Brainscape's Knowledge GenomeTM

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


See full index

AC Building Surveying > Contract Administration > Flashcards

Contract Administration Flashcards

1
Q

Explain the valuation process and the responsibilities of a contract administrator for a JCT intermediate Contract / JCT Minor works contract?

A
  1. The contractor issues application for payment no later than the valuation date.
  2. Valuation date occurs. The date is defined in the contractor particulars.
  3. The CA values the work on the due Date. The due Date is 7 days after the valuation date.
  4. Under 21 day payment terms, Final date for payment in standard contract is 14 days from the due date.
  5. The CA must issue a certificate for payment (interim cert) within 5 days after the due date.
  6. If the employer intends to withhold any amount from the sum certified, a pay less notice of their intentions must be provided no later than 5 days before the final date for payment.

Note: The contract gives the contractor the right to submit its own payment application - they are not required to and the CA can undertake the valuation without it.

Note: If the CA doesn’t issue a payment certificate within 5 days after the due date, if the contractor issued an application for payment this becomes a payment notice and acts as the cert, otherwise a contractor can send a payment notice to the CA.

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

What are the main forms of JCT contract you know?

A

JCT Intermediate Building Contract, 2016 (+with contractor’s design portion).

JCT Minor Works Building Contract 2016 (+with contractor’s design portion).

JCT Design and Build.

Management Building Contract 2016.

Measured Term Contract 2016.

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

What kinds of works would be included within the contractor’s design portion of a contract and why?

A

Sections of work that the contractor has agreed to design and take on design liability.

Usually items which the designer or client is not willing or unable to design themselves.

Contractor is responsible for the procurement and programme provisions.

Usually performed by specialist subcontractors.

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

What are the responsibilities of a contract administrator

A

They are not a party to the contract and therefore must remain impartial at all times.

Simply there to administer the contract.

Chair pre contract meeting.

Issue contract instructions.

Deal with payment provisions.

Manage change procedures – design changes etc.

Involve with dispute avoidance.

Issue certificates.

Deal with completion / possession issues.

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

How does the valuation process differ with regards to the JCT Design and Build Contract?

A

Essentially the same as the JCT intermediate contract BUT – Due dates can change.

If the contractor submits their application for payment before the valuation date, then the due date is still 7 days from valuation
date, but if received after the valuation date then the due date is 7 days from the day of receipt of the AFP.

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

How could an employer take part of a site back quickly?

A

By doing sectional completion.

Early possession – note: when early possession utilised the works or
section of are deemed to be at practical completion regardless.

Acceleration.

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

What is practical completion? What happens contractually once PC is certified?

A

Practical completion is when the works is deemed to be practically complete by the CA. This is at the digression of the CA.

For PC to be issued the contractor must have abided with their duties under CDM regs.

PC can be withheld for outstanding work or defects.

PC cannot be withheld for minor defects or snagging items.

Once PC is certified:

Start of rectification period.
Liquidated damages cannot be claimed.
Release of half the retention.
Client then claims back possession of the site – insures it etc.

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

What is partial possession?

A

Mechanism to allow employer to take early possession of a site.

Contract might have provision for sectional completion to allow partial possession.

Work on this section must be Practically complete.

Same occurrences as PC: defects liability begins, client to insure, retention partly released etc.

Contractor not obliged to give partial possession but can’t unreasonably withhold it.

Contactor may not wish to give partial possession due to occupants / other contractors on the site holding up works – may
lead to an extension of time application.

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

What is the difference between a contract being executed as a deed or underhand?

A

The Latent Damage Act 1986 stipulates the limitation period of building contract is (period for which a claimant can bring proceedings against a contractor):

6 years from completion for contracts signed underhand.

12 years for those executed as a deed.

The act prevents claimants bringing old cases against contractors and encourages them to do so without delay.

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

What contractual processes need to occur with regards to an extension of time?

A
  1. The contractor notifies the CA in writing to specify the relevant events that has caused the delay and request an extension of time.
  2. Details and evidence of causation of the relevant event.
  3. They should also state if this relevant event will impact the completion date and if so, the amount of delay anticipated.
  4. CA to assess the EoT and determines whether the identified relevant event has caused a delay. If so, the EoT must be granted and agree a new contractual completion date.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are the two broad groups of relevant events? Give some examples of relevant events

A

Relevant events caused by the employer / relevant events caused by neutral events.

Relevant events caused by the employer:
1. variations and instructions
2. delays handing over possession of the site
3. suspension of the contract due to non-payment.

Relevant events caused by neutral events:
1. Force majeure,
2. adverse weather conditions,
3. specified perils (fire, floods),
4. civil commotion (acts of terrorism, strikes etc).

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

What is single stage tendering?

A

In a competitive basis, the contractors submit one single cost for the works.

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

What are the advantages of single stage tendering?

A
  1. Design is already defined by formulated at tender stage.
  2. The contractor assumes responsibility and financial risk to construct the works within a pre-contractually confirmed contract sum and period.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

When would traditional procurement appropriate?

A

1.When the design is defined at contractor selection.

