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.
  • Prelims.
  • Preambles, [payment terms].
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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.
    [IVD, LD rate, completion date].
  • 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
  • IVD.
  • PC.
  • Final Certificate [ends contractor’s obligations (except for latent defects)].
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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 and what legislation states a CPP is required?

A

Project overview, emergency procedures, site rules.
CDM Regulations 2015.

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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 information goes into a PCIP?

A

Site conditions, project overview, fire procedures, emergency procedures.

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12
Q

Is the Contractor’s Design Portion optional?

A

Yes.

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13
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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14
Q

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

A

Prescriptive specification.

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15
Q

What informaiton is included when appointing a consultant?

A

Works, costs, timeline.

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16
Q

What is a novation agreement?

A

When one party replaces another and takes on the rights and obligations.
[Substituted contract].

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17
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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18
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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19
Q

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

A

1) Notice received from contractor for delay stating Relevant Event.
2) Assessment by CA ‘as soon as reasonably practical’ is best practice (within 12 weeks of notice otherwise).
3) Accept/reject claim, Loss and expense claim based on prelims.

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20
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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21
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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22
Q

When can an employer claim for Liquidated Damages?
Does the client need to suffer actual loss to be abe to claim them?

A

When the contractor fails to meet the completion date.
- No, if contractor misses completion date they can claim LDs.

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23
Q

How are Liquidated Damages paid?

A

Request payment or from monies due [to the contractor].
[Contractor required to pay rate pre-determined in the contract. Calculated as loss e.g. loss of rent.]

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24
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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25
Q

What is Practical Completion?

A

All works in the contract are complete.

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26
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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27
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.
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28
Q

What must be issued for Liquidated Damages to apply?

A

Non-Completion Certificate (not required for Minor Works contracts but good practice).

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29
Q

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

A

Give the contractor notice that for the period of delay they will have to pay damages at the rate stated in the contract.

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30
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).

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31
Q

What is retention?

A

Money held back from the contractor as insurance.

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32
Q

Explain the process of retention getting released?

A

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

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33
Q

When do you require snagging to be complete by?

A

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

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34
Q

What is a final account?

A

Document stating the final cost of the contract (states how much the employer pays the contractor).
[Includes variations, loss and expense, provisional sums etc.]

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35
Q

When must a contractor provide all necessary information to the CA once works are complete?

A

Within 6 months of PC date.

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36
Q

When must a CA issue the final account?

A

Within 3 months of receipt of all information.

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37
Q

When must a CA issue the final certificate?

A

Within 28 days of issuing:
- Final account.
- Or Making Good Defects Certificate to contractor.

38
Q

What is the preferred dispute resolution under a JCT contract?

A

Mediation > adjudication > arbitration/litigation.

39
Q

What legislation is there for construction contracts?

A

Construction Contracts Act 2002.

40
Q

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

A
  • Stage payments (Interim Payment Certificates).
  • Adjudication.
    [- Suspend work for non-payment.]
41
Q

What forms of construction warranty are there?

A

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

42
Q

What forms of sub-contract are there?

A

Lump sum.
D&B.
Time and materials.

43
Q

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

A

ADR: Mediation, arbitration, adjudication.

44
Q

When is a Letter of Intent requested?

A

Tight timelines, begin designs while contract negotiated.

45
Q

What are the risks with a Letter of Intent?

A

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

46
Q

What is a performance bond?

A

Guarantees contractor will perform the works.

47
Q

What is an advanced payment bond?

A

Advanced payment for goods or services.

48
Q

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

A

CDM breach, contractor corruption.

49
Q

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

A

CDM breach, client corruption.

50
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).

51
Q

What is a vesting certificate?

A

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

52
Q

Where would you find 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.
  • Prelims.
53
Q

How were you appointed at Windsor Walk?

A
  • Sent fee quote.
  • Competitive single stage tender.
  • Appointed - sent terms of engagement to client.
54
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.

55
Q

How do you select which contract to use?

A

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

56
Q

What collateral warranties were in place at Windsor Walk?

A

Heli bars.
[Floor and windows undertaken as part of the works contracted to the client not as a separate contract with a third party as it is with collateral warranties].

57
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.

58
Q

Does the contractor have to accept the variation?

59
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).
60
Q

How did you value the variations?

A
  • Tendered the works (to one other contractor).
  • Previous jobs.
  • BCIS.
61
Q

How did you ensure competitive/good value costs?

A

Previous jobs, BCIS.

62
Q

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

A

Variations need formal documents, stricter requirements for reports and progress updates.

63
Q

Prior to granting Practical Completion what items should be received?

A
  • O&Ms.
  • H&S file.
  • Building regs sign off.
  • Test certificates.
  • Drawings.
    [- Warranties and guarantees.]
64
Q

What are liquidated damages?

A

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

65
Q

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

A

BSA, digital communication, gender neutral language.

66
Q

How would you usually undertake a monthly valuation?

A

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

67
Q

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

A

Approaches should be sloped, shower should be positioned in the corner of the bathroom.

68
Q

What are the limitation periods for contracts executed under hand and under seal?

A

Under hand: 6 years.
Under seal (deed): 12 years.

