. These three affect one another in the following ways:   Time results in increased cost and decreased quality Cost results in increased time and decreased quality Quality results in increased cost and increased time   There are also other factors like the degree of client involvement and the risk associated with control or lack of in the project, also considerations towards the size and value and the complexity should be made as they too help determine the best form of contract and procurement.   There are seven different types of procurement:   Traditional Design and Build Project Management Design and Manage Managing Contracting Construction Management Partnering   When forming a contract, if time is the priority then the pre construction stage needs enough time to develop the design and consider potential issues. Time also needs to be saved wherever it can, this might be a case of allowing the contractor to resource materials or overlapping the detailed design phases with actual construction or real time planning. There are often external pressures to complete on time and in domestic projects site restraints pushing deadlines back. Project Management procurement prioritises this first and foremost and the project manager acts as a link between the design team and others.   If cost is the priority then a financial limit must be marked out and all consultants need to specify accurately and in great detail at the tender stage. Need to be aware of unrealistic cost constraints and differentiate between initial capital outlay and long-term costs. Design and build and Traditional forms of procurement take into consideration cost at the expense of quality.   If quality is the priority then a target level must be established from the outset and a measure of quality defined. This degree of quality in service and completed project is defined within a specification. Design led procurement like the traditional form is most likely to achieve this.   For larger and complex projects Management Contracting and Construction Management are very effective because work can commence on site before all design is completed. The contractor takes a managerial role and tenders packages that meet the costs already agreed with the client.   Contract type is linked to the procurement route, each form of procurement uses standard contract forms that are well recognised in the industry. The reason for using these standard forms is because they are comprehensive, address common pitfalls and consider legal decisions.   In all situations as lead consultant the Architect has the duty to advise the client of the long-term implications of their decisions.   1.6           Clearly explain all the processes that are followed in ‘traditional’ Design and Build procurement leading to the appointment of a contractor. Clearly explain what is meant by the term ‘Novation’ in this context:   In traditional Design and Build procurement the contractor carries out and is responsible for the functions of completing the design and constructing the building.   Before a contractor is appointed the client may appoint a full design team for work stages A to E to produce a detailed package with all the necessary specification and then from this appoint tenders from contractors to complete the design and construct. This appointment is often on a competitive basis and is often a two-stage process. There is integration of design and construction wherever possible and often detail design will proceed in parallel with construction.   Another way to appoint a contractor is through a consultant switch or Novation. In Design and Build procurement, architects act firstly for the employer but if they decide to become a part of the contractor’s team the architect’s responsibility to the client ceases. This requires a tripartite agreement to replace the original contract between the Architect/Consultant and employer with another contract on identical terms with the architect and the contractor thus allowing them to remain engaged with the project to its conclusion. The contractor then accepts all obligations and liabilities the client held and the architect’s obligations are then owed to the contractor. This new contract will require different terms and so it must incorporate a schedule of changes that must be agreed between the three parties.   Thus the contractor becomes central to the process once these changes are agreed and a new contract drawn up.   Alternatively an architect can stay with the employer throughout the project, sometimes acting as the Employer’s Agent. A third option is for the architect to be engaged by the contractor from the outset.   1.7           Clearly define and explain the role and obligations of the Principal Designer under the CDM protocol:   CDM stands for the Construction Design and Management regulations, which comes under the Health and Safety at Work Act 1974. It was created in order to protect the health and safety of those in the construction industry and all others who may be affected by their actions. Its main objective is to fully integrate these health and safety measures into the management of projects in order to: identify hazards early, reduce and manage risk, improve planning from the outset and discourage bureaucracy.   The main duty holders are the client, designer, principle designer, principle contractor and the contractor.   A principle designer is in control of the pre-construction phase and is appointed by the client, they are typically and organisation but sometimes for smaller projects the principle designer is an individual.   Principle designers have high level of influence on the management of risks to health and safety throughout out a project. It is particularly important to be diligent with design decisions made early on as these often affect how well the project is delivered in terms of health and safety. They must take steps to eliminate foreseeable risks to the health and safety of any person carrying out construction work, maintaining or cleaning the finished building, or using the finished structure.   Principle designers must:             Have skills, knowledge, experience and organisational capability Be aware of their client duties before starting work Avoid risk through intuitive design Plan, manage, coordinate H&S in the pre-construction phase, take in to account information like an existing health and safety file that might affect design work Understand the principles of prevention, which are: avoiding risks, evaluating unavoidable risks, combating risks at the source, adapting the work to the individual, adapting to technical progress, developing prevention policy, collective/individual protection and giving appropriate instructions To eliminate foreseeable risks to those affected by the work cooperate with other designers and where it is not possible to fully eliminate the risk take steps to reduce or control the risks Provide information to designers and contractors in a timely manner Help and advise the client in collating pre-construction information Ensure everyone who is working on pre-construction stages communicates and coordinates their work Liaise with the principal contractor and keep them informed of any risks that need to be controlled during construction