Banana Skins

Question 1

What is acceleration?

Answer 1

the process of speeding up the work of a contractor so that a particular activity, or the project as a whole, can be completed before the date required under the contract.

Question 2

Why might you use acceleration on a project?

Answer 2

• Client wants site to be handed over or wants EoT to be reduced
• If the contractor wants to move onto another project
• If the contractor wants to mitigate inefficiencies and delays
• If the contractor believes they can save costs

Question 3

Can the contractor claim costs from the client for acceleration?

Answer 3

Only if it’s “direct acceleration”, aka client driven

Question 4

What techniques could be used for acceleration?

Answer 4

• Working overtime.
• Adding new shifts.
• Providing additional labour.
• Additional supervision.
• Providing additional resources, such as plant and equipment.
• Re-sequencing work activities (also known as project crashing or fast tracking).
• Adopting alternative construction methods, such as off-site manufacturing.
• Changing the design or specification.
• Reducing the scope of the works (for example ransferring responsibility for some works from the contractor to the client)
• Early procurement of key items.

Question 5

What is loss and expense?

Answer 5

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

Question 6

Can contractors claim for consequential loss?

Answer 6

No - only direct loss

Question 7

What’s the difference between loss and expense and prolongation?

Answer 7

Loss and expensive - wider term referring to matters client is responsible for, materially affecting the progress of works. This includes matters that disrupt rather than delay the work - causing contractor to adopt inefficient work styles

Prolongation - an element of loss and expense. 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

Question 8

What are the procedures/timeline for loss and expense claims?

Answer 8

• Contractor must notify client as soon as it becomes reasonably apparent
• In NEC, PM has the period for reply identified in the Contract Data to reply.

Question 9

What’s an EoT?

Answer 9

Construction contracts generally allow the construction period to be extended where there is a delay that is not the contractor’s fault. (EoT)

Question 10

What’s the EoT timeline?

Answer 10

• Contractor gives notice (letter)
• CA assesses and accepts/rejects
• If approved, CA writes letter and issues a change order

Some contracts require contractor to request a specific time

Question 11

What must a contractor put in an EoT letter?

Answer 11

• Identify the relevant event causing delay
• EoT required
• Reasons
• Referencing contract clauses relevant

Question 12

What would you do if client wanted to use bespoke contract?

Answer 12

• Advise on benefits of standard form: everybody is familiar of the clauses, less likelihood of disputes

Question 13

How did you assess the budget when taking over the project?

Answer 13

Benchmarked it against other projects, first had indication of concern re basement

Very early on we started working on the OCE though, to establish a robust budget

Question 14

What unit is used to measure embodied carbon?

Answer 14

kg/CO2

Question 15

What unit is used to measure U value?

Answer 15

W/m²K

k = conductivity

Question 16

What’s the difference between a PTE and a Cost Plan?

Answer 16

PTE will mirror what we expect in the tender return

Excludes things like client contingencies, professional fees

Question 17

What’s the gearing ratio?

Answer 17

Measurement of the entity’s financial leverage

Equity vs Borrowing

Question 18

What are the 3 pillars of dispute resolution?

Answer 18

Negotiation; 2 Mediation (or third party intervention); and 3 Adjudication/ Arbitration/ Litigation

Question 19

What’s the difference between facilitative and evaluative mediation?

Answer 19

Facilitation = tries to open negotiation between parties and explore option. No opinion.

Evaluation = mediator gives a recommendation for outcome

Question 20

What court would you hear litigation for a construction case?

Answer 20

Technology and Construction Court

Question 21

Is adjudication binding?

Answer 21

Yes unless and until they are revised by arbitration or litigation

Question 22

Do CDM regs apply to non-notifiable projects?

Answer 22

Yes - CDM still applies to non-notifiable projects.

Question 23

What’s the difference between cost and value?

Answer 23

value = what client pays

Cost = cost incurred by contractor

Difference = profit

Question 24

What are the phases of VE?

Answer 24

• Sit with DT, traffic light scope for VE
• DT prepare proposals
• We price proposals
• Client chooses to accept/reject

Question 25

What is change control?

Answer 25

The administrative process for implementing the contractual mechanism for instructing changes

Question 26

What soils would you generally find in London?

Answer 26

London Clay, Harwich

• Lambeth Group (the Upnor, the Woolwich and the Reading. Sands, silts, clays and gravels)
• Thanet Sands

^ From top layer down

Question 27

What does NEC stand for?

Answer 27

New Engineering Contract

Question 28

Who creates the NEC?

Answer 28

Thomas Telford Ltd, Commercial arm of the ICE

Question 29

When is the Due Date in NEC3?

Answer 29

PM certifies payments within 7 days of assessment date.

Question 30

Who is responsible for errors in the ERs and CPs?

Answer 30

Generally, the responsibility lies with the person that has formed the documents, but must check Contract amendments

Question 31

What is the process following the identification of a discrepancy in the WI?

Answer 31

Contractor notified the PM under clause 17.1 of the ambiguity/inconsistency. PM issues an instruction to resolve it.

This instruction constitutes a CE under clause 60.1(1).

Question 32

What are some of the reasons that a PM may reject a CE?

Answer 32

He decides that the event:

• Arises from the fault of the contractor;
• has not happened and is not expected to happen;
• has no effect upon defined cost, completion or meeting a key date;
• is not one of the CE’s stated in the contract

Question 33

If a tender return is received late, would you accept it?

Answer 33

For public projects, no. For private projects, clients must be advised which tenders were late and provide instruction to consider them if they wish.

Question 34

What is the process for reviewing tenders?

Answer 34

Check for errors and conflicts
Raise tender queries and conflicts in information
Equalise/normalise the rates and prices - ensure a like-for-like comparison

Question 35

What would be included in a tender report?

Answer 35

Equalisation of the tenders
Addition of any other costs necessary to show a full cost estimate (to cover any gaps in the tender not resolved through interviews)
Quantitative and qualitative assessments of the tenders
Recommendation of award

Question 36

What are some criticisms of NEC?

Answer 36

Too process driven
Requires specific expertise to operate effectively
Generates too much paperwork
Focus on the accepted programme which can create issues when forecasting time in compensation events

Question 37

How much would it cost to construct a capping beam?

Answer 37

Pour concrete = £30 - 40/m3
Fix steel = £400 - 600/t
Formwork = £50 - 75/m2
Concrete material = £90-100/m3 (C40/50)
Reinforcement = £500-600/t

Question 38

Piling costs

Answer 38

Bored concrete = £1k+ depending on diameter and depth

Sheet piles = £300ish/m2 incl materials depending on depth. £700/t for materials