Contract Administration

Question 1

TENDERING

Tell me about the process

Answer 1

1. JCT Practice note 6 to be followed
2. Tenders should be received either at the CA’s or clients Address prior to the given time.
3. Sealed within a pre-written/addressed envelope
4. Must be whiteness by another when opened
5. Tender summary form should be completed and signed by the person that opened them and witness

Question 2

TENDERING

How nay tenders would you go out to and why ?

Answer 2

Depends on the scope of works. Majority of schemes I have dealt with it has been 4

Question 3

TENDERING

What would you include in a tender package ?

Answer 3

• Prelims
• Preamble
• SoW
• H&S Plan
• Tender Summary
• Drawings
• Return Envelope
• Separate pricing sheets
• Letter indicating timescales

Question 4

TENDERING

In what instances would you accept a tender other than the lowest ?

Answer 4

1. Contractor with greater specialist knowledge
2. Capacity to carryout works, possible mistakes made or general uncertainty about a particular contractor

NOTE: Should be mentioned in the invitation to tender

Question 5

What happens at PC ?

Answer 5

• No LD’s
• Documents given: H&S File, O&M (operation and Maintenance) Manuals, Record Drawings
• Start of Rectification Period

Question 6

JCT- Why was IC selected for this project ?

Answer 6

• The works were simple in nature (could if used MW contract too)
• Loss and Expense expressly provided for (not on MV)
• Section completion
• No relevant events in MW Contract
• Where provisions are required to cover named specialises
• No need for IC (with contractor design) the works were simple and clear

Question 7

JCT- What was the length of the rectification period and why was this length chosen?

Answer 7

• 6 months

- Retention at 5% at interim payments and 2.5% at final payment (after Rectification Period)

Question 8

JCT- How did you determine that the rain was ‘exceptionally adverse’

Answer 8

• Can be hard, must be worse that average
• MET Office average weather records
• Site photos

Question 9

What is 6.5.1 Insurance ?

This insurance enables claims for non-negligent injury or damage to the property. so insurance in joint and issued to both names.

Three options (a), (c), & (c) ?

Answer 9

Option A- which is where the Contractor takes out and maintains joint names all risk insurance of the works.

Option B- Which is where the Employer take out and maintains the joint names all risks insurance of the works

Option C- Which is the only option referring to renovations and involving existing structure. This is where the Employer takes out and maintains a join name all risk insurance of the works and the policy also insures the existing structure and contents against specified perils’

Question 10

Tell me about Section 7: Performance Bonds, Guarantees, Collateral Warranties and Third Party Rights ?

Answer 10

Performance Bonds and Warranties (from the a bank or parent company) - used as surety should contractor go bust. Must be requested in the contractual particulars.

Question 11

Tell me about Section 7: Performance Bonds, Guarantees, Collateral Warranties and Third Party Rights ?

Answer 11

Performance Bonds and Warranties (from the a bank or parent company) - used as surety should contractor go bust. Must be requested in the contractual particulars.

Collateral Warranties is a separate contract formed in order to create a contractual liability that would not exist otherwise.