Contract Administration Flashcards
What are the minimum requirements to establish a legally binding contract?
Offer
Acceptance
Consideration
Intention to create legal relations
How is The Housing Grants, Construction and Regeneration Act also commonly known?
Construction Act 1996
What constitutes a construction contract under the Construction Act? Are consultant appointments covered?
The Act applies to all contracts for ‘construction operations’ (as defined in the Act – including construction contracts and consultants’ appointments). If contracts fail to comply with the Act, then the Scheme for Construction Contracts applies.
What happens if a construction contract does not conform to the Construction Act?
The construction Act steps in
There are three types of letters of intent? What are they? Are they legally binding?
There are three types of agreement commonly referred to as letters of intent. They are: comfort letters instructions to proceed with consent to spend and the recognition of the existence of binding contracts.
What are the pitfalls of a LOI
Work should not be allowed to proceed for a material time period under an LOI as it does not provide the certainty of full contract terms, and will not likely afford the parties the necessary degree of protection.
How do novation and assignment differ
Novation transfers your obligations and rights under that contract.
Assignment transfers only your rights and benefits.
What is a pre-construction agreement? When would it be used?
A pre-construction services agreement (PCSA) is used to appoint a design and build contractor to carry out services before entering into a formal building contract.
What are the three types of sub-contract? How do they differ?
Domestic
Nominated - appointed by client
Named - suggested by client
What is a framework agreement? What are the benefits?
Framework agreements often establish clear terms and conditions, ensuring compliance and providing contract stability for suppliers. These standardised agreements minimise disputes and ensure fair treatment for all parties involved.
Why does the industry use collateral warranties?
Collateral warranties are used as a supporting document to a primary contract where an agreement needs to be put in place with a third party outside of the primary contract
What is the role of a clerk of works?
A clerk of works inspects the workmanship, quality and safety of work on construction sites and reports back to senior managers and clients. As a clerk of work, you’d be conducting regular site inspections and checking that building plans are being followed correctly.
What is the role of the client under the CDM Regulations?
Appoint suitably experienced contractors and designers
Allow sufficient time
Provide welfare
PCI
CPP review
H&S file
F10
On what type of projects would you expect to see a contract sum analysis being used?
A Contract Sum Analysis is typically used to provide a fixed price for the carrying out of construction works under a Design and Build Contract.
