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Contract Administration > Contract Administration - Flash Cards - L1 > Flashcards

Contract Administration - Flash Cards - L1

1
Q

When would you use a JCT minor works contract?

A

Less complex projects, when detailed control is not required (sectional completion), doesn’t allow for named-sub contractors, valuation of off site materials, list of RE’s & RM’s.

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2
Q

When would you use a JCT intermediate contract?

A

Bridges gap between minor and standard, less complex which require greater contractual provisions.
Allows for named QS, sectional completion, relevant events, relevant matters, named sub-contractors, collateral warranties.

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3
Q

When would you use a JCT standard building contract?

A

Complex or long duration projects where detailed provisions are required.
Allows for Appointment of named specialist, retention bond and mechanisms for third party rights.

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4
Q

When would you use a contractor design portion and why?

A

Allows for specialist works to be undertaken using the knowledge of the contractor, or where it is best place to complete the design of the works when on site.
ER’s will be set in the tender doc, requesting contractor proposals.

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5
Q

How would you review and sign off CDP elements of work?

A

Review proposal against ER’s.

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6
Q

What are the roles & responsibilities of a contract administrator?

A

Pre-contract services - procument, lad calculation, contract type.
Role begins when contract is signed - inspecting works, issuing CAI’s, issuing certificates.

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7
Q

What are the key sections within a JCT contract?

A

1 - Definitions and interpretations.
2 - Carrying out the works
3 - Control of the works
4 - Payment
5 - Variations
6 - Injury, damage & insurance
7 - Assignment, performance bonds & guarantees
8 - Termination
9 - Settlement of disputes

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8
Q

What documents would you include in a tender?

A

ITT, Preliminaries, Employer contract amendments, Example docs i.e. form of contract, collateral warranties, Works specifications, Pricing document, Form of tender, Quality questions

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9
Q

How would you manage a tender process?

A

Confirm selection of contractors (open, selective, single contractor), formal invitation, form of tender, return dates/ opening.

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10
Q

What RICS guidance is available for contract administration?

A

RICS ‘Black Book’ guidance - e.g. change control / interim valuations & payment

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11
Q

What are the key differences between JCT & NEC?

A

JCT: traditional terminology, difficult to understand, uses CAI for change instruction.
NEC: Clear plain English used for flexibility, clarity and simplicity, stimulates good management / collaboration, uses compensation events, programme is a contract document, NEC rolling final account.

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12
Q

What 4 elements make a binding contract?

A

Offer, acceptance, consideration, intention.

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13
Q

What documents are required within a traditional contract?

A

JCT contract, drawings, specifications, SOW, tender clarifications, performance bonds, warranties.

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14
Q

What key considerations are needed when assessing an EOT?

A

Has the critical path been affected, is there programme float, are the delays concurrent.

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15
Q

What is the cut off duration for issuing an EOT?

A

EOT can be issued up to 12 weeks after PC.

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16
Q

What is a relevant event?

A

Detailed under section 2, carrying out the works, items that allow the contractor to obtain an extension of time.

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17
Q

Provide 3 examples of relevant events?

A

Variation / CAI, opening up or testing (where contractor is not in the wrong), where contract drawing SOW show discrepancies, delayed position of the site.

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18
Q

What is a relevant mater?

A

Detailed under section 4, payment, items that allow the contractor to claim loss and expense.

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19
Q

Provide 3 examples of relevant matters?

A

Variation / CAI, in relation to a contract drawing / SOW discrepancy, instruction of undefined PSUMS, instruction to postpone works.

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20
Q

Relevant event Vs relevant matter?

A

RE - delay to completion date cause by client or neutral event. Does not directly entitle the contractor to loss & expense.
RM - matter which causes contractor to incur additional cost, not always linked to a delay.

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21
Q

What is traditional procurement?

A

Where design & construction is separated - design is completed prior to tender for construction.

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22
Q

Traditional procurement advantages & disadvantages?

A

A: design-led, cost certainty, auditable / accountable, well known, competitive fairness.
D: Longer project duration, no design input from contractor, no VE incentive, risk premiums.

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23
Q

What is D&B procurement?

A

Where the contractor takes on the design and build of the project.

24
Q

D&B procurement advantages & disadvantages?

A

A: reduced client risk, integrated, price certainty, reduced project duration.
D: Difficult to produce comprehensive ER’s, client commit to concept design, client looses some control over design.

25
Q

What is single stage tendering?

A

Singe stage tender, RIBA stage 4, returns analyses on cost, quality and time.

26
Q

What is two stage tendering?

A

Used when time is constrained, obtain contractor selection for 2nd stage using first stage quality round.

27
Q

What is negotiated tendering?

A

Single stage, with single contractor, costs negotiated with client professional team.

28
Q

What guidance can be obtained on tendering?

A

JCT Practice Tendering Note 2017 - sets protocol for errors: Alternative 1, correction not permitted, Alternative 2: correction permitted.

29
Q

What are the key JCT 2024 updates?

