Contract Administration Flashcards
What is your understanding of latent defects and what contractual issues are associated with them
Latent defects are defects which occur to the building after it is complete and often don’t become apparent for quite some time. The defects period is either 6 or 12 years depending on how the contract is signed.
What is the Contractor deemed to have allowed for a defined provisional Sum
The contractor shall make an appropriate cost allowance and make suitable allowance for the works in their programme and preliminaries.
What is the Contractor deemed to have allowed for a undefined provisional sum
Due to insufficient detail, the contractor is not relied upon to have made appropriate programme allowance or preliminary allowance, therefore additional cost is likely applicable.
How are Provisional Sums dealt with at the final account
The provisional sum is omitted and the actual cost added back
What does NEC stand for
New Engineering Contract
What are the main parts of the JCT Contract
- Recitals
- Articles
- Contract particulars
- Attestation (Signatures)
- Conditions divided into 9 sections
- Schedules
What is a bespoke Contract
A bespoke contract is a legally drafted document which is specific to the parties and projects requirements
What are the advantages of standard form of Contract
Experts - Written by legal experts
Familiarity - Parties should be familiar with the provisions which forms greater consistency
Rights and obligations - clearly set out for each party
What are the disadvantages of the standard form of contract
- They may not be appropriate for the needs or a particular client or projects
- Using the incorrect form of contract will cancel out any disadvantages.
When would you use a bespoke contract over a standard form
used for major projects with novel obligations
When specialist advisors can make the amendments as it requires great skill and knowledge
How are provisional sums dealt with at final accont
The actual cost for the works is included and the provisional sum is omitted.
What are the types of dispute resolution on JCT contract
Negotiation: parties engage in a informal discussion and negotiations to reach a mutual resolution without involving a third party.
Adjudication: A statutory process that provides a quick, private, 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 partis in finding a mutually agreeable solution
Arbitration: A formal process where an independent arbitrator or panel hears the dispute and issues a binding enforcable 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 judgement. 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 the change
- Notification
- Assessment
- Cost and Time implications
- Approval
- Implementation
Issuance of CAI
management of variations to the works - Can you instruct a variation without a formal CAI
Key Points of SBC clause 3.12
Definitions of variations: This clause constitutes to what is a variation, including the changes to 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 the 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 a project.
Documents: All variations must be documented to maintain clear records for both parties.
