Contract Administration Flashcards
What is your understanding of latent defects and what
contractual issues are associated with them?
- Latent defects are defects which only come to fruition some time after building completion and may take many years to become
identifiable. - A claim in contract can only be brought about within the limitation period of the contract, 6 or 12 years depending on whether the contract was executed as a deed or underhand.
What is the contractor deemed to have allowed on the
inclusion of a defined provisional sum?
- They are deemed to have made proper allowances for carrying out the work in their programme and preliminaries.
What is the contractor deemed to have allowed for with undefined provisional sums?
- Expenditure of the undefined provisional sum may carry additional costs for programme or preliminaries as a result of carrying out the works.
How are provisional sums dealt with in the final account?
- The provisional sums included in the contract are omitted and the actual amount added.
What does NEC stand for?
- New Engineering Contract.
What are the main parts of the JCT contracts?
- Recitals.
- Articles.
- Contract Particulars.
- Attestation.
- Conditions divided into 9 sections
- Schedules.
What is a bespoke contract?
- Contract conditions that are drafted specifically for a particular project.
What are the advantages of standard forms of contract?
- Experts - They are written by legal experts.
- Familiarity - Parties should be familiar with the provisions in the form providing greater consistency.
- Rights and obligations - Clearly set out for each party.
What the disadvantages of standard forms of contract?
- They may not be appropriate to the needs of a particular project or client.
- Using an inappropriate standard form for the project will cancel out any advantages
When would use a bespoke contract rather than a standard form?
- They should generally be used for major projects with novel obligations.
- When specialist advisors can undertake the amendments as this requires great skill and knowledge.
What are the types of dispute resolution in JCT contracts?
Negotiation: Parties engage in informal discussions and negotiations to reach a mutual resolution without involving a third party.
Adjudication: A statutory process that provides a quick and interim resolution to disputes. An adjudicator, usually an industry expert, makes a binding decision on the dispute.
Mediation: A neutral third party, called a mediator, helps facilitate discussions and assists the parties in finding a mutually agreeable solution.
Arbitration: A formal process where an independent arbitrator or panel hears the dispute and issues a binding and enforceable decision known as an award.
Litigation: If all other methods fail, parties can take the dispute to court, where a judge or jury issues a judgment. Litigation is a formal and public process, often more time-consuming and expensive than alternative methods.
What is the change control procedure under the standard building contract?
- Identification of Change
- Notification
- Assessment
- Cost and Time Implications
- Approval
- Implementation
IN.A.CAI
Management of variations to the works - Can you instruct a variations without a formal CAI?
Key Points of SBC Clause 3.12
Definition of Variations: This clause defines what constitutes a variation, including changes to the quality, quantity, or nature of the works.
Instructions for Variations: It outlines that the contractor must carry out variations when instructed by the Contract Administrator (CA).
Valuation of Variations: The clause specifies how variations will be valued. This may involve assessing the impact on cost and time.
Notification: The contractor must notify the CA of any circumstances affecting the variation, ensuring proper communication.
Time Implications: It includes provisions for assessing how variations may affect the completion date of the project.
Documentation: All variations must be documented to maintain a clear record for both parties.
