Contract Administration - General Flashcards
What does NEC Stand for?
New Engineering Contract
When was the NEC founded?
1993
Under the NEC contract what is the term for the person who acts on behalf of the employer?
Project Manager
How might you describe the NEC contract?
Progressive, Collaborative,
Uses objective language to remove ambiguity i.e 1 in 10 year weather event
What does JCT Stand for?
Joint Contract Tribunal
When was the JCT founded?
1931
Under the JCT Contract what is the term for the person who acts on behalf of the employer?
Contract Administrator
How might you describe the JCT Contract?
Traditional, Adversarial
Uses subjective language such as ‘An exceptionally adverse weather event’
Under the NEC, give some examples of what is required to be included within the programme?
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
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)?
2 Weeks
What may be reasons you could not accept the programme?
The contractors plans are not practicable
Information is not shown which the contract requires
Non-compliance with the works information
What clause of the NEC ECSC is the programme?
31
What clause of the NEC ECSC covers revisions to the programme?
32
Under the NEC ECSC what should be included within a revised programme?
Actual progress and effect on remaining works
Effects of Compensation Events
Plans to deal with delays or notified defects
Whos responsibility is it to notify defects under the NEC ECSC?
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
When is a defects certificate issued under the NEC?
The defects date
After the last defect correction period
How many completion points are there within the NEC?
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
How would you deal with material price increases under the NEC ECSC?
Secondary option clause X1 if included accounts for inflation based on indices applicable to the cause.
Without X1 this is Contractor’s Risk.
What is the defects certificate?
List of defects which the supervisor has notified before the defects date that the contractor has corrected
or a statement there are no defects.
What is the contractor required to provide insurance for under the NEC contract?
- 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
Give some examples of the Employers Risks (in terms of risk and insurance) under the NEC contract?
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
What is a joint names policy?
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.
What is meant by Subrogation rights?
The legal right of an insurance company to recover its loss from a third party.
What is Contract Works Insurance?
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.