69
Q

What projects are F10 notifications required on?

A
  • When a project lasts longer than 30 working days and has 20+ workers on site at the same time.
  • Exceeds 500 person-days of construction work in total.
70
Q

When must an F10 be submitted and who by?

A
  • Prior to works commencing.
  • The client, but they may delegate this to the Principal Designer (CDM).
71
Q

What is the difference between the final account and a final certificate?

A
  • Final account: final cost of the contract - amount employer owes the contractor.
    [variations, provisional sums, Loss and Expense].
  • Final certificate: confirmation that the contract is complete.
    [ends contractor’s obligations (except for latent defects)].
72
Q

How did the contractor claim EOT and Loss and Expenses when you used a Minor Works contract?

A
  • There is an EOT provision in the contract.
  • I included a Loss and Expense provision as a contract amendment [contractor’s prelims rate].
73
Q

What is the significance of an interim valuation date in a construction contract?

A
  • It’s the date when work is valued and payment is made to the contractor around that date.
  • Determines when the contractor submits application for payment (must be submitted by the IVD - CA would issue payment cert based on their valuation if no application for payment was made).
    [Regular payments ensures good cash flow]
74
Q

Under a JCT Minor Works or Intermediate Contract, when must the contract administrator carry out an interim valuation?

A
  • In MW and IC valuations must be undertaken after IVD.
  • MW: Within 5 days after IVD; IC: Within 7 days after IVD.
  • Due date: 7 days after IVD.
  • These timeframes ensure compliance with Housing Grants, Construction and Regeneration Act 1996.
75
Q

What is the purpose of an EOT?

A

Protects the contractor from liquidated damages for late completion.

76
Q

What is an NEC contract?
When is this most used?

A
  • New Engineering Contract.
  • Used mainly for engineering projects.
77
Q

On Campden Hill Towers, how did you determine what the additional fees should be?

A
  • Calculated based on 1 surveyor’s daily rate x number of extra days worked on the instruction.
78
Q

At Windsor Walk, what did you advise the client regarding their obligations under Control of Asbestos Regulations (CAR) 2012?

A
  • Identify if asbestos is present (R&D survey).
  • Assess the risk.
  • Manage asbestos (remove if found).
79
Q

On Windsor Walk you say you advised the client of the significance of Practical Completion and its impact on them. What was the impact on the client?

A
  • Half retention release to contractor.
  • Review costs before agreeing final account [final account agreed after rectification period to include all costs].
  • Start of rectification period.
80
Q

10 Old Bond Street: How was sectional completion dealt with on the project?

A
  • Sections set up.
  • Set up key events for each section: completion dates, LDs, retention, rectification period etc.
  • Each phase of works is treated separetly (sectional completion certificate, retention, rectification period).
  • Separate certificates and timelines as if they were separate projects.
81
Q

What different types of tenders are there?

A
  • Selective (contractors selected to provide tender).
  • Open (anyone can tender).
  • Negotiated (one contractor - price negotiated with client).
82
Q

Contract admin - Windsor Walk:
- Details of instruction (service, spec, contract value/claim amount etc)?
- Issues encountered?

A
  • Project.
  • £243k.
  • Requested LDs amount from contractor to include in prelims.
  • Contractor claimed for liquid roof repairs but was in the spec.
  • Advised how project completion affected client - retention release, prepare final account.
83
Q

Contract admin - 10 Old Bond Street:
- Details of instruction (service, spec, contract value/claim amount etc)?
- Issues encountered?

A
  • Project.
  • £186k.
  • Sectional Completion to roof. Elevations next part of the works.
84
Q

10 Old Bond Steet: Why was it more beneficial to have the contractor to produce the designs for the scaffolding?

A
  • Not competent to design scaffold.
  • Would have to go to another party to get this which is less efficient.
85
Q

10 Old Bond Street: Talk me through how you went about implementing the Sectional Completion provision within the contract.

A
  • Treat each section as a separate project.
  • Separate PC, retention release, rectification period.
86
Q

What’s in the recitals of a JCT contract?

A
  • Parties on the contract.
  • Payment terms (e.g. lump sum price).
  • Description of works.
87
Q

What’s in the contract particulars of a JCT contract?

A
  • Parties on the contract.
  • Payment terms.
  • ADR.
88
Q

What is included in the Form of Tender?

A
  • Cost (tender sum).
  • Expiry of tender sum.
  • Acknowledgement of tender docs.
  • Signatures.
89
Q

What is included in the Invitation to Tender?

A
  • Scope of Works.
  • Tender return date.
  • Building details (size, location, type).
90
Q

10 Old Bond Street: Why did you include the scaffolding design in the contractor’s design portion - isn’t this assumed to be the contractor’s responsibility already in the contract?
How did you ensure their designs were correct?

A
  • Designs were complex - different levels in different areas of the building.
  • Included in spec that contractor had to get these signed off by competent third party.
  • Checked spec (tall enough, right location etc).
91
Q

What are the changes in JCT contract from the 2016 suite to the new 2024?

A
  • PD (BSA) and PC (principal contractor) [sets out who they are].
  • Gender neutral language.
  • Electronic issue of notices.