15 - Contract Administration Flashcards

Question

What does the Housing, Grants Construction and Regeneration Act 1996 allow for within the contract ?

Answer 1

* the right to stage payments * the right to notice of the amount to be paid * the right to suspend work for non-payment * the right to take any dispute arising out of the contract to adjudication

Answer 2

No, the HGCRA does not apply to residential occupiers. This is a 'Section 106 - Residential Occupier'

Answer 3

* Specifications describe the products, materials, and work required by a construction contract. They do not include cost, quantity, or drawn information, and so need to be read alongside other information such as quantities, schedules, and drawings. * Specifications vary considerably depending on the stage to which the design has been developed, ranging from performance specifications (open specifications) that require further design work to be carried out, to prescriptive specifications (closed specifications) where the design is already complete. * Prescriptive specifications give the client much more certainty about the end product when making investment decisions (such as when they appoint the contractor), and place a greater burden on the designer to ensure proper installation rather than the contractor. * Typically, performance specifications are written on projects that are straight-forward, standard building types, whereas prescriptive specifications are written for more complex buildings, or buildings where the client has requirements that might not be familiar to contractors and where certainty regarding the exact nature of the completed development is more important to the client."

Answer 4

* Open * Selective * Negotiated * Serial * Framework

Answer 5

* Traditional contract 86% * Single-stage design and build 41% * Two-stage design and build 39% * Management contract 18% * PFI 10%

Answer 6

No however the contract promotes the use of one for reference generally.

Answer 7

* drawings; * specification; * work schedules;

Answer 8

Base date: the base date is usually set at around the time of return of tenders. base date' is a reference date from which changes in conditions can be assessed. "

Answer 9

The contract administrator

Answer 10

MW16 does not refer to the contractor being given ‘possession’ of the site, but states simply that ‘The Works may be commenced’ on the date stated in the contract

Answer 11

* Insolvency * CDM breaches * Corruption of the contractor * Contractor failing to proceed regally and diligently * Employer failing to pay amounts * Either party can terminate is the works are suspended for a period of more than one month due to neutral events

Answer 12

* Insolvency * CDM breaches * Corruption of the contractor * Contractor failing to proceed regally and diligently * Employer failing to pay amounts * Either party can terminate is the works are suspended for a period of more than one month due to neutral events

Answer 13

MW16 does not require the contractor to produce a programme, although there would be nothing to prevent such a requirement being included in the specification; a programme might be very useful to the contract administrator, particularly when monitoring progress and assessing extensions of time.

Answer 14

The significance of having a completion date is that it provides a fixed point from which damages may be payable in the event of non-completion. Generally in construction contracts the damages are ‘liquidated’, and usually expressed as a rate per week of overrun.

Answer 15

One important reason for an extension of time clause is to preserve the employer’s right to liquidated damages in the event that the contractor fails to complete on time due wholly or in part to some action for which the employer is responsible

Answer 16

One important reason for an extension of time clause is to preserve the employer’s right to liquidated damages in the event that the contractor fails to complete on time due wholly or in part to some action for which the employer is responsible

Answer 17

Construction contracts will usually include a date by which the works described in the contract should be completed. This is generally the date by which practical completion must be certified. The phrase ‘time at large’ describes the situation where there is no date for completion, or where the date for completion has become invalid. The contractor is then no longer bound by the obligation to complete the works by a certain date. Time can become at large because there is no clear completion date specified in the contract, or can be a situation that arises as a result of events (typically by agreement of the parties or by failure of the contract ‘machinery’), or if the contract does not allow the construction period to be extended.

Answer 18

Under MW16 the contractor must give written notice to the contract administrator ‘If it becomes apparent that the Works will not be completed by the Date for Completion’ (cl 2.7, or 2.8 in MWD16). The notice must be given regardless of the reason for the delay, i.e. whether it is caused by the employer, by a neutral event (such as bad weather) or by the contractor itself.

Answer 19

If the completion date is not achieved, under JCT MW the certificate is not required but this failure should be recorded and circulated to all.

Answer 20

For guidance on what might be considered to be beyond the contractor’s control, the contract administrator might have regard to those matters listed as ‘Relevant Events’ under SBC16, for example exceptionally adverse weather, the ‘Specified Perils’, strikes, failure to supply information, site access and indeed any difficulty in movement on or around site.

Answer 21

There are no time limits on when the contract administrator must respond to the contractor’s notice, but it is suggested that this should be done as soon as possible, in order to preserve the employer’s right to liquidated damages. The contract administrator should either fix a new completion date or notify the contractor that no extension of time is due. The contract administrator might call for information if this is necessary to make a fair and reasonable assessment, but this must never be considered as a delaying tactic.

Answer 22

The second limitation is that there appear to be no provisions whereby the contract administrator may reduce a previous extension of time by fixing an earlier completion date where work has been omitted. Nevertheless, it is suggested that if work has been omitted, the contract administrator could take this into account when deciding what might be a reasonable extension in response to some further notice by the contractor.

Answer 23

MW16 makes no provision for the employer to use or occupy the site or the works or any part prior to practical completion. If arrangements for phased occupation have not been agreed in the contract documents, a situation may arise where the contractor has not completed by the date for completion but part of the works are complete or sufficiently complete to allow the employer to have beneficial use of those parts and the employer is anxious to occupy them. There is nothing in the contract that allows for this; therefore, a separate ad hoc agreement would have to be made.

Answer 24

Under clause 2.9 (2.10 in MWD16) the contract administrator is obliged to certify the date at which, in the contract administrator’s opinion, works have reached practical completion and the contractor has complied sufficiently with clause 3.9 (its CDM obligations, for example the supply of information required for the health and safety file) and, in the case of MWD16, clause 2.1.3 (supply of CDP drawings). The date certified is the date when the last condition is fulfilled. it is implied that it will be a fair and reasonable exercise of professional judgment. However, it has been held that the contract administrator has a discretion to certify practical completion where there are very minor items of work left incomplete, on de minimis principles

Answer 25

* Start of the rectification period * release of half of the retention * Employer takes responsibility of the site * liability for liquidated damages ceas

Answer 26

May deduct damages from the amount due under the next certificate or reclaim the sum as a debt Under MW16 the contract administrator is not required to certify non-completion, but it may be prudent to record the failure in a letter to both the employer and the contractor. Once the date for completion has passed, the contractor is said to be in ‘culpable delay’. The liquidated damages may either be recovered from the contractor as a debt or deducted from monies due (cl 2.8.2, or 2.9.2 in MW16). In both cases the following preconditions must have been met: • the contractor must have failed to complete the works by the completion date (cl 2.8.1,or 2.9.1 in MWD16); • the contract administrator must have fulfilled all duties with respect to the award of extensions of time.

Answer 27

Culpable delay (sometimes referred to as 'contractor delay') on the other hand is a delay that is entirely the fault of the contractor. Where the contractor is culpable for a delay, they have no entitlement to an extension of time or loss and expense.

Answer 28

It is no longer considered essential that the amount is calculated on the basis of a genuine pre-estimate of the loss likely to be suffered. Provided that the amount is not ‘out of all proportion’ to the likely losses, the damages will be recoverable without the need to prove the actual loss suffered, irrespective of whether the actual loss is significantly less or more than the recoverable sum. In other words, once the rate has been agreed, both parties are bound by it. Of course, for practical reasons, the rate should always be discussed with the employer before inclusion in the tender documents, and an amount that will provide adequate compensation included to cover, among other things, any additional professional fees that may be charged during this period. If ‘nil’ is inserted then this may preclude the employer from claiming any damages at all , whereas if the clause is left blank then the employer may still be able to claim general damages.

Answer 29

Within a pay less notice

Answer 30

If an extension of time is given following the date for completion, the employer must immediately repay any liquidated damages recovered for the period up to the new completion date.

Answer 31

* Agree variations * Issue a pay less notice on behalf of the client * issue certificates * certify practical completion making good defects

Answer 32

MW16 stipulates that ‘Where considered appropriate, the Contractor shall engage the sub-contractor using the JCT Short Form of Sub-Contract

Answer 33

Following practical completion/Final account.

Answer 34

Yes, but cannot force access. Although the right to return to site ceases at the end of the three-month period, the contractor’s liability for defective materials or workmanship continues throughout the statutory limitation period.

Answer 35

MW16 requires the contract administrator to notify the contractor of the existence of defects within 14 days of the end of the rectification period . Unlike SBC16, the form does not state that the contract administrator must issue a schedule of defects. It is suggested that it would be sufficient for the contract administrator to write to the contractor to inform it that defects had appeared, and of their general nature. The onus would then be on the contractor to identify and make good all defective work. If the contract administrator prefers to issue a schedule, it might be wise to state that it is not intended to be a comprehensive list, and that the contractor should make its own inspection. It would also be sensible to make the employer aware that the contractor must be allowed access, as to prevent this might result in the employer being unable to claim for the costs of remedying the defective work

Answer 36

If the employer would prefer to accept the defects rather than require them to be corrected, then an appropriate deduction is made from the contract sum (cl 2.11). As noted above (see paragraph 5.31), care should be taken to establish the full extent of the problem and negotiate a deduction before such a course of action is taken as it is unlikely that the employer would thereafter be able to claim for consequential problems or further remedial work

Answer 37

Prolongation costs are the additional costs that a contractor has incurred as a result of the completion of the works being delayed by an event that is the responsibility of the other party (usually the Employer). Such events might include; failing to give the contractor possession of the site on the date specified in the contract; delays in giving instructions, and so on.

Answer 38

No, the contract would have to be amended to suite.

Answer 39

The value of the work properly executed and the value of materials and goods properly brought onto site

Answer 40

The value of the work properly executed and the value of materials and goods properly brought onto site

Answer 41

The value of the work properly executed and the value of materials and goods properly brought onto site

Answer 42

The contract administrator should obtain both parties’ agreement, and ensure that its proposed adjustment to the contract price is agreed and confirmed in writing. The rates and prices for that work as set out in the contract can be used as a starting point for negotiation, but are not the only matters to be taken into consideration (see Mul v Hutton Construction Limited ). The contractor may prefer to correct the work, especially if the proposed reduction in the contract price is significant, and in general it cannot be denied the opportunity to do so.

Answer 43

The employer could be at risk, however, where materials have not yet been built in, even where the materials have been certified and paid for. The contractor might not actually own the materials paid for because of a retention of title clause in the sale of materials contract.

Answer 44

When the CA has not produced a payment certificate the contractor can produce a payment notice.

Answer 45

Clause 4.6.1 makes provision for simple interest on late payment of interim and final certificates. This is set at 5 per cent above the official bank rate of the Bank of England (cl 1.1), and the interest accrues from the final date for payment until the amount is paid. The contractor is also given a ‘right of suspension’ under clause 4.7. This right is required by the HGCRA 1996 (as amended). If the employer fails to pay the contractor by the final date for payment, the contractor has a right to suspend performance of all its obligations under the contract, which would not only include the carrying out of the work, but could also, for example, extend to any insurance obligations

Answer 46

5.4A, 5.4B and 5.4C. Clause 5.4A is for use with new buildings, and is taken out by the contractor, 5.4B is for use with existing buildings where the policy will cover the new works and existing structure, and is taken out by the employer, and 5.4C is used where neither of these options is appropriate and the parties agree their own insurance arrangements (these are to be set out in the contract particulars).

Answer 47

Both parties must be able to provide reasonable evidence within seven days of a request

Answer 48

* Alternative 1 = Details provided and the contractor has the choice to confirm or withdraw submission with no amendments * Alternative 2 - Details provided and opportunity to confirm or amend to correct the error. * Source - JCT Practice note - Tendering"

Answer 49

* The right to be paid in interim, periodic or stage payments * The right to be informed of the amount due, or any amounts to be withheld * The right to suspend performance for non-payment * The right to adjudication

Answer 50

• Intended to ensure that payments are made promptly throughout the supply chain and that disputes are resolved swiftly. Provisions of the act include: o The right to be paid in interim, periodic or stage payments. o The right to be informed of the amount due, or any amounts to be withheld. o The right to suspend performance for non-payment. o The right to adjudication. Disallowing pay when paid clauses.

