Contract practice Flashcards
1
Q
What are the varying types of forms of contract available in the market place?
A
- *•** Lump sum contract – where the contract sum is known before works starts on site and the contractor agrees to undertake a defined amount of work for a specific amount. This type of contact is often based on firm bill of quantities and drawings.
- *• Measurement contracts** – where the contract is assessed and remeasured as on previously agreed basis. This type of contract can be based on approximate bill of quantities and drawings.
- *• Cost reimbursement contracts** – where a contractor is reimbursed on the basis of the prime cost of labour materials and plant plus an agreed percentage addition to cover overheads and profits.
- *• Design and build** - where the contractor both designs and builds a project
- *• Management contracts** – a management contractor managing the works although the contractor does not actually carry out any works.
- *• Target Cost -** A target cost contract is a type of cost reimbursable contract under which the contractor is paid the ‘actual cost’ against the target cost and then savings or cost overruns are shared based on an agreed mechanism.
2
Q
When would design and build be used in comparison to a traditional form of contract?
A
- Where there is a need to make an early start on site – can overlap design and construction
- Where the client wishes to minimise their risk – no responsibility for design
- For technically complex projects which can benefit from the contractor’s expertise
- Where the employer does not want to retain full control over the design development
3
Q
What are the benefits of Design & Build?
A
- Single point of responsibility for design and construction
- Earlier commencement on site
- Early price certainty
- Benefit of contractor’s experience harnessed during design
4
Q
What are the disadvantages of using this form? (Design and build)
A
- Client may find it hard to prepare a sufficiently comprehensive brief
- Client has to commit to a concept design early
- Variations from the original brief can be difficult to arrange and expensive
- Harder to compare tenders and determine if they offer value for money
- Ease of fabrication may be prioritised above aesthetic quality
5
Q
How do you deal with assignation clauses?
A
- An assignment transfers the benefit of a contract from one party to another, but only the benefit, not the burden.
- Assignment is a right created by statute, Section 136 of The Law of Property Act 1925 or by the law of equity;
- Whilst not a contractual right, the right to assign can be excluded, or restricted, by contract, for example, it is common in collateral warranties to restrict to one assignment without the written permission of the warrantor.
- In contrast, a novation will transfer both the benefit and the burden of a contract from one party to another. A novation creates a new contractual relationship - a ‘new’ contract is entered into.
6
Q
What types of Damages are you aware of?
A
- Liquidated dames which are pre-determined damages set at the time that a contract is entered into, based on a calculation of the actual loss the client is likely to incur if the contractor fails to meet the completion date. They may include rent on temporary accommodation, removal cost, extra running cost
- Unliquidated damages are damages that are payable for a breach of contract, the exact amount of which has not been pre-agreed. The advantage of unliquidated damages is that it allows for the recovery of losses that may have been impossible to foresee or to estimate with any certainty before the breach.
7
Q
What types of bonds are available for construction projects?
A
- A performance bond is commonly used as a means of insuring a client against the risk of a contractor failing to fulfil contractual obligations to the client, although they can also be required from other parties. Performance bonds are typically set at 10% of the contract value.
- Advance payment bond - If the client agrees to make an advance payment to the contractor, a bond may be required to secure the payment against default by the contractor.
- Off-site materials bond - This is similar to the situation where an advanced payment is made in that a bond secures the payment against default by the contractor and is likely to be an on-demand bond. The bond might be up to the value of the off-site items, with the value of the bond reducing as deliveries to site are made.
- Retention bond - it is an alternative to retention; retention bond, is where the client agrees to pay the amounts which would otherwise have been held as retention, but instead a bond is provided to secure the amount that would have been retained. As with retention, the value of the bond will usually reduce after practical completion has been certified.
8
Q
What is an advanced payment bond? How does this work in practice?
A
The advanced payment bond may be required when the client agrees to make an advance payment to the contractor to secure the payment against default by the contractor.
For example, on NCA project, the Client agreed to make an advanced payment bond to the contract due the high cost of materials that had to be pre-order (lifts). In this case the advanced payment was approx. 20% of the construction work value. The advanced payment bond prepared together with the contract documentation and signed between the Client, the Contract and guarantor (executed as deed).
9
Q
Can you outline the key changes under the introduction of NEC4?
