Professional Documents
Culture Documents
Chapter 7: CONTRACTS
Q169 What are the elements of a contract?
The essential elements of a contract are (i) An offer made and accepted (ii) Mutual interest to
enter into the contract (iii) Consideration (iv) Capacity to contract (v) Lawful purpose.
Q170 Can contract be altered?
Parties can alter an existing contract, contractual agreement by mutual agreement, provided the
amendment is effected within the framework of the essential contract elements.
Injunction: An injunction is a court order that prohibits or restrains a party from the performance
of some act, such as breach of contract.
Chapter 20: FUNDAMENTAL BREACH
Q196 Define the term Fundamental breach?
Fundamental breach: Fundamental breach is a breach of such a nature as to go to the very root of
the contract.
Chapter 21: THE AGREEMENT BETN. CLIENT & ENGINEER
Q197 Define the term Fundamental breach?
An engineer is liable for incompetence, carelessness, or negligence that results in damages to
the client, where the engineer is responsible as a professional for not performing with an
ordinary & reasonable degree of care and skill.
Q198 An engineer served without agreeing the remuneration, how he will be paid?
The law implies that the engineer shall be paid a reasonable amount for services on a quantum
meruit basis if an engineer performs services without agreeing with the client on the amount of
remuneration to be received.
Chapter 22: CONCURRENT LIABILITY IN TORT & CONTRACT
Q198 What is meant concurrent liability?
If a contractor and an engineer is liable in tort as well as in contract for negligent performance of
contractual duties, the engineer and the contractor are concurrently liable in tort as well as in
contract.
Chapter 23: THE DUTY OF HONESTY
Q199 What is duty of care?
When an engineer enters into a contract, he or she assumes a duty of care in performing services.
The duty of care is the duty of the engineer to act with absolute honesty.
Q 200 What is different between Fraud and Offence?
Fraud: Fraud is a criminal offence it is punishable on conviction by imprisonment for 10 years
Offence: Offence deals with- bribes and kickbacks; it is punishable, by imprisonment for 5 years.
Chapter 24: CONSTRUCTION CONTRACTS
Q 210 What are the contractors responsibilities for presence of toxic/hazardous in construction
site?
If the contractor encounters or has reasonable grounds to believe that toxic or hazardous
substances or materials are present at the workplace, which were not disclosed by the owner, the
contractor shall
(i) take all reasonable steps including stopping the work to ensure that no person suffers injury,
sickness or death and that no property is injured or destroyed
(ii) immediately report the circumstances to the consultant and the owner in writing.
Q 210 What is CCDC?
CCDC: Canadian Construction Documents Committee publishes & deals with the Standard
form contact document for the Canadian construction industry.
Q 211 Who is responsible for the construction safety risks?
The contractor shall be solely responsible (i) for construction safety at the workplace (ii) for
compliance with the rules, regulation & practices required by construction health & safety
legislation, and (iii) for initiating, maintaining & supervising all safety precautions programs.
Q 212 What is Dispute resolution risks?
The purpose of the mandatory negotiation & mediation provisions in the CCDC form, is to bring
the parties to the settlement table to determine if their differences can be resolved without
proceeding to arbitration or litigation.
Q 213 What are the Construction risks?
The Construction Risks include:
the availability of sufficient labour forces in the area of the project to carry out the construction
the responsibility to obtain various building permits & approvals of regulatory authorities
the risk of access to the site being suitable for the project
the sufficiency of drawings and specifications
the likelihood adverse weather conditions
the risk of cost escalations during the course of project
the likelihood of delays in obtaining required approvals from the owner
the risks relating to owner supplied materials and equipment
the risks relating to impact of environmental assessments
the risks relating to archaeological discoveries during the performance of work
Q 214 What is the warranty period for Construction contract?
The warranty period (short) is one year from the date substantial performance of the work,
(longer) six years or those periods specified in the contract documents for certain portions of
the work.
The contractor shall be responsible for obtaining product warranties in excess of one year on
behalf of the owner from the manufacturer. The manufacturer shall issue this product warranty to
the benefit of the owner.
Chapter 26: BONDS AND INTERNATIONAL PERFORMANCE GUARANTEES
ADR (Alternative to Dispute Resolution): ADR is an important feature where disputes require
resolution on a timely basis so as to minimize, or at least, reduce the impact of the dispute on the
scheduling of the project. It is to bring the parties to the settlement table to determine if their
differences can be resolved without proceeding to arbitration or litigation.
Q 219 What is Mediation?
Mediation: Mediation is an important step in achieving a negotiated settlement dispute between
the participants in the construction industry.
* The Code of Ethics emphasizes the paramountcy of the engineers duty to public welfare,
protecting confidential information of employers, of disclosing conflicts of interest to clients, cooperating respecting & fairly dealing with other colleagues.
* The responsibility of the engineer to the engineering profession is to maintain the professions
honour & integrity. Where a professional engineer undertakes to review the work of another
professional engineer, the other professional engineer is to be notified.
* A practitioner shall act as a faithful agent or trustee and shall regard as confidential information
to the business affairs, technical methods / processes and avoid or disclose a conflict of interest
* A practitioner must disclose immediately to his client any interest (direct or indirect) that might
construed as prejudicial and must co-operate in working with other professionals engaged on a
project
*A practitioner shall give the proper credit for engineering work, uphold the principal of
adequate compensation for engineering work, provide opportunity for professional development
& advancement of the associates / subordinates
* A practitioner shall maintain the honour and integrity of the practitioners profession and
without fear or favour expose before the proper tribunals
Q 230 Define professional misconduct and negligence
Professional misconduct:
i) Failure or negligence to take action to safeguard life, health, or property or the safety or
welfare of the public, constitutes professional misconduct
ii) Failure to act to correct or report a situation that the practitioner believes may endanger the
safety or the welfare of the public
iii) Failure to make responsible provision for complying with applicable statutes, regulations,
standards, codes, by-laws & rules in connection with work
iv) Signing or sealing a final drawing, specification, plan, report or other documents not actually
prepared or checked by the practitioner
v) Failure to present clearly to his employer the consequences to be expected from a deviation
proposed in work
vi) Breach of the act or regulation or code of ethics
vii) Undertaking work the practitioner is not competent to perform by virtue of his training &
experience
viii) Failure to make prompt, voluntary and complete disclosure of an interest, direct or indirect,
that might be construed prejudicial to the professional judgement
ix) Disgraceful, dishonorable or unprofessional conduct
x) Failure by a practitioner to abide by the terms, conditions or limitations of license, limited
license, temporary license or certificate
xi) Failure to supply documents or information requested by an investigator
xii) Permitting, counseling or assisting a person whom is not a practitioner to engage in the
practice of professional engineering
xii) Accepting compensation in any form for a particular service from more than one party.
xiii) Submitting a tender or acting as a contractor in respect of work upon which the practitioner
may be performing as a professional engineer
xiv) Participating in the supply of material or equipment to be used by the employer or client of
the practitioner
xv) Contracting the practitioners own right to perform professional engineering services for
other than the practitioners employer
xvi) Expressing opinions or making statements concerning matters within the practice of
professional engineering of public interest where the opinions or statements are inspired or paid
for by other interests