Contract Practice Flashcards
Under JCT Standard what are the roles?
Employer = Payer
Contractor = Payee
Contract Administrator = Certifier
QS = Valuer
Under JCT D&B what are the roles?
Employer = Payer
Contractor = Payee
Employers Agent = Certifier
Under NEC 3 What are the roles
Employer = Payer
Contractor = Payee
Project Manager = Certifier
When was JCT Last updated?
2016
Name 5 types of JCT Contracts
JCT Standard Building Contract (with & without quantities, with & without CDP) JCT Design and Build JCT Intermediate JCT Minor Works JCT Major Construction Works
What are the key differences with regards to valuations and interim payments between D&B and Standard Contracts?
- No QS offically listed under D&B
- Certifier is known as Employers Agent under D&B, but Contract Administrator under standard
- Under Standard the contractor must submit interim application no later than 7 days before the due date, under D&B they can submit anytime up to due date
What is total payment cycle under JCT D&B?
14 Days
What is total payment cycle under JCT Standard?
21 Days
Name 2 bits of legislation that influenced the interim payment structure and payment dates?
Housing Grants, Construction and Regeneration Act 1996
Local Democracy, Economic Development and Construction act 2009
What did HGCRA State?
- Any project over 45 days is entitled to interim payments
- Payments are to be done by either valuing works to date or stage payments
- Stated that party cannot just withhold monies without relevant notice being issued.
What did LDEDCA state?
- gave payee right to suspend due to late payement
- removed existing barriers to adjudication
- Made all written and verbal contracts subject to the act
- Payee allowed to issue payment notice if Certifier fails to do so within 5 days of due date
- Payment notices have to include build up
- Pay less notice
- Made it possible for sum due to be zero.
Name the changes between JCT 2011 - 2016
- Now a set date each month for valuation as oppose to ‘monthly’
- Interim valuations are to occur monthly even after PC but in 2011 it was 2 monthly after PC
- Inclusion of CDM Regulations 2015
- Inclusion of Public Contracts Regulations 2015 and right to fair pay.
- Any assessment of Loss / Expense must not be done within 28 days of receipt of 14 days from any update, 2011 there was no time limit
- Client is now employer
To make a contract you must have:
- Offer
- Acceptance
- Consideration
- Capacity
- Legality
- Intent
What is a contract?
A legally binding agreement to carry out a service / provide goods that can be upheld in the court of law
What are the different sections of JCT Contracts?
- Recitals
- Articles
- Contract Particulars
- Attestation
- Conditions
- Schedules
What are the 6 types of NEC contracts
- Priced contract - with activity schedule
- Priced contract - with BoQ
- Target Contract - with activity schedule
- Target Contract - with BoQ
- Cost reimbursable
- Management
What are some of the key changes with NEC 4
- Includes contractors proposals
- employer is now known a the client
- Consensual dispute is added - 4 week negotiation period
- Contractor can now claim for producing quotes that are not instructed
- Works information is now called scope
Name some of the NEC X clauses
X1 - Price adjustment for inflation
X7 - Delay Damages
X16 - Retention
Name NEC Y Clauses
Y1 - Project bank account
Y2 - Housing grants, construction and regeneration act 1996
Y3 - Contract act 1999
What are FIDIC Contracts
International Federation of Consultant Engineers
Name the 4 types of FIDIC Contracts
Red Book - Employers Design
Yellow Book - Design and Builds
Silver Book - Turnkey
Gold Book - Design, Build and operate
What is Novation?
Transferring the rights of one party to another party.