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CM APC Questions > Contract practice > Flashcards

Contract practice Flashcards

1
Q

What must be in place before LADs can be deducted?

A
  • non-completion certificate

- pay less notice

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2
Q

What elements have you included in valuations from a project you’ve worked on?

A
  • Preliminaries
  • Measured works
  • Retention
  • Loss & Expense claims
  • Variations
  • Materials off-site
  • Materials on-site
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3
Q

What would you do if the client advised you that the LADs figure is £100k per week?

A

I would check the figure is based on genuine pre Estimated loss. I would advise that in an event where LADs applied, they would need to substantiate this figure.

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4
Q

What is a relevant event in a JCT form of Contract ?

Give examples ?

A
  • an event which entitles the contractor to an EOT

13 events set out in the JCT forms:

  • variations
  • instructions
  • strikes
  • terrorism
  • adverse weather
  • design changes by the client
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5
Q

How did you value the variation and what advise did you give the client?

A
  • I received the costs from the contractor
  • I checked quantities using the drawings
  • I checked costs/rates using in-house cost data for cladding projects and also used BCIS for current market rates
  • I then advised the client on the potential cost and programme implications.
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6
Q

What is fitness for purpose ?

A
  • The level of service being provided is suitable for the employers intended purpose.
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7
Q

What is the defect liability period ?

A
  • period after PC
  • usually 52 weeks
  • contractor rectifies any defects to the structure at their own expense.
  • if they fail to do so. Client can employ another contractor and the retention money held can be used to cover these costs.
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8
Q

What is the standard commercial position regarding assignment?

A
  • it is standard to allow assignment of rights twice without consent
  • the assignment should be notified in Writing to the other party
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9
Q

What is assignment?

A

Where the rights & benefits of one contractual party are transferred to a third party

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10
Q

What did you include within the Contract Documents?

A
  • Prelims
  • Employer’s Requirements
  • CSA
  • Form of Contract
  • Design info
  • Drawing list
  • Warranties
  • Insurance details
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11
Q

What is novation?

A
  • Novation is where a new contract transfers the rights and obligations of one party to a new third party
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12
Q

What are the disadvantages of NEC forms of contract ?

A
  • They are often considered to be used for civil engineering projects
  • They have limited exposure to the market, so they haven’t been fully tried and tested with supporting case law
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13
Q

What advice did you give your client in respect of the LAD provisions within the contract?

A
  • I advised my client that damages would only be payable on breech of the contract
  • EOT was granted, I advised damages will only apply to the delay period
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14
Q

Can you have an EOT without an L&E claim?

A

Yes an EOT does not automatically give entitlement to L&E

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15
Q

When would you use a JCT standard form of contract ?

A
  • Where works have already been designed

- suitable for use with b&q and lump sum

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16
Q

What is the difference between partial possession and sectional completion?

A
  • sectional completion is a contractual obligation to hand over
  • partial completion is at the contractors discretion
17
Q

What is a Collateral Warranty?

A
  • Provides a contractual link between the contractor and a third party. Such as a funder.
18
Q

What is retention of title clause ?

A
  • this is where the subcontractor retains ownership of materials until they are paid for by the contractor
  • this highlights the importance of vesting certs
19
Q

When would you look to use a bespoke contract rather than a standard contract ?

A
  • These are used for major projects with novel obligations

- when specialist advisors can undertake the amendments

20
Q

What is the key issue after a design team has been novated?

A
  • Whether the new party has the right to take action against the mobster party for breaches that occurred before the novation
21
Q

How would you advise your client on using Standard vs Bespoke contracts?

A
  • Standard forms are well known within the industry and are written by legal experts
  • Rights and obligations of each party are clearly defined
  • The cost for writing bespoke contracts is greater than standard forms.
22
Q

When would you use a JCT minor works form of contract ?

A
  • short in duration
  • simple scope of works, straight forward build
  • Value is below £200k
  • design is completed beforehand on a lump sum basis
  • employer to supply, specs, designs, schedules of works
23
Q

What would you advise your client if they actually suffered no loss or damage?

A
  • this wouldn’t matter

- they are still entitled to deduct damages at the value stated in the contract

24
Q

Name some of the sections within a JCT Contract ?

A
  • Definition
  • Carrying out the works
  • control of the works
  • payment
  • variations
  • injury, damage and insurance
  • collateral warranties
  • termination
  • settlement of disputes
25
Q

What are the three ways benefits can be transferred under the JCT contracts ?

A
  • Collateral warranties
  • third party rights
  • Assignment
26
Q

What is meant by the term ‘Time is at Large’?

A
  • There is no set completion date
  • Liquidated damages can not be claimed
  • Contractor must complete works in a reasonable time
27
Q

How is a contract under hand different from a deed ?

A

Under hand is signed by both parties, limitation period is 6 years

As a deed is signed by both parties and a witness. Limitation period is 12 years.

28
Q

Do the works have to be totally completed before practical or sectional completion is achieved ?

A
  • PC is not defined within the JCT

- it is a vague concept, reliant on the architects opinion that the works are complete

29
Q

If there is a discrepancy between the employers requirements and the contractors proposals, which prevails?

A

The Contractors proposals. As these will take president

30
Q

What must be in place before LADs can be deducted?

A
  • A non-completion certificate

- Payless notice

31
Q

When would you use a JCT Intermediate contract?

A
  • projects that don’t exceed 1 year in duration
  • simple project, no specialist needed. Using basic trades and skills.
  • works already designed
32
Q

What is Frustration?

A

This is where any event outside the control of both parties, changes the contractual obligations or makes it impossible for them to fulfil there contractual obligations.

No provision within the contract

33
Q

What does NEC stand for ?

A

New Engineering Contract

34
Q

What is your understanding of the main parts of a JCT Contract ?

A
  • Recitals
  • Articles
  • Contract Particulars
  • Attestation
  • Conditions
  • schedules
35
Q

What is your understanding of Liquidated Damages?

What constitutes payment of Liquidated Damages?

A
  • An agreed amount by both parties, payable on breech of contract.
  • Non-payment, not achieving completion date
36
Q

What certificates are you aware of under the JCT forms?

A
  • interim certs
  • PC certs
  • non- completion
  • final account cert
  • making good cert
37
Q

When you valued the EOT on the Brook, what did you include for and what rates?

A
  • ## preliminary costs associated with, site cabins, welfare, utilities, management of staff, security, head office overheads, loss of profit.
38
Q

How would you value materials off-site within your valuation?

A
  • Request a vesting certificate to ensure the materials are in the clients name or ownership will be transferred to the clients name on payment.
  • Materials are labelled for the site
  • Insurances are in place
39
Q

What conditions need to be met before a Contract to be in place?

A
  • Offer
  • Acceptance
  • Consideration
  • Intention to form a contract
  • Needs to be legal
  • Capacity to make agreement
  • Consent
  • Performance

CM APC Questions (22 decks)

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