Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

03 Contract Administration > 08 Payment > Flashcards

08 Payment Flashcards

1
Q

What do you check when carrying out a valuation?

A

???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Explain how a contractor?s quotation works on your projects.

A

???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What action would you take if a contractor over claims a valuation?

A

???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Who is responsible for preparing interim valuations under the forms of contract you have used?

A

???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is an interim certificate?

A

???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What information would you find on a certificate of payment?

A

???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is retention?

A

???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the purpose of retention?

A

???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What items, if any, within an interim valuation would not have retention applied to them?

A

???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

How would you value materials on site?

A

???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How would you value materials off site?

A

???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the risks to your client for paying for materials off site?

A

???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Where in a JCT Standard Form would you expect it to say if materials off site are to be paid for in interim payments?

A

???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How would you assess the amount of preliminaries to include in an interim valuation?

A

???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How are provisional sums expended under a contract?

A

???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What would you include in the valuation of an instruction to expend an undefined provisional sum that you would not expect to see in the valuation of a defined provisional sum?

A

???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Who is responsible for valuing variations under the forms of contract you have used on your projects?

A

???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

How are variations valued under a contract with which you are familiar? How does this differ from other contracts with which you are familiar?

A

???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

How would you price a variation for works that were of a specialist nature, where no rates or prices were available in the contract pricing document or in any pricing books?

A

???

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is the hierarchy for valuing a variation?

A

???

21
Q

When would you expect dayworks to be used as a means of valuing a variation?

A

???

22
Q

Why is VAT generally excluded from interim valuations and final accounts?

A

???

23
Q

Having included items of work in an interim valuation, can you exclude them from a subsequent valuation and why?

A

???

24
Q

What are the main provisions of the two Construction Acts that relate to payment?

A

???

25
Q

Why were pay-when-paid and pay-when-certified clauses made illegal under the Construction Acts?

A

???

26
Q

Following the amendments to the Construction Act, what are the risks to an employer if its representative does not issue a Payment Notice?

A

???

27
Q

Detail the payment provisions within the JCT MW contract up to practical completion.

A
  1. 4 week intervals - Due Dates for interim payments to the Contractor (calculated from the Commencement Date)
  2. 5 days after each Due Date - maximum time for CA to issue an interim certificate to the Contractor
  3. 14 days from the Due Date - maximum time for payment of the certified sum to be paid (aka Final Date for Payment)
28
Q

Detail the payment provisions within the JCT MW contract after practical completion.

A
  1. 7 days after Practical Completion - date of new Due Date for interim payments
  2. 2 month intervals - Due Dates for interim payments to the Contractor up to the expiry of the Rectification Period
  3. 5 days after each Due Date - maximum time for CA to issue an interim certificate to the Contractor
  4. 14 days from the Due Date - maximum time for payment of the certified sum to be paid (aka Final Date for Payment)
29
Q

Detail the provisions for the final payment within the JCT MW contract.

A
  1. 28 days - date of the Due Date for the final payment after the latest of either receipt of the Contractor’s submission to the CA of all documentation reasonably required for calculation of the final payment; or the date specified in the certificate of making good (i.e. after the Rectification Period)
  2. 5 days after Due Date - maximum time for CA to issue the final certificate to the Contractor
  3. 14 days from the Due Date - maximum time for payment of the certified sum to be paid (aka Final Date for Payment)
30
Q

Under JCT MW contracts, what are the contractor’s options if payment of an interim certificate is late?

A
  • If an interim certificate is not issued within the 5 day period, the Contractor may issue a payment notice stating the amount he considers due and the basis on which this has been calculated - this then becomes the sum to be paid by the Employer, subject to any pay less notices
  • In this event, the Final Date for Payment is postponed by the number of days after the expiry of the 5 day period that the Contractor’s payment notice is given
31
Q

How can the client withhold payment under JCT MW contracts?

A

If the Employer intends to pay less than the sum in the interim certificate or, where applicable , the Contractor’s payment notice, he can issue a pay less notice no later than 5 days before the Final Date for Payment stating the sum he considers due and the basis on which it was calculated - the Employer must then pay this amount on or before the Final Date for Payment

32
Q

Under JCT MW contracts, what would happen if the Employer fails to pay the Contractor?

A
  • If the Employer fails to pay the amount due by the Final Date for Payment, they must pay the Contractor the Interest Rate (stated in Section 1 as 5% per annum above the current Bank of England rate) for the period from the Final Date for Payment until payment is made
  • Also, the Contractor can give the Employer, with a copy to the CA, notice of his intention to suspend performance to any part or all of the works until full payment is made
    • The Contractor can then suspend performance 7 days after this notice is given
    • The Contractor has the right to apply to the CA for a reasonable amount of loss and expense incurred as a result of this exercise to be paid
33
Q

Detail the payment provisions within the JCT IC contract.

A

???

34
Q

Detail the payment provisions within the NEC3 EC Short Contract.

A
  1. The Assessment Day is once a month (stated in the Contract Data) from the Starting Date until the month after the Defects Certificate has been issued
  2. Contractor assesses the amount due and, by each Assessment Day, applies to the Employer for payment (including details of how the amount has been assessed)
  3. Employer must pay the Contractor the amount due within 3 weeks of the Assessment Day
35
Q

How can the client withhold payment under NEC3 EC Short Contracts?

A

Employer must notify the Contractor of any corrections to his application for the amount due no later than 7 days before payment is due, stating the basis on which the amount is calculated

36
Q

Under NEC3 EC Short Contracts, what would happen if the Employer fails to pay the Contractor?

A
  • Interest is paid if a payment is late or if the payment includes a correction of an earlier payment and is paid for the duration of when the correct payment should have been paid until the date when it is actually paid
    • Interest is calculated at the rate stated in the Contract Data, or if none is stated, at 0.5% of the delayed amount per complete week of delay
  • Also, following receipt of the Contractor’s application for payment, if the Employer has not paid the amount due with 10 weeks of the Assessment Day, the Contractor may terminate the contract
37
Q

Can partial payments be made incomplete items under NEC3 EC Short Contracts?

A

Payments for an item in the Price List do not become due until the work described has been fully completed, unless a quantity and rate are started, in which case only the Price for the quantity completed is included

38
Q

Detail the payment provisions within the NEC3 ECC Option A contract.

A

???

39
Q

What would you do if a contractor failed to submit an application for payment on one of your projects? Would you still have to pay him?

A

???

40
Q

You are on site doing an interim valuation. The contractor says he is expecting a large delivery of materials either tomorrow or the next day and would like the value included in the valuation as materials on site? How would you respond?

A

???

41
Q

Your client has agreed to make an advanced payment to his contractor. How would you go about setting this up?

A

???

42
Q

A client calls you and says he is short of money this month and asks you to keep the valuation as small as possible. How would you respond?

A

???

43
Q

A client calls you and asks you to over value the works this month, as he is trying to spend as much as possible in the current financial year. How would you respond?

A

???

44
Q

A client calls you and says he doesn?t have enough money to pay the latest certificate issued under the contract. What advice would you give him?

A

???

45
Q

Whilst you are carrying out an interim valuation you notice that some of the completed work does not appear to be in accordance with the contract. The CA is on holiday that week. Should you include the work in your valuation?

A

???

46
Q

In a contractor?s interim application for payment, he includes a large sum for verbal instructions, but you were unaware that there had been any and none have been confirmed in writing. What would you do?

A

???

47
Q

If a rate in the contract bill of quantities was clearly wrong, should it be used to price a variation where the works are of a similar nature? What case law supports your answer?

A

???

48
Q

A contractor has ordered materials in accordance with the BQ, which you produced. He says that as a consequence he has over ordered and cannot return the goods. He wants paying for the extra materials. How would you respond?

A

???

49
Q

Under a JCT Standard Form, if the contractor disagreed with your valuation of a variation and you cannot find a point of agreement with them, what would happen?

A

???

03 Contract Administration (20 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions