1 - Definitions

Question 1

Relevant Event

Answer 1

An event that causes a delay to the completion date, which may be caused by the client, or a neutral event not caused by either party. Relevant event does not necessarily entitle the contractor to claim loss and expense Examples:
• Variations
• Deferment of giving possession
• Exceptionally adverse weather condition
• Civil commotion or terrorism
• National strikes
• Loss from a specified peril (flood/ storm)
• Force Majeure

Question 2

Relevant Matter

Answer 2

Is a matter for which the client is responsible that materially effects the progress of the works This enables the contractor to claim direct loss and / or expense that has been incurred. Examples:
• Failure to give the contractor possession of the site
• Opening up works, delays in receiving instruction
• Disruption caused by works being carried out by the client
• Discrepancies in the contract documents
• Issues relating to CDM regulations

Question 3

Procurement

Answer 3

The overall process of acquiring construction works or services:
Examples include :
•	Traditional
•	Design and Build
•	Management Contract
•	Construction Management
•	Private Finance Initiative

Question 4

Tendering

Answer 4

The method of obtaining the resources necessary to carry out the required works. 
Examples include :
•	Open
•	Selective
•	Single stage
•	Two stage
•	Framework
•	Negotiated

Question 5

Collateral Warranty

Answer 5

A collateral warranty provides a contractual link where there previously would have not been one. They provide for a duty of care to be extended by one of the contracting parties to a third party who is not party to the original contract. With a CW, the subcontractor or sub consultant employed under the main contract warrants to the 3rd party that it has complied with its obligations under the principal contract.

Question 6

Novation

Answer 6

Process by which contractual rights and obligations are transferred from one party to another.

E.g. when a design consultant are initially contracted to the client but are then novated to the contractor in a D&B contract.

Question 7

Assignment

Answer 7

Where the rights and benefits of one contractual party are transferred to a third party.

Question 8

Named Subcontractor

Answer 8

Client supplies a list of names in the preliminaries / specification and the contractor chooses which one they want.

The named sub-contractor is then treated the same as a domestic subcontractor

Question 9

Nominated Subcontractor

Answer 9

The selection of a specialist sub contractor or supplier for the project by the client - The client names them specifically in the preliminaries / specification.

They will often have been chosen and provided advice / design etc before the main contractor is selected. The work to be done is normally the subject of a prime cost or provisional sum

Question 10

Domestic Subcontractor

Answer 10

Is a contractor that is solely employed by the main contractor and is their responsibility.

Question 11

Bond

Answer 11

A promise (usually by deed) where person giving the promises to pay another a sum of money. Bonds man only makes the payment when requested to do so. 
Examples include :
•	Retention bond
•	Performance bond
•	Advanced payment bond

Question 12

Prime Cost

Answer 12

A prime cost sum is a sum of money allowed for to cover a particular aspect of work by a nominated sub-contractor or supplier. A prime cost is the total direct costs of production, including raw materials and labor. Indirect costs, such as utilities, manager salaries, and delivery costs, are not included in prime costs. Businesses need to calculate the prime cost of each product manufactured to ensure they are generating a profit.

Question 13

Provisional Sum

Answer 13

A provisional sum relates to works that cannot be designed / specified at the outset.

Defined provisional sums are those where specific works have not been fully designed, however, there is enough information available for the contractor to make a proper allowance in their price and programme.

Undefined provisional sums are not accounted for in the contractor’s price and programme. This means that the client is taking the risk for the works and the contractor may be entitled to an extension of time and additional payments.

Question 14

Latent defect

Answer 14

It is the nature of construction projects that faults and defects caused by failures in design, workmanship or materials, may not become apparent or readily detectable (even with the exercise of reasonable care) until many years after completion of the project, long after the end of the defects liability period.

Such defects are known as latent defects (as opposed to patent defects which are apparent).

Examples of common latent defects include:
• Defective basement tanking allowing water penetration
• Inadequate wind-posts or wall ties causing movement damage to walls
• Under-strength concrete or misplaced reinforcement allowing movement damage to the structure
• Inadequate foundations causing subsidence of the building

Question 15

Patent defect

Answer 15

At any point up until the final certificate has been issued, defects that are discovered by reasonable inspection (patent defects) may be reported to the contractor, who should rectify them within a reasonable time.

Question 16

Under hand (contract)

Answer 16

Underhand is where signing of the contract is witnessed and signed by one director and a company secretary, or two directors (gives 6 years liability for rectifying latent defects).

Question 17

Underdeed (contract)

Answer 17

As a deed would be where a director has signed the contract and affixed the common seal of the firm under the signature (gives 12 years liability for rectifying latent defects).

Question 18

Liquidated Damages

Answer 18

Genuine pre-estimate of the likely loss the client will incur as a result of non-completion.

Question 19

Unliquidated Damages

Answer 19

Unliquidated damages are damages that are payable for a breach of contract, the exact amount of which has not been pre-agreed. This is in contrast with liquidated damages which are a pre-agreed when the contract is entered into.

