Contract Practice

Question 1

What are the various forms of JCT contract you are aware of?

Answer 1

JCT Standard Building Contract
JCT Design and Build Contract
JCT Intermediate contract
JCT Minor Works Contract

Question 2

What are the forms of executing a contract

Answer 2

• Under Hand (Simple contracts)
• Under Seal (Formal contracts or Deeds)

Question 3

What are the provisions in a JCT Standard Building contact?

Answer 3

• Requires a contract administrator.
• Quantity Surveyor required
• Collateral warranties
• Retention on payments
• Retention bond
• Insurance for new building insured by the contractor.
• Insurance for new building insured by the contractor.
• Insurance for existing buildings/works insured by Employer or in the case of existing buildings by other means

Question 4

What are the differences of a contract under seal and under hand?

Answer 4

Under Hand
No formalities for execution
Made verbally or in writing.
Legally binding as long as it satisfies all the requirements for a valid contract.
No seal signature required.

Under seal
Formalities required for execution.

Executed with seals, signature and witness
Legally binding and enforceable in court
Seal is typically affixed to the document
Commonly used in formal legal documents such as deeds, mortgages and agreements for the transfer of property or land

Question 5

What is a collateral warranty?

Answer 5

A document which provides rights to a party (usually a developer/funder or owner) against a party with whom they have no privity of contract.

Question 6

What is assignment of a contract?

Answer 6

Transferring an agreement’s rights, obligations, and property to another party.

Question 7

What is novation?

Answer 7

When a contract is novated, both parties agree that the responsibilities and obligations of one party are transferred from the original signee to a third party

Question 8

What is privity of contracts

Answer 8

A contract cannot confer rights or impose obligations upon anyone who is not a party to that contract

Question 9

What are the components of a contract?

Answer 9

Offer, Acceptance, Awareness, Consideration, Capacity, Legality.

Question 10

What are the components of a contract?

Answer 10

Offer, Acceptance, Awareness, Consideration, Capacity, Legality.

Question 11

Can you tell what information you would include a part of a construction contract?

Answer 11

1. The main contract
2. Any schedule of amendments
3. Employers’ requirements and appendices
4. Contract drawings and specifications
5. Surveys and reports
6. Contractors proposals
7. Contractor pricing schedule
8. H&S information

Question 12

If want to transfer the design risk to the client, what contractor would you advise on?

Answer 12

JCT Design and Build

Question 13

On your HRA Project what notice did you have to serve after being informed the contractor had gone into administration.

Answer 13

Less less notice