Case Study Key Issue 2 Flashcards
KI 2
- With overlapping of works, how did that work for insurances, who would take risk of the site?
a. Ideally there would be a principal contractor who would take the risk of the works, and be responsible for all site matters. However, the risk still remains that both would be under separate contracts to complete different work
- Why would you not go with management contracting?
Doesn’t offer cost or programme certainty, until all packages are let, so is therefore risky, and me or the client did not have the experience or expertise to facilitate this.
- Can you explain what happens when a relevant event occurs?
a. The contractor should first use his best endeavours to prevent the delay, or provide any information about the delay.
b. In this case deferment of possession by the client is the relevant event.
c. When the impact of the delay is known and calculated and agreed by parties, the CA shall give a fair extension of time of the works.
- What was the cost associated with the acceleration works and how did the contractor arrive at this figure? Did it push above cost limit?
a. Direct Contractor costs, consequential loss and expense and allowance for preparing the quotation
b. It didn’t, as the acceleration cost was £12k, with a remaining contingency at the time of £25k
- What options may be considered to achieve acceleration?
a. Overlapping of trades/work packages where possible.
b. Additional hours
c. Betterment of critical path items.
d. Delivery of critical materials sooner.
e. Additional site presence and site managers
f. Design/scope changes
- How did you advise on acceleration?
a. I advised the client to proceed with obtaining an acceleration quotation with the stipulation to the contractor this must reflect retainment of the PC date. While warning of the risk to cost limit. Following agreement and negotiation with the contractor I advised the client of the costs and advised them to proceed. I then drafted and issued a CAI.
- How do you calculate acceleration?
a. It was calculated by adding up the additional staff and trained professionals needed on site, by working out the time they would be there against the rate they commanded. As well as some small additional plant hire such as an additional scissor-lift. Including OH&P.
b. In this case it also included some costs associated with loss and expense due to the deferment of possession
c. Cost of preparing the quotation
- Is acceleration mentioned in the contract?
a. Acceleration isn’t mentioned in the ICD, however I am aware It is mentioned in the JCT D&B contract.
b. It was agreed the contractor would take on the risk for acceleration, and a new agreement in the variation was drawn up to do this, as there is no mention of it in the contract.
c. Under contract law the parties can come to an agreement which can be drawn up and entered into, I therefore advised my client that their internal legal team should be consulted with to input into the instruction. It put the contract in the position it was in initially, and the PC remained the same.
d. Agreed on a quantum meruit basis
- If completion was not met by the accelerated date, could the client claim LAD’s against the contractor?
a. Yes as it has been agreed that the practical completion date has remained the same. The contract has been varied and changed to keep the PC date but increase the contract sum, so LAD’s can still be applied past the PC date.
- Under the CDM regs, if there is more than one contractor on site, what appointments are required?
a. Appointment of a principal contractor. The Contractor with control over the construction phase , appointed to plan manage and monitor H&S.
- How would you implement revised design in the project?
a. Through instruction of a variation to update the design documents and drawings.
- Option 3 – acceleration – how did you assess this cost against the current contract rates? how did you assess the additional staff costs and how did you verify value for money? How much was the additional cost for acceleration?
a. I assessed the rates against the contractors preliminary rates in the contract for management and OH&P, for specialised labour there were no existing rates in the CSA, therefore I made an assessment off previous and recent in house cost data, from different sources including this contractor, ensuring cohesiveness.
- What options were considered to accelerate the works?
a. I advised the team that works can be re-sequenced, that additional hours can be worked by workmen, employ more gangs, change working methods. While advising that some of these options may lead to lower productivity.
- How does deferment of possession work under JCT?
a. Employer can defer possession for a period not exceeding 6 weeks from relevant DoP. DoP is treated as a relevant event under JCT, so therefore the PC date can be amended, entitlement to time. The contractor is also able to claim loss and expense for consequential loss.
- Is there such a thing as a deferment of possession certificate?
a. There is no such thing as a certificate, but it is a notice/letter which can be classed as a certificate.
