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Implications of Good Faith in Construction Contracts
The principle of good faith is making inroads and continues to significantly impact various contractual arrangements. In most civil legal systems, good faith is present as a core principle. Nevertheless, its definition is beyond doubt scarce in the construction industry. However, the common law lack...
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| Format: | Thesis |
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AUC Knowledge Fountain
2023
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| Summary: | The principle of good faith is making inroads and continues to significantly impact various contractual arrangements. In most civil legal systems, good faith is present as a core principle. Nevertheless, its definition is beyond doubt scarce in the construction industry. However, the common law lacks the good faith obligations. Good faith is one of the fundamental principles that impact the contractual obligations between the contracting parties. This paper creates an urge to address the implications of good faith on construction contracts in the pre-contract and post-contract award stages. Therefore, the paper’s objective is to propose a legal/contractual clause that meets the civil and common law requirements that defines and emphasizes the good faith principle which shall minimize/prevent the disputes during contract negotiations, contract execution. In addition, it will assist if the project resorted to any dispute resolution mechanism. To attain the research’s objective, an extensive literature and a questionnaire were conducted to investigate the understanding of experts in the industry and assess how the good faith principle is applied in construction projects with respect to the mere definition of the principle. In addition, case precedents and interviews were conducted to validate the proposed clause. The results of the questionnaire, interview, and cases were compared to the findings of the literature review which showed that the clause drafting is thorough and shall benefit construction contracts to accomplish its intended objective, that shall minimize/prevent the costs of disputes, avoid any delays in the project duration and strengthens the contractual relationships. |
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