School of Engineering and Technology, (SET)

This course provides a general foundation in construction law, risk and contracts that construction practitioners need to protect themselves, their employers and the works. To facilitate smooth running of construction projects, construction professionals need to be aware of their rights, obligations and liabilities when they enter into contractual relations either as individuals or on behalf of their employers. Upon completion of this course, the students will have the knowledge to develop a sound and effective contract as well as manage the contract.

Construction risks, general principles of law, contract principles, construction contracts, procurement systems, tortuous liabilities, laws relating to land, construction statutes, construction claims prevention and management, disputes and their resolution, construction insurance.


I  Management of Construction Risks

1. Understanding risk
  • Causes and sources of risk
  • Benefits of risk management
2. Risk identification tools and techniques
  • Review Techniques
  • Information gathering techniques
  • Checklists
  • Assumption analysis
  • Diagramming techniques
3. Risk assessment tools and techniques
  • Financial Methods
  • Non-Financial Methods
4. Risk response
5. Principles of risk allocation

II  Managing Construction Contracts

1. Principles of Contracts
  • Formation of binding contracts
  • Discharge of contracts
  • Remedies for breach of contracts
2. Construction Contracts
  • Types of contracts and procurement systems
  • Standard form of prime and sub-contracts
  • Management contracts
  • Performance and payments
  • FIDIC conditions of contracts
3. Construction Claims and Disputes
  • Sources of claims and disputes
  • Construction claims procedure
  • Methods of dispute resolution
  • Alternative dispute resolution method

III  Construction Liabilities and Insurance

1. Tortuous Liabilities:
  • Negligence and Rylands and Fletcher,
  • Nuisance
  • Vicarious liabilities
  • Product liability
2. Insurance
  • Reasons for insuring
  • Different types of construction insurance
  • Determination of what, and when, to insure.
3. Construction Statutes
  • Building regulations
  • Civil liability
  • Highways
  • Health and Safety
4. Law Relating to Land
  • Rights over land
  • Planning and Environment law

Lecture notes, chapters from the reference books below and relevant journal articles.

Jervis BM and Levin P: Construction Law  Principles and practice . McGraw-Hill Publishing Company, New York . Douglas Wood (1999): Law and the Built Environment , Basingstoke : Macmillan Press.
Goodwin P and Wright G (2000) Decision Analysis for Management Judgment, 2 nd Edn., Wiley: Chichester , England .
Uff, J. (1991): Construction Law , 5th Edition. London : Sweet and Maxwell.
The FIDIC Conditions of Contracts, 1999 versions

•  Journal of Construction Procurement, CIB W92.
•  Construction Law Review, ELSEVER, London .  

The grading system may change (without prior notice).  The Instructor will inform the grading system in the first day of the class