Contract Administration/JCT & Procurement Flashcards
1
Q
What is a LAD
A
LAD- Liquidated Ascertained Damages
2
Q
What if the client tells you the LADs are to be £100,000 per week?
A
- Is the LAD figure is based on a genuine pre-estimate of financial loss, this would need to substantiated
- If the figure in the contract is punitive and not a genuine financial loss it is not likely to be enforceable.
- In this scenario the employer will have to pursue the Main Contractor for any actual direct loss that can
be substantiated through a formal dispute resolution procedure.
3
Q
What are extensions of time?
A
- Extensions of time adjust the completion date and relieves the contractor’s liability to pay liquidated
damages for the period of the extension.
4
Q
What are liquidated damages?
A
- A genuine pre-estimate of the likely loss incurred by the employer should the completion date not be
met.
5
Q
What if the employer actually suffered no loss or damage? (LD’s)
A
- It doesn’t matter.
- The damages can still be deducted at the value stated in the contract.
6
Q
What are the benefits of being able to grant an extension of time?
A
- It relieves the contractor’s liability for liquidated damages for a delay that they did not cause.
- It enables another completion date to be set, which maintains the employer’s ability to deduct
liquidated damages if another delay occurs.
7
Q
What must be in place before LDs can be deducted?
A
- A non-completion certificate.
- A withholding notice.
8
Q
What happens when ‘time is at large’?
A
- There is no set completion date.
- The contractor only has the obligation to complete the works in a ‘reasonable time’.
- Liquidated damages cannot be claimed as there is no date to take them from.
- The employer would have to try and prove that the contractor had not completed in a reasonable time.
9
Q
What does Relevant Event mean in a JCT form of Contract?
A
- They are events that entitle the contractor to an extension of time.
10
Q
What are the relevant events?
A
o Variations.
o Instructions.
o Execution of an approx. quantity that is not a reasonably accurate forecast.
o Deferment of possession of the site.
o Suspension by the contractor for non-payment.
o The carrying out of work by statutory authorities.
o Impediment, prevention or default by the employer.
o Loss or damages occasioned by the Specified Perils.
o Exceptionally adverse weather conditions.
o Strike or lock out.
o Civil commotion or terrorism.
o The exercise of any statutory power after the base date by the UK gov.
o Force majeure.
11
Q
What are the main elements you would consider for an interim
valuation?
A
- Preliminaries.
- Measured work.
- Variations.
- Materials on site.
- Materials off site.
- Loss and expense.
- Retention.
12
Q
What needs to be in place for you to include payments for materials on
site?
A
- The materials should be for the works.
- They should be adequately protected.
- Delivered to programme.
- In a reasonable quantity.
13
Q
What needs to be in place for you to include payments for materials
off site?
A
- Proof that ownership will transfer to the employer upon payment (vesting certificate).
- Insurance until materials arrive at site.
- Materials are clearly labelled as for the site and set apart from other materials.
- A materials off site bond has been provided if required.
14
Q
What is a retention of title clause?
A
- Where the sub-contractor or supplier retains ownership of materials until they are paid for by the contractor.
- This highlights the importance of vesting certificates as the employer may subsequently pay for
materials that are not owned by the contractor. - This legal principle can lead to disputes in the event of insolvency.
15
Q
How do you evaluate interim valuations?
A
- Go to site and inspect the works to form a view on the percentage of works undertaken.
- Check for materials on site and materials off site.
- Value time related and fixed preliminaries items undertaken.
- Value any agreed variations and claims.
- The valuation amount is presented as the gross valuation, less previous payment made and retention.
- Finally I would send my recommendation to the Architect or Contract Administrator for them to
prepare the payment certificate.
16
Q
How do stage payments work?
A
- The stages and their values are set out in the contract particulars.
- The stages are usually related to the completion of significant design items for example completion of
the substructure or achieving a water tight structure.
