Contract Practice Flashcards
What were the learning outcomes from your contract practice CPD session?
- The learning outcome of this webinar was to understand the differences between each contract under traditional and design and build procurement, and how to give reasoned advice to the client to recommend the most appropriate contract form.
What are the forms of JCT contract your are familiar with?
- JCT Standard building contract with quantities
- JCT Design and Build 2016
- JCT Minor Works Contract
What is the payment timescales under a JCT design and build contract?
- In a design and build project the payment process is contractor lead.
- If the contractor misses their payment application date then the timescales slide back until he does and it starts from there.
What is the payment timescales under a JCT Standard contract?
- under a SBC the Interim Valuation Date is stated in the Contract Particulars.
- If no date is stated, the first Interim Valuation Date is one month after the Date of Possession
- Each Interim Valuation Date is the same date in each month or the nearest business day in that month
What would you include when pulling together the contract documentation?
Building Contract, Articles of Agreement
Schedule of Amendments
Design / Drawings
Employer’s Requirements / Contractor’s Proposals (if relevant – D&B/CDP)
Contract Sum Analysis
How did the payment process work on one of your project?
- under a SBC the Interim Valuation Date is stated in the Contract Particulars.
- If no date is stated, the first Interim Valuation Date is one month after the Date of Possession.
- Each Interim Valuation Date is the same date in each month or the nearest business day in that month.
What is the difference between a contract administrator and employers agent?
- Appointed by the Client to act on their behalf and responsible for administering the construction standard contracts.
- An employers agent acts on behalf of the client as the contract administrator for design & build contracts.
What were some of the schedule of amendments included on the HTA project?
- increasing payment terms from 14 days to 28 days.
- Increase in rectification period.
- reducing the number of relevant events and matters.
What are liquidated damages and what are the key points to consider?
- Genuine pre-estimate of loss suffered by the Employer as a result of non-completion.
- LD’s cannot be punitive.
- Must be a realistic pre-determination of the actual loss the Client is likely to incur.
Why could you not recommend an amount of LDs to include within the contract on the HTA project?
QS not qualified or insured to calculate LDs but can inform of what they are and the principles / considerations of their calculation
What is the difference between patent and latent defects?
Patent defects are easily visible and should be identified through routine inspections during or after construction, and responsibility often falls on the contractor.
Latent defects are hidden issues that may not be immediately apparent and may only become evident after a significant amount of time has passed. Responsibility for latent defects often involves the party responsible for the design, manufacturing, or installation of the defective element.
Why did you recommend a 5% retention on project X? what made you sure this was sufficient?
- Increasing retention percentage in construction projects mitigates risks, ensures quality, and aligns incentives.
What is the purpose of holding a retention?
- Percentage of each interim certificate that is deducted to be retained by the employer as a safeguard against defective work or materials provided by the Contractor.
- Provides an incentive for the contractor to complete the works promptly by ensuring defects is rectified.
