Banana Skins Flashcards
What is acceleration?
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.
Why might you use acceleration on a project?
- 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
Can the contractor claim costs from the client for acceleration?
Only if it’s “direct acceleration”, aka client driven
What techniques could be used for acceleration?
- 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.
What is loss and expense?
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
Can contractors claim for consequential loss?
No - only direct loss
What’s the difference between loss and expense and prolongation?
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
What are the procedures/timeline for loss and expense claims?
- 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.
What’s an EoT?
Construction contracts generally allow the construction period to be extended where there is a delay that is not the contractor’s fault. (EoT)
What’s the EoT timeline?
- 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
What must a contractor put in an EoT letter?
- Identify the relevant event causing delay
- EoT required
- Reasons
- Referencing contract clauses relevant
What would you do if client wanted to use bespoke contract?
- Advise on benefits of standard form: everybody is familiar of the clauses, less likelihood of disputes
How did you assess the budget when taking over the project?
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
What unit is used to measure embodied carbon?
kg/CO2
What unit is used to measure U value?
W/m²K
k = conductivity
What’s the difference between a PTE and a Cost Plan?
PTE will mirror what we expect in the tender return
Excludes things like client contingencies, professional fees
What’s the gearing ratio?
Measurement of the entity’s financial leverage
Equity vs Borrowing
What are the 3 pillars of dispute resolution?
Negotiation; 2 Mediation (or third party intervention); and 3 Adjudication/ Arbitration/ Litigation
What’s the difference between facilitative and evaluative mediation?
Facilitation = tries to open negotiation between parties and explore option. No opinion.
Evaluation = mediator gives a recommendation for outcome
What court would you hear litigation for a construction case?
Technology and Construction Court
Is adjudication binding?
Yes unless and until they are revised by arbitration or litigation
Do CDM regs apply to non-notifiable projects?
Yes - CDM still applies to non-notifiable projects.
What’s the difference between cost and value?
value = what client pays
Cost = cost incurred by contractor
Difference = profit
What are the phases of VE?
- Sit with DT, traffic light scope for VE
- DT prepare proposals
- We price proposals
- Client chooses to accept/reject