17
Q
What is the interim certificate conclusive of?
A
- Interim certificates are not conclusive.
- They carry no contractual significance to state that the quality of materials or workmanship is
satisfactory. - It is only the final certificate that is conclusive.
18
Q
What is retention?
A
- It is a percentage of each interim certificate deducted and retained by the employer from each interim
payment to the contractor.
19
Q
What is the purpose of retention?
A
- It provides an incentive for the contractor to rectify any defects within the contract defects liability
period. - It provides some financial security to the employer in the event of a contractor default.
20
Q
When is the retention released to the contractor?
A
- Half of the retention is released in the interim certificate after Practical Completion.
- The remaining retention is released in the final certificate after the certificate of making good defects is
issued.
21
Q
What is a typical retention percentage under JCT contracts?
A
- Usually retention is between 3% or 5% depending on the form in use.
22
Q
What is a retention bond?
A
- This is a bond provided by the contractor in lieu of taking retention from interim payments.
- It should be equal to the same value as the retention deducted.
- The requirement for the bond should be stated in the contract particulars.
- A standard form is provided in the JCT contract schedules.
23
Q
What happens if the contractor does not maintain the retention bond?
A
- The employer can deduct retention from interim payments.
- If the bond is subsequently taken out, the retention deducted must be repaid to the contractor.
24
Q
Why might a retention bond be used?
A
- It may be used in difficult market conditions to aid the contractor’s cashflow.
25
What are the disadvantages of a retention bond?
* The employer would have to pay the premium for taking out the bond.
* It may reduce the contractor’s incentive to complete making good defects promptly.
* It reduces the employer’s cashflow.
* The employer would not get the interest accruing on the amount of the retention bond.
26
What are the main forms of JCT contract you know?
Minor works & intermediate with and without Contractors design portion, Design and build.
27
What kinds of works would be included within the contractor’s design portion of a contract and why?
- It is used when the contactor has agreed to design specific parts of the works. They will usually sub-contract the works
whereby a specialist installer or manufacturer is required. Ensures buildability and other factors are taken into account. The contractor is responsible for the procurement and must adhere to the programme.
- Specialist works can include; installation of services, roof replacement etc.
- Takes the liability of the design off the client and design team.
28
What are the responsibilities of a contract administrator
- They are not a party to the contract and therefore must remain impartial at all times. Simply there to administer the contract.
- Chair pre contract meeting.
- Issue contract instructions.
- Deal with payment provisions.
- Manage change procedures – design changes etc.
- Involve with dispute avoidance.
- Issue certificates.
- Deal with completion/possession issues.
29
Explain the valuation process and the responsibilities of a contract administrator for a JC intermediate Contract / JCT Minor works contract?
1. Contractor must issue application for payment no later than the valuation date.
2. Valuation date occurs (stated in contract particulars – will change to closest business day).
3. Due date (date at which the CA values the works) is 7 days after the valuation date.
4. Contract administrator must issue a certificate for payment (interim cert) within 5 days after the due date – the cert = the
amount they deem should be paid at the due date.
5. Final date for payment in standard contract is 14 days from the due date.
6. If the employer intends to withhold any amount from the sum certified, the they must provide written notice of their intention no later than 5 days before the final date for payment.
Note: The contract gives the contractor the right to submit its own payment application - they are not required to and the CA can undertake the valuation without it.
Note: If the CA doesn’t issue a payment certificate within 5 days after the due date, if the contractor issued an application for payment this becomes a payment notice and acts as the cert, otherwise a contractor can send a payment notice to the CA.
30
How does the valuation process differ with regards to the JCT Design and Build Contract?
Essentially the same as the JCT intermediate contract BUT – Due dates can change.
If the contractor submits their application for payment before the valuation date, then the due date is still 7 days from valuation date, but if received after the valuation date then the due date is 7 days from the day of receipt of the AFP.
31
How could an employer take part of a site back quickly?