A
- NEC4 updated introduced some new contracts:
- Design Build and Operate Contract – a single contract for providing a service which includes the design and build of assets to do so, or perhaps the upgrade of existing assets at any time in the ‘service period’.
- Professional Services Subcontract – the PSC in a subcontract form.
- Term Service Subcontract – the TSC in a subcontract form.
- Dispute Resolution Services Contact, which includes for the members of the new Dispute Advisory Board in secondary option W3 and replaces the NEC3 Adjudicator’s contract.
- Gender neutral language (not he or she but them)
- Changes in terminology
o Client instead of Employer
o Scope instead of Work information
o Early warning register not risk register
o Client’s liability instead of Employer’s risk
o In secondary option X12, ‘Partnering’ has been changed to ‘Collaboration’ better to reflect the intent. - New secondary options:
- Option X15: The contractor’s design (ECC only)
- Option X10: Information modelling - A new secondary option is added specifically to support the use of information models and digital engineering models.
- Option X21: Whole life cost (ECC only): this is just a prompt to the contractor to propose changes that will reduce whole life cost.
- Option X22: Early contractor involvement (ECC only)
- W1, W2 and W3 dispute resolution and avoidance: The works contracts now include a dispute avoidance option W3 which can be used if the UK Housing, Grants, Construction and Regeneration Act does not apply. This is to refer any dispute to a dispute avoidance board.
- New features
- Programming changes - There are new ‘dividing date’ provisions similar to those used in compensation events. New provisions provide for ‘treated acceptance’ of the contractor’s programme in situations where the project manager does not respond to a programme issued by the contractor for acceptance, or to a reminder. This is to unlock the impasse which can sometimes occur.
- Dispute negotiation - A 4 week period for escalation and negotiation of a dispute has been introduced, which takes place prior to commencing any formal proceedings. This requires nominated senior representatives of each party to meet and try to reach a negotiated solution.
- Financial agreement - For payment applications and final accounts, there are now procedures aimed at reaching agreement on the final amounts due. Provisions have been introduced to the cost-based contracts (main options C to F) that allow the contractor to instigate a review and acceptance of its defined cost by the project manager, upon request. This encourages checking and agreement of defined cost and disallowed cost progressively as the work proceeds, and not to defer the exercise until the project has been completed.
- Retention - The secondary option X16 for retention now includes the optional provision of a retention bond instead of having money retained.
- Confidentiality - A new core clause deals with confidentiality, restricting the disclosure of project information.
- Quality - Section 4 quality management provisions introduce a requirement for the contractor to prepare and issue a quality management system and a plan.
- Schedules of cost components - Some changes have been made to simplify the schedules of cost components and associated contract data inputs. The ‘Schedule of Cost Components’ is used only for main options C, D and E and the ‘Short Schedule of Cost Components’ has been removed from these contracts. The short schedule is now used exclusively in options A and B and only to assess compensation events.
- Fee percentage - There is now only one fee percentage, with no separate fee percentage for subcontracted works. The application of fee to defined cost is consistent across all main option
10
Q
What does assignment in contracts means?
A
- The transfer of a right from one party to another.
- Assignment involves the transfer of an interest or benefit from one person to another
11
Q
On the NCA Spring Gardens project, what was included in the
contract documentation you prepared?
A
On NCA Contract documentation included:
- Contract Conditions (Contract Data part 1 & part 2, incorporated secondary options and Z clauses)
- Works Information
- Pre-Construction information (description of the project, Employer’s arrangements, H&S regulation, environmental restriction)
- Programme
- Activity Schedule
- Advance Payment Bond contract
12
Q
What were the contract options you advised on?
A
On NCA I advised the Client regarding different Main Option under NEC suite of contract that you could be incorporated and its consequences. My advice include recommendation with regards to risk allocation, payment mechanism and documentation required for each option.
- Option A priced contract with activity schedule - is a priced contract with an activity schedule, which relates to a programme where each activity is allocated a price and interim payments are made against the completion of each activity. Risk of carrying out the work at the agreed prices are with contractor.
- Option B: priced contract with bill of quantities
- Option C: target contract with activity schedule
- Option D: target contract with bill of quantities
- Option E: cost reimbursable contract - is a cost reimbursable contract in which the contractor is reimbursed the actual costs they incur in carrying out the works, plus an additional fee. The financial risk involved is largely taken by the client.
