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APC - My Cards - Core > Contract admin > Flashcards

Contract admin Flashcards

1
Q

What’s the difference between Minor Works and Intermediate contracts?

A

MW up to £250k and simple buildings.
IC up to £1m and moderate complexity, Clerk of Works, Sectional Completion.

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2
Q

How do you select which contract to use?

A

Contract value, complexity, JCT guide.

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3
Q

What documents are included within contract documents?

A

Spec, drawings, payment terms, [prelims, preambles].

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4
Q

What is the purpose of prelims and preambles?

A

Prelims: describe the nature of the work and how it’s achieved.
Preambles: explanation of the contract e.g. project objectives, project information (address etc).

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5
Q

Who are the parties on the contract?

A

Employer, contractor, consultants.

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6
Q

What are some key contract events?

A

Payment, PC, Final Certificate.

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7
Q

What are collateral warranties?

A

An agreement where a third party is covered despite not being part of the original contract.

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8
Q

What’s the difference between Sectional Completion and Partial Possession?

A

Sectional Completion is pre-planned.
Partial Possesion is not pre-planned.

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9
Q

What information is provided within a CPP?

A

Project description, site rules, emergency procedures etc.

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10
Q

Can you tell me some different types of procurement?

A

Traditional (client team).
Design and Build.
Management contracting: manages design and works but doesn’t complete works directly (Quinn on Windsor Walk).

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11
Q

What is the role of a Principal Designer (CDM)?

A

Plans and manages H&S during the pre-construction phase of a project involving more than one contractor.

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12
Q

What are some of the responsibilities of a Principal Designer (CDM)?

A

Manage H&S in the pre-construction phase, work with client and principal contractor, review CPP.

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13
Q

What information goes into a PCIP?

A

Fire procedures, emergency procedures, building information.

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14
Q

Is the Contractor’s Design Portion optional?

A

Yes.

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15
Q

What’s the alternative to including contractor’s design in a contract?

A

It could be designed entirely by the client’s side.

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16
Q

What specification would be used for a project designed entirely by the client’s side?

A

Prescriptive specification.

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17
Q

What informaiton is included when appointing a consultant?

A

Works, costs, timeline.

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18
Q

What is a novation agreement (substituted contract)?

A

When one party replaces another and takes on the rights and obligations.

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19
Q

What are the timelines for Interim Valuations?

A

Application for payment > Interim Valuation Date > Due date (7 days after IVD) > Payment certificate (CA - within 5 days of due date)/Pay less notice (up to 5 days before final payment date) > Final payment date (14 days after due date).

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20
Q

What is the base date?

A

Date from which fluctuations will apply i.e. inflation rises will be borne by contractor from this point. Typically date of tender returns.

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21
Q

What is the process when a contractor submits an EOT claim?

A

1) Notice from the contractor for delay stating Relevant Event.
2) Assessment by CA within 12 weeks of notice.
3) Accepted claim - extension granted, Loss and expense claim based on prelims.

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22
Q

What is the difference between a Relevant Event and Relevant Matter?

A

Relevant Event: EOT – caused by client or neutral event.
Relevant Matter: money (no time extension) – caused by client.

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23
Q

What is the purpose of Loss and Expense?

A

To reimburse the contractor for loss suffered in continuing to work.
Client only required to pay for actual loss.

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24
Q

When can an employer claim for Liquidated Damages?

A

When the contractor fails to meet the completion date.

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25
Q

How are Liquidated Damages paid?

A

Recovered from the contractor as a debt or from monies due.
Contractor required to pay rate pre-determined in the contract. Calculated as loss e.g. loss of rent.

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26
Q

What is time at large?

A

No PC date. Contractor no longer bound to complete works by a specific date.

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27
Q

What is Practical Completion?

A

All works in the contract are complete.

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28
Q

What is the process for Practical Completion?

A

Inspection > works complete/snagging list > test certificates > O&M manuals > BCA sign off > issue PC certificate.

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29
Q

What does Practical Completion signify?

A

Start of rectification period (3 months MW, 6-12 months Intermediate), half of retention released, contractor’s liability for LDs ends.

30
Q

What must be issued for Liquidated Damages to apply?

A

Non-Completion Certificate (except for Minor Works contracts).

31
Q

What action must you take for a contractor who must pay Liquidated Damages?

A

Notice must be given to the contractor stating that for the period of delay the contractor must pay damages at the rate provided in the contract particulars.

32
Q

Who has responsibility for a property in early use/possession?