  1. The client wishes to retain control over the design and specification.
  2. When cost certainty is required.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What forms of contract might you use with traditional procurement?

A

JCT Minor Works, 2016.
JCT Intermediate

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

What are the advantages of traditional procurement?

A
  1. Competitive fairness and transparent process
  2. Design Led
  3. Price Certainty
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are the disadvantages of Traditional Procurement?

A
  1. It can increase overall project duration
  2. Reduced buildability within the design as contractor has had no input.
  3. Client responsible for design and construction
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is included within a tender report?

A
  1. Details of the tenders received; figures and the contractors selected.
  2. Any cost qualifications
  3. Any adjustments in line with The JCT Tendering Practice Note 2017.
  4. Comparison of tender sums and a recommendation of instruction.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are the key contractual procedures have to occur to enable an employer to claim liquidated damages?

A
  1. Part or full non completion of the contractual work.
  2. CA to issue a certificate of non completion notifying the contractor in writing that the employer in tends to claim liquidated damages.
  3. This can either be payment from the contractor or deducting them from the sim of money owed to the contractor.

Note: If the employer wants the deduct the liquidated damages from sums owed to the contractor then a pay less notice is required to
ensure compliance with the Housing Grants, Construction and Regeneration Act 1996.

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

What is procurement?

A

The overall act of obtaining goods and services from external sources (for example a building contractor) and includes decision making with regards to how the goods are to be acquired by reviewing a client’s requirements (i.e time, quality and cost). and their attitude to risk.

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

What is tendering?

A

Forms part of procurement.

Contractor bidding process for work

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

What is two-stage tendering?

A

First Stage tender enquiry to preselected contractors at RIBA stage 2 / 3 (concept design and spatial coordination) .

Contractors submit costs for their prelims, proposed sub letting of work to subcontractors and their OH&P

The preferred contractor is selected and joins the design team on a pre-construction services agreement.

The design is worked up with the contractor and a bid is presented for the works.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is negotiated tender?

A
  1. One contractor prices the work as a whole.
  2. The contractor undertakes the work for an agreed cost subject to variations.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What are the advantages and disadvantages of single-stage tendering? When would you utilise single stage tendering?

A

Advantages:

  1. Only approved contractors are approached.
  2. Lump sum for the works

Disadvantages:

  1. Full design has to be defined prior to tender
  2. May result in a longer design period prior to tender.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What are the advantages and disadvantages of two-stage tendering?

A

Advantages:

  1. Contractor can contribute to the design. Increased buildability
  2. The contractor can commence works before the design is complete.

Disadvantages:

  1. Hard to replace the contractor after second stage.
  2. Risk of increased cost if second stage needs retendering with a different contractor.
  3. Second stage is not a competitive tender.
26
Q

When would you use two-stage tendering?

A

Two-stage tendering is suitable for:

  1. Projects that are complex (require contractor’s input on design).
  2. When programme length is important.
  3. The magnitude of the works are yet unknown.
27
Q

What are the advantages and disadvantages of negotiated tendering?

A

Advantages:

  1. Judgement of the Surveyor to appoint a reputable contractor.
  2. Greater certainty of cost and quality.
  3. Saving on time and money without a tender process.

Disadvantages:

  1. No competitive tender scenario.
  2. Chance of

Lack of competitive tendering may increase the cost for the works.
Negotiation process needs to be structured and controlled otherwise there could be adversity between the parties before works have even commenced.

You would usually utilise negotiated tendering when overall programme length is a priority over cost and whereby the client wants to replicate the quality of a project that the contractor has delivered before.

28
Q

When would you utilise negotiated tendering?

A

When overall programme length is a priority over cost.

29
Q

What are the main procurement routes?

A

Traditional.

Design and build (single and two stage).

Management Contracting.

Construction Management.

Framework agreements.

Partnering.

30
Q

What is design and build procurement?

A

The contractor is responsible for the design, planning organisation, control and construction of the works to the employer’s requirements.

31
Q

When would you utilise design and build procurement? What contract would you use?

A
  1. When the client needs to make an early on site without a developed design.
  2. Client minimise risk in relation to the design and works.
  3. Contractor input required due to complexity
  4. Client does not want or doesn’t care about design.

The JCT Design and Build, 2016 contract would be used.

32
Q

What is management contracting?

A
  1. Procurement option whereby the client employs a management contractor to contribute to design and manage the works.
  2. The management contractor has direct contractual links with all of the works contractors.
  3. Responsible for all the contractors works.
  4. Management contractor breaks the works down into packages and selects contractors through competitive open book tenders.
  5. The client is responsible for payment of all the works packages and the payment of the management contractor.

The client then then reimburses the cost of the works packages to the management contractor in addition to their fee.

33
Q

When would you utilise management contracting? What contract would you use?

A
  1. The client values an early start and overall project length over cost.
  2. The works are extensive.
  3. The works are complicated.

I would use the JCT Management Contract, 2016.

34
Q

What are the advantages and disadvantages of design and build?

A

Advantages:

  1. Single point of responsibility for design and construction.
  2. Earlier commencement.
  3. Promotes innovation in design. Can lead to cheaper and faster construction.

