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Technical Comps > CA Questions > Flashcards

CA Questions Flashcards

1
Q

What is the role of the Contract Administrator?

A

The contract administrator manages the contract between the employer and the building contractor.

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2
Q

What are the key differences between a Contract Administrator and Employer’s Agent?

A
  • An Employers Agent is employed by the Client within a design and build contract, while a Contract Administrator would be employed within a traditional form of contract.
  • An Employers Agent can be appointed prior to the Contract being formed, whilst a Contract Administrator can only be appointed once the Contract is executed.
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3
Q

What is nomination?

A

Selection of a particular subcontractor to carry out the works, manufacture or supply materials.
Client is at risk of EOT as contractor is relieved of liability of design, compliance with performance spec, supply chain delays etc. Contractor retains liability for poor workmanship and defects.

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4
Q

What are named subcontractors?

A

Client provides main contractor with a choice of subcontractors for a portion of the works, all must be capable of doing the work. Additional names may be added if approved by all parties.

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5
Q

What are the key differences between JCT and NEC?

A

Programme, - NEC requires a more detailed set of documents that make up the programme to be submitted on a regular basis as prescribed by the employer. NEC allows for incentivising the contractor to finish early through an option for a bonus for early completion. JCT encourages early notification but has no sanctions if a contractor fails to do so, NEC on the other hand dictates that a compensation event is to be assessed on the basis that notification was issued even if it was not, and whether reasonable steps could have been taken to mitigate the impact.

Cost, - Both contracts provide for change control (variations/claims in JCT and compensation events in NEC). NEC deals with the effects of cost and time together, providing for a quotation to be prepared by the contractor. JCT refers to ‘exceptional adverse weather conditions’ whilst NEC uses a ‘worse than 1 in 10 year’ approach to weather.

Quality, - NEC identifies a state at completion which is defined within the works information, unlike JCT which relies upon a subjective assessment of practical completion.

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6
Q

What are the key differences between the various forms of JCT Contract?

A

Minor Works - Generally refers to small, relatively straightforward construction projects
Not suitable when- The project is complex, Design includes Bill of Quanties, Sectional completion is required, Provision to govern work carried out by named sub-contractors is required

Intermediate - Recommended for use on simple construction projects that require greater contractual provisions like sectional completion, relevent events and matters named, named QS, named specialist, advance payment

Standard Building Contract - Contract allows for the following; Retention bond, BofQ, 3rd party rights, quatation provision for variations

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7
Q

What is a defined provisional sum?

A

A sum included in the contract for work that has not been completely designed but sufficient details are included for the contractor to allow in programme

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8
Q

What is a undefined provisional sum?

A

A sum included for work for which there is minimal or no information.

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9
Q

What would you say if a client asked you to draft a letter of intent?

A

This should be passed onto the client’s legal team as letters of intent give rise to a substantial number disputes.

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10
Q

Are you aware of any guidance on dealing with Loss and Expense?

A

This is subject to the guidance as set out in Ascertaining loss and expense, 1st edition, 2015

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11
Q

Are you aware of any guidance on agreeing the Final Account?

A

RICS Final Account Procedures, 2015

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12
Q

What are fluctuatuions?

A

Typically used on large projects spanning multiple years,

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13
Q

What are the different insurance options under JCT?

A

Insurance Option A - New builds joint name policy under the contractor’s policy
Insurance Option B - New builds joint name policy under the employer’s policy
Insurance Option C - Existing structures. Requires the employer to take out joint names including the works.

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14
Q

Under what circumstances may insurance Option C be inappropriate for an existing building?

A

For example, the employer under the building contract is frequently a tenant in the building in which the works are being carried out and not the landlord. As a result the employer may have no influence or control over the insurance policy for the building. The landlord or his insurers may object to the inclusion of the contractor under the property policy (even for specified perils only).

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15
Q

What is a relevant event?

A

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. The contract should set out what constitutes a relevant event in clause 2.20

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16
Q

What is a relevant matter?

A

A matter for which the Employer is responsible that materially affects the progress of the works. The contract should set out what constitutes a relevant matter under clause 4.17

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17
Q

What is the Joint Fire Code Policy?

A

Typically required on projects over £2.5m. Refers to a document called ‘Fire Prevention on Construction Sites: The Joint Fire Code’. Covers all activities from design through to construction.

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18
Q

Names some of the standard forms of collateral warranty that can be used

A

JCT standard form of collateral warranty for a funder, JCT standard form of collateral warranty for a future purchaser or tenant

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19
Q

How has the Contract (Rights of third parties) act 1999 changed the situation regarding rights under contracts?