A

Liability remains with the contractor (unlike partial possession where risk moves onto the client).

33
Q

What is retention?

A

Money held back from the contractor as insurance.

34
Q

Explain the process of retention getting released?

A

Half released at PC, half released after Making Good Certificate issued.

35
Q

When do you require snagging to be complete by?

A

Most items by PC, all by the Making Good Certificate date.

36
Q

What is a final account?

A

Document that details the final cost of the contract. Includes variations, loss and expense, provisional sums etc.

37
Q

When must a contractor provide all necessary information to the CA?

A

Within 6 months of PC date.

38
Q

When must a CA issue the final account?

A

Within 3 months of receipt of all information.

39
Q

When must a CA issue the final certificate?

A

Within 28 days of issuing final account or Making Good Defects Certificate to contractor.

40
Q

What is the preferred dispute resolution under a JCT contract?

A

Negotiation > mediation > adjudication > arbitration/litigation.

41
Q

What legislation is there for construction contracts?

A

Construction Contracts Act 2002.

42
Q

What are some provisions within the Housing, Grants Construction and Regeneration Act 1996?

A

Rights to stage payments, adjudication, suspend work for non-payment.

43
Q

What forms of construction warranty are there?

A

Structural (latent defects).
Collateral (extend duty of care to third-party).
Self-build (structural defects in new builds).

44
Q

What forms of sub-contract are there?

A

Lump sum.
D&B.
Time and materials.

45
Q

How can you deal with issues with works if conversations didn’t work?

A

Negotiation, mediation, arbitration, adjudication.

46
Q

When is a Letter of Intent requested?

A

Tight timelines, begin designs while contract negotiated.

47
Q

What are the risks with a Letter of Intent?

A

Can lead to disputes as no contract clearly setting out works.

48
Q

What is a performance bond?

A

Guarantees contractor will perform the works.

49
Q

What is an advanced payment bond?

A

Advanced payment for goods or services.

50
Q

What are the grounds for termination of a contract from the client?

A

CDM breach, contractor corruption.

51
Q

What are the grounds for termination of a contract from the client?

A

CDM breach, client corruption.

52
Q

What would you do if you deemed the contractor’s programme to be unacceptable?

A

Tell them why it’s unacceptable and request a revised programme (there may be contract provisions they need to meet).

53
Q

What is a vesting certificate?

A

An advance payment to secure an order and prevent delays to the programme.

54
Q

Where would you find contract provisions in respect of the LDs rate, insurance matters, payment terms, defects liability period, whether the cost is a fixed lump sum tender etc?

A

Contract and prelims

55
Q

How were you appointed at Windsor Walk?

A

Sent fee quote, competitive tender, appointed via email.

56
Q

What’s the difference between Minor Works and Intermediate contracts?

A

MW up to £250k and simple buildings, IC up to £1m and moderate complexity.

57
Q

How do you select which contract to use?

A

Contract value, complexity, procurement route [JCT guide].

58
Q

What collateral warranties were in place?

A

Heli bars, [floor, windows].

59
Q

How did you deal with payments and variations?

A

Payments: Application for payment from contractor, valuation, interim payment.
Variations: Details of variation works, variation number, issued to contractor.

60
Q

Does the contractor have to accept the variation?

A

No.

61
Q

What if a contractor refuses to undertake the variation works?

A

Check the contract to assess contractor obligations. Could hire third party to complete variation and deduct the cost from the contractor’s payments (if contract allows this).

62
Q

How did you value the variations?

A

Previous jobs, BCIS.

63
Q

How did you ensure competitive/good value costs?

A

Previous jobs, BCIS.

64
Q
A
65
Q

What tighter controls does an Intermediate contract allow for that a MW contract doesn’t?

A

Stricter requirements for reports and progress updates, variations need formal documents.

66
Q

Prior to granting Practical Completion what items should be received?

A

O&Ms, H&S file, building regs sign off, test certificates and more.

67
Q

What are liquidated damages?

A

Compensation for the client when a contractor doesn’t achieve the completion date.

68
Q

What updates have been included in the MW and IC 2024 contract updates?

A

BSA, digital communication, gender neutral language.

69
Q

How would you usually undertake a monthly valuation?

A

Inspect site to view the works progress and allocate a percentage to each element.

70
Q

Windsor walk: what are the additional requirements to meet AD M?

A

Shower should be positioned in the corner of the bathroom, approaches should be sloped.

APC - My Cards - Core (13 decks)

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