- Option F: management contract - is a cost reimbursable management contract in which the works are constructed by a number of different works contractors who are contracted to a management contractor. The management contractor is responsible for the work and is paid a fee (the cost that it pays the works contractors plus an additional fee), while the financial risk is largely taken by the client.
13
Q
What were the “other documents required” you mention? (NCA)
A
Appart form the Works information the following document were included in Contract Documents for NCA Spring Gardens Project:
- Condition of the contract, Contract Data part one and part two,
- Pre-Construction information (description of the project, Employer’s arrangements,
- H&S regulation, environmental restriction)
- Programme
- Activity Schedule
- Advance Payment Bond contract
14
Q
What are the risks from using a bespoke form of contract?
A
- They may not adequately or fairly make provision for all circumstances, and they are not supported by a history of case law.
- may be more difficult to administer as the contractor, PM and other parties do not get use to or familiar with the contractual mechanism (in comparison to standard forms of contract)
- risk of not aligning with the current law e.g. construction act,
15
Q
How did you assess the figure to be included for L&A damages on
a contract?
A
- the value of the L&A damages should be calculated by the Client;
- hey are pre-determined damages set at the time that a contract is entered into, based on a calculation of the actual loss the client is likely to incur if the contractor fails to meet the completion date.
- They might include; rent on temporary accommodation, removal costs, extra running costs, and so on.
- They are generally set as a fixed daily or weekly sum, although there may be a more complicated formulae where the works are phased, where may be partial possession and so on.
- It is important that the method of calculation is precisely and formally documented.
My projects:
- NCA Spring Gardens - NEC3 Option A, under option X7 at £714 a day (with cap of 5% of the contract sum)
- GMH - JCT2016 Design and Build contract without quantitates, section 2-32-2 include rates for liquidated dames at £9,000 per day
- Project Winchester
- PCSDA - NEC 3 PSC; option X7 - delay damages at £143 per day (this was not yet in construction)
- Enabling Works - NEC3 ECC Short Contract - Contract data at £2,000 per week capped at 15 weeks.
16
Q
Why are Liquidated and Ascertained damages included in a
contract?
A
- The liquidated damages clause allows contracting parties to agree on a reasonable estimate of the damages in case of breach of contract as a measure in order to avoid the potentially costly and time consuming process of trying to determine the amount of actual damages should the breach occur.
- It protect the Client’s from potential losses if the breach of contract occur.
17
Q
What happens if it’s left blank in a signed contract?
A
The Client may not be entiteled to liquidated as well as unliquidated damages.
18
Q
What was the change procedure under the Project Winchester
contract?
A
- Change Control is raised (should include scope of the change, originator, indication of programme and cost impact).
- Cost estimate of the change is produced and/or programme impact ( if programme permits request for quotation is issued)
- Change submitted for approval to the Client
- ————–
4a. If rejected - reason for rejection is recorded and change closed.
- ————–
5a. If approved change to be instructed, CE to be raised if relevant
5b. cost agreed between Contractor and us
5c. budget allocation adjusted
5d. Client’s cost approval before the implementation
5e. CE implemented.
19
Q
What happened if it was not adhered to? (change control)
A
- the change would not be approved and instructed without the Change control procedure
- potential Daley to the project
- additional findings (if needed) would not be approved.
20
Q
What was the process under the contract for carrying out the
interim valuations?
A
On Project Winchester the interim valuation process was as follow:
- the contractor was required to issue the application for payment on the agreed due date
- within 7 calendar days, I would issue my recommendation for payment to the PM
- within another 7 days, the PM would issue a Payment Notice with basis of the calculation,
- if required the Client could issue a Pay Less Notice up to 7 calendar day before the payment due
- the payment due day was 30 days from the Payment Notice, however the invoice was required to be issued by the Contractor within 2 day of the Payment Notice (this was agreed as a Z-clause specifically for this project)
21
Q
What would have been the consequences had you not acted
within the contract valuation timelines?
A
- If the payer fails to issue a Payment Notice/Pay Less Notice, then the payee can commence a so called “smash and grab” adjudications. The so called “smash and grab” adjudication is one where payment is claimed under a construction contract in the absence of any Payment Notice or Pay Less Notice.
- If the Payment is not made on time, the Contractor is entitled to interest payment based on percentage agreed in the contract.
