A building and construction contract must fulfill the same requirements as any other type of contract in regard to the following necessary elements:
" an agreement;
" between competent parties;
" based upon the genuine assent of the parties;
" supported by consideration;
" made for a lawful objective; and
" and in the form required by law.
Such a contract generally provides not only for the construction of the project, but also for many matters that are incidental to the project. Thus, it may provide for the carrying of liability, workers' compensation, and fire insurance policies, designating which party is responsible for obtaining particular insurance. A building and construction contract will typically specify the duties, responsibilities, and liabilities of each of the parties, as well as those of any employed architect or engineer. The amount and method of compensation is, of course, an important part of such a contract.
The Hawaii Basic Building and Construction Contract between Owner and Contractor is a legal document that establishes the terms and conditions for a construction project in Hawaii. This contract serves as a framework for the relationship between the owner of the project and the contractor responsible for its construction. It outlines the obligations, rights, and responsibilities of both parties involved in the project. Keywords: Hawaii, Basic Building and Construction Contract, Owner, Contractor, legal document, construction project, terms and conditions, relationship, obligations, rights, responsibilities. There are no specific variations of the Hawaii Basic Building and Construction Contract between Owner and Contractor. However, different types of construction contracts commonly used in Hawaii include: 1. Lump Sum Contract: This type of contract establishes a fixed price for the entire construction project. The contractor agrees to complete the project according to the plans and specifications provided by the owner for a specific sum of money. 2. Cost Plus Fee Contract: In this type of contract, the owner agrees to reimburse the contractor for the actual costs incurred during the construction process, including labor, materials, and equipment. Additionally, a prenegotiated fee or percentage is added to the reimbursable costs as the contractor's profit. 3. Time and Material Contract: This type of contract is typically used when the scope of work is uncertain or constantly changing. The contractor is paid for the time spent on the project and the cost of the materials used, plus an agreed-upon markup or percentage. 4. Unit Price Contract: In a unit price contract, the contractor provides a fixed price per unit of measurement, such as square footage or linear feet. The total cost of the project is calculated by multiplying the unit price by the quantity of units required. Regardless of the specific type of contract used, it is important for both the owner and the contractor to thoroughly review and understand all the terms and conditions outlined in the Hawaii Basic Building and Construction Contract. This document helps ensure a clear understanding of the project's scope, deadline, payment terms, change order procedures, warranties, dispute resolution mechanisms, and other important aspects of the construction process. It is recommended to consult with legal professionals specializing in construction law to draft and review this contract accurately, protecting the interests of both the owner and the contractor.
