Contract Administration - General

Question 1

What does NEC Stand for?

Answer 1

New Engineering Contract

Question 2

When was the NEC founded?

Answer 2

1993

Question 3

Under the NEC contract what is the term for the person who acts on behalf of the employer?

Answer 3

Project Manager

Question 4

How might you describe the NEC contract?

Answer 4

Progressive, Collaborative,

Uses objective language to remove ambiguity i.e 1 in 10 year weather event

Question 5

What does JCT Stand for?

Answer 5

Joint Contract Tribunal

Question 6

When was the JCT founded?

Answer 6

1931

Question 7

Under the JCT Contract what is the term for the person who acts on behalf of the employer?

Answer 7

Contract Administrator

Question 7

How might you describe the JCT Contract?

Answer 7

Traditional, Adversarial

Uses subjective language such as ‘An exceptionally adverse weather event’

Question 8

Under the NEC, give some examples of what is required to be included within the programme?

Answer 8

Start date, access date, key dates and completion date

How they plan to achieve works i.e resources

The order and timing of the works

Provision of float, time risk allowances

Question 9

How long does the project manager get to accept the programme (or notify the contractor they are not accepting the programme and reasons for not)?

Answer 9

2 Weeks

Question 10

What may be reasons you could not accept the programme?

Answer 10

The contractors plans are not practicable

Information is not shown which the contract requires

Non-compliance with the works information

Question 11

What clause of the NEC ECSC is the programme?

Answer 11

31

Question 12

What clause of the NEC ECSC covers revisions to the programme?

Answer 12

32

Question 13

Under the NEC ECSC what should be included within a revised programme?

Answer 13

Actual progress and effect on remaining works

Effects of Compensation Events

Plans to deal with delays or notified defects

Question 14

Whos responsibility is it to notify defects under the NEC ECSC?

Answer 14

Both the contractor and the supervisor

The contractor corrects a defect whether or not the supervisor notifies him of it

The supervisor can instruct the contractor to search for a defect under clause 42

Question 15

When is a defects certificate issued under the NEC?

Answer 15

The defects date

After the last defect correction period

Question 16

How many completion points are there within the NEC?

Answer 16

Take-over, completion

If applicable sectional completion.

Terry said
I would not class issue of defects certificate as a completion “of the works” category but non-other than defects making good certificate

Question 17

How would you deal with material price increases under the NEC ECSC?

Answer 17

Secondary option clause X1 if included accounts for inflation based on indices applicable to the cause.

Without X1 this is Contractor’s Risk.

Question 18

What is the defects certificate?

Answer 18

List of defects which the supervisor has notified before the defects date that the contractor has corrected

or a statement there are no defects.

Question 19

What is the contractor required to provide insurance for under the NEC contract?

Answer 19

• Employers Liability Insurance
• Public Liability Insurance
• Contractors All Risk Insurance
• Professional Indemnity Insurance
• May have Joint Names Insurance

Loss or damage to the works, plant and materials - The replacement cost including the amount stated for the replacement of plant and materials provided by the employer

Loss or damage to Equipment - The Replacement Cost

Liability for loss or damage to the property and liability for bodily injury to or death of a person caused by an activity in connection with the contract. - The amount stated in the contract for any one event with cross liability so that the insurance applies to the parties separately.

Liability for death or bodily injury to employees of the contractor arising from actions in connection with this contract - The greater of the amount required by law and the amount stated in the contract data

Question 20

Give some examples of the Employers Risks (in terms of risk and insurance) under the NEC contract?

Answer 20

Loss of or wear or damage to the works and any equipment plant and materials retained on site by the employer.

Loss or damage to works, plant and materials as a result of war, rebellion, revolution etc

Additional risks stated in the contract data

Question 21

What is a joint names policy?

Answer 21

Insurance for construction contracts. It is held between the employer and contractor.

The key feature of the policy is that the insured parties are unable to claim against one another in respect of insured loss, as they are considered to be one-and-the-same for the purposes of the insurance.

Question 22

What is meant by Subrogation rights?

Answer 22

The legal right of an insurance company to recover its loss from a third party.

Question 23

What is Contract Works Insurance?

Answer 23

It is an insurance for contractors, designed to cover work that’s underway on a site. It can pay to repair or redo the work that’s in progress if it’s damaged by an insured event like fire, flood, storm, vandalism or theft.

If you were building an extension to a property and there was a fire to the existing house, the insurance would only cover the extension.