Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

RICS APC PM > Contract administration > Flashcards

Contract administration Flashcards

1
Q

What type of Contracts are available to projects? (Types not suites and sub derivatives)

A

Standard
Amendment to standard forms
Bespoke

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a contract?

A

An offer to carry out goods or services and an acceptance in exchange for payment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is TORT?

A

Body of law that provides remedies for civil wrongs that no not arise out of Contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Duty of Care

A

OBLIGATION under TORT to apply a REASONABLE STANDARD OF CARE when carrying out actions that may harm others

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Reasonable skill and care

A

In absence of express term, implied OBLIGATION within DESIGN APPOINTMENT that they will use REASONABLE SKILL AND CARE in design obligations.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What suites of contracts are you aware of?

A

JCT - Joint Contracts Tribunal
NEC - New Engineering Contract
FIDIC - International Engineers Federation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Tell me some forms in the JCT Suite

A

Minor works contract
Intermediate contract
Standard contract
Design & Build contract
CM Trade contract
Prime Cost contract
Management contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Difference between a Contract Administrator and Employers Agent?

A

They essentially perform the same role though the title differs under the Standard Building Contract (CA) and Design & Build form (EA)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Essential responsibility for a CA?

A

To be impartial

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Tell me some forms of notices and instructions under the JCT?

A

Payment Notice
Instruction (CAI or EAI)
Practical Completion Certificate
Certificate of Making Good

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Talk me through a change control process.

A

Change request form is raised (CRF)
Contractor to price / programme within specified timescale (to best ability)
Client team to review assessment of change
CA to instruct or close change on agreement with client team.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

How are contracts executed and what liability applies.

A

Underhand - 6 years.
Deed - 12 years.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is a defects liability period.

A

Typically a period of 1 year post completion whereby the Contractor must rectify defects arising from non conformance with the contract works in respect of materials or workmanship at their own cost.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are latent defects?

A

They are defects that are not able to be identified until much later. The Employer can make a claim in line with the contract liability period (6yrs or 12 yrs)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is a provisional sum?

A

An allowance of money and programme contained within the contract for works / design that is not yet fully defined.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What types of provisional sums are there?

A

Defined - Contractor deemed to have allowed for cost and programme.

Undefined - Contractor can seek additional time and cost.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are the risks of provisional sums?

A

Actual cost and time exceeds the allowance included in the contract due to change in scope since the tender to instruction.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What does LOI stand for?

A

Letter of Intent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What can an LOI be used for?

A

To facilitate works to commence and allow the parties to the contract more time to agree final negotiations.

It is an indication of an intention to enter contract although this is not always fully enforceable.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are the conditions for a contract?

A

An OFFER
An ACCEPTANCE
A CONSIDERATION (by both parties)
INTENTION to form contract
CAPACITY to make agreement
CONSENT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Tell me some common contract documents

A

Contract terms and any amendments
Preliminaries & preconstruction information
Employers Requirements (If D&B)
Pricing document (BoQs or CSA)
Contractors Proposals (If D&B)
Design information
Site surveys / information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Tell me the various forms of the standard building contract under JCT

A

Standard with Quantities
Standard without Quantities
Standard with approximate Quantities

23
Q

When would you use a Minor Works contract?

A

RICS guidelines state up to a value of £200k
But work must be of simple nature
It is not suitable for bills of quantities

24
Q

When would you use a JCT intermediate

A

For a programme of work up to 1 year
For projects simple in scope
Where all works are already designed

25
Q

Use of the Standard building contract with quantities

A

Where design has been completed and quantities are known. (bills exist)
It is a lump sum form, contractor takes risk on price. Employer will remedy contractor for errors in quantities.

26
Q

Use of the Standard building contract without quantities?

A

Where design has been completed but quantities are unknown.
Contractor will take risk on price and quants allowance.

27
Q

Use of Design and Build?

A

In contracts where a single point of design and construction responsibility is desired.
Contractors proposals form basis of offer.