22
Q
What was the final account procedure under this contract? (Project Winchester)
A
- NEC contract is design to deal with all the changes as a CE during the project duration in real time, therefore the final account was agreed on rolling final account basis.
- However, as the Project Winchester was based on option C, the final account figure needed to include the Consultant’s share value.
- In addition, I ensured that all disputes were resolved before agreeing the final account.
- under NEC contract the last valuation effectively become the last valuation.
RICS guidance on Final account procedures explained the procedures for different types of contract.
23
Q
What was the procedure under this contract for notifying delays?
A
In order to prove a delay claim under NEC3, a contractor must follow a two step-process to show that (i) a compensation event has occurred; and (ii) that this event caused a delay to the completion of the project.
24
Q
What would be included within a Letter of Intent?
A
A letter of intent is a document expressing an intention to enter into a contract at a future date but creates no contractual relationship until that future contract has been entered into. A letter of intent is not an ‘agreement to agree’.
A comprehensive letter of intent should address the following:
- Client authorisation to the contract administrator to represent them.
- Acceptance of the contractor’s offer and definition of the project.
- The agreed contract sum.
- Reference to the tender documents and subsequent amendments (with dates).
- Instruction to proceed on a certain date.
- Site possession date.
- Contract completion date (including details of any phases).
- A full description of the proposed form of contract, including warranties and performance bonds.
- Direction as to whether the contract will be executed by Deed, under seal or under-hand.
- Restriction of the work authorised by the letter of intent, by proceeding with which the contractor has fully accepted the terms of the letter of intent.
- Terms and provisions for cancelling the letter and determining the works at any time prior to signing the full contract
- Insurance provisions and indemnification.
- Agreement that there are no rights to assign the works.
- Disputes resolution procedures.
- Liquidated and ascertained damages to be applied to late completion.
25
Q
Why was NEC form of contract used for the NCA Spring Garden
project?
A
- Its use stimulates a collaborative relationship between the two parties to the contract and, hence, of the work included in the contract.
- It can be used in a wide variety of types of work and in any location.
- It is a clear and simple document - using language and a structure which are straightforward and easily understood.
- The UK Cabinet Office recommends the use of NEC by public sector construction procurers on their construction projects (The Construction Playbook)
26
Q
Why was a JCT or other form of contract not adopted? (NCA Spring Garden)
A
- not supporting collaboration and cooperation
- Client’s preferences
- better control over the budget through compensation events
- better risk management by Early Warnings
27
Q
What do you consider are the risks associated with this? (not adopting JC contract)
A
- some Contractor may not have experience working with NEC contract
- additional training may be required for all Contractor, Client and PM
- if not managed correctly and in line with the timescale, issues may need to be escalated to ARD
- some may say that it required additional administration but it is relatively simple if administer correctly.
28
Q
What level of insurances were required and why? (NCA Spring Garden)
A
- A performance bond is commonly used as a means of insuring a client against the risk of a contractor failing to fulfil contractual obligations to the client, although they can also be required from other parties. Performance bonds are typically set at 10% of the contract value.
- Advance payment bond - If the client agrees to make an advance payment to the contractor, a bond may be required to secure the payment against default by the contractor.
- Professional Indemnity insurance - Professional indemnity insurance protects you against claims for loss or damage made by clients or third parties as a result of the impact of negligent services you provided or negligent advice you offered. Compensation claims can be brought against you even if you provided a service or offered advice for free.
- Public liability insurance - Construction contracts will typically include a clause requiring the contractor to carry insurance to cover expense, loss, liability, claim or proceedings for personal injury or death arising from the carrying out of the construction works, or loss or damage to property other than the works.
- Terrorism cover - Damage to the buildings by terrorist action as defined up to the policy sum insured
29
Q
Why was a consultants share mechanism included for the Project
Winchester scheme?
A
The Consultant’s share was required under NEC3 Option C contract to enable the Client and Consultant/Contractor to share the benefits of cost savings or cost overruns.
30
Q
What advice do you provide your clients in relation to COVID-19
risk from a contractual point of view on various contract types
A
At the time when Covid-19 pandemic happened I was working at the Project Winchester when I was managing Enabling works contract under NEC3 ECSC Contract and NEC3 PSC Contract.
- Under NEC ECSC Contract Clause 60.1 (12), the Contractor was eligible for a CE due to an event which stops contractor from delivering the works and which neither party could prevent; however upon agreement with the contract at the begin of the pandemic it been agreed to temporary stop any enabling works on site. The Client agreed to cover the additional cost of mobilization/demobilization and standing cost for security aspect of site.
