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GCU - Construction Contracts 2 > Con. Contracts 2 > Flashcards

Con. Contracts 2 Flashcards

1
Q

An express term is…

A

Expressed in writing or implied

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2
Q

Employers can postpone possession of site for up to _____________

A

6 weeks

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3
Q

True or false;

If an employer postpones possession of site within the allowed timeframe the contractor is not entitled to claim for additional associated costs

A

False

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4
Q

Normally, a contract is formed upon….

A

Clear acceptance of a firm offer

S. Lupton - 2016

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5
Q

Attestation means (2)….

A

evidence or proof of something.

“their vocabulary is no attestation to your value as a parent”

OR

the action of being a witness to or formally certifying something.

“he failed to prove the attestation of the will by the witness”

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6
Q

Under SBC the contract bills must be prepared in accordance with _____ unless otherwise stated

A

NRM2

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7
Q

If goods are to be paid for prior to delivery on site, a list of these…..

A

Must be annexed to the bills

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8
Q

SBC 16

Under recitals 2 & 3 each party should

A

Sign or initials the BOQs and Contract Drawings

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9
Q

Changes to information within the employers requirements for CDP portions can be instructed in however these may result in…. and…

A

Additional costs

AND

Are subject to the consent of the contractor (as this changes the nature of the works)

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10
Q

Postponing possession of site can be classed as a relevant event under clause and a relevant matter under clause…

A
  1. 29

4. 22

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11
Q

Failure of the employer to extend the Completion Date may result in him losing the right to…

A

Claim for LADs

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12
Q

True or false;

There is no implied right of the employer to gain access access to the site once giving possession to the contractor..

A

True

Only through the clauses with the contract can the employer and his agents gain access

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13
Q

Any limitation or conditions associated with site access for the contractor should be stated in…

A

The BOQ or within the contract

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14
Q

True or false:

Architect can vary the conditions or limitations in relation to site access

A

True

Through use of clause 3.10 however this can result in a variation through clause 5.1.2

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15
Q

The four scenarios in which a contractor can object to an instruction are;

A

1) A change to obligations of both parties i.e. access to site, working space, working hours, works being carried out in a certain order
2) Belief complying may affect CDP design
3) Complying may infringe on patent rights
4) Schedule 2 and supplemental provision 9 instructions

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16
Q

All instructions must be carried out _______

A

Forthwith

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17
Q

Primary obligation of the employer is….

A

To give possession of the site

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18
Q

Employer has to give possession of….

A

The whole site and working space (if available) or partial possession if agreed prior

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19
Q

Secondary obligation of the employer is….

A

To administer the contract correctly

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20
Q

Possession of the site is not…

A

Legal possession - has actual possession for the duration of the works

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21
Q

Contractor retains possession of the site up until

A

Issue of PC certificate

22
Q

Employer has a duty to ensure architect is….

A

Carrying out duties and replace them if not.

23
Q

If an employer has to replace an architect he should do so within….

And replacement should be

A

A reasonable time - no more than 21 days

Competent

24
Q

If employer is a local authority and nominates one of their officials to replace the architect, the contractor can…

A

Object within 7 days. If upheld employer must withdraw nomination.

25
Q

Replacement architect cannot….

A

Overrule decisions / certificates etc of predecessor

26
Q

Failure of an employer to replacement an architect within reasonable time could lead to…

A

Repudiation and recission

27
Q

The employer must not try to ________________ the architect. This is dictated in both _________ _____ and ….

A

Influence

Common Law

Express terms within the contract

28
Q

Reasons why the employer should not try to influence the Architect / CA (2);

A

1) In relation to payment - Must not try to delay certification or withhold amounts properly due.
2) Employer may try to influence PC so they can take possession and get use of building when it may not be ready for PC.

29
Q

Causation in breach of contract; must prove 4 things…

A

1) There is a contract
2) There was a breach
3) That breach caused that loss
4) Loss wasn’t too remote

30
Q

Employer has to appoint all professionals on project. These could include (5)

A

1) Contractor
2) Architect
3) CA (if not Architect)
4) QS / Clerk of works
5) CDM Co-ordinator

31
Q

Why may a contractor wish to finish works earlier than the Completion Date (2)

A

1) Profitability - e.g. gets paid contract sum even if completed sooner (winning on prelims)
2) Allows him to move on to next job and increase turnover

32
Q

Does the contractor have an entitlement to finish his works early?

