APC Questions Flashcards
What is required for Final Completion
Certificate of making good defects
What is claimed for under EOT
Actual costs (Prelims, overheads and profit)
Example of a statutory neutral relevant event
Energy network association and Thames water
Who is responsible for variations in JCT
CA
Reasons for variations
unanticipated works/ provisional allowances
What are the types of prov allowances and their differences
Defined (Described e.g. the contractor is to investigate and repair the flat roof…= has to be included within the programme) Undefined (Not described e.g. The contractor is to include a prov sum for unforeseen works = to be avoided as will cause EOT).
JCT final account timescale after PC
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JCT loss and expense time scales
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Termination of JCT contracts
Most forms of contract will include termination clauses, setting out the circumstances under which a contract may be terminated.
Breach of contract
If the one of the parties to a contract fails to perform as required by the contract, this may constitute a breach of contract.
E.G.
Refusal to carry out work.
Abandoning the site.
Removing plant from the site.
Failure to make payments.
Employing others to carry out the work.
Failure to allow access to the site.
Failure to proceed regularly and diligently.
Failure to remove or rectify defective works.
Frustration
Frustration occurs when circumstances that are not the fault of either party mean it is impossible to continue with the contract.
Convenience
Contracts may allow termination for ‘convenience’. This can be useful for example if the client fails to secure sufficient funding for the project to proceed. However termination for convenience can leave the terminating party open to significant claims by the other party.
Others
Contracts may also allow termination under specific circumstances peculiar to a particular project. They may also allow termination for insolvency or bankruptcy.
Rescission
Rescission is a process of returning both parties to the position they would have been in had they not entered into a contract. This might be appropriate for example if there is a serious error in the contract.
Suspension
Contracts may also allow suspension of performance. The circumstances allowing suspension are generally similar to those allowing termination.
Determination
Determination ends the contractor’s obligations under the contract, but the contract remains in place, as do the rights of both parties.
NEC4: After the Project Manager issues the termination certificate; 3. JCT: If the reason for termination is default (by either party), then an initial notice must be given. If the default continues for 14 days after the first notice is given, then the party has 21 days within which to terminate the contract.