- Under NEC3 PSC there was no real change to the scope as the project was still at the design stage and the team was able to continue the works working form home at no additional cost.
31
Q
What is the Construction Playbook?
A
The Construction Playbook sets out key policies and guidance for how public works projects and programmes are assessed, procured and delivered.
32
Q
Outline NEC4 construct structure
A
- Contract Data Part 1 and Part 2
- Main Clauses (1-9)
- Main Option Clauses (A to F)
- Resolving and Avoiding Disputes (option W1 to W3)
- Secondary Option Clauses (Option X1 to X22 and Y(UK)1, Y(UK)2, Y(UK)3
- Additional condition of contract (Z Clauses)
- Schedule of Cost Components/Short Schedule of Cost components
33
Q
What are the NEC4 Secondary Option Clauses?
A
- Option X1: Price adjustment for inflation (used only with Options A, B, C, D)
- Option X2: Changes in law
- Option X3: Multiple currencies (used only with Options A and B)
- Option X4: Ultimate holding company guarantee
- Option X5: Sectional Completion
- Option X6: Bonus for early Completion
- Option X7: Delay damages
- Option X8: Undertakings to the Client and Others
- Option X9: Transfer of rights
- Option X10: Information modelling
- Option X11: Termination by the Client
- Option X12: Multiparty collaboration (not used with Option X20)
- Option X13: Performance bond
- Option X14: Advanced Payment to the Contractor
- Option X15: The Contractor’s design
- Option X16: Retention (not used with Option F)
- Option X17: Low Performance damages
- Option X18: Limitation of liability
- Option X20: Key Performance Indicators (not used with Option X12)
- Option X21: Whole life Cost
- Option X22: Early Contractor involvement (used only with Options C and E)
- Option Y(UK)1: Project Bank Account
- Option Y(UK)2: The Housing Grants, Construction and Regeneration Act 1996
- Option Y(UK)3: The Contracts (Rights of Third Parties) Act 1999
34
Q
What is a Compensation Event?
A
- A compensation event is a term used in NEC contracts to mean an event which can affect the cost to the Client of the work being carried out, the time when the works will be completed, or both.
- A compensation event is the only way in which these can be changed. There are no other ways in which a Contractor can claim additional payment for carrying out the works or be allowed additional time in which to complete them.
35
Q
What is an Early Warning?
A
- it is a notification raised by the PM or the Contractor about any matter that could affect the cost, completion, progress or quality of the work.
- Clause 16 of NEC3 and Clause 15 of NEC4
36
Q
What is a Pain/Gain Mechanism?
A
Used in Target Cost Option C & D - mechanism enabling the contractor, and the Client , to share in the benefits of cost savings, but also share some of the cost when there are cost overruns based on share percentage pre agreed in contract data.
37
Q
What is required to form a contract?
A
- offer by one party
- acceptance by the otter party
- consideration of the offer
- intent to form a contract
- legality of a contract
- capacity to make an agreement
38
Q
In what ways can contract be executed?
A
- *a. under seal** - signed by the parties, witnessed and most importantly made clear that it is executed as a deed; limitation period 12 years, does not have to be supported by valuable consideration
- *b. under hand** – a ‘simple contract’ that is just signed by the parties- limitation period 6 years – actions cannot be brought after 6 years from the date of which cause of the action occurred.
Valuable consideration – something of value in the eye of law.
39
Q
What are the reasons for CE?
A
There are three categories of compensation events.
- An instruction or other change of the Project Manager or Supervisor provided for in the contract. The most significant of these is an instruction of the Project Manager which changes the Scope.
- A failure by the Client, the Project Manager or Supervisor to take an action which the contract requires them to do. This includes, for example, a failure of the Client to allow access at the time required by the contract, or the Project Manager failing to reply to a communication within the period required by the contract.
- A supervening event where the risk has been allocated to the Client under the contract. A significant example of that is the Contractor encountering unexpected physical conditions within the site.
40
Q
Explain the process of CE
A
- Compensation Events must be for a reason stated in the contract (Clause 60)
- The PM and Contractor may notify a CE.
- The Contractor has 8 weeks of becoming aware of the event to issue a CE.