- By doing sectional completion.
- Early possession – note: when early possession utilised the works or section of are deemed to be at practical completion
regardless.
-Acceleration.
32
What is practical completion? What happens contractually once PC is certified?
There is no definitive definition for the term Practical Completion.
- It is when the works are complete to the satisfaction of the Contract Administrator and the contractor has abided with their duties under the CDM regulations which includes the provision of the H&S file.
- can be considered when a building can be used for its intended purpose and the client could take beneficial occupation.
- The BB guidance on assessing PC states assessment reasonableness and the de minimis principle, that is, certification of PC should not be withheld if there is only minimal defect remaining.
- The CA cannot certify PC where there are outstanding works or patent defects, but they also cannot withhold PC for minor outstanding defects.
HW Nevill (Sunblest) Ltd v William Press & Son Ltd [1981] (the flexible test) – PC will not be prevented where the works have been completed free from patent defects, other than ones to be ignored as diminimus or trifling (very minor in nature).
What is deemed diminmus or trifling will be different for each project / the intended end use – swimming pool analogy.
Once PC is certified:
Start of rectification period.
Liquidated damages cannot be claimed.
Release of half the retention.
Client then claims back possession of the site – insures it etc.
33
What is partial possession?
Mechanism to allow employer to take early possession of a site.
Contract might have provision for sectional completion to allow partial possession.
Effect of partial possession:
Any part of the works which partial possession is given is deemed to achieve practical completion.
Half retention must therefore be released.
Defects liability begin for that part of the works.
Liquidated damages reduce?
Client is responsible for that part of the works and will need to use its own insurances.
Contractor not obliged to give partial possession but can’t unreasonably withhold it.
Contactor may not wish to give partial possession due to occupants / other contractors on the site holding up works – may
lead to an extension of time application.
34
What is the difference between a contract being executed as a deed or underhand?
The Latent Damage Act 1986 stipulates the limitation period of building contract is (period for which a claimant can bring proceedings against a contractor):
6 years from completion for contracts signed underhand.
12 years for those executed as a deed.
The act prevents claimants bringing old cases against contractors and encourages them to do so without delay.
35
What contractual processes need to occur with regards to an extension of time?
The contractor is required to notify the CA whenever it becomes reasonably apparent that the progress of the works or any section of the works is likely to be delayed by a relevant event.
The contractors notification should be in writing and should identify the relevant event that has caused the delay, request that an extension of time should be granted and then provide details and evidence of causation of the relevant event. They should also state whether the delay will impact the completion date and if so the amount of delay anticipated.
Contractually the contractor is also required to mitigate the delay even though it isn’t a result of their actions.
CA then analyses the contractors’ request for extension of time and to determine whether the identified relevant event has indeed caused the delay. If this is found to be the case they must then grant the extension of time and agree a new contractual completion date.
36
What are the two broad groups of relevant events? Give some examples of relevant events
Relevant events caused by the employer / relevant events caused by neutral events.
Relevant events caused by the employer: variations and instructions, delays handing over possession of the site, suspension of the contract due to non-payment.
Relevant events caused by neutral events: Force majeure - act of god (war, natural catastrophes), adverse weather conditions, specified perils (fire, floods), civil commotion (acts of terrorism, strikes etc).
37
What is single stage tendering?
Single stage tendering is a tendering procedure whereby a number of pre-selected contractors submit tenders on a competitive basis.
Each contractor provides a single cost for the whole of the construction works within a predetermined tender period.
Tenders are then analysed in terms of cost and quality before a single contractor is declared the preferred contractor and enters into a building contract with the client.
38
What are the different roles in the JCT suite of Contracts - who can be responsible for administering the contracts?
MW & Intermediate - CA
Design and build - Employers agent -EA
39
Who has the duty of administering the Intermediate contract?
CA
40
Who has the responsibility of administering the D&B contracts
Employers Agent - EA
41
What are the differences between a CA and a EA?
Very similar roles in the main.
- EA relates to design and build, CA relates to SBC (standard building contracts)
- the EA role will typically begin at tender stage, CA will carry out their roll as a EA prior to the commencement of the contract.
- An EA could be appointed at any time prior to the contract and carry out EA roles during tender phase.
- The CA would only begin carrying out their tasks from the point of execution of the contract
42
What are some of the main differences between the intermediate contract (IC) and MW contract? when should one be used over another?
- MW = 7 sections, IC = 9.
- IC = QS administrator option, MW not.
- MW = no provision for named sub-contractor, no provision for bonds (type of guarantee the contractor will complete the work), collateral warranties, and no advance payment provision.
- MW = no provision for sectional completion or partial possession.
- MW = no relevent events listed for EOT, rather 'anything outside the contractors control'.
- Standard ratification period for MW is 3 & for IC 6 Months.
- D&B is administered by a EA rather than a CA.
- standard retention for MW and ICis 5%, D&B is 3%.
- MW = no option for the employer to take out a joint name all risk policy only options A&C.
- IC includes provision for bill of quantities.
43
How do you assess whether PC has been achieved?
- The BB guidance on assessing PC states assessment reasonableness and the de minimis principle, that is, certification of PC should not be withheld if there is only minimal defect remaining.
- BB mentions the term 'Beneficial Occupation' as a method of assessing if PC has been achieved.
- The contractor should have complied sufficiently with the provision of the as-built drawings and compliance with CDM regulations.
44
What needs to occur for an EOT to be entitled?
Relevant event
45
Name some relevent events?
-Instructions
Changes
-Exceptionally adverse weather
-Deferment of the site by employer
-terrorism
- Antiquities
- Specific perils
- unexploded ordinance
- epidemic or government exercising statutory powers
- Force majeure
46
What is a relevent matter, name some?
- relevent matter is an event for which a client is responsible for that materially effects the the progress of the works.
- Faliure to give contractor access to and from the site
- Faliure to give contractor possession of the site
- Delays receiving instructions.
- Disruption caused by works carried out by the client
- Faliure by the client to provide goods or materials.
- CDM issues
-Inaccurate forecasting of works described by approximate quantities
- instructions relating to variation sand expenditure of provisional sums.
47
What is included in an interim payment?
- Measured works
- Preliminaries
- Materials on/off site
- Provisional sums
- Overheads and profits
- Variations
- Retentions
48
What is triggered when PC is issued?
-Half of retention is released = MW & IC: 2.5%
D&B:1.5%
-Client responsible for insuring the building.
49
What guidance is available for practical completion?
RICS Practice standards- Defining Completion of Construction Works, 1st edition
50
What guidance is available for Extension of Time ?
RISC Practice Information - Extension of time
51
What guidance is available for Interim Valuations ?
RISC Practice Information - Interim valuations and Payment
52
What guidance is available for Tendering?
RISC Practice Information - Tendering Strategies
53
What was the Procurement route
Traditional competitive tender from a frame work.
-Design kept separate from construction.
- Lump sum priced
54
What method of tendering
Framework agreement
55
Name some different Tender Routes?
- Open tender, open to any one who meets the qualification criteria.
- Selected tender, pre-drawn shortlist of pre-qualified candidates.
- Negotiated tender, client negotiates directly with a selected supplier. Normally complex jobs where scope needs definition from client and contractor.
- Two-stage tender, 1st phase-qualification submission, 2nd phase chosen short list submit detailed tender.
- Framework Agreement, pool of pre-approved contractors submit proposals/tenders
- Design-Build tender, include both design and construction plan
56
Talk through from beginning to end the process of application for payment
- Payment period established in the contract- monthly, on a % of completion.
- Contractor might submit their application for payment
- At Valuation date the CA visits site to record level of completion.
- Monthly due date is seven days after the 'Interim Valuation date'. within 5 days of this, I issue, to client and Contractor, documents: Payments record, valuation breakdown, Statement of retention, and a valuation certificate.
- Contractor to invoice the Employer
- Payment of the valuation is expected from the client within 14 days of the due dte/receipt of the invoice.
- If required, a 'payless notice' from the employer should be issued no later than 5 days prior to the final date for payment.
57
What Act is pertinent to Interim Valuation and payment process?
The Construction Act 2011
58
How do you determin the value in the interim valuation payment certificate.
- I make an assessment of % of work completed refering to the construction work programme, Priced scope of works and assessment of works completed on site.
In addition I consider the following aspects;
- Measured orks (if any)
- Preliminaries
- Materials on /off site
- Provisional sums
- Overheads and profits
- Variations
Retention
59
How do you value materials store on and off site?
Are they needed and within a reasonable time frame. Are they paid for, if so ownership should be that of the client. Are they safe and protected. Are they proportionate.
If off site are clearly identified to the job and paid for.
60
Where and how are liquidated Damages figures arrived at?
Sums for liquidated damages are calculated based on a realistic loss to the employer for any delay.
these are written in the contract.
61
Oswestry, JCT MW. EOT was this a valid request, how did you determin if it was valid?
I referred to recorded progress and correspondence and meeting minutes that highlighted programme being behind, application for EOT highlighted delays as a result of lead times, and tradesmen leaving the job. However these were not deemed to be beyond the control of the contractor.
62
Valid reasons for an extension of time under JCT MW?
MW = no relevant events listed for EOT, But 'anything outside the contractors' control'. This could be extreme weather conditions, no access to site possible, variations from the client, terrorism, essentially those circumstances listed under relevent events in an IC.
63
What is included in a Tender pack?
-Draft Contract, Schedule of Amendments
-Employers requirements: Drawings and specifications. PCI. Contractors Design portion. Preliminaries.
- pricing document/ scope of works broken down in elements
- Form of tender
- Document register
64
What is in a PCI?
Pre-construction information
The 2015 Construction (Design and Management) Regulations require that construction clients provide pre-construction information as soon as is practicable to every designer and contractor appointed, or being considered for appointment.
The regulations define pre-construction information as 'information in the client’s possession or which is reasonably obtainable by or on behalf of the client, which is relevant to the construction work and is of an appropriate level of detail and proportionate to the risks involved, including information about:
-The project.
-Planning and management of the project.
-Health and safety hazards, including design and construction hazards and how they will be addressed.
-Information in any existing health and safety file'.
The 2007 Regulations Approved Code of Practice suggested that pre-construction information might include:
A description of the project.
Key dates.
Contact details for the project team.
The extent and location of existing information.
Project arrangements:
Planning and managing the construction work.
Communication and liaison.
Security.
Site hoarding.
Site transport.
Permit-to-work systems.
Fire precautions.
Emergency procedures.
Means of escape.
Authorisation requirements.
Confined spaces.
Smoking and parking restrictions.
Safety hazards.
Boundaries and access.
Restrictions on deliveries, waste collection or storage.
Adjacent land uses.
Existing services.
Ground conditions.
Existing structures.
Issues relating to plant and equipment.
Health and safety information in earlier design, construction or ‘as-built’ drawings.
Health hazards.
Asbestos.
Contaminated land.
Client’s activities.
Storage of hazardous materials.
Significant design and construction hazards
Assumptions and working methods.
Arrangements for co-ordination of ongoing design work.
Significant risks identified during design.
Materials requiring particular precautions.
A description of the format of the Health and Safety File and any conditions relating to its content.
65
What is in a PCI? Pre-construction information
CONTENTS
1. INTRODUCTION 5
1.1. Statutory Requirement 5
1.2. Provision & Purpose of Information 5
1.3. Version Control 6
1.4. Executive Summary of Significant / Unusual H&S Related Items 7
2. PROJECT INFORMATION 9
2.1. Project Description 9
2.2. Project Programme 9
2.3. Extent and location of existing records and plans 9
2.4. Project Particulars
3. CLIENT’S MANAGEMENT REQUIREMENTS 12
3.1. Management of the Construction Work 12
3.2. Progress Safety Report 12
3.3. Health and Safety Goals 13
3.4. Communications 13
3.5. Welfare Provision 14
3.6. Security of the Site 14
3.7. Hoarding Requirements and any Additional Security Measures 15
3.8. Fire and Emergency Procedures and Means of Escape 15
3.9. First Aid, Accidents & Incident Procedures 15
3.10. Permits to Work / Authorisation Requirements 17
3.11. Smoking Restrictions
4. MANAGEMENT OF HEALTH AND SAFETY HAZARDS OF THE SITE 17
4.1. Site Boundaries, Access, and Restrictions on Deliveries and Storage 17
4.2. Transport Arrangements and Vehicle Movement Restrictions 22
4.3. Adjacent Land Uses. 22
4.4. Existing Service Locations 22
4.5. Existing Structures 23
4.6. Existing Plant and Equipment 23
4.7. Existing Soils & Ground Water 23
4.8. Location of Unexploded Ordnance 23
4.9. Fire Precautions, Emergency Procedures and Means of Escape
5. HEALTH HAZARDS AND RESTRICTIONS 24
5.1. Asbestos 24
5.2. Existing Structures Containing Hazardous Materials 24
5.3. RCS – Respirable Crystalline Silica 24
OLDHAM COUNCIL
SWALEDALE CLOSE CHILDREN’S HOME
4 5027983
5.4. Health Risks Arising from Client Activities
6. DESIGN AND CONSTRUCTION HAZARDS 25
6.1. Significant Risks Identified During Design 25
6.2. Significant Design Assumptions or Suggested Work Methods Etc 25
6.3. Materials Requiring Particular Precautions 25
6.4. Ongoing Design Work and Design Changes 25
6.5. General Construction Hazards 25
6.6. Scaffolding 26
6.7. Temporary Works 26
6.8. Mobile Towers 27
6.9. Dust 27
6.10. Electrical safety
7. THE HEALTH AND SAFETY FILE
66
What is in the preliminaries?
Preliminaries (or 'prelims') may form part of tender documents used to obtain bids for construction works or for the supply of goods or materials.
- NBS suggest that 'the purpose of preliminaries is to describe the works as a whole, and to specify general conditions and requirements for their execution, including such things as subcontracting, approvals, testing and completion.' Preliminaries and work sections together describe what is required to complete the works required by the contract.
- The Chartered Institute of Building (CIOB) describes preliminaries as: '...the cost of administering a project and providing general plant, site staff, facilities, and site based services and other items not included in the rates.'
Introduction
Contract Documents
The Site / Existing building
Description of the Works
JCT Intermediate Building Contract 2016 Edition with Contractors Design
Subletting/ Supply
Pricing/Submission of Documents
Provision, content and use of documents
Management of the Works
Quality standards/ control
Security/ Safety/ Protection
Specific limitations on method/ sequencing/ timing
Facilities/ Temporary work/ services
Operations/ Maintenance of the finished works
Contractor’s general cost items: Management and staff
Contractor’s general cost items: Site Accommodation
Contractor’s general cost items: Services and facilities
Contractor’s general cost items: Mechanical plant
Contractor’s general cost items: Temporary works
Works/ Products by/ on behalf of the employer
Named subcontractors
Nominated suppliers
67
What is in the schedule of amendments?
What does Schedule of Amendments mean? A set of amendments to a standard form contract whereby the parties set out agreed amendments to the published terms. It must therefore be read in conjunction with the standard form. Any schedule of amendments must be properly incorporated into the contract.
68
How do you process an LD? what has to be in place...