A

JCT now includes provisions to allow third party rights and obligations to be granted

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20
Q

What is a pay less notice?

A

Provides a mechanism of notifying the contractor that it is intended to pay less than the sum stated on a payment notice, This must be issued not less than 5 days before the final date for payment

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21
Q

When must an interim certificate be issued?

A

Must be issued not later than 5 calendar days after the due date, time period fixed by statute and cannot be changed by parties. This is governed by the Housing Grants, Construction and Regeneration Act 1996

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22
Q

What is partial possession?

A

Allows the employer to take possession of part of the site before works are formally completed. Areas in question are deemed to have reached practical completion and retention release is triggered on these areas.

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23
Q

How long after PC can an EOT be issued?

A

Up to 12 weeks after PC (8 weeks with JCT 2024 suite)

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24
Q

What would you do if the payment certificate you are issuing is late?

A

Issue a pay less notice and the amount shown becomes the notified sum, which is payable by the final date for payment of that interim installment.

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25
Q

What are materials offsite and how are they dealt with under the JCT suite of contracts?

A

The contract identifies ‘listed items’ whose value is to be included in interim payments and states that when the value of such materials has been included in an interim payment, title will pass to the Employer. There following has to be in place before payment:
- The listed item is in accordance with the contract.
- Proof that they are vested in the contractor and covered by an insurance policy covering them against loss or damage caused by specified perils until they are delivered to site.
- At the place of storage listed items are clearly and visibly marked as belonging to the employer and set aside from other materials.
- If required, the contractor must provide a bond from an approved surety (in a form provided by JCT) which enables the employer to recover the amount it has paid to the contractor if he is unable to obtain the relevant goods.

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26
Q

What is the period for Final Account agreement?

A

3 months
3 months after receipt by the architect/contract administrator of information supplied by the contractor (which itself should not arrive any later than 6 months after issue of the practical completion certificate).

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27
Q

What is required to form a contract?

A

6 principals:
- Offer
- Acceptance
- Consideration
- Intention to creat legal intentions
- Capacity
- Legality

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28
Q

Name some contract suites

A
  • JCT (Joint Contracts Tribunal)
  • FIDIC (Fédération Internationale des Ingénieurs-Conseils)
  • NEC (The New Engineering Contract): Engineering and Construction Contract)
  • ACA (Association of Consultant Architects)
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29
Q

What are the parties to a contract?

A

Employer, Contractor, Contract Administrator (unless D&B, where it is EA), Quantity Surveyor (Not named in D&B)

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30
Q

What is your understanding of a performance bond?

A

Insurance backed bond to guarantee satisfactory completion of construction project.
- Typically 10% of overall contract value is covered in event of non-performance.
- Can be on demand or conditional

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31
Q

What is your understanding of a parent company guarantee?

A
  • Provided by companys ultimate parent or holding company
  • Answer for contractors debt, default or miscarriage
  • Typically, a financial guarantee, performance guarantee or a combination
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32
Q

What is you opinion of retention?

A

Good way of ensuring contractor performance and that they will return to make good

33
Q

What are some examples of relevant events?

A

Caused by Employer or neither party:
- Variations
- Adverse weather
- Force majeure
- Works by statutory authorities
- Specified perils

34
Q

How would you assess an extension of time against the orginal works?

A

Against the programme critical path

35
Q

What are some examples of relevant matters?

A

Caused by the Employer:
- Variations
- Failure to give site possesion
- CDM Issues

36
Q

What pricing document are used in the different procurement types?

A

Design and Build
- Construction sum analysis
Traditional
- Schedule of Works
- Bill of Quantities

37
Q

What are the termination provisions within the JCT Contract?

A

Termiantion by Employer
- Default by Contractor
- Insolvency of Contractor
- Corruption
Termination by Contractor
- Default by Employer
- Insolvency of Employer

38
Q

What are the main sections of a JCT Contract?

6 Parts: A-R-A-C-A-C

A
  • Agreement
  • Recitals - Nature and location
  • Articals - Contract sum, details of key roles
  • Contract Particulars - Base date, LADs, Dates
  • Attestation - Signature / execution
  • Conditions
39
Q

What is the difference between NEC & JCT?

A
  • NEC is written in plainer english, so easier to understand. But JCT tested over time.
  • NEC promotes more collaberation
  • Programme is a contract doc in NEC
  • JCT tested over time, legal challenge and are more detailed.
40
Q

What are latent defects?

A

Defects which cannot be discovered by reasonable inspection at the time of project completion. Once apparent they become patent defects.

41
Q

What must be in place for a loss & expense claim and when can it be assesed?