Answer 51

* Offer by one party (tender) * Acceptance by the other party (tender return) * Consideration (price of the promise) * Intention to form a contract * Legality of contract * Capacity to make agreements * Consent * Possibility of Performance

Answer 52

* Written by legal experts * Rights and obligations of each party are clearly set out to the required level of detail. * Risks should have been allocated equitably between parties * Parties should be familiar with the provisions in the form * Fewer unforeseen anomalies * The time and expense of preparing a fresh document for each occasion is avoided * Case law is built up over time – provides a good source of knowledge and clarity."

Answer 53

* Include for costs of prolongation of site preliminaries – welfare facilities, utilities etc. * Facilities management staff, security, cleaners * Subcontractor mobilisation costs

Answer 54

* Need to be supported by historical weather data taking into account the time of year and region the project in question is located in. * The contractors claim should be based on data from a recognised independent source and the data would be compared to previous years to assess if the prolonged period is equivalent to the EOT."

Answer 55

The construction phase plan is not a contract document under MW16, and the recitals make no mention of it. However, the employer and the principal designer must provide the contractor with pre-construction information (regulations 4(4) and 12(3)), which should be sent out with the tender documents. Where the contractor is the principal contractor, the contractor must ensure that the construction phase plan is prepared before setting up the construction site (regulation 12); compliance with this is required under clause 3.9.2. To avoid uncertainty, it is advisable to require that this document be submitted by the contractor well in advance of start of work on site. Following commencement, the contractor must ensure that the plan is reviewed and updated on a regular basis (regulation 12(4)).

Answer 56

* Alternative 1 - Inform the contractor who can choose to either confirm or withdraw * Alternative 2- Inform the contractor who can choose to confirm or amend

Answer 57

* Contracts (Rights of Third Parties) Act 1999 * Housing Grants Construction and Regeneration Act 1996 * CDM 2015

Answer 58

If there is an ongoing dispute resolution process then a final certificate should not be issued, potential for a certificate of non completion dependent on contract.

Answer 59

If any defects are found within the Rectification Period, the CA will issue an instruction that notes a schedule of defects, which should be issued no later than 14 days after the expiry of the rectification period. The contractor should then return to rectify those identified defects at no cost to the employer. Once these works have been carried out the CA will issue a certificate of making good to document these works.

Answer 60

Clause 2.11 deals with defects found within the Rectification Period, and clause 2.12 notes the requirement for a Certificate of Making Good Defects. The Rectification should be defined within the contract particulars

Answer 61

If a contractor wanted to avoid liquidated damages due to delay, or perhaps to free up staff. A client may wish to accelerate a programme to avoid the works being completed late.

Answer 62

Sectional Completion of is a pre-arranged situation, whereas Partial Possession occurs within the course of the project, and needs to be consented to by the Contractor.

Answer 63

A Pay Less Notice is a notice issued either to the Employer or the Contractor noting the intention to pay less monies than noted as due in a valuation. Where a valuation is considered to be wrong, or where for example the client wishes to claim liquidated damages, then a Pay Less Notice should be issued to detail the amount to be paid. A Pay Less Notice must be issued not later than 5 days before the final date for payment

Answer 64

A Non-Completion Certificate would be issued when works are not complete at the relevant completion date, and no Extension of Time has been issued. Liquidated damages cannot be claimed unless a Non-Completion Certificate has been issued

Answer 65

None. Non-Completion Certificates are not required under the minor works contract but are advised to be defined in writing the practical completion has not been met.

Answer 66

Liquidated damages should be a genuine pre-estimate of loss due to delay. They may include loss of rent, extended professional fees, the requirement to rent additional spaces etc.

Answer 67

* Liquidated damages are a genuine pre-estimate of loss. When used actual loss is irrelevant, and once set they can only be revised down. * Unliquidated damages are when the section in the contract particulars is left blank, and the loss must be calculated at the time and need to be proven

Answer 68

Clause 2.9 deals with liquidated damages. Amount of liquidated damages should be defined in the contract particulars

Answer 69

Loss and Expense is dealt with in clause 5.10, where details of when a contractor is entitled to loss and/or expense is detailed.

Answer 70

* JCT does not define exceptionally adverse weather condition, meaning it is left to discretion. This means that it can be a potential cause for dispute. * NEC defines it as a 1 in 10 year event, otherwise the contractor should have allowed for the effects of weather within their price

Answer 71

``` A specified peril is a relevant event which can justify an application for an extension of time, but not an application of loss and expense. Defined in MW and IBC : • Fire • Lightening • Explosion • Storm • Escape of water from tank or pipe • Earthquake • Riot/Civil commotion ``` Specified risk are usually covered by the works insurance policy, and may give rise to a claim

Answer 72

A Relevant Matter is a matter for which the client is responsible that materially effects to progress of the works. May give rise to an contractor's claim for Loss and/or Expense. Might include: • Failure to give site possession • Failure to provide access to/from site • Delays in providing instructions • Discrepancy within contract documents • Disruption caused by works carried out by the client • Instructions relating to variations and expenditure of provisional sums • Issues relating to CDM

Answer 73

If a contractor fails to complete the works within the allotted time for reasons beyond their control, the CA can consider an application for the contractor for an Extension of Time - which is a certificate that alters the completion date.

Answer 74

Retention is a sum deduced at each valuation (generally 5%) to provide the client with security that the contractor will return to correct any defects.

Answer 75

The amount of retention is defined in the Contract Particulars, and then Clause 4.3 deals with Interim Payments

Answer 76

* End of contractor liability (termination of any liquidated damages) * Insurance handover * Handover of the premises * Beginning of the defects liability period * Retention releases, generally from 5% to 2.5%

Answer 77

There is no legal basis for the term Practical Completion. It is when the works are complete to the satisfaction of the Contract Administrator. The CA cannot certify PC of there are outstanding works or patent defects, but they also cannot withhold PC for minor defects outstanding.

Answer 78

A collateral warranty is a binding agreement which gives third parties contractual rights which are collateral to an underlying contract to which it is was not an original party.

Answer 79

* JCT MW - simple in nature works, under 500K, don't need BOQ, traditional procurement With CD - if not enough info to complete design of part or want contractor to take on the risk for the element. * JCT Intermediate - Sectional completion and BOQJCT Design and build - with DAB procurement * JCT Standard Building contract - large/complex projects, traditional procurement with or without BOQ * JCT Major Works

Answer 80

Frustration occurs when circumstances that are not the fault of either party mean it is impossible to continue with the contract. The contract will come to an end without any party being considered to be in breach. it does not cover contracts that were always going to be impossible to perform. For example, it would not apply in the case of a contract to construct a tall building that could not be fulfilled because the ground conditions were completely unsuitable. Some events that may lead to a frustrated contract include: The government imposing unforeseen restrictions on building. Laws being passed that make it illegal to undertake what was promised under the contract The building where works were to be carried out being destroyed. An event that was crucial for the contractual obligations being cancelled

Answer 81

An unforeseen act of god Very broadly, it relates to exceptional, unforeseen events or circumstances that are beyond the reasonable control of a party to a contract and which prevent or impede performance of their obligations under the contract. Generally it cannot be an event that the party could reasonably have avoided or overcome, or an event attributable to the other party. Clauses referring to force majeure attempt to set out the circumstances to which the term applies to and prescribe how such situations should be treated. Depending on the provisions of the contract, the following may be considered to constitute force majeure: Unforeseen changes to legislation. Wars and other hostilities (such as terrorism).Fires. Exceptionally adverse weather. Civil unrest, such as riots or revolution. Strikes (other than by the contractor or subcontractors).Natural catastrophes such as earthquakes, floods and volcanoes. Epidemics or pandemics. In some contracts, force majeure is considered a 'relevant event', that may allow the contractor to claim an extension of time if they have been prevented or impeded from performing their obligations under the contract. Although, if the contractor has continued to perform their duties, despite the occurrence, they may not be able to make a claim.

Answer 82

``` The CA will be required to issue a number of certificates. Confirmation of certain events, milestones and occurrences e.g. • Practical completion • Making good of defects • Partial possession • Making good to relevant part • Non-completion • Payment certificates ```

Answer 83

The Contract Sum is the agreed lump sum the client will pay the contractor for the work. This figure will quite often be subject to change (normally an increase) and this will then become the Final Account figure

Answer 84

A contract instruction is an important legally binding document and may well be referred to in any disputes or legal action which may arise between the client and the contractor so it is essential that the CA ensures the format and content of the document is accurate and compliant with legal protocol The format should be as follows (in writing but can be verbal initially): Names of the parties involved Include the Project Name Specify the Date Provide an issue number Circulate to all necessary parties Quantify the financial implication The content of instructions will include the following: a Only what the contract states e.g. A Variation of the works Removal of work not in accordance with the contract Expenditure of Provisional Sums Opening up of the works for inspection/testing The content of instructions will include the following: a Only what the contract states e.g. Variation of the works Removal of work not in accordance with the contract Expenditure of Provisional Sums Opening up of the works for inspection/testing

Answer 85

A provisional sum is a figure specified within the tender and contract documents which is included to fund an item which cannot be fully specified prior to work commencing for various reasons. An example would be an inclusion of £10,000 to cover provision of new foundations which cannot be specified due to the uncertainty of the ground conditions. The contractor will then be required to complete the work within that sum therefore the sum included should be adequate

Answer 86

These are formal documents issued by the contract administrator to document ANY communication between the CA and the contractor. There are many standard instruction forms available for a CA to use. An instruction can range from a single page of A4 to detailed documentation including drawings and specifications if additional work is being instructed. The Architect/Contract Administrator may issue instructions and the Contractor shall forthwith comply with them. If instructions are given orally, they shall not have effect until the Architect/Contract Administrator confirms them in writing. There may be numerous instructions issued ensure you keep up to date with your records.

Answer 87

``` A standard agenda for a pre contract meeting will cover issues including: • Health and safety • Access arrangements • Storage • Programme • Valuation and payment arrangements • Site progress meetings • Project insurance • Person in chargeable ```

Answer 88

The general rule is that an extension of time should only be issued if the reason is outside of the contractors control otherwise known as ‘A relevant event’ which potentially include: • Weather If the work or part thereof is external • Force majeure An Act of God • Additional work instructed by the client • Others including the client failing to provide the contractor with reasonable access or information

Answer 89

* The final months payment (known as the Penultimate Payment). * Release of the contractors insurance obligations (which may be expensive). * Exemption of the contractors liability to pay Liquidated damages. * Half the retention is release * Start of the Rectification Period

Answer 90

The Rectification period is normally a period of 3, 6 or 12 months where the contract remains ˜open™ after practical completion of the work during which the contractor is still liable for rectifying problems (or defects) which have developed following the building work.

Answer 91

LDs are sum of money included within the contract to incentivise the contractor to complete on time and may be deducted from the contractors final monthly payments and retention (see retention later). LDs are a reasonable estimate of loss as a result of the project not completing on time (for example £250 per week due loss of rent of a residential property).

Answer 92

Defects are the legal term for work which has not been completed to the agreed specification or work that has subsequently failed whilst still under contract.

Answer 93

This certificate (and also the certificate on ˜Not making good) need to be completed by the contract administrator following rectification/failure to rectify defects and certifies their rectification or otherwise. These will either trigger the Final payment to the contractor or result in withholding money until they are rectified.

Answer 94

JCT Minor Works contract selection criteria. The JCT Minor Works contract is commonly used for projects likely to be administered by a building surveyor under the traditional procurement method and it is under the following criteria: * Where the work involved is simple in character. * Where the work is designed by or on behalf of the client/employer. * Where the client/employer is to provide drawings and/or a specification and/or work schedules to define adequately the quantity and quality of the work; * Where an architect/contract administrator is to administer the conditions. * Where the approximate maximum value is £500k but this is flexible depending on the complexity of the project. It is not however suitable: • Under a design and build procurement route as a design and build contract • Where bills of quantities are required • Where provisions are required to govern work carried out by named specialists • Where detailed control procedures are needed

Answer 95

``` Contract Particulars This section contains the all-important contract clauses covering items including: • Carrying out the works • Control of the works • Payment • Injury, damage and insurance • Termination • Dispute ```

Answer 96

The majority of the works must be completed bar de-minis work. The building must be functional and safe to use. There must not be substantial defects, if there are, you should not submit PC.

Answer 97

The health and safety file and operations manual needs to be given to the client, the client takes possession of the site and the client takes on insurance liability of the building. Half the retention is released and the contractors liability for liquidated damages ends and the defects liability period starts.