Question 20

Joint fire Code

Answer 20

The Joint Fire Code covers activities through all stages of design, procurement and construction. Generally it applies to contracts with a value of more than £2.5million, but it can also apply to lower value contracts which are considered to be high risk or which form part of larger projects

Question 21

Practical Completion

Answer 21

When the employer takes back possession of the site following completion of the works.

It triggers the following:
• Half of the retention is released
• The Rectification Period begins
• The contractors responsibility for insuring the works (if applicable) ends
• The contractors liability for liquidated damages ends
• The employer is now responsible for any damages to the works

Question 22

Partial Possession

Answer 22

Where the employer requests and the contractor consents to the employer taking possession of the works / part of the works before the date for practical completion.

Question 23

Sectional Completion

Answer 23

Sectional completion is a contractual obligation to hand over the section at the stated date in the contract.

Question 24

Rectification period

Answer 24

The defects liability period (now called the ‘rectification period’ in Joint Contracts Tribunal (JCT) contracts) begins upon certification of practical completion and typically lasts six to twelve months. During this period, the client reports any defects that arise to the contract administrator who decides whether they are defects (i.e. works that are not in accordance with the contract), or whether they are in fact maintenance issues. If the contract administrator considers they are defects, then they may issue instructions to the contractor to make them good within a reasonable time.

Question 25

Conflict of Interest

Answer 25

Is anything that impedes or is perceived to impede an individuals or firms ability to act impartially or in the best interest of the client.

Types include :
• Party conflict
• Own interest conflict
• Confidential information conflict

See RICS Professional statement ‘ Conflict of interest’

Question 26

Bribery

Answer 26

Bribery is the act of giving money, goods or other forms of reward to a recipient in exchange for an alteration of their behavior (to the benefit/interest of the giver) that the recipient would otherwise not alter.

Exchange of value for improper cause (EVIC)

The Bribery Act 2010 introduces four new categories of offence:
• Offering, promising or giving a bribe to another person
• Requesting, agreeing to receive or accepting a bribe from another person
• Bribing a foreign public official
• A corporate offence of failing to prevent bribery

See RICS Professional statement ‘ Countering bribery and corruption, money laundering and terrorist financing’

Question 27

Professional Indemnity

Answer 27

Ensure that an individual is protected for any claims against them in relation to negligence. Protecting the client, surveyor and firm.

See RICS Regulation document ‘ Professional indemnity insurance requirements’

Question 28

Run off cover

Answer 28

Insurance cover that is maintained should a firm go bankrupt, cease to practice, etc.

Also cover’s past employees that may have retired for a set amount of period. Recommended 6 -12 years by RICS.

See RICS Regulation document ‘ Professional indemnity insurance requirements’

Question 29

Subsidence

Answer 29

Downward movement of the ground or any building on it, due to the loss of support of the ground beneath the foundations

Question 30

Settlement

Answer 30

Downward movement of the ground or any structure on it, due to soil consolidation as a result of the load applied by the structure of the building

Question 31

Carbonation

Answer 31

Concrete carbonation causes embedded steel reinforcements to corrode, with the resulting expansion cracking and weakening the concrete. It commences as soon as concrete is exposed to the atmosphere, and can advance at a rate of 1mm to 5mm per year, dependent on the concrete’s porosity and permeability. Carbonation is the most common cause of reinforcement corrosion in above ground structures but it can be prevented or halted with the application of a protective anti-carbonation coating system.

Concrete carbonation is the result of an electrochemical reaction between carbon dioxide, moisture and calcium hydroxide that is present in cement, producing calcium carbonate. Calcium carbonate lowers the alkalinity of concrete from pH12 – 13 to around pH9. This hardens the concrete and increases its compressive strength, but at this reduced pH level the protective passivation layer surrounding the reinforcing steel begins breaks down, leaving the steel vulnerable to corrosion.

Question 32

English wall bond

Answer 32

Alternative courses of headers and stretchers.

Question 33

Flemish wall bond

Answer 33

A course consists of alternative stretchers and headers

Question 34

Brick Dimension (UK)

Answer 34

215mm x 65mm x 102.5mm

Question 35

Cold Bridging

Answer 35

Cold bridge is a weak spot in the insulation surrounding a house.

Question 36

Listed building

Answer 36

A listed building, in the United Kingdom, is a building that has been placed on the Statutory List of Buildings of Special Architectural or Historic Interest.

Types include :
•	Grade 1 - buildings are of exceptional interest, only 2.5% of listed buildings are Grade I
•	Grade 2* - buildings are particularly important buildings of more than special interest; 5.8% of listed buildings are Grade II
•	Grade 2 - Grade II buildings are of special interest; 91.7% of all listed buildings are in this class and it is the most likely grade of listing for a home owner.

Question 37

Scott Schedule

Answer 37

A Scott Schedule is a schedule or table which is used in court proceedings in the Family Court in order to clearly set out the allegations which are in dispute.