- Certificate of non completion
- Pay less notice (withholding notice)
- NOT IN AN INTERIM VALUATION
The employer (or the party who is owed the damages) will typically deduct the liquidated damages from the next payment due to the breaching party.
This can include deducting from the retention, which is a portion of the contract payment held back until completion.
69
What is a 'vesting cert'
A vesting certificate is a legal document that confirms ownership of goods, plant, or materials will transfer from one party to another upon payment
70
What is the typical agenda at a progress meeting?
Introductions
MINUTES OF THE PREVIOUS MEETING
MATTERS ARISING
progress for example?
CONTRACTOR’S PROGRESS REPORT
CLIENT MATTERS
COMMERCIAL
CDM / HEALTH & SAFETY
STAKEHOLDER MATTERS
ANY OTHER BUSINESS
DATE OF NEXT MEETING
71
What is the typical agenda at a pre start meeting?
1.Introductions
1a. minutes of last meeting
2.Document review and contract matters
-Scope of works
-Form of Contract
-Contract Value
-Programme/key dates
-Handover documents
3.Insurances
-evidence
-client notification to insurers
4.Statutory matters
-Planning
-Building Control
5.Site matters
-Safety
-welfare
-office/compound
-services
-security
6.Health and safety
-CDM roles
-PCI
-Deleterious materials
-H&S/O&M files
7. CA/Finances
-Vals&Certs
-quality inspection and programme review
8. Communication &information required
9. Contractors matters
10.Employer matters
11.AOB
12. Time of next Meeting
72
73
What is the difference between a relevant event and a relevant matter?
Event: Time; EoT. Circumstances beyond the control of contractor.
Matter: Money; employer liable to pay contractor for direct loss of money through circumstances beyond the control of contractor.
74
What is the equivalent role of a CA in an Intermediate / Design and Build contract?
Employers agent; similar to a CA in MW/IC but often involved earlier in a project, possibly assisting with tenders and procurement.
75
How many sections are in the JCT Intermediate Contract?
9
* Definitions and Interpretations
* Carrying out of the works
* Control of the works
* Payment
* Variations
* Indemnity, Damage and Insurance
* Assignment, performance Bonds and Guarantees and Collateral Warranties
* Termination
* Settlement of disputes
76
What is Section 8 of the JCT IC?
Termination; Notice of Termination.
77
What are the reasons for termination by the Employer?
* Default by Contractor
* Insolvency of Contractor
* Corruption and regulation
78
What are the reasons for termination by the Contractor?
* Default by the Employer
* Insolvency of Employer
* Corruption and regulation
79
What are the shared reasons for termination by either Contractor or Employer?
* Force majeure
* Exceptional risk: Civil commotion, threat of terrorism, exercise by the UK government, Public authority
80
What is a variation as defined in Section 5 of the JCT IC?
The alteration or modification of the design, quality or quantity of the work.
* Adds/omits or substitution of any work
* Alteration of materials or standard to be used in the works
81
What matters can change regarding variations?
* Access to site or use of any specified part of the site
* Limitations of working space
* Limitations of working hours
* The execution or completion of the work in any specific order
82
How is the valuation of variations and provisional sum work sanctioned?
All variation valuation to be sanctioned by CA.
83
What rates can be used to determine the value of substituted or additional work of similar character and quality?
Rates and prices set out in the contract documents.
84
What basis can be used for valuing variations that are similar in character but not executed under similar conditions?
Contract rates and prices with inclusion for fair allowance for difference in conditions.
85
How are works valued when they are not similar in character?
Valued at fair rates and prices.
86
What can be used to determine valuation for approximate quantities that are reasonably accurate?
Accurate prices for these can be used.
87
What should be used for approximate quantities that are not reasonably accurate?
The cost price for approx quantities with fair allowance for such different quantities.
88
How can day rates be applied in the valuation process?
Calculated within the 'definition of prime Cost of Daywork...'