Answer 98

Liquidated damages are a pre-determined estimate for the likely costs that will be incurred by the client if the project over runs such as rent payments or income lost etc. They cannot be a penalty.

Answer 99

These have to be proven losses incurred by breaching the contract and the amount is not pre-agreed. The amount is determined by the courts.

Answer 100

This is determined by the amount a project critical path is delayed by a relevant event such as the client failing to provide access or providing delayed instructions or constant variations. The EoT claim is reviewed to determine how the contractor has justified it and I then review this and site notes/emails to determine if the contractor made reasonable efforts to avoid the delay or if the delay was down to their own performances. Where they have cited adverse weather, I will take an average of the last 10 years from met office to determine if the weather at the time of the event was to be unexpected or not.

Answer 101

I would review the contractors claim and review the preliminaries to determine what costs are genuine as a result of the extension, for example, it is unreasonable for the contractor to give a blanket average cost of the preliminaries as items such as scaffolding costs or skips or washroom facilities etc may not have been required at the end when the delay was added. These costs are then combined to create my own idea of what the costs should be and usually, I will discuss this with the contractor so that a fair settlement can be made for the genuine costs incurred by the delay.

Answer 102

* Traditional – design is separate from construction * Design and Build – Contractor performs both design and construction * Management – The client is responsible for the design but the contractor defines the works packages and arranges for these to be carried out

Answer 103

It is something that causes a project to overrun that is outside of the contractors control such as the client not providing access, acts of god, variations, slow instructions, civil commotion

Answer 104

Where the client is responsible that materially affects the progress of work and cause the contractor to incur a direct loss and expense such as failure to give contractor possession, delays in instruction, opening up works, failure for the client to supply goods, expenditure of Provisional sums.

Answer 105

An unspecified amount as an estimate for the likely cost that something will be or cost to install where you do not have enough information to provide any details.

Answer 106

Where you have a specific cost for the purchase of materials but does not include the cost of installation.

Answer 107

Look at the value of the works, the complexity and nature of the works, procurement route.

Answer 108

In short, to administer the obligations of the contract. This includes inviting contractors to tender, preparing contract documents, preparing progress reports preparing interim payment applications, valuing works, acting impartially, preparing the final certificate, collating the schedule of defects.

Answer 109

The clerk of works has no authority to make appointments or prepare and issue certificates. They can value the works though and will oversee the quality of the work on site making sure that plans are being followed.

Answer 110

They are a list of project details that are prepared in order to allow the contractor to fully price the project including items which may not be in the specification but important as part of the job such as safety precautions to price up, site facilities, utilities usage, access etc.

Answer 111

The contracts are executed under seal, signed by the parties, witnessed and stipulated that it is under deed.

Answer 112

* Offer * Consideration * Acceptance * Competence * Legal intention

Answer 113

* The relevant drawings * Schedule of works * Preliminaries * Preambles * Specific design detail * Bills of quantity

Answer 114

The contract document itself, prelims, preambles, schedule of work, bills of quantity, drawings, design details, specifications, dispute resolution

Answer 115

* Open * Selective * Negotiated * Serial * Framework * Single Stage * Two Stages * Public Procurement

Answer 116

Pre Contract Service Agreement – designed for appointing a contractor to carry out pre-construction services under two stage tender process. It allows the contractor to collaborate with the employer and their team to develop detailed design.

Answer 117

Single stage – go out to tender at Stage 4 which is technical design. Two stage – go out to tender at stage 2 or 3 which is concept design or spatial coordination.

Answer 118

* JCT * NEC * FIDIC

Answer 119

They are both standard forms of contract. JCT is designed for domestic projects whereas NEC is suitable for domestic and international. NEC came after the Latham report and aims to offer better clarity, flexibility and better management processes. In NEC, the contract is administered by a PM and in JCT, it is a CA. NEC requires and enables a more proactive and collaborative approach whereas JCT is aimed at focussing on liabilities and risk. NEC has early warning notices and compensation events rather than relevant events/matters

Answer 120

The transfer of contractual rights and obligations from one party to another

Answer 121

The assignor transfers rights, property or other benefits to the assignee.

Answer 122

Agreements associated with one primary contact which can be transferred or extended to a third party who is not part of the original contract.

Answer 123

A contractual bond that guarantees the completion of a project. If the contractor does not complete the project, the bond guarantees against financial loss to the client for a specified amount which is usually 10% of the contract value.

Answer 124

Where there are multiple delays all occurring at the same time but for different reasons.

Answer 125

The key difference is that the Employers Agent will perform the contract administration on D&B contracts whereas the CA will perform the role on traditional contracts.

Answer 126

* Lump Sum * Measurement * Cost Reimbursement * D&B * Management

Answer 127

It is a document that states the intent of one party to enter into a contract usually subject to certain conditions being met.

Answer 128

It is a written or verbal agreement between parties to carry out a service in exchange for some form of repayment.

Answer 129

CA does it impartially on behalf of contractor and client, EA only administers it on behalf of the employer to protect their requirements.

Answer 130

The act of obtaining goods or services from external services usually via tendering.

Answer 131

The main disadvantages of letters of intent are as follows: They can become legally binding under certain circumstances when this was not the intention of the organizations. By agreeing to a letter of intent at an early stage in the process you may hinder your ability to negotiate a better deal late in the process.

Answer 132

* Single Stage – Tender is issued to several contractors, the pack includes all the detail required to provide a cost. The preferred tender is selected and discussions can start. * Two Stage – First stage is the same as single stage. The contractor will be chosen to provide input into the design or a specific part of the design to help build a specification. This package then goes out to tender again and may include that original contractor. The downside is that it often reduces competition and some contractors will refuse as you already have a relationship with the original contractor. * Negotiated – similar to single stage but you only go to one contractor and aim to negotiate the cost down to a fair amount but there is no competition.

Answer 133

There isn't one. The minor works is not really efficient for dealing with EOT's and thus another form would have been more suited.

Answer 134

* Client becomes responsible for building * Half of retention released * Rectification period commences * H&S file agreed Depending on contract * PC cert issued

Answer 135

* JCT - Joint contracts tribunal * NEC - New Engineering Contract * FIDIC- International Federation of Consulting Engineers * ICE - Institution of Civil Engineers

Answer 136

* Detailed site investigations. * Careful monitoring and regular meetings. * Effective site management. * Collaborative working and effective coordination. * Careful scheduling. * Full commitment to the project by all parties

Answer 137

* Chair meetings * Periodically inspect works * Give instructions/variations or changes * Determine application for EOT * Authorise interim payments * Certify completion date * Setting the adjusted contract sum

Answer 138

* SBC 2011/2016 * Intermediate building contract 2011/2016 * Minor works Building contract 2011/2016 * Major Projects building contract 2011/2016 * Design and build contract 2011/2016 * Management Building contract 2011/2016 * Construction management contract 2011/2016 * Prime cost building contract 2011/2016

Answer 139

Minor Works Building Contract • This contract is by far the most commonly used in property renovation • It is generally agreed that non-complex contracts up to £250,000 can be adequately administered by a minor works JCT and includes the following provisions: • the employer must provide drawings, a specification or schedule of works to define the quantity and quality of work. • the price and payment structure for the contract, which is usually based on a lump sum (the price for the job) with monthly interim payments. • provisions are included for collaborative working and sustainability but also cover liability and insurance The Intermediate Building Contract • The intermediate form of the JCT introduces additional complexity to the minor works contract but rather than look similar to that, is really a cut down version of the standard building contract. • It is generally used to deliver contracts where there is a higher level of complexity and where the contract value reaches approximately £1million. In the intermediate JCT, the following apply: • The employer must provide drawings, and either bills of quantities, specification or works schedules to specify quantity and quality of work. • Price and payment structure of the contract is based on a lump sum (price for the job) with monthly interim payments. • It can be used where provisions are required to cover named specialists or sub-contractors. • All sub-contractors are domestic and their performance is the responsibility of the main contractor. • Provisions are included for collaborative working, sustainability, advanced payment, bonds and collateral warranties. • It also specifies more detailed liability and insurance issues.

Answer 140

The contract administrator's role will generally include: • Inviting and processing tenders. • Preparing contract documents for execution. • Administrating change control procedures. • Seeking instructions from the client in relation to the contract. • Issuing instructions such as variations, or relating to prime cost sums or making good defects. • Considering claims. • Chairing construction progress meetings. • Preparing and issuing construction progress reports. • Co-ordinating and instructing site inspectors. • Agreeing commissioning and testing procedures. • Agreeing defects reporting procedures. • Ensuring that project documentation is issued to the client. • Issuing certificates of practical completion and interim certificates. • Collating and issuing schedules of defects. • Issuing the certificate of making good defects. • Issuing the final certificate

Answer 141

Every 4 weeks unless stated differently in the contract document.

Answer 142

The Interim Valuation Date determines the due date for each interim payment which is the date 7 days after the relevant Interim Valuation Date (clause 4.3). Payment of each interim payment must be made within 14 days from the due date of the interim payment (i.e. 21 days from the Interim Valuation Date). That simple structure sets out the time framework but in order for a payment to be made it is necessary to certify the amount of each payment. The Architect/Contract Administrator shall within 5 days of the due date for each interim payment (i.e. 12 days from the Interim Valuation Date) do this by issuing an interim certificate.

Answer 143

* Introduction * Context * Appointment of contract administrator * Roles and responsibilities

Answer 144

* Appointment of the CA * Roles and responsibilities * Records * Site inspection * Meeting * Valuation of works * Contract instruction variations * Final sum * H&S

Answer 145

* That a CA although normally engaged by the clients should remain unbais and impartial throughout the role of CA * The process of terms of appointment – in line with RICS for firms * General administration split into information : * Ensure the provision of information * Supply document, drawings etc * Provide or give additional information * Financial * Certify – interim payment * Consider – interim valuation * Send -0 adjust contract sum or payment certificate * Supervision * Approve – quality of work and materials etc * Instruct – the contractor * Obtain – the contractor or clients consent * Issue – variations etc * Make a fair and reasonable review of any additional claim"

Answer 146

* Reason for inclusion * Amount of retention * Principle of release * Alternative such as bonds and collateral warranties * Issue with release * Guidance Note – Recommended good practice to be followed by competent and conscientious practitioners

