Contract admin Flashcards
What’s the difference between Minor Works and Intermediate contracts?
MW up to £250k and simple buildings.
IC up to £1m and moderate complexity, Clerk of Works, Sectional Completion.
How do you select which contract to use?
Contract value, complexity, JCT guide.
What documents are included within contract documents?
Spec, drawings, payment terms, [prelims, preambles].
What is the purpose of prelims and preambles?
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).
Who are the parties on the contract?
Employer, contractor, consultants.
What are some key contract events?
Payment, PC, Final Certificate.
What are collateral warranties?
An agreement where a third party is covered despite not being part of the original contract.
What’s the difference between Sectional Completion and Partial Possession?
Sectional Completion is pre-planned.
Partial Possesion is not pre-planned.
What information is provided within a CPP?
Project description, site rules, emergency procedures etc.
Can you tell me some different types of procurement?
Traditional (client team).
Design and Build.
Management contracting: manages design and works but doesn’t complete works directly (Quinn on Windsor Walk).
What information goes into a PCIP?
Fire procedures, emergency procedures, building information.
Is the Contractor’s Design Portion optional?
Yes.
What’s the alternative to including contractor’s design in a contract?
It could be designed entirely by the client’s side.
What specification would be used for a project designed entirely by the client’s side?
Prescriptive specification.
What informaiton is included when appointing a consultant?
Works, costs, timeline.
What is a novation agreement (substituted contract)?
When one party replaces another and takes on the rights and obligations.
What are the timelines for Interim Valuations?
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).
What is the base date?
Date from which fluctuations will apply i.e. inflation rises will be borne by contractor from this point. Typically date of tender returns.
What is the process when a contractor submits an EOT claim?
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.
What is the difference between a Relevant Event and Relevant Matter?
Relevant Event: EOT – caused by client or neutral event.
Relevant Matter: money (no time extension) – caused by client.
What is the purpose of Loss and Expense?
To reimburse the contractor for loss suffered in continuing to work.
Client only required to pay for actual loss.
When can an employer claim for Liquidated Damages?
When the contractor fails to meet the completion date.
How are Liquidated Damages paid?
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.
What is time at large?
No PC date. Contractor no longer bound to complete works by a specific date.
What is Practical Completion?
All works in the contract are complete.
What is the process for Practical Completion?
Inspection > works complete/snagging list > test certificates > O&M manuals > BCA sign off > issue PC certificate.
What does Practical Completion signify?
Start of rectification period (3 months MW, 6-12 months Intermediate), half of retention released, contractor’s liability for LDs ends.
What must be issued for Liquidated Damages to apply?
Non-Completion Certificate (except for Minor Works contracts).
What action must you take for a contractor who must pay Liquidated Damages?
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.
Who has responsibility for a property in early use/possession?
Liability remains with the contractor (unlike partial possession where risk moves onto the client).
What is retention?
Money held back from the contractor as insurance.
Explain the process of retention getting released?
Half released at PC, half released after Making Good Certificate issued.
When do you require snagging to be complete by?
Most items by PC, all by the Making Good Certificate date.
What is a final account?
Document that details the final cost of the contract. Includes variations, loss and expense, provisional sums etc.
When must a contractor provide all necessary information to the CA?
Within 6 months of PC date.
When must a CA issue the final account?
Within 3 months of receipt of all information.
When must a CA issue the final certificate?
Within 28 days of issuing final account or Making Good Defects Certificate to contractor.
What is the preferred dispute resolution under a JCT contract?
Negotiation > mediation > adjudication > arbitration/litigation.
What legislation is there for construction contracts?
Construction Contracts Act 2002.
What are some provisions within the Housing, Grants Construction and Regeneration Act 1996?
Rights to stage payments, adjudication, suspend work for non-payment.
What forms of construction warranty are there?
Structural (latent defects).
Collateral (extend duty of care to third-party).
Self-build (structural defects in new builds).
What forms of sub-contract are there?
Lump sum.
D&B.
Time and materials.
How can you deal with issues with works if conversations didn’t work?
Negotiation, mediation, arbitration, adjudication.
When is a Letter of Intent requested?
Tight timelines, begin designs while contract negotiated.
What are the risks with a Letter of Intent?
Can lead to disputes as no contract clearly setting out works.
What is a performance bond?
Guarantees contractor will perform the works.
What is an advanced payment bond?
Advanced payment for goods or services.
What are the grounds for termination of a contract from the client?
CDM breach, contractor corruption.
What are the grounds for termination of a contract from the client?
CDM breach, client corruption.
What would you do if you deemed the contractor’s programme to be unacceptable?
Tell them why it’s unacceptable and request a revised programme (there may be contract provisions they need to meet).
What is a vesting certificate?
An advance payment to secure an order and prevent delays to the programme.
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?
Contract and prelims
How were you appointed at Windsor Walk?
Sent fee quote, competitive tender, appointed via email.
What’s the difference between Minor Works and Intermediate contracts?
MW up to £250k and simple buildings, IC up to £1m and moderate complexity.
How do you select which contract to use?
Contract value, complexity, procurement route [JCT guide].
What collateral warranties were in place?
Heli bars, [floor, windows].
How did you deal with payments and variations?
Payments: Application for payment from contractor, valuation, interim payment.
Variations: Details of variation works, variation number, issued to contractor.
Does the contractor have to accept the variation?
No.
What if a contractor refuses to undertake the variation works?
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).
How did you value the variations?
Previous jobs, BCIS.
How did you ensure competitive/good value costs?
Previous jobs, BCIS.
What tighter controls does an Intermediate contract allow for that a MW contract doesn’t?
Stricter requirements for reports and progress updates, variations need formal documents.
Prior to granting Practical Completion what items should be received?
O&Ms, H&S file, building regs sign off, test certificates and more.
What are liquidated damages?
Compensation for the client when a contractor doesn’t achieve the completion date.
What updates have been included in the MW and IC 2024 contract updates?
BSA, digital communication, gender neutral language.
How would you usually undertake a monthly valuation?
Inspect site to view the works progress and allocate a percentage to each element.
Windsor walk: what are the additional requirements to meet AD M?
Shower should be positioned in the corner of the bathroom, approaches should be sloped.
What are the limitation periods for contracts executed under hand and under seal?
Under hand: 6 years.
Under seal (deed): 12 years.
When is an F10 notification required?
- 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.
When must an F10 be submitted and who by?
- Prior to works commencing.
- The client, but they may delegate this to the Principal Designer (CDM).