28
Q

Use of JCT Construction Management Trade Contract?

A

Where Construction Management Procurement route is selected.
Where an earlier start on site date is desired.
Construction Manager responsible only for managing the works and programme.
Trades contract directly with the Employer.

29
Q

What is a bespoke contract?

A

A set of contract conditions drafted specifically for a project.

30
Q

Why are bespoke contracts generally avoided?

A

They are costly to prepare.
They do not benefit from established case law as with standard forms.
They could give rise to ambiguity, leading to disputes.

31
Q

What are the benefits of a standard form?

A

Written by legal experts.
Risks allocated fairly.
Case law exists.

32
Q

What are the disadvantages to a standard form?

A

They may not capture the specific needs of a project or client.
They are commonly used and therefore risk is assumed and not always understood.

33
Q

What can you do to tailor a standard form contract.

A

A legal advisor may prepare a schedule of amendments.
Generally these relate to clauses surrounding defects periods, payment provisions and relevant matters / events.

34
Q

What is an Extension of Time?

A

An extension of time resets the contractual completion date due to a delay on the project arising through no fault of the contractor.

35
Q

Does an Extension of Time always generate a claim for Loss and Expense?

A

No - If it is a relevant event such as exceptionally adverse weather.
Yes - If it is a relevant matter such as a denial of possession of site.

36
Q

Relevant Events are?

A

Time no money. Such as exceptionally adverse weather, statutory undertakers, variations.

37
Q

Relevant Matters are?

A

Time and Money (L&E) such as failure to give possession, failure to provide instruction, Opening up work later found to be in accordance with contract

38
Q

Please give me the parts of the JCT (6 parts)

A
  1. Recitals
  2. Articles
  3. Contract Particulars
  4. Attestation `
  5. Conditions (9 sections)
  6. Schedules
39
Q

Sections of the JCT (9 total)

A
  1. Definition and interpretation
  2. Carrying out of works
  3. Control of works
  4. Payment
  5. Variations
  6. Injury, damage and insurance
  7. Assignment
  8. Third Party and Collateral Warranties
  9. Termination and settlement of disputes
40
Q

Relevant legislation to contract admin?

A

Construction act 1996. Fairer payment conditions. Improved cashflow. Faster dispute resolution process.

41
Q

What are Employers Requirements?

A

Define what the Employer wants from the Elements the Contractor is to design

42
Q

Contractors Proposals

A

Are the response to the Employers Requirements and are the basis of the offer in a D&B contract

43
Q

What must contractor provide before PC

A

All contractors design
Operational and Maintenance Manuals
As builts of all CDP elements

44
Q

What is an extension of time?

A

An adjustment to the completion date arising from a delay which is not the contractor fault.
Protects the contractor from liability of damages until the revised completion date.
Allows the Employer to reset the completion date and preserve right to claim damages if this is missed.

45
Q

What are liquidated damages?

A

A GENUINE assessment of loss for the employer should the contractual completion dates not be met.

46
Q

What must be in place to seek damages?

A

A non completion notice. Withholding Notice .

47
Q

What if Employer suffers no damage?

A

It does not matter. The Employer is able to recover the damages as agreed in the Contract.

48
Q

When is retention released?

A

Half at PC with the other half released at the issue of the notice of making good of Defects

49
Q

What is vesting ?

A

When making advance payments for materials a ‘vesting certificate’ may be issued so that when payment is made, this becomes the clients property.

50
Q

What are the risks with vesting?

A

if contractor becomes insolvent and items have been paid for but not delivered.

51
Q

Contractors obligations in vesting?

A

Must be properly identifiable, separately stored, insured and free from encumbrances.

52
Q

Can any materials be vested?

A

Materials where vesting is to be applied must be explicitly agreed and named in the contract prior to execution.

53
Q

Are there alternatives to retention?

A

Yes a retention bond can be taken out, improving contractors cashflow.

54
Q

What is the typical amount of retention?

A

3 or 5%

RICS APC PM (25 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions