Case Study Flashcards
What’s the difference between an on demand bond and a conditional bond
An on-demand bond means that the bondsman pays the amount of money set out in the bond immediately on demand, without any preconditions having to be met.
A conditional bond is where the bondsman is only liable if it has been established that there has been a breach of contract.
What fluctuation clause applies unless specifically deleted in a JCT
Option A
Explain fluctuation option A
Option A is for changes in relation to contributions, levies and taxes that the contractor has to pay
Explain fluctuation option B
Allows for any changes to the cost of materials, goods, electricity, fuels or labour. This is in addition to those items already covered by Option A.
Explains fluctuation option C
Option C is an alternative to Option B whereby the Contract Sum is adjusted in accordance with the JCT Formula Rules current at the Base Date
What do the JCT formula rules rely on
The Price Adjustment Formula Indices (PAFI)
Who maintains the Price Adjustment Formula Indices (PAFI)
BCIS
Who else did you invite to tender for the first contract
Erith
John F Hunt
How are the responsibilities being transferred between the contracts
The Demo, groundwork’s and frame contract will be novated to the main contract.
How will you ensure that there aren’t any issues from the demo contract when being novated to the main works contract
We will be obtaining as built drawings
Building control visits and reports
Ongoing design reports/ compliance statements from design team
A site surveyor from the preferred main works contractor to carry out their own independent review.
Obtaining a Contractor Warranty
What is the insurance option under the contract
Option C
How are the works being insured under the separate contracts.
Under option C the borrower will obtain the contract works policy in joint names with the contractor.
The policy will then be amended to include the new contractor in joint names.
How have you mitigated the risk if defects are identified by the main works contractor relating to the demo, substructure and frame contract.
There is a defects liability period of 12 months within the contract. We would deduct it from the second retention payment.
We have also advised the client to attribute a separate contingency budget.
What are the advantages of buildability
Better programming, sequencing and construction methods.
Improved quality
What conditions need to be met before payment of listed materials can be made
The listed item is in accordance with the contract
The Contractor has provided proof that the items are vested to the contractor
The Contractor has provided proof that the listed items are covered in full by insurance for loss or damage until delivered to site
There is clear identification of the employer as the person to who the order is held.
Identification that the materials are for the site
Each item is separately stored
An advanced payment bond has been obtained, if applicable
What does the vesting certificate need to confirm
That the materials will be:
Properly identified
Separately stored
Insured
Free from encumbrances.
You advise that you were involved from RIBA stage 2 but didn’t have enough time to wait for the planning decision. Did you still not have time to develop the design to stage 4 while you waited ?
This was a possibility but we had enough information to progress the demolition, substructure and frame works as they wouldn’t vary from the currently permitted Scheme.
I was involved towards the end of stage 2 almost stage 3.
Should you be paying for deposit advanced payments
No, should only be paying for materials once they have been manufactured
What could you do to reduce the risk of the contractor negotiating a higher price for stage 2 in a PCSA
2nd stage can introduce competition into the sub-contracts
When including inflation into a cost plan what indices do you need to take into account
TPI
CPI
The Funder asked for a bespoke payment bond but one was never provided. How did this fit the funders requirements
The Funder didn’t specify that they required an advance payment bond however when it was mentioned as a possibility they advised that it would need to be in a bespoke format agreed with them first.
What was the forecast overall value of BMY
£90m
When preparing your Cost Plan what we’re the high level headings
Title page
Contents
Introduction
Exec summary
Detailed cost breakdown
List of assumptions and exclusions
Appendices (area schedule)
What was included in your cost plan intro
Project description
When the cost plan was based
What info the cost report has been based on (I.e drawings and specs)
