When it comes to the construction industry in Sri Lanka, standard forms of contract play a crucial role in ensuring that projects are delivered on time, within budget, and to the required quality standards. These standardized contracts establish the terms and conditions between the parties involved in the construction project, including the employer, contractor, and sub-contractors.
In Sri Lanka, there are several standard forms of contract commonly used in the construction industry. These forms of contract are typically developed and published by professional organizations or government bodies to ensure consistency and clarity across the industry. Let`s take a closer look at some of these standard forms of contract:
1. FIDIC Contracts
FIDIC (Fédération Internationale des Ingénieurs-Conseils) is a globally recognized federation of consulting engineers and has published several standard forms of contract for construction projects. In Sri Lanka, the most commonly used FIDIC contract is the Red Book, which is typically used for construction projects requiring a significant amount of engineering work.
2. PEC Contracts
PEC (Professional Engineers` Contract) is a contract form developed by the Institute of Engineers in Sri Lanka (IESL). This contract is commonly used in Sri Lanka and is widely recognized by the construction industry. The PEC contract is designed to provide a fair balance of risk and responsibility between the employer and the contractor.
3. ICTAD Contracts
ICTAD (Institute for Construction Training and Development) is a government body responsible for developing and promoting the construction industry in Sri Lanka. ICTAD has developed several standard forms of contract for different types of construction projects, including the ICTAD/SBD/01 Standard Bidding Document for Construction of Buildings and ICTAD/SBD/02 Standard Bidding Document for Civil Engineering Works.
4. JCT Contracts
JCT (Joint Contracts Tribunal) is a UK-based organization that has developed several standard forms of contract for the construction industry. While JCT contracts are not commonly used in Sri Lanka, they may be used in projects involving international parties or funding.
In conclusion, standard forms of contract play an essential role in the construction industry in Sri Lanka. These standardized contracts establish the terms and conditions between the parties involved in the construction project, including the employer, contractor, and sub-contractors. Employers and contractors must be familiar with the different standard forms of contract available in Sri Lanka to ensure that their projects are delivered successfully.