Construction Legislation Essay Example | Topics and Well Written Essays - 2250 words

Construction Legislation - Essay Example The firm is also responsible for drawing up contracts bids. The company should also draws tender documents in relation to construction and development of this project. Part one 1.1 Consultancy Legal Documentation This part involves presenting all the legal documents necessary in project management. This will protect the project manager or the consultancy firm that is the playing the role of project management. The first document is a contract document between the company offering project management and the client. This is a show of evidence that these parties are in a contractual agreement to work together. They will protect the project manager or the firm when the client fails to meet the firm’s requirement in the course of the project. Another important document is the budget. This ensures that the project is within the set limits. This document empowers the project manager to know when to add funds or reduce them in any phase of the project. The budget provides the project manager with knowledge about every phase of the project. This helps the project manager to know the amount to be spent in a given phase of the project. It also notifies him or her, the room available for adjustments. The budget also helps the project manager to know the amount of time to spend in a given task so as to ensure the project completes before the given threshold (Ritz, 1994). Another important document to protect project management firm is the bid documents. The bid process should be competitive this is evidence that the firm advertised and carried out the bidding process in a competitive and a fair manner. This will protect and promote the company’s reputation towards the public and other stakeholders in the construction industry. This shows the client the company is of high integrity and is open in its dealings. This will protect the firm against any company or individual who challenges the bidding process of the project. Certificate of registration is another do cument that the consultancy firm can use to protect itself. The certification is a clear demonstration that the company is approved by the necessary departments to carry out activities such project management amongst other. This will avoid problems with local authorities. The certification also shows the company’s experience in handling such matters. The project manager should also be in possession of contract documents between the client and subcontractors. This will help the project manager to know the position to take in making crucial decisions that affect the project. It will also help him to advice the client in a situation when the sub contractors do not deliver the desired results as the contract agreements. They should also possess the insurance certificates. This is to ensure that the main contractor and other sub contractors insure their workers. This will help to solve cases of injury and medical bills. The project manager should ensure the client has insured the whole construction process to avoid delaying of the project (Kerzner, 2009). 1.2 Procurement options This part presents the methods of use during the construction of the project. The option depends on the dimension, nature and complication of the project. The first procurement option is the traditional or construct only. The method entails that both design and construction be procured separately to different companies. This is done as per the project specifications. The services are outsourced. The advantages that come with this

The determinants of the rate of interest and the significance of Essay

The determinants of the rate of interest and the significance of interest rates to policy makers and other economic actors - Essay Example It is described as interest in percentage of the amount of funds borrowed. This is a simple explanation of the rate of interest. Let's review some definitions of the rate of interest to comprehend the concept (Unit 3). Bannock et al has defined the rate of interest as the price a borrower has to pay to enjoy the use of cash which he or she does not own, and the return a lender enjoys for deferring consumption or parting with liquidity (1998:346). According to Mike Moffatt, "The interest rate is the yearly price charged by a lender to a borrower in order for the borrower to obtain a loan. This is usually expressed as a percentage of the total amount loaned". (http://economics.about.com/cs/economicsglossary/g/interest_rate.htm). Thus, interest rate is the annually charged in percentage on the principal. Interest is derived by dividing the amount of interest by the amount of principal. Inflation and the government policies play a crucial part in bringing fluctuations in the interest rates (www.investorwords.com/2539/interest_rate.html). It is pivotal to know that although each bank decides its interest rates by its own on the loans sanctioned but actually local rates are almost same in different banks. When there is inflation, interest rates go up because of increased need of credit, tight money market, or for the reason that banks' need to maintain a higher reserves. Any of the reasons affect the business activity and the stock market as well. Businesses in need of funds have to pay more for the same amount of borrowing and the investors would prefer to invest in bank deposits or newly launched bonds than purchasing shares (http://www.businessdictionary.com/definition/interest-rate.html). Determinants of interest rate levels Parameters of interest rates (Upton, 2009) are defined by supply and demand when the supply of money is equal to the desire of economic entities to borrow. Further, it is important to know the factors that affect supply and demand. Since interest is a pay back for delaying consumption, a higher rate of interest will accrue in more supply of funds. We can say that in different circumstances an interest rate may not result in same supply of funds. In different countries people don't have the same concern for consumption, as one can perceive that there are different savings rates. When economic conditions are not stable, people are more induced to save, as seen in their behaviour during "depression generation". Demand (Upton, 2009) on the contrary, depends on the availability of investments. At the low interest rates investments provide more margins. With the positive growth environment and technological advancement, demand for investment will boost. Other things that impact future growth are rate of increase in population, labour force, and education and skill standards. On the whole economic environment and production environment determine the level of demand for funds. The interest rate is (Upton, 2009) determined by the economic and other factors causing increase in the capacity of consu