Answer 147

``` o Date o Certificate no o Contract sum o Details for parties o Gross valuation o Net amount o Issued by ```

Answer 148

Issue a pay less notice and record the reasons and evidence why

Answer 149

o JCT – Joint Contracts Tribunal o NEC – New Engineering Contract o CIOB – Chartered institute of building o ACA – Association of consultant architects

Answer 150

o Based on the complexity and contract value of the works. | o I can use the ‘Guide to selecting the appropriate contract’ as party of the JCT guidance document

Answer 151

o Contract admind– 1st - 2011 | o Retention – 1st - 2012

Answer 152

No option for retention bond this is available within the JCT standard building contract. However they could be some protection under the Third Party Rights Act 1999

Answer 153

* Retention – 5% total – 2.5 % releases following the issue of practical completion and 2.5% released following the completion of the rectification period and the certificate of making good defects. * Liquidated damages - £100 a week. This figure should eb calculated on the actual additional expenditure of the business as a result of not meeting the prescribed @Date for completion’ Clause 2.2 JCT Minor Works contract * Adjudication measures – RICS * Payment intervals – every 4 weeks * Arbitration measures - RICS * Contractors public liability insurance – based on size, complexity and value of the works. Dependant on size of no of workforce.

Answer 154

Delays on a project will have different contractual consequences depending on the cause of the delay: Where a delay which impacts on the completion date is caused by the contractor (culpable delay), the contractor will be liable to pay liquidated and ascertained damages (LADs) to the client. Where a delay which impacts the completion date is not caused by the contractor, it may be a ‘relevant event’, for which the contractor may be entitled to an extension of time and to claim loss and expense incurred as a direct result of the delay. A relevant event may be caused by the client, or may be a neutral event such as exceptionally adverse weather. The contract should set out what constitutes a relevant event. Relevant events may include: * Variations. * Exceptionally adverse weather. * Civil commotion or terrorism. * Failure to provide information * Delay on the part of a nominated sub-contractor. * Statutory undertaker’s work. * Delay in giving the contractor possession of the site. * Force majeure (events that are beyond the reasonable control of a party, such as a war or an epidemic). * Loss from a specified peril such as flood. * The supply of materials and goods by the client. * National strikes. * Changes in statutory requirements. * Delays in receiving permissions that the contractor has taken reasonable steps to avoid. When it becomes reasonably apparent that there is a delay, or that there is likely to be a delay that could merit an extension of time, the contractor gives written notice to the contract administrator identifying the relevant event that has caused the delay. If the contract administrator accepts that the delay was caused by a relevant event, then they may grant an extension of time and the completion date is adjusted. Claims for extension of time can run alongside claims for loss and expense however, one need not necessarily lead to the other. The contractor is required to prevent or mitigate the delay and any resulting loss, even where the fault is not their own. Mechanisms allowing extensions of time are not simply for the contractor's benefit. If there was no such mechanism and a delay occurred which was not the contractor’s fault, then the contractor would no longer be required to complete the works by the completion date and would only then have to complete the works in a 'reasonable' time. The client would lose any right to liquidated damages. NB: On NEC contracts, delays are dealt with slightly differently and are referred to as 'compensation events'

Answer 155

Relevant matters in construction contracts Relevant matters are referred to in some construction contracts, such as JCT contracts. A relevant matter is a matter for which the client is responsible that materially affects the progress of the works. This may enable the contractor to claim direct loss and / or expense that has been incurred. Relevant matters might include: * Failure to give the contractor possession of the site. * Failure to give the contractor access to and from the site. * Delays in receiving instructions. * Opening up works or testing works that then prove to have been carried out in accordance with the contract. * Discrepancies in the contract documents. * Disruption caused by works being carried out by the client. * Failure by the client to supply goods or materials. * Instructions relating to variations and expenditure of provisional sums. * Inaccurate forecasting of works described by approximate quantities. * Issues relating to CDM. Relevant matters should not be confused with relevant events. A relevant event is an event that causes a delay to the completion date, which is caused by the client, or is a neutral event not caused by either party. Relevant events entitle the contractor to claim an extension of time; that is for the completion date to be moved. A relevant event does not necessarily entitle the contractor to claim loss and expense. Similarly, a relevant matter need not necessarily result in a delay to the completion date, and so may not always entitle the contractor to an extension of time. NEC contracts deal with these issues under the single heading ‘compensation events’. They do not treat compensation events as an allocation of blame, but rather an allocation of risk. Any risk that is not specifically identified as being attributed to the client is borne by the contractor. The Society of Construction Law Delay and Disruption Protocol, 2nd edition, refers to an event or cause of delay or disruption which under the contract is at the risk and responsibility of the employer, as an 'employer risk event'

Answer 156

Sectional completion in construction contracts Sectional completion refers to a provision within construction contracts allowing different completion dates for different sections of the works. This is common on large projects that are completed in sections, allowing the client to take possession of the completed parts whilst construction continues on others. Sectional completion differs from partial possession in that it is pre-planned and defined in the contract documents. If sectional completion is required, it must be an express term of the contract, and reflected by the fact that there are multiple completion dates rather than just one. The extent of each section must be clearly defined and liquidated damages, and the amount of retention that will be released must be specified for each section. There may also need to be clarification of how extension of time provisions will be applied if, for example, delays to one section of the works have a knock-on effect on other sections (the cascade effect). In procedural terms, sectional completion is similar to normal completion and follows the usual handover procedures (see handover to client). However, some work within the section may remain outstanding, such as the completion of commissioning, operation and maintenance manuals and as built drawings, which will cross all sections. It may exclude mechanical and electrical service systems which are reliant on total completion before they can be properly tested and commissioned. This means that their needs to be an agreed protocol for re-entry into completed sections for the contractors to complete outstanding work. Sectional completion requires particular care to be taken regarding: * Difficulties with logistics on site when different sections are in the possession of different parties. * The protection of completed sections from ongoing work. * The provision of appropriate insurance at all times for all sections. * The adoption of appropriate health and safety measures to deal with risks resulting from occupation of areas adjacent to, or only accessible through ongoing construction works. * The provision of appropriate security measures. The consequences of sectional completion are that * Half of the retention is released for that section. * The Rectification Period begins for that section, * The contractor’s responsibility for insuring the works (if applicable) ends for that section. * The contractor’s liability for liquidated damages ends for that section. * The employer is now responsible for any damages to the works for that section.

Answer 157

Force majeure is used to describe an event that occurs which is beyond the control of the parties, and which prevents them from fulfilling their contractual obligations. The courts have previously held that force majeure is an event which goes beyond what the courts understand by the terms 'act of God' or 'vis major'.

Answer 158

Depending on the nature of works and the size of works this could be 6-12 months that would be specified within the contract.

Answer 159

If the works were of simple nature and small size then 6 months would suffice.

Answer 160

A patent defect is identified during the rectification period as a result of reasonable inspection.

Answer 161

A latent defect exists before its discovery. It cannot be identified from reasonable inspections; hidden or concealed flaw.

Answer 162

* Once received I would carry out a site inspection and ensure the works that are valued are completed on site. * Cross reference this with the contractor’s programme. I would query any suspicious items. Once a settlement is reached I would request an invoice from the contractor’s QS. * Once received I would fill out a certificate of payment, ask my senior to QA and sign and I would issue both (invoice and certificate of payment) to the client to pay the contractor within 14 days.

Answer 163

* Loss of income from rent * Cost of alternative accommodation incurred during the delay * Loss of profit to the business at the property where the works are being carried out.

Answer 164

* England - Party Wall Act – make neighbour aware of the proposed work and adequate time to object. * Northern Ireland - Schedule of Condition – is used to record the condition which is agreed in writing with the neighbour’s surveyor. In accordance with Common Law.

Answer 165

The contract administrator certifies practical completion when all the works described in the contract have been carried out. Certifying practical completion has the effect of: * Releasing half of the retention (an amount retained from payments due to the contractor to ensure they complete the works). * Ending the contractor's liability for liquidated damages (damages that become payable to the client in the event that there is a breach of contract by the contractor - generally by failing to complete the works by the completion date). * Signifying the beginning of the defects liability period. Documentation that should be issued to the client on certification of practical completion might include: * A draft building owner's manual. * A building user's guide. * The health and safety file. * The building log book. * A construction stage report. * Once the certificate of practical completion has been issued, the client takes possession of the works for occupation.

Answer 166

The client may wish to take possession of part of a building or site, even if works are ongoing. This can be programmed within the original contract documents it the need can be foreseen through a requirement for sectional completion, but in the absence of such a provision many contracts offer the more open-ended option of partial possession. The effect of partial possession is that: * Any part for which partial possession is given is deemed to have achieved practical completion. * Half of the retention for that part must be released. * The defects liability period begins for that part. * Liquidated damages reduce proportionally. * The client is responsible for that part and should insure it. * The contractor is not obliged to allow partial possession (although permission cannot be unreasonably withheld), and may not wish to if, for example, access routes are difficult to achieve, it would disrupt the works, or it would incur additional costs. There could also be additional difficulties if the occupants of the part that has been possessed disrupt the contractor, which could result in a claim for extension of time and/or loss and expense.

Answer 167

Practical Completion is a contractual term used in the Building Contract to signify the date on which a project is handed over to the client. The date triggers a number of contractual mechanisms including: * Releasing half of the retention * Ending the contractor liability for liquidated damages * Starting the rectification period * Transfer of insurance liability

Answer 168

The building owner's manual, or operation and maintenance manual (O&M manual), contains the information required for the operation, maintenance, decommissioning and demolition of a building. The building owner's manual is prepared by the contractor or the sub-contractor with additional information from the designers (in particular, the services engineer) and suppliers. It is a requirement that is generally defined in the preliminaries section of the tender documentation where its contents will be described, although there may be additional requirements regarding mechanical and electrical services in the mechanical and electrical specification. A draft version of the document should be provided for the client as part of the handover procedure prior to certifying practical completion. The final document is not usually available in full form until several months after practical completion, as commissioning information often needs to include summer and winter readings taken in the fully occupied building. The preliminaries may require several copies of the building owner's manual and might require an electronic version. The building owner's manual might include: A description of the main design principles. Details of the building's construction (such as finishes, cladding, doors and windows, roof construction, and so on).As-built drawings and specifications. Instructions for its operation and maintenance (including health and safety information and manufacturers' instructions for efficient and proper operation).An asset register of plant and equipment. Commissioning and testing results. Guarantees, warranties and certificates. Particular requirements for demolition, decommissioning and disposal.

Answer 169

The construction industry is familiar with collateral warranties

Answer 170

Contracts generally include a clause making provision for the contractor to pay liquidated damages (LD, sometimes referred to as liquidated and ascertained damages - LADs) to the client in the event that the contract is breached. In building contracts, liquidated damages usually relate to the contractor failing to achieve practical completion (i.e. completing the works so they can handover the site to the client) by the completion date set out in the contract. They are often calculated on a daily or weekly rate. Liquidated damages are not penalties, they are pre-determined damages set at the time that a contract is entered into, based on a calculation of the actual loss the client is likely to incur if the contractor fails to meet the completion date. They might include; rent on temporary accommodation, removal costs, extra running costs, and so on. They are generally set as a fixed daily or weekly sum, although there may be a more complicated formulae where the works are phased, where may be partial possession and so on. It is important that the method of calculation is precisely and formally documented. If the contract prevents the client claiming liquidated damages, or if actual losses are significantly different to those that were estimated at the time the contract was entered into, then the client may pursue a claim for unliquidated (i.e. actual) damages through the courts. Unliquidated damages are damages, the exact amount of which has not been pre-agreed, and are typically determined by the courts. As liquidated damages are not a penalty, they must have been based on a genuine calculation of damages when they were set. If they are not genuine, they may be considered a penalty by the courts and so will be unenforceable (see Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd), although this is unlikely as the courts are very reluctant to interfere in contractual agreements negotiated freely by two commercial parties of similar standing. Calculations might include, amongst other things: * Loss of rent * Loss of income * Fees * Storage costs. * Rental costs. * Fees and fines imposed by third parties. * Finance costs. There be a causal link between all the losses the contract foresees are likely to be suffered, and the breach of contract, i.e. the damages flow naturally from the delay and must not be 'remote'. The principle of 'remoteness' is established in the case of Hadley v Baxendale in 1854. Liquidated damages can be beneficial for the client, as the remove their obligation to prove actual losses in the event of delay occurring. They can also be beneficial to the contractor as they limit their liability to a known amount in the event of delay. However, in some circumstances, the parties to the contract will wish to exclude liquidated damages. In this case, they should not simply insert 'nil' as the rate of liquidated damages, as this can imply that the loss for unliquidated damages is also nil. Instead, they should make clear that unliquidated damages apply, or delete the clause for liquidated damages.

Answer 171

* Traditional contract 86% * Single-stage design and build 41% * Two-stage design and build 39% * Management contract 18% * PFI 10%

Answer 172

Construction contracts will generally provide for the contractor to claim direct loss and/or expense as a result of the progress of the works being materially affected by relevant matters for which the client is responsible, such as: * Failure to give the contractor possession of the site. * Failure to give the contractor access to and from the site. * Delays in receiving instructions. * Opening up works or testing works that then prove to have been carried out in accordance with the contract. * Discrepancies in the contract documents. * Disruption caused by works being carried out by the client. * Failure by the client to supply goods or materials. * Instructions relating to variations and expenditure of provisional sums. * Inaccurate forecasting of works described by approximate quantities. * Issues relating to CDM. * Claims may comprise costs resulting from disruption to the works or from delays to the works (prolongation). The contractor must give written notice of a claim as soon as it becomes reasonably apparent that the regular progress of the works is being materially affected. This need not necessarily result in a delay to the completion date, and so claims for loss and expense and claims for extensions of time do not necessarily always run together. Claims are restricted to 'direct' loss and expense and so 'consequential losses' (such as lost production) are generally excluded. Direct losses are those that 'flow naturally' from the breach of contract. There is disparity between contract types about whether items such as head office overheads can be included in claims for loss and expense, and some court rulings have allowed such claims. If there are specific consequential losses which the parties to the contract wish to exclude, it may be prudent therefore to state these explicitly within the contract. NB: The New Engineering Contract (NEC3) contains provision for the contractor to claim payment for 'compensation events' rather than loss and expense.

Answer 173

Construction contracts generally allow the construction period to be extended where there is a delay that is not the contractor's fault. This is described as an extension of time (EOT). When it becomes reasonably apparent that there is, or that there is likely to be, a delay that could merit an extension of time, the contractor gives written notice to the contract administrator identifying the relevant event that has caused the delay. If the contract administrator accepts that the delay was caused by a relevant event, then they may grant an extension of time and the completion date is adjusted. Relevant events may include: * Variations. * Exceptionally adverse weather. * Civil commotion or terrorism. * Failure to provide information. * Delay on the part of a nominated sub-contractor. * Statutory undertaker’s work. * A delay in giving the contractor possession of the site. * Force majeure (such as an epidemic or an 'act of God'). * Loss from a specified peril such as flood. * The supply of materials and goods by the client. * Strikes. * Changes in statutory requirements. * Delays in receiving permissions that the contractor has taken reasonable steps to avoid. * The contractor is required to prevent or mitigate the delay and any resulting loss, even where the fault is not their own. Assessing claims for an extension of time can be complicated and controversial. There may be multiple or concurrent delays, some of which are the contractor's fault and some not. There are many occasions where contractors contribute to delay themselves by their performance during design periods, when producing drawings, mock ups and samples or in inter-facing with sub-contractors. Crucial in assessing applications for extension of time is the quality of the information provided and records available. For more information, see How to prepare a claim for an extension of time. Claims should be judged against the actual progress of the works, not the programme, and must demonstrate the link between the breach (cause) and the delay. The contract administrator may review extensions of time after practical completion and further adjust the completion date. Mechanisms allowing extensions of time are not simply for the contractor's benefit. If there was no such mechanism and a delay occurred which was not the contractor’s fault, then the contractor would no longer be required to complete the works by the completion date and would only then have to complete the works in a 'reasonable' time. The client would lose any right to liquidated damages. Claims for extension of time can run alongside claims for loss and expense (relevant matters) however, one need not necessarily lead to the other. It is very important when deducting liquidated damages to ensure that the correct contractual procedures are adhered to. In the case of Octoesse LLP v Trak Special Projects Ltd [2016], Justice Jeffords held that Octoesse was not entitled to deduct liquidated damages as they had agreed to an extension of time after a certificate of non completion had been issued. The JCT Intermediate Building Contract is constructed such that: 'If the Contractor fails to complete the Works or a Section by the relevant Completion Date, the Architect/Contract administrator shall issue a certificate to that effect. If an extension of time is made after the issue of such certificate, the extension shall cancel that certificate and the Architect/Contract Administrator shall where necessary issue a further certificate.

Answer 174

The Housing Grants, Construction and Regeneration Act 1996 (also known as the Construction Act) include provisions to ensure that payments are made promptly throughout the supply chain. These provisions include: * The right to be paid in interim, periodic or stage payments. * The right to suspend (or part suspend) performance for non-payment and to claim costs and expenses incurred and extension of time resulting from the suspension. * Pay when certified clauses are not allowed, and the release of retention cannot be prevented by conditions within another contract. * In addition, there are specific provisions in relation to the procedures for making payments. * The client must issue a payment notice within five days of the date for payment, even if no amount is due. Alternatively, if the contract allows, the contractor may make an application for payment, which is treated as if it is the payment notice. * The client must issue a pay less notice if they intend to pay less than the amount set out in the payment notice, setting out the basis for its calculation. * The notified sum is payable by the final date for payment. * If the client (or specified person) fails to issue a payment notice, the contractor may issue a default payment notice. The final date for payment is extended by the period between when the client should have issued a payment notice and when the contractor issued the default payment notice. If the client does not issue a pay less notice, they must pay the amount in the default payment notice.

Answer 175

A relevant event is an event that causes a delay to the completion date, which is caused by the client, or a neutral event not caused by either party. The contract should set out what constitutes a relevant event

Answer 176

When the contractor starts to experience a delay which might affect the project. Before they submit their EOT claim. Must be issued to the Employer including details of potential impact and cost.

Answer 177

Examples include NEC Option C (with activity schedule) and Option D (with bill of quantities) Allows team collaboration to benefit from cost savings But also bear some of the clients costs when it overruns

Answer 178

The NEC equivalent of JCT LAD's

Answer 179

Unforeseen works discovered that did not form part of the tender documentation. Relevant Matter/Relevant Event

Answer 180

No, only if the delay is deemed a Relevant Matter and only if the contract includes a relevant matter provision.

Answer 181

Intermediate form of contract. This contract type is more detailed and has more extensive control procedures than the Minor Works Building Contract, but it is less detailed than the Standard Building Contract. It can be appropriate for projects that are procured via both the ‘traditional procurement route’ (or ‘conventional method’) and can be used by both private and public employers.

Answer 182

JCT Deciding on the appropriate JCT Contract 2016.

Answer 183

* Records * Site inspections * Meetings * Interim valuations * Works * Variations

Answer 184

Unpredictable timescales for material procurement and labour shortages may cause extensions to programmes.

Answer 185

NEC is a family of contracts that help apply good project management principles and practices, and define legal relationships.The contracts are suitable for procuring a diverse range of works, services and supply, ranging from major framework projects through to minor works and the purchase of supplies and goods.

Answer 186

I inspected site weekly monitor progress / programme. I inspected monthly along with my M&E consultant and the contracts manager and requewed each item of the valuation against the actual progress of works.

Answer 187

Payment Cert 7 days after Interim Valuation Date

Answer 188

5% with 2.5% released at practical completion. On Standard Building Contract, these can be altered to 3% and 1.5% respectively.

Answer 189

Practical completion cert means that the rectification period can begin. The retention reduces and the responsibility for insuring the premises passes back to the client.

Answer 190

When works are substantially completed and free of patent defects other than those that can be ignored as minor. There is not set definition of practical completion. The client should be able to make beneficial use of the building to issue PC.

Answer 191

A joint snagging inspection will be carried out with contractor and agent to identify what defects need to be repaired. Once the repairs are carried out, the CA will release the retention in the final payment application and the issue a certificate of making good defects. Contractor issues their final account.

Answer 192

Provides conclusive evidence that the quality and standard of work is to the satisfaction of agent and all adjustments have been taken to the sum and all loses/expenses are settled.

Answer 193

Sectional completion is written into the contract and can have liquidated damages associated. Partial possession is when the client takes over part of the site that has been substantially completed with the contractors consent. Certificate is issued and defects liability period begins for that area.

Answer 194

* Professional indemnity * Public liability * Employers liability * All risks insurance

Answer 195

Agreement which gives a third party collateral rights in an existing contract entered into by two separate parties. It forms a contract between one of the parties to the underlying contract and a third party with an interest

Answer 196

Principal Contract provides collateral warranties for sub contractors they use that will have design responsibility. Under IC/SBC, the contract requests for collateral warranties to be provided by the contractor to the purchaser, tenants, funders and employer.

Answer 197

Carry out a risk assessment and log it in a register. Maintain said register throughout the project. The risk is scored on likelihood and severity and outlines the mitigating actions.

Answer 198

Employed by the client to administer the contract on their behalf. Must always act impartially and integrity. Duties include formulating the contract, issuing instructions, raising certs, carry out inspections, assess damages and EOT.

Answer 199

* Agendas * Taking minutes * Understanding of the purpose * Allow everyone to discuss their points

Answer 200

Client may wish to nominate their own subcontractor for specific works rather than allow the contractor to choose. This usually occurs where the client already involved the subcontractor in the design process and wants a very specific outcome. The nominated contractor is still appointed by the main contractor. Named sub contractors are where the client will provide a list of acceptable sub contractors. The tender will allow a provisional sum for the subcontractor package. When the contractor is appointed, they will go to the named contractors to tender for the sections. (they can reasonably rejected the names)

Answer 201

It was unfair for clients to assume risk of insolvency/performance with the nominations. Nominated was replaced with named subcontractor option where a selection is given to the contractor to choose. This then becomes the domestic sub contractor for the main contractor and assigns risk to them.

Answer 202

Provides the employer with financial security payable by the bank for the contractors failure to perform under the contract.

Answer 203

Caused by contractor, employer or factors outside of either of their control. Something that prolongs the completion date stated in the contract.

Answer 204

Client cause: • Instructions to open up and or test of any work materials. • Instructions in regard to expenditure of undefined provisional sums. • Delays to possession. • Instructions which increase the level of work required. Neutral Event: • Statutory undertaker executing or failing to execute in pursuance of its obligations • Adverse weather • Loss or damage caused by fire, flooring, explosion, earthquake etc. • Force Majeure

Answer 205

The contractor must provide written notice as soon as it becomes apparent that the work will not complete on time. Notice must include the conditions causing the delay. CA must then decide if the condition is relevant event and whether an extension of time is granted. Must notify the contractor as soon as decision is made and within 12 weeks of receipt of notice. If the EOT is warranted, the CA has to fix a later completion date and notify the contractor.

Answer 206

Walter Lilly & Co V Mackay and DMW Developments. Judge held that where there have been concurrent delays under a JCT or similarly drafted contract, the contractor is entitled to an EOT for the period caused by relevant events

Answer 207

Delays caused by employer or their agent may lead to a claim for loss and expense relating to the delay. Contractor must make written application to the CA as soon as they are aware of a likely incurred loss. Provide info to the CA to determine the loss.

Answer 208

* Variations * Instructions * Approximate quantities in the tender do not reflect the amount actually required. * Any prevention or impediment or default by act or omission by the employer or their agent

Answer 209

Contractors should use their best endeavours to prevent delays. If the contractor fails to, the client can claim compensation for liquidated damages. This process is sped up by allowing a set sum allowed for in the contract.

Answer 210

CA must issue a certificate of non completion. Employer may inform contractor in writing that they will withhold deduct or requirement payment of liquidated damages.

Answer 211

Liquidated and Ascertained Damages is a monetary payment the employer is entitled to if a project is not completed by the completion date without prior agreement.

Answer 212

Loss of rent/revenue, costs imposed by other parties, additional fees, fines from statutory bodies. Normally calculated on a weekly basis.

Answer 213

Technically, yes, providing the calculation is not deemed a penalty and is a genuine pre estimate.

Answer 214

Not quantifiable by loss in the contract. Must be ascertained by the courts and must demonstrate an actual loss.

Answer 215

Means there are no damages and the client is not entitled to deduct anything if the contract over runs

Answer 216

In an NEC3 contract, Sectional Completion dates are stated within the contract and known from the outset. Partial possession is where the employer take possession of part of the site before the end of the project. When either occur, insurance liabilities transfer to the employer and rectification period commences.

Answer 217

* All works * Claims for Extension of time * Claim for Loss and Expenses * All variations

Answer 218

Employer and contractor cannot make claims against each other.

Answer 219

Project info/arrangements Health hazards Design hazards Site layout, access etc The regulations define pre-construction information as 'information in the client’s possession or which is reasonably obtainable by or on behalf of the client, which is relevant to the construction work and is of an appropriate level of detail and proportionate to the risks involved

Answer 220

No. Not unless stipulated in the contract

Answer 221

Explain to client that they are in breach of contract and client is liable. Recommend talks between contractor and client.

Answer 222

Used in two-stage D&B tendering. Procure contractor involvement in the design process. Having the contractor on at an early stage, they can advise on the design, improving buildability and cost-certainty.

Answer 223

Used in two-stage D&B tendering. Procure contractor involvement in the design process. Having the contractor on at an early stage, they can advise on the design, improving buildability and cost-certainty.

Answer 224

The key feature of this type of policy is that the insured parties are unable to claim against one another in respect of an insured loss, as they are considered to be one-and-the-same for the purposes of the insurance.

Answer 225

* JCT intermediate Building contract 2016 (+ ICD with contractors design) * Used for reasonably complex nature works * Allow for names subcontractors which must be engaged using jct intermediate named sub contract document * Similar to mw the works are designed by or on behalf of the employer * Allows for sectional completion * Details list of relevant extensions of time and loss and expenses, both matter and time * Collateral warranties allowed for

Answer 226

(O&M manual), contains the information required for the operation, maintenance, decommissioning and demolition of a building. The building owner's manual might include: * A description of the main design principles. * Details of the building's construction (such as finishes, cladding, doors and windows, roof construction, and so on). * As-built drawings and specifications. * Instructions for its operation and maintenance (including health and safety information and manufacturers' instructions for efficient and proper operation). * An asset register of plant and equipment. * Commissioning and testing results. * Guarantees, warranties and certificates. * Particular requirements for demolition, decommissioning and disposal.

Answer 227

A file that is prepared pre construction including information such as : * Description of the works carried out * Any outstanding hazards * hazardous materials * nature and location of services * information and as built drawings

Answer 228

The process of acquiring good and services

Answer 229

The sourcing of the selected labor/contractor to carry out the works.

Answer 230

When the PC has not been met.

Answer 231

When the completion date has not been met by the contractor and the fault of the contractor

Answer 232

The Local Democracy Economic Development Act (LDEDA) 2009 was introduced in 2011 and amended the Housing Grants Construction and Regeneration Act 1996 (the Construction Act). • Removes the requirements for contracts to be in writing • Added the slip rule to allow for the correction of clerical or typographical error • Removes pay when certified clauses • Amendments to the payment notice requirements

Answer 233

Normally the contractor

Answer 234

The design proportion is carried out by or on behalf of the client/employer prior to tender. Allowing for design control from the client.

Answer 235

* Employer agent appointed * Normally 2 stage * Contract appoint a contractor to create the design and construction * Quicker * Contractor liable for design

Answer 236

One main management contractor manager several package of sub contracted packagers of specialist works.

Answer 237

Client directly appoints several sub contractors. A contractor is then appointed to manage the works as an agent.

Answer 238

Alternative 1: Tenderer should be informed of errors & Discrepancies, and afforded the opportunity to confirm or withdraw his tender. Alternative 2: The tenderer should be given opportunity to confirm his offer or amend it to correct genuine errors.

Answer 239

Principal Designer to create during the pre construction phase but it is then updates during the course of the works, which is passed to the client following completion. Contents include : * Description of the works * Outstanding hazards that have not been eliminated through the design and construction * As built plans showing services

Answer 240

* Variations. * Exceptionally adverse weather. * Civil commotion or terrorism. * Failure to provide information. * Delay on the part of a nominated sub-contractor. * Statutory undertaker’s work. * Delay in giving the contractor possession of the site. * Force majeure (such as a war or an epidemic). * Loss from a specified peril such as flood. * The supply of materials and goods by the client. * National strikes. * Changes in statutory requirements. * Delays in receiving permissions that the contractor has taken reasonable steps to avoid.

Answer 241

A relevant event is an event that causes a delay to the completion date, which is caused by the client, or a neutral event not caused by either party. The contract should set out what constitutes a relevant event. Relevant events entitle the contractor to claim an extension of time; that is for the completion date to be moved.

Answer 242

A relevant matter is a matter for which the client is responsible that materially affects the progress of the works. This may enable the contractor to claim direct loss and / or expense that has been incurred.

Answer 243

* Failure to give the contractor possession of the site. * Failure to give the contractor access to and from the site. * Delays in receiving instructions. * Opening up works or testing works that then prove to have been carried out in accordance with the contract. * Discrepancies in the contract documents. * Disruption caused by works being carried out by the client. * Failure by the client to supply goods or materials. * Instructions relating to variations and expenditure of provisional sums. * Inaccurate forecasting of works described by approximate quantities. * Issues relating to CDM.

Answer 244

NBS suggest that 'the purpose of preliminaries is to describe the works as a whole, and to specify general conditions and requirements for their execution, including such things as subcontracting, approvals, testing and completion.' Preliminaries and work sections together describe what is required to complete the works required by the contract. The costs attached to preliminaries may also be referred to as 'preliminaries' or 'prelims', or as 'site overheads', or general cost items or expenses. The Code of Estimating Practice published by the Chartered Institute of Building (CIOB) describes preliminaries as: '...the cost of administering a project and providing general plant, site staff, facilities, and site based services and other items not included in the rates.' Preliminaries in tender documents may include: A general summary. Method statements. Pre-construction information. A description of any planning conditions or other conditions that may affect the work to be carried out by the contractor. A description of any outstanding statutory approvals that may fall to the contractor to satisfy. Party wall requirements or other agreements with, or rights of, neighbours (such as rights to light). Any emergency services obligations. A description of the reporting information that the contractor will be required to submit (often on a monthly basis) describing construction progress (including a detailed critical path programme, key performance indicators and earned value analysis). See Construction progress reports for more information. A description of the commissioning strategy, separating setting to work and balancing tasks from independent verification by the consultant team. Relevant reports (such as soil reports). An information release schedule. Quality management procedures. Labour relations. Schedules of mock-ups, testing and samples required from the contractor. The method of sub-contracting. Requirements for insurance, performance bonds, warranties and product guarantees (for the contractor and sub-contractors). Requirements for the operating and maintenance manual (the client's facilities management team may wish to comment on this). Requirement for progress photos to be taken on site during construction and off-site during fabrication. Dates for partial possession. Collaborative practices. Building information modelling (BIM) requirement and protocols (including requirement for BIM in sub-contracts). Site waste management plan. Contractor's site preliminaries, such as; staff, welfare provisions, site offices, plant, site waste clearance, water, electricity, furniture, ICT and consumables, rates, protection of work, protective clothing, site transport, setting out, building control fees, and so on.

Answer 245

* Recitals * Articles * Contract Particulars * Attestation * Conditions * Schedules

Answer 246

* Simple in nature * No requirement for sub-contractor design * No requirement for sectional completion * No required for collateral warranties. * Reference JCT deciding on the most appropriate contract

Answer 247

* JCT Intermediate * JCT standard building contract * JCT Major project * JCT Design and Build * JCT + Contractors Design * NEC3 / 4 * FIDIC - International federation of consulting engineers

Answer 248

* JCT is adverbial whereas NEC is collaborative * NEC uses the contract programme as a contract document * Contract Administrator v Project manager * Relevant events / matter v compensation event (both time and money) * NEC does not allow for provisional sums

Answer 249

The contract administrator under JCT design and build contracts

Answer 250

Alternative 1 = Details provided and the contractor has the choice to confirm or withdraw submission with no amendments Alternative 2 = Details provided and opportunity to confirm or amend to correct the error. Source - JCT Practice Note - Tendering 2017

Answer 251

* Liquidated damages are a pre-determined sum of money payable in respect of a specific breach of contract. Most commonly we associate liquidated damages with delay. In this context the parties usually agree in the contract that in the event the contractor is late in reaching completion of the works for handover then the contractor shall pay to the client the sum of [x] per day or per week that the works are delayed. See B is for Breach for more information. * Unliquidated damages by contrast are the damages claimed when the loss has not been pre-determined by the parties. I.e. unliquidated damages are claimed for any breach of contract which is not subject to a liquidated damages clause.

Answer 252

* Sub-contractor design * Section completion * Named sub-contractors * Clerk of works * QS * Programme as contract documents * Relevant events / matters * Novation / Assignment

Answer 253

A domestic sub-contractor is any sub-contractor, other than a nominated-sub contractor, that the main contractor sub-contracts to carry out part of the works. The work of the sub-contractor is the responsibility of the main contractor as far as the contract between the main contractor and the client is concerned

Answer 254

Signed by director and secretary

Answer 255

Signed by director and company seal affixed

Answer 256

* 5.4A (Work insurance by Contractor in joint names) - New building * 5.4B (Works and existing structures insurance by employer in joint names) * 5.4C (Works and existing structure insured by other means)

Answer 257

* PII insurance, * All risk insurance * Contents insurance * Public liability insurance

Answer 258

"All risks" refers to a type of insurance coverage that automatically covers any risk that the contract does not explicitly omit. For example, if an "all risk" homeowner's policy does not expressly exclude flood coverage, then the house will be covered in the event of flood damage.

Answer 259

The purpose of a pay less notice is to give the paying party the right to pay less than/withhold all or part of the notified sum. The notice must specify the sum that the paying party considers they require to pay and the basis on which the sum has been calculated, even if that is zero

Answer 260

14 days after the interim due date or the final due date

Answer 261

* Defined provisional sums are those that are sufficiently well defined and/or detailed to allow the contractor to make allowances for them in their programming, planning and pricing preliminaries. * Undefined provisional sums are less well described as they refer to work which is not completely designed. As such, the contractor cannot be expected to make allowance for them in their programming, planning and pricing preliminaries. This means the contractor may be entitled to an extension of time and/or additional payments when the actual works are undertaken. * An example of an undefined provisional sum might be work required below an existing structure, where the ground conditions, and so the extent of work required, cannot be determined until the structure is demolished and the ground opened up.

Answer 262

Prime costs are a firm's expenses directly related to the materials and labour used in production.

Answer 263

Novation amounts to the extinguishing of the original contract and the substitution of a new contract under which the same acts and obligations are to be performed, but by different parties. In general terms, the effect is that the outgoing party is released from all future liabilities under the contract.

Answer 264

Assignment is the transfer of a right or an interest vested in one party (the 'assignor') to another party (the 'assignee'). A valid assignment will entitle the assignee to demand performance of a contractual obligation

Answer 265

A construction bond is a written agreement in which one party (the surety) guarantees that a second party (the principal) will fulfil its obligations to a third party (the oblige). If the principal defaults on its obligations, the surety must complete them or pay the completion costs to the oblige. Bonds are a means of protection against the non-performance of the contractor. They are an undertaking by a bondsman or surety to make a payment to the client in the event of non-performance of the contractor. The cost of the bond is usually borne by the contractor, although this is likely to be reflected in the contractor's tender price. Bonds can be 'on demand' or 'conditional', with conditional bonds requiring that the client provides evidence that the contractor has not performed their obligations under the contract and that they have suffered a loss as a consequence. See also Bonds v guarantees. Performance bond A performance bond is commonly used as a means of insuring a client against the risk of a contractor failing to fulfil contractual obligations to the client, although they can also be required from other parties. Performance bonds are typically set at 10% of the contract value. This compensation can enable the client to overcome difficulties that have been caused by non-performance of the contractor, such as, finding a new contractor to complete the works. Advance payment bond If the client agrees to make an advance payment to the contractor, (for example where the contractor incurs significant start-up and procurement costs before construction begins), a bond may be required to secure the payment against default by the contractor. This will normally be an on-demand bond. Off-site materials bond It can sometimes be appropriate for the client to pay for items even though they remain ‘off-site’. For example, where a contractor has made a large payment for plant or materials that have yet to be delivered to site, or if the client wishes to ‘reserve’ key items in order to protect the programme. This is similar to the situation where an advanced payment is made in that a bond secures the payment against default by the contractor and is likely to be an on-demand bond. The bond might be up to the value of the off-site items, with the value of the bond reducing as deliveries to site are made. Retention bond Retention is a percentage (often 5%) of the amount certified as due to the contractor on an interim certificate that is retained by the client. The purpose of retention is to ensure the contractor properly completes the activities required of them under the contract. Half of the amount retained is released on certification of practical completion and the remainder is released upon certification of making good defects. An alternative to retention is a retention bond, where the client agrees to pay the amounts which would otherwise have been held as retention, but instead a bond is provided to secure the amount that would have been retained. As with retention, the value of the bond will usually reduce after practical completion has been certified. Defects liability bond (or defects liability demand guarantee) 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 time, it is the contractor's responsibility to rectify any defects that become apparent in the works. A defects liability bond can be used to ensure that the contractor continues to provide services, rectifying defects that become apparent after practical completion has been certified. This is generally an on-demand bond that may be required on projects where there are no remaining payments to be made, or other security such as retention, after practical completion.

Answer 266

What is a vesting clause or a vesting certificate? A vesting clause is a contractual term which deals with the transfer of ownership of goods and materials and a vesting certificate is a document evidencing that transfer of ownership of those goods or materials. Under such circumstances, a ‘vesting certificate’ or ‘certificate of vesting’ may be required from the contractor (or sub-contractors or suppliers), certifying that ownership of the goods, plant or materials listed in a schedule will transfer from one party to the other upon payment and confirming that they will be will be properly identified, separately stored, insured and are free from encumbrances (such as retention of title).

Answer 267

Off-site materials bond It can sometimes be appropriate for the client to pay for items even though they remain ‘off-site’. For example, where a contractor has made a large payment for plant or materials that have yet to be delivered to site, or if the client wishes to ‘reserve’ key items in order to protect the programme. This is similar to the situation where an advanced payment is made in that a bond secures the payment against default by the contractor and is likely to be an on-demand bond. The bond might be up to the value of the off-site items, with the value of the bond reducing as deliveries to site are made.

Answer 268

* 28 day before due date contractor can submit valuation * Due date * 5 days after due date contractor administrator should issue payment notice * 14 days to the due date for payment * 5 days before the due date for payment the client has the ability to issue a pay less notice * If CA does not issue a payment certificate within the first 5 days what contractor can submit an equivalent direct to the client.

Answer 269

Traditional procurement remains the most commonly-used method of procuring building works. The traditional procurement route involves separating design from construction. The client first appoints consultants to design the project in detail and to ensure cost control and inspect the construction works as they proceed.

Answer 270

A letter of intent is a document expressing an intention to enter into a contract at a future date but creates no contractual relationship until that future contract has been entered into. A letter of intent is not an 'agreement to agree'. It is important to bear in mind that 'letter of intent' is a term of commercial convenience and not a term having a substantive legal meaning, as for example 'subject to contract’. Each letter of intent must be construed on its own particular meaning.

Answer 271

"JCT’s Pre-Construction Services Agreement (General Contractor) is designed for appointing a contractor to carry out pre-construction services under a two-stage tender process. The Pre-Construction Services Agreement enables the contractor to collaborate with the employer or their team of consultants to develop detailed designs, to develop the main contract works, or to compile specialist tender documents. The contractor’s involvement at the pre-construction stage is valuable and often essential in the final design process of a project, as well as making preparations for the construction phase, such as the programme, cost plans, buildability and any specialist procurement. The agreement covers the period from the submission of first stage tenders up to the submission of a definitive second stage tender and entry into a main contract for the construction phase. The agreement can be used when the main contract is one of the following: Standard Building Contract Design and Build Contract Major Project Construction Contract Intermediate Building Contract (with or without contractor’s design) "

Answer 272

No there is no specific reference to this, however I could seek guidance of examples from the SBC.

Answer 273

No but it does reference a letter to confirm the non completion.

Answer 274

From BCIS, spons and in house data

Answer 275

* Consider is it a relevant event * Process and review the contractors claim * Formally issue confirmation and the revised completion date

Answer 276

* NEC - NEC was first published in 1993 as the New Engineering Contract. It is a suite of construction contracts intended to promote partnering and collaboration between the contractor and client. It was developed as a reaction to other more traditional forms of construction contract which have been portrayed by some as adversarial. * FIDIC - International Federation of Consulting Engineers - FIDIC stands for 'Fédération Internationale des Ingénieurs - Conseils', which is best translated from French as The International Federation of Consulting Engineers.

Answer 277

* JCT is adversial where as NEC is collaborative * NEC uses the contract programme as a contract document * Contract Administrator v Project manager * Relevant events / matter v compensation event (both time and money) * NEC does not allow for provisional sums

Answer 278

A contract administrator manages contracts made between building contractors, employers, and clients. Their responsibility is to administer construction contracts, whereby they may act as project managers, engineers, consultants and client representative

Answer 279

Contract Administration Guidance Note 1st Edition 2011 * Appointment of the contract administrator * Roles and responsibilities * Notice * Variations * Instructions * Site inspections * Meetings

Answer 280

Guidance Note 1st Edition 2012 * Reasons for inclusions * General principals of release of retention * Alternatives - Bonds etc * Contract specific clauses

Answer 281

JCT Practice Note - 2016 This is a document detailing the difference between the contracts. This document also includes a flow chart to help guide the decision.

Answer 282

The contract administer equivalent on a design and build contract

Answer 283

Practical Completion is a contractual term used in the Building Contract to signify the date on which a project is handed over to the client. The date triggers a number of contractual mechanisms including, releasing half of the retention, ending the contractor liability for liquidated damages, starting the rectification period.

Answer 284

Drawings, schedule of work, preliminaries, pre ambles, construction programme, the contracts, photo report, asbestos and H&S information

Answer 285

Signed by director and a the company secretary, liability for 6 years.

Answer 286

Signed by two directors and attached the common seal of company

Answer 287

The final account is the conclusion of the contract sum (including all necessary adjustments) and signifies the agreed amount that the employer will pay the contractor. It includes any works that are paid to the contractor through the main contract. The timeline is as follows : * Contractor submit valuation up to 28 days before the due date * CA assesses and issue Payment certificate within 5 days of due date * Employer can issue a pay less notice up to 5 days before final date for payment * Final date for payment is 14 days from due date

Answer 288

The client may wish to take possession of part of a building or site, even if works are ongoing. This can be programmed within the original contract documents it the need can be foreseen through a requirement for sectional completion which is not allowed under JCT MW, but in the absence of such a provision many contracts offer the more open-ended option of partial possession. The effect of partial possession is that: * Any part for which partial possession is given is deemed to have achieved practical completion. * Half of the retention for that part must be released. * The defects liability period begins for that part. * Liquidated damages reduce proportionally. * The client is responsible for that part and should insure it. * The contractor is not obliged to allow partial possession (although permission cannot be unreasonably withheld), and may not wish to if, for example, access routes are difficult to achieve, it would disrupt the works, or it would incur additional costs. There could also be additional difficulties if the occupants of the part that has been possessed disrupt the contractor, which could result in a claim for extension of time and/or loss and expense.

Answer 289

* Assess the contractors claim - should be notified when reasonable apparent * Consider was this a relevant event * Assess the claim * Formally confirm the outcome

Answer 290

Via a formal letter to contractor and employer

Answer 291

JCT MW • 5.4A (Work insurance by Contractor in joint names) - New dwelling • 5.4B (Works and existing structures insurance by employer in joint names) • 5.4 C (Works and existing structure insured by other means)

Answer 292

* Credit rating * Reference * Size * Experience * Availability * Willingness * H&S

Answer 293

Not within the contract but an adhoc agreement can be made

Answer 294

The role of contract administrator does not technically commence until a building contract is in place between the employer and the contractor; however, in practice the responsibilities of the CA will have commenced before the building contract exists. However, the contract administrator would normally draft the contract prior to a pre start meeting.

Answer 295

Interim • Interim Valuation date is 7 days before the due date. contractor can submit valuation application for payment prior to this. • CA has 5 days from due date to create payment certificate • Final date for payment is 14 days from due date • Employer has up to 5 days before due date to issue a pay less notice Final • Contractor has 28 before due date to submit valuation • CA as 5 days from due date to create payment certificate • Final date for payment is 14 days from due date • Employer has up to 5 days before due date to issue a pay less notice

Answer 296

The contractor has the ability to terminate the contract, however I would ensure to consider negotiations in the interim.

Answer 297

JCT Intermediate allows for Named sub contractors and Sectional completion

Answer 298

I have not but i do have an awareness of the other contracts within JCT and NEC contracts generally, variation in inclusions and terminology, aimed towards civil construction works in some cases. ``` NEC • Compensation event • Project Manager • Programme forms part of the contract • No Allowance for provisional sum ```

Answer 299

* Homeowner - not CA * MW / with CD * Intermediate BC / with CD * Standard BC / with CD * Design and Build * Major Projects

Answer 300

* Works simple in nature * No requirement for sectional completion * No requirement for sub contractors design

Answer 301

* NEC * FIDIC * JCT

Answer 302

A contract administrator manages contracts made between building contractors, employers, and clients. Their responsibility is to administer construction contracts, whereby they may act as project managers, engineers, consultants and client representatives.

Answer 303

* Contract variation * Payment cert * Cert of making good defects * Cert of practical completion * Letter of non-completion * Contract instructions

Answer 304

* Acceleration * RICS Guidance Note * 1st Edition * 2011 * Falls within the Black Book Suits of RICS Guidance Notes * Provision for this within JCT SBC with timelines and process defined

Answer 305

* Alternative 1 = Details provided and the contractor has the choice to confirm or withdraw submission with no amendments * Alternative 2 - Details provided and opportunity to confirm or amend to correct the error. Source - JCT Practice note - Tendering 2017 This information would be contained within the Preliminaries of the document.

Answer 306

I reviewed the tender and created a spreadsheet to compare all of the tender prices per item to highlight any provisional sums, calculation errors, high or low prices in comparison to the other submissions. I advised the client of the best price and consideration regarding start date, previous experience and highlighted prudent information.

Answer 307

They were all opened in the presence of a colleague after the tender deadline.

Answer 308

* Default by contractor * Default by employer * Insolvency * Non performance * Non payment * Agreement from both parties

Answer 309

* General contracting * Design and build * Construction management * Management contracting

Answer 310

* Open Tendering. * Selective Tendering. * Serial Tendering. * Framework Tendering. * Single-stage and Two-stage Tendering. * Public Procurement.

Answer 311

I would refer to the number of provisional or unknown sums and any investigates items and calculate a suitable percentage to be added. This would not be visible to the contractor but between the CA and employer.

Answer 312

* All risks * Public Liability * Employers Liability

Answer 313

"All risks" refers to a type of insurance coverage that automatically covers any risk that the contract does not explicitly omit. For example, if an "all risk" homeowner's policy does not expressly exclude flood coverage, then the house will be covered in the event of flood damage.

Answer 314

Time at large

Answer 315

An example includes when EOT has been declined by the client the completion date in not defined. 'Time is at large'

Answer 316

* Traditional contract 86% * Single-stage design and build 41% * Two-stage design and build 39% * Management contract 18% * PFI 10% - The private finance initiative (PFI) is a procurement method which uses private sector investment in order to deliver public sector infrastructure and/or services according to a specification defined by the public sector.

Answer 317

* 5.4A - Works insurance by Contractor in Joint names - Intended new building with no existing structure - contractor would take out all risk insurance * 5.4B - Works and existing structure insurance by Employer in Joint names. Works to existing buildings - The existing structure together with its contents are insured in joint names against specified perils. Employer amend current insurance to cover the contractor * 5.4C - Works and existing structure insurance by other means. Employer keeps there insurance and the contractors take out insurance for the works and damage to the structure

Answer 318

Traditional procurement remains the most commonly-used method of procuring building works. It comprises a tripartite arrangement involving a client, consultants and contractor. The traditional procurement route involves separating design from construction. The client first appoints consultants to design the project in detail and to ensure cost control and inspect the construction works as they proceed. Contractors are then invited to submit tenders for the construction of the project on a single-stage competitive basis.

Answer 319

Design and build is a term describing a procurement route in which the main contractor is appointed to design and construct the works, as opposed to a traditional contract, where the client appoints consultants to design the development and then a contractor is appointed to construct the works. The contractor is responsible for the design, planning, organisation, control and construction of the works to the employer’s requirements. The employer gives the tenderers the ‘Employer’s Requirements’ and the contractors respond with the ‘Contractor’s Proposals’, which include the price for the works. Design and build can be seen as giving a single point of responsibility for delivering the entire project. Some clients, however, consider it is only appropriate for simple projects, where design quality is not the main consideration.

Answer 320

The client. Contracts generally include a clause making provision for the contractor to pay liquidated damages (LD, sometimes referred to as liquidated and ascertained damages - LADs) to the client in the event that the contract is breached. In building contracts, liquidated damages usually relate to the contractor failing to achieve practical completion (i.e. completing the works so they can handover the site to the client) by the completion date set out in the contract. They are often calculated on a daily or weekly rate. Liquidated damages are not penalties, they are pre-determined damages set at the time that a contract is entered into, based on a calculation of the actual loss the client is likely to incur if the contractor fails to meet the completion date. They might include; rent on temporary accommodation, removal costs, extra running costs, and so on. They are generally set as a fixed daily or weekly sum, although there may be a more complicated formulae where the works are phased, where may be partial possession and so on. It is important that the method of calculation is precisely and formally documented. If the contract prevents the client claiming liquidated damages, or if actual losses are significantly different to those that were estimated at the time the contract was entered into, then the client may pursue a claim for unliquidated (i.e. actual) damages through the courts. Unliquidated damages are damages, the exact amount of which has not been pre-agreed, and are typically determined by the courts.

Answer 321

An Insurance Backed Guarantee (IBG) is a guarantee given by a contractor to provide peace of mind in case the contractor has ceased trading. Contractors can offer guarantees for up to 25 years, but if the contractor was to close down then their guarantee would be worthless, hence the requirement for it to be backed by a third party insurer.

Answer 322

* Offer * Acceptance * Consideration * Intention to have Legal relations * Ability / Performance

Answer 323

Relevant matters in construction contracts Relevant matters are referred to in some construction contracts, such as JCT contracts. A relevant matter is a matter for which the client is responsible that materially affects the progress of the works. This may enable the contractor to claim direct loss and / or expense that has been incurred. Relevant matters might include: * Failure to give the contractor possession of the site. * Failure to give the contractor access to and from the site. * Delays in receiving instructions. * Opening up works or testing works that then prove to have been carried out in accordance with the contract. * Discrepancies in the contract documents. * Disruption caused by works being carried out by the client. * Failure by the client to supply goods or materials. * Instructions relating to variations and expenditure of provisional sums. * Inaccurate forecasting of works described by approximate quantities. * Issues relating to CDM. Relevant matters should not be confused with relevant events. A relevant event is an event that causes a delay to the completion date, which is caused by the client, or is a neutral event not caused by either party. Relevant events entitle the contractor to claim an extension of time; that is for the completion date to be moved. A relevant event does not necessarily entitle the contractor to claim loss and expense. Similarly, a relevant matter need not necessarily result in a delay to the completion date, and so may not always entitle the contractor to an extension of time. NEC contracts deal with these issues under the single heading ‘compensation events’. They do not treat compensation events as an allocation of blame, but rather an allocation of risk. Any risk that is not specifically identified as being attributed to the client is borne by the contractor. The Society of Construction Law Delay and Disruption Protocol, 2nd edition, refers to an event or cause of delay or disruption which under the contract is at the risk and responsibility of the employer, as an 'employer risk event'.

Answer 324

Delays on a project will have different contractual consequences depending on the cause of the delay: Where a delay which impacts on the completion date is caused by the contractor (culpable delay), the contractor will be liable to pay liquidated and ascertained damages (LADs) to the client. Where a delay which impacts the completion date is not caused by the contractor, it may be a ‘relevant event’, for which the contractor may be entitled to an extension of time and to claim loss and expense incurred as a direct result of the delay. A relevant event may be caused by the client, or may be a neutral event such as exceptionally adverse weather. The contract should set out what constitutes a relevant event. Relevant events may include: * Variations. * Exceptionally adverse weather. * Civil commotion or terrorism. * Failure to provide information * Delay on the part of a nominated sub-contractor. * Statutory undertaker’s work. * Delay in giving the contractor possession of the site. * Force majeure (events that are beyond the reasonable control of a party, such as a war or an epidemic). * Loss from a specified peril such as flood. * The supply of materials and goods by the client. * National strikes. * Changes in statutory requirements. Delays in receiving permissions that the contractor has taken reasonable steps to avoid. When it becomes reasonably apparent that there is a delay, or that there is likely to be a delay that could merit an extension of time, the contractor gives written notice to the contract administrator identifying the relevant event that has caused the delay. If the contract administrator accepts that the delay was caused by a relevant event, then they may grant an extension of time and the completion date is adjusted. Claims for extension of time can run alongside claims for loss and expense however, one need not necessarily lead to the other. The contractor is required to prevent or mitigate the delay and any resulting loss, even where the fault is not their own. Mechanisms allowing extensions of time are not simply for the contractor's benefit. If there was no such mechanism and a delay occurred which was not the contractor’s fault, then the contractor would no longer be required to complete the works by the completion date and would only then have to complete the works in a 'reasonable' time. The client would lose any right to liquidated damages. NB: On NEC contracts, delays are dealt with slightly differently and are referred to as 'compensation events'.

Answer 325

Mechanical and Electrical

Answer 326

They have not been agreed but can be claimed for in court.

Answer 327

Yes, within the JCT MW contract both the client and the contractor have a represented nomination with regards to negotiation of disputes

Answer 328

* Broken tiles on the roof. * Patchy paintwork, anywhere in or on the property. * Insufficient loft insulation. * Incomplete grouting in the bathroom. * Poorly fitted skirting boards. * No acid wash on outside brickwork.

Answer 329

Yes but should be pre agreed access etc

Answer 330

When a sub contractor carries out take the liability for art of the design, normally a specialist items.

Answer 331

To allow for full seasonal changes.

Answer 332

* PQQ * Insurance * References * Credit checks

Answer 333

To protect the employers right to liquidated damages in the event the contractor fails to complete on time.

Answer 334

Time at large usually means that there is no enforceable date for completion, and the contractor then only has an implied obligation to complete the works within a 'reasonable time'.

Answer 335

No but an adhoc arrangement can be agreed by the parties.

Answer 336

A Pay Less Notice is a written notification from the Payer to the Payee of the Payer's intention to pay less than the value stated in either their previous Payment Notice and/or the Payee's application.

Answer 337

* Works, goods or materials that are expressly described within the contract are to the architect’s satisfaction * All adjustments of the contract sum have been dealt with and agreed * All extensions of time have been given and dealt with * All loss/ and or expense claims have been settled.

Answer 338

Issue a pay less notice

Answer 339

The consideration regarding timescales, staffing from the contractor, additional H&S measures, limitation exposure and contents of the HM government Covid 19:working in construction.

Answer 340

Completion date would be moved back affecting the ability to collect liquidated damages

Answer 341

A true calculation of the costs and or loss, not a penalty.

Answer 342

JCT and JCT MW 2016 more specifically

Answer 343

Does not allow for sectional completion or sub contractor design.

Answer 344

``` JCT Intermediate Contract • Simple constriction works • Works carried out in parts • Requirements for for clerk of works or QS • Names sub contractors ``` JCT Standard Contract • Large or complex works

Answer 345

* RICS Contract Administration - 1st Edition - Guidance Note - 2011 * JCT Deciding on the appropriate JCT contract 2016

Answer 346

* Roles and responsibilities of a contract administrator * Records * Site meetings * Meetings * Interim Valuations * Health and Safety

Answer 347

* Simple in nature * No section completion * No sub contractor design * No requirement for names sub contractor, QS or COW

Answer 348

Delays on a project will have different contractual consequences depending on the cause of the delay: Where a delay which impacts on the completion date is caused by the contractor (culpable delay), the contractor will be liable to pay liquidated and ascertained damages (LADs) to the client. Where a delay which impacts the completion date is not caused by the contractor, it may be a ‘relevant event’, for which the contractor may be entitled to an extension of time and to claim loss and expense incurred as a direct result of the delay. A relevant event may be caused by the client, or may be a neutral event such as exceptionally adverse weather. The contract should set out what constitutes a relevant event. Relevant events may include: * Variations. * Exceptionally adverse weather. * Civil commotion or terrorism. * Failure to provide information * Delay on the part of a nominated sub-contractor. * Statutory undertaker’s work. * Delay in giving the contractor possession of the site. * Force majeure (events that are beyond the reasonable control of a party, such as a war or an epidemic). * Loss from a specified peril such as flood. * The supply of materials and goods by the client. * National strikes. * Changes in statutory requirements. Delays in receiving permissions that the contractor has taken reasonable steps to avoid. When it becomes reasonably apparent that there is a delay, or that there is likely to be a delay that could merit an extension of time, the contractor gives written notice to the contract administrator identifying the relevant event that has caused the delay. If the contract administrator accepts that the delay was caused by a relevant event, then they may grant an extension of time and the completion date is adjusted. Claims for extension of time can run alongside claims for loss and expense however, one need not necessarily lead to the other. The contractor is required to prevent or mitigate the delay and any resulting loss, even where the fault is not their own. Mechanisms allowing extensions of time are not simply for the contractor's benefit. If there was no such mechanism and a delay occurred which was not the contractor’s fault, then the contractor would no longer be required to complete the works by the completion date and would only then have to complete the works in a 'reasonable' time. The client would lose any right to liquidated damages. NB: On NEC contracts, delays are dealt with slightly differently and are referred to as 'compensation events'.

Answer 349

* JCT is adversial where as NEC is collaborative * NEC uses the contract programme as a contract document * Contract Administrator v Project manager * Relevant events / matter v compensation event (both time and money) * NEC does not allow for provisional sums

Answer 350

The contract makes provision for early warning procedures. Both parties must give early warning of anything that may delay the works, or increase costs as soon as they become aware of them. They should then hold an early warning meeting to discuss how to avoid or mitigate impacts on the project. If the contractor fails to give early warning of a possible delay to the works, or increase in costs, they will only be compensated for effects that would have remained anyway even if they had given early warning. If the contractor fails to give early warning of an event that may give rise to a possible delay to the works, or increase in costs, within 8 weeks of becoming aware of the event, they will not be entitled to a change in price, completion date or key date, unless the project manager should have notified the event to the contractor but did not.

Answer 351

The client would calculate the actual costs incurred per week for the potential delay.

Answer 352

* Variations. * Exceptionally adverse weather. * Civil commotion or terrorism. * Failure to provide information. * Delay on the part of a nominated sub-contractor. * Statutory undertaker’s work. * A delay in giving the contractor possession of the site. * Force majeure (such as an epidemic or an 'act of God'). * Loss from a specified peril such as flood. * The supply of materials and goods by the client. * Strikes. * Changes in statutory requirements. * Delays in receiving permissions that the contractor has taken reasonable steps to avoid.

Answer 353

No, a claim for loss and expenses would lint to a relevant matter

Answer 354

Ends the right of the contractors to return to site for access and put right snagging times

Answer 355

They have to allow the contractor to make good these unless and agreement is made.

Answer 356

I reviewed the progress, programme, valuation in reference to the tender breakdown. The items being claimed has not previously been raised and were not suitable claims.

Answer 357

Following a site inspection in reference to the schedule of work items

Answer 358

Discuss initially and then create my own valuation of the works to be followed by a payment certificate.

Answer 359

Under JCT MW this is by default 3 months however I would consider if this should be extended to allow for seasonal changes.

Answer 360

I do in my project, this helps to safeguard the client and in reality helps to get the contractor back to site to complete the remaining works. If this was retained then remedial works could be completed by a third party but would likely relate to additional costs.

Answer 361

Check to ensure they are on site, delivered and for the project, this would then be included within my following payment certificate if accurate.

Answer 362

This is something that I consider will all tender to ensure and check the weighting of the figures in comparison to other during the tender analysis.

Answer 363

I reviewed the progress and material on site to confirm my valuation of the works, I communicated this to the contractor who agree, I then created and issued a payment certificate (interim).

Answer 364

* Penultimate Valuation * Valuation No * Date * File / Project Ref * Date * Retention at 2.5% * Less previously certified

Answer 365

Inspection of site to confirm completion of snagging items and agreement of final account.

Answer 366

* Variation No * Date * File / Project Ref * Add /Omit * Value of variation * Contract Sum

Answer 367

I created a snagging list which was issued to the employer and the contractor, I then re inspected to confirm the items had been completed within the rectification period

Answer 368

Via an inspection, I allow for early issue of snagging last and various inspections to confirm this, Regular communication also helps with this regard.

Answer 369

At this time it was classed as a relevant event, to which the contractor submitted an EOT to delay the completion date due to the unforeseen events.

Answer 370

Costs were sough from BCIS ( Building cost information Service) regarding the area and the rate. This was ratified in part by recent tenders to confirm the rates.

Answer 371

As I deal with similar sized projects, however I do have knowledge of the other forms of contract such as intermediate and standard building contract.

Answer 372

Potential delay - consideration of if relevant event or relevant matter

Answer 373

The request for further information regarding how the contractor proposes to complete this.

Answer 374

Cost, time, quality

Answer 375

Previous tender submission relative to the work and Spons data

Answer 376

I have a cost tracker spreadsheet, % or value of work is entered per item as the works progress on site.

Answer 377

A cost tracking spreadsheet to defined cost per items including add and omit variations to the the SOW

Answer 378

Feasibility studies are preliminary studies undertaken in the very early stage of a project. They tend to be carried out when a project is large or complex, or where there is some doubt or controversy regarding the proposed development. If an environmental impact assessment (EIA) is required, this may involve assessments best undertaken as part of feasibility studies. The purpose of feasibility studies is to: * Establish whether the project is viable. * Help identify feasible options. * Assist in the development of other project documentation such as the business case, project execution plan and strategic brief.