- If the PM do not respond to Construction notification within time allowed, the contractor may notify them of their failure. If failure continues for 2 weeks the notification is treated as accepted
- The Contractor is to submit a quotation for CE within 3 weeks (unless otherwise stated in the contract);
- the PM has 2 weeks to replay with a. acceptance of the quotation b. instruction to submit a revised quotation c. that the PM will make their own assessment.
- the PM implementing the CE.
41
Q
Explain the process of Early Warnings?
A
- PM or Contractor notify EW as soon as they become aware of matter that could affect cost, programme, completion or quality of works.
- the PM prepares a first Early Warning Register and issue it to the contractor within one week from the start date
- The PM instruct the Contractor to attend the first Early Warning meeting within two weeks of the starting date and them at no longer internals than stated in the contract or when PM or Contractor instruct to attend Early warning meeting
- PM issues the updated Early Warning register within one week from the Early warning meeting.
42
Q
How assessing the amount due differ between main options?
A
The different payment mechanisms for the six main Options are based on the use of three key defined terms; the Prices, the Price for Work Done to Date and Defined Cost:
- _Option A: Priced Contract with Activity Schedul_e - PWDD is price for the activates completed within the Activity Schedule; in terms of the Defined cost – this is used for CE assessment based on Schedule of Costs Components.
-
Option B: priced contract with bill of quantities- The PWDD is calculated using the Bill of Quantities rates and lump sums and the total re-measured quantity of work completed according to the definition and criteria stated in this clause
The basis of the definition of Defined Cost in these Options is the cost of the components in the Schedule of Cost Components less Disallowed Cost. - Option C: target contract with activity schedule; - Payments are based on the Contractor’s costs rather than what works were carried on; The PWDD is based on the Defined cost plus fee; the Prices in the Activity Schedule are not used to determine the PWDD but the total of the Prices is used when the target is calculated. the Contractor’s share is also calculated taking into account the differences between the total of Prices (contract + CE) and PWDD based on pre-agreed share percentage.
-
Option D: target contract with bill of quantities; Payments are based on the Contractor’s costs rather than what works were carried on; The PWDD is based on the Defined cost plus fee; BoQ is used to determine the total of the Prices but no for the PWDD.
The basis of the definition of Defined Cost in these Options is the cost of the components in the Schedule of Cost Components less Disallowed Cost. -
Option E: cost reimbursable contract; the contractor is reimbursed the actual costs they incur in carrying out the works, plus an additional fee. The financial risk involved is largely taken by the client.
o PWDD is the total Defined Cost plus the Fee
o the Prices are the forecast of the total Defined Cost for the whole of the works plus the Fee. -
Option F: management contract. - Option F is a cost reimbursable management contract in which the works are constructed by a number of different works contractors who are contracted to a management contractor. The management contractor is responsible for the work and is paid a fee (the cost that it pays the works contractors plus an additional fee), while the financial risk is largely taken by the client.
o PWDD is the total Defined Cost plus the Fee
o the Prices are the forecast of the total Defined Cost for the whole of the works plus the Fee.
69
Q
What are the Collateral warranties, Third Party rights and Doctrine of privity of contract ?
A
- *The doctrine of privity of contract** is a common law principle which provides that a contract cannot confer rights or impose obligations upon any person who is not a party to the contract.
- *Collateral warranties** - A collateral warranty is a binding contract between a third party with an interest in the project under construction or in the completed project (such as a funder, purchaser or tenant) and a party who was involved in the design, management and/or construction of the project. A collateral warranty would allow a third party to make a claim against, for example, a structural engineer, if the engineer’s design fell below a required standard of skill and care and/or a contractor, if the building was built defectively. In order for any claim to be successful under a collateral warranty, as in any contractual claim, the third party would have to show that it suffered loss as a result of the defective design and/or workmanship.
- *The Contracts (Rights of Third Parties) Act, 1999 e**nables third party rights to be created by a contract. This is seen by some to offer an alternative to collateral warranties. The right created is to enforce a term of a contract, not the whole contract itself. For example, if a building contract contains a term that the contractor is required to use materials of good quality, then that term might be the subject of a third party enforcement right. However, the contract must expressly state that a third party has specific rights for the Third Party Rights Act to apply, and often these are excluded. Third party rights are typically provided for by way of a notice stating that the third party is entitled to rely on specific provisions of the contract.
