Contract Hard Flashcards
What are the timing processes for acceleration under the JCT?
EA request quote, Contractor has 7 days to notify no comply, 21 days to submit quote, Employer has 7 days to confirm acceptance / rejection / more time required
What is employers liability insurance?
Compulsory after employer liability act 1969 by UK statutory. Provides indemnity to an employer for its legal liability to its employees for death / disease or personal injury arising out of their employment. The limit of indemnity provided must be for a minimum amount of £5m in respect of any claim.
What is defects liability insurance / latent defects insurance?
Can be used instead of collateral warranty - costs generally between 0.65 - 2%. Covers event of an inherent design defect, workmanship or materials becoming apparent after PC.
What is subrogation?
The right for the insurer to pursue a third party claim that caused an insurance loss to the insured.
What is the procedure if loss or damage occurs as a result of an insured risk?
Contract notify the architect, valuation to assess damage, contractor rectifies damage.
What is the joint fire code?
Fire prevention on construction sites, Compliance with CDM Regulations, Info on high risk sites. Requirements for storing combustible materials on site.
What are the 4 types of insurance on construction projects?
- All risk
- Professional indemnity
- Employers Liability
- Public Liability
What is all risks insurance?
Insuring the contract works, the site and the materials.
What is the privity of contract?
States that only a party to a contract has the benefit of that contract or is subject to the obligations contained in it.
What is Contra Proferetem?
Where a party modifies a clause, it is their responsibility to make the wording clear & they should lose out if there is any ambiguity.
What is Quantum Merit?
Judicial policy that allows a party to recover losses in the absence of an agreement or binding contract.
What is the scheme for Construction Contracts?
Applies when a construction contract does not comply with the construction act.
What was the Latham Report 1994?
Highlighted the inefficiencies of the construction industry.
What was the Egan Report 1998?
Improving quality & efficiencies in UK construction. Quality driven agenda.
What are the advantages and disadvantages of standard contracts?
ADV: Fair, Rights and obligations clearly set out, saves time and expense
DISADV: Often amended, usually not appropriate for client needs.
What are the advantages and disadvantages of using a bespoke contract?
ADV: Beneficial for major projects with complex nature, specific to employer
DISADV: Often disputes due to ambiguity, expensive and timely to make.
What is tort law?
A tort is a civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits a tortious act.
What is required for a contract?
OACLIC: Offer, Acceptance, Consideration, Legality, Intent, Capacity.
What is a framework agreement?
Carry out work regularly with supply chain & build on relationships.
What are the main provisions for carrying out works under a JCT?
- Definitions
- Carrying out the works
- Controlling of the works
- Payment
- Variations
- Injury damage & Insurance
- Assignment (3rd party rights, CWs)
- Termination and settlement of disputes
How is the JCT contract set out?
ARACACS: Articles of agreement, Recitals, Articles (D&B), Contract particulars, Attestation, Conditions, Schedules.
Where in the contract (SBCXQ) is the EOT?
Notice by contractor for delay: 2.27, Fixing completion date: 2.28.
What methods of delay analysis are there?
- Facts
- Actual vs Planned Progress
- Critical path analysis
- Focused methods analysis
What is the Housing Grants & Construction Regeneration Act 1996 (HGCRA)?
Or called the construction act. Right to be paid in interim payments, right to suspend performance if not paid.
