Contract Practice Flashcards
What are Extensions of Time?
Adjustments of the Completion Date relieving the contractor of liability to pay Liquidated Damages.
What are Relevent Events?
Events entitling the contractor to claim for an Extension of Time.
What are the Relevant Events?
VIA DS S I PESTSM
What is Retention?
A % of each Interim Certificate deducted and retained by the Employer.
What is the purpose of Retention?
i) To rectify defects
ii) Financial security in the event of contractor default
What is a Retention Bond?
A bond provided by the contractor in lieu of taking Retention.
What is Acceleration?
The completion of works in a shorter time frame or programme recovery
What is a Fixed Price Contract?
Where the contract sum is only adjusted for Statutory Contribution, Taxes, or Levies.
What is a Fluctuating Price Contract?
Where the contract sum is also adjusted for changes to Material and Labour costs as well as Statutory Contribution, Taxes, or Levies.
What is Practical Completion?
Where works are
substantially complete and
the employer can gain beneficial occupancy and
responsible for arranging insurances.
What is Sectional Completion?
Completion and handover of the works in agreed stages.
What is Partial Possession?
Contractor consents to the employer taking possession before the date for Practical Completion.
What are Collateral Warranties?
A means of creating a contractual relationship between the main parties of a contract with an external third party.
Why are they used?
To give remedies to the third party who would no otherwise have them
Who might want a Collateral Warranty?
A third party with a financial investment in a project eg the employer with a subcontractor.
What are the common clauses/terms in a Collateral Warranty?
LiDuPiiAssNov
What is Assignment?
The rights and BENEFITS of one contractual party are TRANSFERRED to a third party.
What is Novation?
A new contract which TRANSFERS the RIGHTS AND OBLIGATIONS to a new third party.
What is Limitation Clause?
A clause which limits a party’s liability for potential losses [financial losses].
What is a Bond?
A guarantee [financial] from the surety in favour of the employer that contractual obligations will be fulfilled.
What form do Bonds take?
In writing
Executed
With a duration
Financial Limit
What is a Parent Company Guarantee?
A guarantee where the contractual performance of a company in a corporate group is underwritten by other members.
What is a Performance Bond?
A bond that guarantees payment up to a stated amount should the contractor breach their contractual obligations.
What is a Notional Final Account?
A Final Account prepared when the main contractor is facing insolvency, including costs for new contractor to complete works.
What is Insurance?
A FUND that is made available for payments that may arise.
What is Indemnity?
A PROTECTION against legal responsibility [to another party] or compensation [to another party].
What is Subrogation?
A technique where the insurer steps into the shoes of the insured to take benefit of any legal remedies they may have.
What is discussed at Pre-Start Meetings?
What do Preliminaries Document contain?
What is in a PQQ?
What matters might be covered in a Qualitative Analysis?
What are discussed in Post Tender interviews?
TeMeCoPrLoPr