Disadvantages:

  1. Hard for the client to prepare a comprehensive brief.
  2. Harder to compare tenders as contractors are not pricing the same work items.
  3. May emphasise quickness of construction over quality.
35
Q

What are the advantages and disadvantages of the construction management procurement route?

A

Advantages:

  1. Construction manager can be appointed early to develop design.
  2. Shortened duration where design and planning overlap.
  3. Offers flexibility in design.
  4. Cost of work packages mage by lower due to direct contracts.

Disadvantages:

  1. Client needs to manage various contacts
  2. Skilled based selection of construction manager and based on cost of tender.
  3. The price of the works is not confirmed until the last package of works has been let.
36
Q

What is management contracting?

A

Design team prepares a project drawing. A management contractor is employed. Their role is to appoint contractors to perform the work undertaken in packages.

37
Q

What is construction Management

A

Where a construction manager joins the design team to advise on the work. The CM is appointed on a negotiated fee. Their role is to supervise he plan of works. Contractors are appointed and paid by the client.

38
Q

What is the Latham Report

A

Published in 1994, Michael Latham was commissioned by the UK Government to review procurement and contractual arrangements.

39
Q

What were the findings of the Latham Report?

A

It industry inefficiencies, condemning existing industry practices as ‘adversarial’, ‘ineffective’, ‘fragmented’, ‘incapable of delivering for its clients’ and ‘lacking respect for its employees’.

40
Q
  1. What were the recommendations of the Lathem Report?
A

Some include:

The government should commit itself to being a best practice client.

The responsibilities for building services design should be clearly defined.

Adjudication should be the normal form of dispute resolution.

41
Q

What were the effects of the Latham Report

A

NEC contracts were produced.

42
Q

What are normal retention levels for a Minor works Contract.

A

5% during the contract dropping to 2.5% during the defects liability period.

43
Q

What is the retention amount during a standard works contract.

A

Can be 3 & 1.5%

44
Q

What insurance would a contractor be require before commencing work on site?

A

Professional Indemnity, Public Liability and Employers Liability.

45
Q

What are the insurance provisions in a JCT contract.

A
  • Option A - the contractor takes out a joint names policy for all risks insurance with cover for the full reinstatement value.
  • Option B – the employer takes out a joint names policy for all risks insurance with cover for the full reinstatement value.
  • Option C - the employer takes out and maintains insurance in respect of the existing structures and their contents and a joint names policy for all risks insurance with cover for the full reinstatement value.
46
Q

What is insurance clause 5.4 in a JCT contract

A

Option A - the contractor takes out a joint names policy for all risks insurance with cover for the full reinstatement value.

47
Q

What is insurance clause 5.5 in a JCT contract

A

Option B – the employer takes out a joint names policy for all risks insurance with cover for the full reinstatement value.

48
Q

What is insurance clause 5.6 in a JCT contract

A

Option C - the employer takes out and maintains insurance in respect of the existing structures and their contents and a joint names policy for all risks insurance with cover for the full reinstatement value.

49
Q

What is a collateral warranty

A

A collateral warranty is a contract under which a party involved in the works warrants to a third party beneficiary that it has fulfilled its obligations under its underlying building contract, subcontract or professional appointment (referred to as underlying contract in this article).

50
Q
  1. Under JCT IC, what collateral warranties may a principal contractor provide?
A

It is usual for a principal contractor to provide collateral warranties for subcontractors they intend to use that will have an element of design responsibility. Also under IC / SBC, the contract requests for collateral warranties to be provided by the contractor to the purchasers, tenants, funders as well as the employer.

51
Q

What is the extension of time procedure.

A

Contractor to provide the CA with written notice of the conditions / Events that have caused delay.

CA to decide if the time delay is a relevant event.

The CA must as soon as is reasonably practicable and within 12 weeks of receipt let the contractor know the decision.

If so, the CA must provide and extension of time and revise the completion date.

52
Q

What is a relevant event

A

An event that is caused to the contractor NOT BY THE CONTRACTOR that impacts the completion date. They enable for the contractor to claim for an extension of time. a

53
Q

What are some examples of relevant events?

A

Client Variations

Adverse weather

Force Majeure

The supply of materials and goods from the client

54
Q

What is a relevant matter?

A

A matter that the client is responsible for that materially effects the progress of work. The contractor can claim direct loss and or expense.

55
Q

What are some examples of relevant matters

A

Instructions relating to variations and expenditure of prov sums

Failure to give the contractor possession and or access to and from the site.

Delays in receiving instructions.

Issues relating to CDM.

56
Q
A
57
Q
A
58
Q

JCT Contract provision 5.4

A

Joint names insurance of the works by contractor

59
Q

JCC contract provision 5.5

A

Joint names insurance of the work and existing structures by the employer 

60
Q

Jct contract provision 5.6

A

Insurance of the works and existing structures by other means 

61
Q

What are the main parts of a JCT minor Work contract?

A

The agreement (recitals)
Conditions
Schedules (schedule one arbitration, scheduled two fluctuations and schedule three supplemental provisions)


AC Building Surveying (4 decks)

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