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1. TYPES OF CONTRACTS
IS IT A WORKS, SUPPLIES OR SERVICES CONTRACT?
1.1 Works Contracts
1.1.1 A works contract is a contract in writing for consideration (i.e. any form of payment) for the carrying out of a work or works. A ‘work’ is the outcome of any works which is ‘sufficient of itself to fulfil an economic and technical function’ ie it should be a complete building or road section as opposed to just repairs and maintenance. This includes procuring via land swap arrangements or obtaining a developer to build a facility to your specified requirements. A major repair or complete refurbishment is normally accepted as a ‘work’ rather than maintenance.
1.1.2 Construction (buildings, infrastructure), demolition, general building and civil engineering work, services, installation and general completion work (eg joinery, plastering and decoration) are all types of work construct.
1.1.3 In certain circumstances, any agreement to develop a site may be classed as a works contract. Legal advice should be sought on this issue in advance of any disposals of land or buildings.