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MINEFIELD OF RISKS IN ORAL AGREEMENTS FOR BUILDING AND RELATED WORK | ECASA
MINEFIELD OF RISKS IN ORAL AGREEMENTS FOR BUILDING AND RELATED WORK Oral agreements for electrical installation work are, theoretically, legal but frequently cause enormous problems, says Uwe Putlitz, CEO of the Joint Building Contracts Committee (JBCC). Pulitz says an oral agreement between employer and electrical contractor to undertake certain work based on discussions between the two parties – perhaps a drawing and/or a job description – is acceptable…. providing nothing goes wrong. "When matters do go wrong, the parties could conveniently forget what was agreed upon. The employer could maintain that the contractor is not getting on with the job, the product is not as envisoned by the employer, and the contractor is overcharging. On the other hand, the contractor could say the employer is continuousy making changes but does not want to pay for them or allow more time, and the employer has not paid for months." Standard Form of Building Contracts (SFC) have been developed to fairly