A

A loss & expense claim should be assessed up to 28 days from submission. This is actual losses incurred by the contractor.

42
Q

What did the ‘Housing, Grants, Construction and Regeneration Act 1996’ introduce?

A

Timeline of payment wrritten in to law

43
Q

What did the ‘Local Democracy, Economic Development and Construction Act 2009’ introduce?

A

Defined the Due date is a contractual date, and the certificate must be issued no later than 5 days from the due date.

44
Q

What are preliminaries and why are they included in the tender pack?

A

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. Includes details of the contract provisions and any ammendments also.

45
Q

Talk me through a negotiated tender process? How does it differ to traditional single stage selective tender process?

A

A single Contractor is approached to provide a cost for works (Usually a trusted contractor). Usually tendered in the same way a traditional method is but a cost can be returned quicker and negotiated using benchmark rates.

46
Q

How did you go about negotiating a tender cost fairly?

A

Benchmark and comparable costs were reviewed and cost agreed with Contractor.

Could mention the Contractor tendering the sub-packages.

47
Q

What are the limitations / drawbacks of a negotiated tender?

A
  • Works are less competative
  • Could be damaging reputationly if seen to be giving contractor special treatment
  • Migh not provide social value for local business
48
Q

What insurance clause was used?

A

Insurance Option C - Existing structures. Requires the employer to take out joint names including the works.

49
Q

How were the LADs calculated?

A

As a calculation of actual losses incurred by the client. In the case of The Senate, these were costs as a result of a delay to the tenant moving in including loss of rent.

50
Q

What is the process for claiming LAD’s?

A

A certificate of non-completion must be in place, employer has notified the contractor before the date of the final certificate that liquidated damages may be deducted, and the employer must serve a pay less notice no less than five days before the final.

51
Q

What is a base date?

A

Contract Sum is deemed to have been calculated at the agreed Base Date. The Base Date is usually stated to be the date of the tender or priced offer. This is typically a date 7-10 days prior to the return of tenders. Allows a benchmark to be set of the time at which the conditions of the contract were agreed. Used in calculating fluctuations.

52
Q

What was the implication of issuing a practical completion certificate?

A
  • End of liquidated damages liability
  • Changes in insurance
  • Defects liability period commences
  • Half retention released
  • Performance bond expires
53
Q

Can you issue practical completion when the works arent fully completed?

A

As CA you should act impartial. Works can be certified as practically complete with minor snags (Diminimus), clear close out programme should be agreed. Partial possession can also be taken by the Employer.

54
Q

Why was Intermediate Building Contract with Contractors Design selected as the most appropriate form of contact?

A

It required greater contractual provisions, including sectional completion (Not allowed for in Minor Works), but the works were simple in nature.

55
Q

How did you deal with variation costs and why?

A

Reviewed the costs received from the Contractor and assesed against the costs within the project and benchmarking to ensure they were fair and reasonable.

56
Q

What are the standard timescales to be adhered to when managing payments in JCT contracts?

A
  • Interim pay cert should be issued 5 days from due date.
  • The final date for payment is 14 days from the due date, with pay less notices needing to be served no later than 5 days before the final date for payment.
57
Q

What is the significance of progress meeting minutes? Why did you have to issue them?

A

They form a record of what is discussed and agred at meetings and can be refered to down the line. The issuing of minutes was agreed as part of the scope of works for the CA.

58
Q

Why was Minor Work Building Contracted selected as the most appropriate form of tender?

A

The works were simple in nature, so complex contract provisions werent required. Minor works doesn’t list relevent events or matters, which is suited when works are simple. Referred to JCT guidance on selecting the most appropriate contract.

59
Q

Why was a Intermediate building contract chosen over a standard building contract?

A

The works did not require more complex contract provisions like Advance payments, 3rd party rights or Retention bonds.

60
Q

What are collateral warranties?

A

Bi-lateral contract that sits aside an existing contract and gives a party rights to another contract that would not otherwise be possible. Used in the event a party to a contract goes into liquidation.

61
Q

When provisional sums are detailed in contracts, what should happen before starting on site?

A

A period of time to firm up provisional sums to stop inflation of sum.

62
Q

What changes have been made with the introduction of the JCT 2024 Suite of contracts?

A
  • Modernising and streamlining – incl. adoption of gender neutral language and increased flexibility around the use of electronic notices.
  • Introduction of a new contract family, JCT Target Cost Contract (TCC), comprising main contract, sub-contract, and guide.
  • Legislative changes – major updates in relation to the Building Safety Act, Termination accounting and payment provisions reflecting the Construction Act, new insolvency grounds reflecting the Corporate Insolvency and Governance Act 2020.
  • Future proofing – incl. changes to reflect the objectives of the Construction Playbook, and the incorporation of previously optional supplemental provisions relating to Collaborative Working, and Sustainable Development and Environmental Considerations, into the main document
63
Q

Did the quantity surveyor valuation make any assertion as to the quality or suitability of the works? How did you account for this?

A

No, Quantity surveyor only values the work completed. As CAI carried out an assessment to assertain the works were completed as paer the Contract and to the quality expected.

64
Q

Talk me through key headings on a typical progress meeting agenda for this project?

A
  • Welcome and apologies
  • Matters arising from prev. meeting mins
  • Contractors progress report
  • Helath & Safety
  • Statutory matters
  • Commerical matters
  • AOB
65
Q

How would you review and sign off contractors proposals?

A

Contractor proposals would be reviewed and stamped depending on feedback.
A - Approved with no comments
B - Approved subject to comments
C - Rejected

66
Q

What is alternative 1 and alternative 2 when tendering?

A

Alternative 1 - The contractor will either be invited to stand by the tender price or to withdraw (1 cost option)
Alternative 2 - The contractor should be given the opportunity of confirming their offer or amending it to correct genuine errors (2 cost options)

67
Q

What types of letter of intent are there and would you be competent to draft them?

A
  • Comfort Letters: expressing a party’s intention to act in a particular way at some point in the future. (Not a contract)
  • Instructions to proceed with consent to spend: allows work to proceed up to a certain value while the contract itself is being finalised. (Legally binding)
  • Letters recognising the existence of a binding contract(s): issued only once the contract has been substantially agreed and usually marks the completion of negotiations between the parties
68
Q

How would you apply sectional completion to a project?

A

Would ensure the contract was specific on each of the sections including:
- Details of the works within each section
- Apportionment of the contract sums
- Liquidated damages
- Practical completion/date of possession

69
Q

What is your understanding of the default design liability of the Contractor under the JCT Intermediate Contract?

A

The liability of the Contractor under JCT is reasonable skills and care.

70
Q

What are the insurance options available in the minor works contract and how do they differ from intermediate?

A

Minor Works:
A - Contractor provide joint names insurance for new works
B- Employer to provide joint names for new works and exist structure
C - works and exist structure by other means

vs

Intermediate:
A - Contractor all risk insurance for works (new build)
B - Employer all risk insurance for works (new build)
C - Employer insurance in respect of the existing structures and their contents and all risks insurance of the works. (Refurb)

71
Q

How would you assess an extension of time claim?

A

Agaist the critical path. I would also look at any concurrent delays when awarding time.

72
Q

What is your understanding of fitness for purpose?

A

Fit for purpose means a build is suitable for a particular purpose. This can often be hard to ensure as it doesnt require proof of negligence and is absolute.

In JCT 2024, Contractors are now explicitly required to exercise reasonable skill and care in their design work, rather than ensuring fitness for purpose. This change aligns with recent legal precedents and provides greater clarity on contractors’ responsibilities, reducing potential disputes over design quality​.

73
Q

What is required from a Contractor when they are undertaking CDP?

A
  • PI Insurance
  • Contractors proposals
74
Q

You acted as the CA on both CT projects. Would designing foundations and roof design be a normal function of the CA?

A

This was a duel role

75
Q

Please can you name the conditions of the Contract?

A

Section 1: Definitions and Interpretation
Section 2: Carrying out the works
Section 3: Control of the works
Section 4: Payment
Section 5: Variations
Section 6: Injury, Damage and Insurance
Section 7: Assignment, Performance Bonds and Garantees and Collateral Warranties
Section 8: Termination
Section 9: Settlement of Disputes

76
Q

How would payment and adjudication be dealt with in bespoke contracts which do not comply with the Housing Grants, Construction and Regeneration Act?

A

The Scheme for Construction Contracts (England and Wales) Regulations is a scheme which applies when construction contracts do not comply with the Housing Grants, Construction and Regeneration Act.

77
Q

Why might a defect rectification period be a year?

A

1 year would cover the seasonal lifecycle of the particular building.

78
Q

How would you assess a loss & expense claim?

A

A loss & expense claim should be provided by the contractor with an assesment of the loss/expense incurred. This should be reviewed by the CA within 28 days.

79
Q

Whats the difference between partial possesion and sectional completion?

A
  • Sectional completion is defined in the contract, whereas partial possesion is not
  • Contractor has right to refuse partial possesion, although they cant reasonably withold
  • The contractor is entited to costs for partial possesion

Technical Comps (9 decks)

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