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ACP > 3.1 Construction Issues > Flashcards

3.1 Construction Issues Flashcards

1
Q

What form is usually used to appoint BC

A

JCT form

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2
Q

What O must BC pass down in sub-Cs - relating to practical completion

A

DLP - 12-month period in which to rectify defects

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3
Q

Why is Latent Defects Insurance unlikely

A

Premiums expensive

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4
Q

Why is percentage of BC retained

A

For both Snagging List and Defect Liability Period

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5
Q

What is the traditional method

A

Developer engages architects + PC + BC

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6
Q

Why use deed for CW

A

Longer period to enforce + no need for consideration

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7
Q

If C(RoTP)A is used as remedy instead of CW , check what

A

C/DoA will specify who can claim benefit

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8
Q

Tort as remedy - based on what + requirements

A

Negligence - need DoC + loss reasonably foreseeable

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9
Q

How much is the Performance Bond usually

A

Around 10% of BC sum

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10
Q

What is the D&B method

A

Developer engages architect + BC, and then developer novates Cs to BC

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11
Q

Kind of contract with BC

A

Building Contract

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12
Q

Key promise in CW as to standard of work

A

Exercise all reasonable care, diligence and skill

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13
Q

Why obtain CWs

A

To give direct contractual relationship w/ those involved

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14
Q

Remedies for defective works if beyond DLP

A

Turn to CW - 6 or 12 years depending on if C or D

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15
Q

In what method does developer hire employer’s agent

A

Design & build

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16
Q

What is the relationship between CWs + DoA/BC

A

The two must be consistent w/ each other

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17
Q

Who should obtain CWs

A

Purchaser/Tenant always, and employer if D&B

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18
Q

What member of the Professional Team must be appointed by statute

A

CDM

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19
Q

What Act implies certain terms into all construction Cs (w/ BC)

A

Construction Act

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20
Q

What form is used to hire architect - form for DoA

A

RIBA standard form

21
Q

What might developer require from BC to ensure covenant strength

A

Performance Bond

22
Q

Two key terms implied into all construction Cs under Construction Act

A

Timing of payment and ADR

23
Q

Key statement in CW on T’s rights

A

Free licence to use designs and drawings

24
Q

Two kinds of methods for construction

A

Traditional and design & build

25
Q

When is CW valid for 12 years

A

Deed

26
Q

Who hires sub-contractors

A

BC

27
Q

Three examples of members of professional team

A

Quantity surveyor, Employers’ Agent and sub-contractors

28
Q

What happens if delay in construction leads to late Certificate of Practical Completion - financial implications

A

Employer can claim liquidated and ascertained damages from BC

29
Q

Last resort remedy for defective building works

A

Issues should have been caught by architect/EA, but pursuing under warranty costly + time-consuming

30
Q

What is the DLP

A

12-month period where BC has O to rectify defects

31
Q

How do you achieve forced enforcement of remedies

A

Side letter/supplemental deed

32
Q

In what method is final control given to BC

A

Design & build

33
Q

Kind of contract with Professional Team

A

DoA

34
Q

Why might it be hard for T to rely on limited repair covenants

A

Issues of proving causation between disrepair + defect which is excluded

35
Q

When does BC get paid

A

Once completion certified by either architect or EA

36
Q

Why is it hard to force L to enforce remedies on behalf of T for defects

A

L has to prove loss to enforce - hard if lease is FR&I

37
Q

What role does CDM have

A

Health & safety role to ensure compliance w/ CDM Regulations

38
Q

Six other options for defective construction works (other than CW)

A

C(RoTP)A, tort, assignment/DoT, insurance, limiting repair covenants and forced enforcement of remedies

39
Q

What loss cannot be recovered if tort as remedy

A

Pure economic loss

40
Q

Remedies for defective building works if within DLP

A

Use second 1/2 of retained monies

41
Q

Who certifies completion in traditional method

A

Architect

42
Q

When is CW vaild for 6 years

A

Contract

43
Q

What does practical completion trigger

A

Snagging List and DLP

44
Q

What is the Snagging List

A

Minor defects to be corrected before 1st half of money retained paid to BC

45
Q

What are liquidated and ascertained damages

A

Pre-agree sum as genuine pre-estimate of loss

46
Q

Three main stages of construction

A

Tender & appointment, construction and practical completion

47
Q

What percentage of BC fee is usually retained

A

3 - 5%

48
Q

Key statement in CW on T’s position

A

Deemed reliance by T on Consultant’s skill, care and diligence AND T not liable to pay consultant

ACP (12 decks)

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