Contract Administration – terms used

Question 1

Practical Completion: (1 mark)

a) Falls at the end of the Contract Period, including any extensions of time

b) Falls at the end of the contract Period, including any extensions of time,
and when all the works are fully completed

c) Falls at the end of the contract Period, including any extensions of time,
and when all the works are fully completed, except for minor defects
and omissions and agreed deferred works

d) Falls at the end of the contract Period, including any extensions of time,
and when all the works are fully completed, except for minor defects
and omissions and agreed deferred works and the client has moved
into the building

Answer 1

c) Falls at the end of the contract Period, including any extensions of time,
and when all the works are fully completed, except for minor defects
and omissions and agreed deferred works

Question 2

Retentions: (1 mark)

a) Are monies collected at each Progress Payment to ensure all defects
are corrected after Practical Completion is awarded

b) Are monies collected at each Progress Payment to ensure all defects
are corrected prior to Practical Completion being awarded

c) Are monies collected at each Progress Payment to ensure all defects
are corrected after the Defects Liability Period

d) Are monies collected at each Progress Payment up to Practical
Completion when they are all returned to the Contractor if there are no
defects

Answer 2

a) Are monies collected at each Progress Payment to ensure all defects
are corrected after Practical Completion is awarded

Question 3

Payment for off-site materials can be made under the contract: (1 mark)

a) Only if written into the specific conditions that this is allowable

b) Only if the materials are being delivered to site within the next month

c) Only if written into the specific conditions that this is allowable and they
will be delivered to site within the next month

d) Only if written into the specific conditions that this is allowable and there
is a good reason why this should happen as there is potential risk for
the Principal

Answer 3

d) Only if written into the specific conditions that this is allowable and there
is a good reason why this should happen as there is potential risk for
the Principal

Question 4

A Provisional Sum written into the contract documents at the time of
tender:
(1 mark)

a) Places monetary amounts into the budget for a particular item and it
includes all the Contractor’s costs, expenses and profits

b) Places monetary amounts into the contract for the contractor to carry
out a specific item including installation and it includes all the
Contractor’s costs and profits

c) Places monetary amounts into the contract for materials to be delivered
to site for a specific item and it includes an allowance for the
Contractor’s costs and profits

d) Places monetary amounts into the contract for materials to be delivered
to site for a specific item and it does not include an allowance for the
Contractor’s costs and profits

Answer 4

a) Places monetary amounts into the budget for a particular item and it
includes all the Contractor’s costs, expenses and profits

Question 5

The Client can move into the project only when the following occurs: (1 mark)

a) Practical Completion has occurred and the contractor gives permission
for the client to occupy the building

b) Practical Completion has occurred
c) Practical Completion has not occurred but the contractor gives
permission for the client to occupy the building

d) Practical Completion has not occurred but the contractor gives
permission for the client to occupy the building, or Practical Completion
has been granted by the Architect

Answer 5

d) Practical Completion has not occurred but the contractor gives
permission for the client to occupy the building, or Practical Completion
has been granted by the Architect

Question 6

Under the SCC Contract, in the event of a dispute arising, the following
procedures are available:
(1 mark)

a) Mediation which can be challenged, and then Arbitration is entered into,
which is binding

b) The Architect makes a ruling that can be challenged, and then
Mediation is entered into, which can also be challenged, leaving
Arbitration as the binding decision-making process

c) The Architect makes a ruling that can be challenged, and then
Mediation is entered into, which is binding

d) The Architect makes a ruling that is binding

Answer 6

b) The Architect makes a ruling that can be challenged, and then
Mediation is entered into, which can also be challenged, leaving
Arbitration as the binding decision-making proc

Question 7

The Defects Liability Stage ends when: (1 mark)

a) The minor defects are all corrected and omissions completed

b) At the end of the stated time in the contract for the Defects Liability
Period and when all the minor defects are corrected and omissions are
completed

c) At the end of the stated time in the contract for the Defects Liability
Period and when all the minor defects are corrected

d) At the end of the stated time in the contract for the Defects Liability
Period

Answer 7

b) At the end of the stated time in the contract for the Defects Liability
Period and when all the minor defects are corrected and omissions are
completed

Question 8

Payment for off-site materials can be made under the contract: (1 mark)

a) Only if written into the specific conditions that this is allowable

b) Only if the materials are being delivered to site within the next month

c) Only if written into the specific conditions that this is allowable and they
will be delivered to site within the next month

d) Only if written into the specific conditions that this is allowable and there
is a good reason why this should happen as there is potential risk for
the Principal

Answer 8

d) Only if written into the specific conditions that this is allowable and there
is a good reason why this should happen as there is potential risk for
the Principal

Question 9

A Variation to the Contract:
(1 mark)

a) Can be made by the Architect at any time prior to the end of the Defects
Liability Period

b) Can be made by the Architect at any time prior to the awarding of
Practical Completion if the Contractor has requested this

c) Can be made by the Architect at any time prior to the awarding of
Practical Completion irrespective of whether or not the Contractor
claims them

d) Can be made by the Architect at any time prior to the end of the Defects
Liability Period irrespective of whether or not the Contractor claims
them

Answer 9

c) Can be made by the Architect at any time prior to the awarding of
Practical Completion irrespective of whether or not the Contractor
claims them

Question 10

The setting out of the project works on site is the responsibility of: (1 mark)

a) The Architect
b) The Principal
c) The Project Manager
d) The Contractor

Answer 10

d) The Contractor

Question 11

An ‘Extension of Time’ to the contract: (1 mark)

a) Can be made by the Architect at any time before the end of the Defects
Liability Period

b) Can be made by the Architect at any time before the agreement of the
Final Account

c) Can be made by the Architect at any time before the awarding of
Practical Completion irrespective of whether or not the Contractor claims
an extension

d) Can be made by the Architect at any time before the end of the Defects
Liability Period, irrespective of whether or not the Contractor claims an
extension

Answer 11

c) Can be made by the Architect at any time before the awarding of
Practical Completion irrespective of whether or not the Contractor claims
an extension

Question 12

A ‘Prime Cost Sum’ written into the contract documents at the time of
tender: (1 mark)

a) Is a Monetary Allowance that does not include installation costs, just the
Contractor’s costs and profit of purchase and supply to site of materials

b) Is a Monetary Allowance that includes the Contractor’s costs and profit
for supply and installation of specified parts of the contract works

c) Is a Monetary Allowance that includes the Contractor’s costs for supply
and installation of specified parts of the contract works excluding the
Contractor’s profit

d) Is a Monetary Allowance that does not include installation costs, just the
Contractor’s costs of purchase and supply to site of materials, excluding
the Contractor’s profit

Answer 12

a) Is a Monetary Allowance that does not include installation costs, just the
Contractor’s costs and profit of purchase and supply to site of materials

Question 13

Payment for off-site materials can be made under the contract: (1 mark)

a) Only if written into the specific conditions that this is allowable

b) Only if the materials are being delivered to the site within the next month

c) Only if written into the specific conditions that this is allowable and they
will be delivered to the site within the next month

d) Only if written into the specific conditions that this is allowable and there
is a good reason why this should happen as there is a potential risk for
the Principal

Answer 13

d) Only if written into the specific conditions that this is allowable and there
is a good reason why this should happen as there is a potential risk for
the Principal