A
  1. EOT grant duration form 12 to 8 weeks.
  2. Relevant events have broadened including provision for epidemics.
  3. Introduction of new target cost contract.
  4. Building safety implementation - New article for the Building Regs PD role.
  5. Specific provision for electronic communications.
30
Q

What are the contents of a JCT contract?

A

ARACA
Agreement - dates / parties
Recitals - works, tender documents, CDM
Articles - Agreement, contract sum, CA / other parties
Contract particulars - defines project specifics, i.e. start / completion dates
Attestation - area where contract is signed.

31
Q

What are the JCT insurance options?

A

Option A: New builds joint name policy under contractors policy
Option B: New builds joint name policy under the employers policy
Option C: Existing Structures, Requires the employer to take out joint names including the works.

32
Q

What is contractors all risk or contractor work insurance?

A

Contractor insurance covering loss & damage to works and materials. Typically joint names. For refurbishment the employer is required to take out the policy in joint names, extension to existing building insurance.

33
Q

What is PII?

A

Consultant insurance in respect of claims made against them for negligence or breach of contract.

34
Q

What is employer liability insurance?

A

Required by UK Statute
It provides an indemnity to an employer for its legal liability to its employers for death or disease or personal injury arising out of their employment.

35
Q

What is public liability insurance?

A

Covers claims by third parties such as the public or employees from another company.

36
Q

What are fluctuations?

A

Conditions in construction contracts that provide mechanisms for dealing with the effects of inflation.

37
Q

What is the base date?

A

Sets a reference date from which the conditions under which the tender was prepared.

38
Q

What must be considered when requesting partial possession?

A

Insurance, health & safety, logistics.
Contractor not obliged to provide.

39
Q

What is novation?

A

Process by which contractual rights and obligations are transferred from one party to another.

40
Q

What is assignment?

A

Transfer benefits arising under a contract but not the burdens.

41
Q

What is a collateral warranty?

A

A contractual document which provides a contractual link with a third-party to convey rights and obligations of the third-party where they would have not otherwise existed.

42
Q

What is a latent defect?

A

Defects which cannot be discovered by reasonable inspection for example issues with foundations and tanking.

43
Q

What is the standard JCT payment procedure?

A

IVD is 1 month after possession, contractor to submit application within 7 days of IVD, 7 days from IVD is the due date, CA has 5 days from the due date to issue a payment cert, 14 days from the due date for payment, no later than 5 days from final payment date for pay less notice.

44
Q

When are interim valuations allowed?

A

Housing Grants, Construction & Regeneration Act 1996 states that a party to a construction contract in excess of 45 days.

45
Q

What is a specified peril?

A

Fire, explosion, earthquake, flooding.

46
Q

What is contra charging?

A

Where the employer recovers costs from the contractor through the pay less notice.

47
Q

Difference between under hand or deed?

A

Under Hand - 6 years limitation period, signed by 1 authorised representative.
Deed - 12 year limitation period, signed by 2 directors or 1 director and 1 secretary.

48
Q

you also have public sector experience, what governs tendering in the public sector in the UK? What is used to issue public sector tenders?

A

Public Contract Regulation 2015
Find a tender service is used for tending public services over œ138k

49
Q

What guidance does the JCT produce on choosing a contract? What is included?

A

JCT ?Deciding on the appropriate contract?. The document provides a comparison into the types of contract that are offered to assist in decision making for recommendation of the correct contract type.

50
Q

What is the consequence of failing to issue the payment certificate under a JCT SBC?

A

If the CA fails to issue the payment certificate within the 5-day period after the due date, the contractor can raise their invoice for the applied amount.
A pay less notice can be issued to change this amount if it is not agreed with.

51
Q

Can you tell me the timescales for issuing final account under JCT?

A

RICS Black Book on Final Account.
Contractor has 6 months to issue final account information to CA/QS.
3 months form issue the CA must agree final account.
Final certificate must be issued within 2 months.

52
Q

What reasons can a contract be terminated under the JCT?

A

SBC - Section 8 on termination
Insolvency.
By employer: Contractor not reasonably undertaking the works, fails to proceed regularly, refuses or neglects to comply with CA instruction.
By contractor: If the employer does not pay by the final date for payment, fail to comply with CDM regulations.

53
Q

What are the insurance differences between IC and MW?

A

MW:
A: Joint names of works insurance by contractor.
B: Joint names insurance of works and existing structure by Employer.
C: Insurance of works and existing strutures by other means.

IC / SBC:
A: New build in joint names by contractor.
B: New build in joint names by employer.
C: Refurbishment joint names by employer.

54
Q

Key differences between MW / IC?

A

Adjustment of time: IC has full list of RE / RM, MW allows for adjustment of completion date.
Sectional completion: IC allows for sectional, MW does not.
Valuing of off site materials: IC allows for provisions of valuing materials off site, MW does not.
Insurance provisions:
QS: QS can be named in IC, not in MW. CA / Architect deliver contract in MW.

55
Q

Key differences between IC / SBC?

A

Third party rights: SBC allows for third party rights.
Retention bond: SBC allows for use of retention bond.
Variations: SBC has variation quotation procedure.
Acceleration: SBC has acceleration quotation procedure.

Contract Administration (3 decks)

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