ABSTRACT

The potential for conflict is inherent in any relationship and often it is a breakdown in communication between the parties that results in its failure. This chapter shows that preliminary research into the use of law in the construction industry. It seeks to explore the nature of commercial relationships which exist and develop a framework for the drafting and selection of construction contracts. The primary objective is to investigate the extent to which greater recognition may be given to the commercial relationship between parties to the transaction as a means of reducing or managing conflict. The chapter examines the necessity for changes in contractual frameworks in the construction industry and argues for greater recognition of the specific nature of the commercial relationship. An analysis is undertaken of the way in which the law is used to regulate commercial relationships and a conceptual classification of contract law usage is applied to construction contracts.