A

Yes - however others under no obligation to aid him in this. In practice of course, why wouldn’t they?

33
Q

Who inserts and issues the Information Release Schedule as per clause 2.11

A

Employer / architect

34
Q

Prime obligation of contractor is…

A

To complete the works

35
Q

Outwith the contractors prime obligation what other obligations does he have (4)

A

1) Clause 2.1 - carry out works in proper and workmanlike manner in compliance with contract docs, CPP & statutory requirements.
2) Proceed with works regularly and diligently
3) Comply with architects instructions - clause 3.10
4) Comply with variation instructions - clause 3.14

36
Q

Works are carried out (and designed) to which standard?

A

Reasonable skill and care

NOT

Fit for purpose

37
Q

If contractor refuses to comply with instruction the the architect….

A

Issues a 7 day notice advising if not carried out in next 7 days they will get someone else in to carry out the works and deduct costs from contractor

38
Q

If architect / CA issues instruction for opening up and testing and tests prove work is in accordance with contract does the contract recover the costs of this?

A

Yes

39
Q

What is the common law position on payment

A

No implied right to interim payment until all works are complete

40
Q

How does the HGRC Act and LDEDC Act affect common law position on payment

A

Requires payment to be made on an interim basis or in stages

41
Q

What are the stages and timescales associated with payment in a SBC (7)

A

1) Interim valuation dates listed in contract particulars
2) Payment becomes due 7 days after this
3) Payment notice issued no later than 5 days after due date
4) Final date for payment is 14 days from due date
5) Payless notice can be issued no later than 5 days before final date for payment
6) If no payment notice issued contractors application becomes notice / due - architect can still issue payless notice 5 days prior to final date for payment
7) If no application submitted by contractor and no payment notice issued by the architect, contractor can then issue his application and this become payment notice with final date for payment 14 days from issue - architect can still issue payless notice 5 days prior to final date for payment

42
Q

What does the SBC require to be insured (4)

A

1) Personal injury or death (Clause 6.4)
2) Loss, injury or damage to property (Clause 6.4)
3) Non negligible loss or damage to Existing Structures or their contents (Clause 6.5)
4) Possibly included in contract - terrorism

43
Q

What are Accepted Risks in insurance? (Can’t insure against them) (3)

A

1) Radioactivity
2) Sonic booms
3) Terrorism that is beyond any possible terrorism cover already in the contract

44
Q

What are the specified perils associated with insurance (9)

A

1) fire
2) lightening
3) explosion
4) storm
5) flood
6) escapes of water
7) earthquakes
8) aircraft / aerial devices
9) riot and civil commotion

45
Q

What is Clause 6.5 insurance?

A

Damage to property other than the works

46
Q

What are the 3 insurance options

A

A) Contractor insures (joint names) - new buildings - contract bears shortfall of any insurance payout

B) Employer insures (joint names) - new buildings - employer bears shortfall of any insurance payout

C) Two policies - Employer takes out joint names policy for all risks for the works (as per option B), joint names policy for existing structures - Used on existing buildings (alts or exts) - employer bears shortfall as per option B

47
Q

In insurance the specified perils relate to option….

A

C

48
Q

Other insurances (2) and guarantee/bonds (5) (required outwith building insurances) are;

A

1) PI insurance - where there is design - lasts for and has to be maintained for years (5-20)
2) Latent defects insurance - employer takes out, last 10 years, covers damage to works regardless of who is at fault (no fault insurance), inherent defects that threaten the stability of the structure - expensive - not widely used - contracts look for a waiver of subrogation
3) Performance bond - lasts to PC (usually) - covers patent defects only, not latent
4) On demand bond - don’t have to establish liability
5) Conditional bond - certain criteria have to be met before release
6) Advance payment bond
7) Retention bond - alternative to retention

49
Q

Contractor must proceed __________ & ____________ with the works

A

Regularly

Diligently

50
Q

How may a contract be brought to an end in common law (9)

A

1) Acceptilation
2) Confusion
3) Agreement
4) Frustration and impossibility
5) Force majeure
6) Repudiation and recission
7) Death and illness
8) Illegality
9) Insolvency

51
Q

Businesses go ____________, people go ______________

A

Into insolvency

Bankrupt

GCU - Construction Contracts 2 (3 decks)

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