Contract Practice

Question 1

What is a contract?

Answer 1

It is a legally binding promise between 2 or more parties comprising: offer, acceptance, intention, and consideration.

Question 2

How did you value Materials on Site on the Throgmorton House project?

Answer 2

In this instance it was MVHR units and associated ductwork. Because I judged the materials, based on comparable project data, to cost a significant amount, I judged 40% completion to be fair and reasonable.

Question 3

Briefly summarise the options available for NEC for both pre-construction and construction stages

Answer 3

PSC for pre-construction
ECC options:
A & B: Lump sum with Activity Schedule and BoQ
C & D: Target cost with Activity Schedule and BoQ
E: Cost re-imburseable contract
F: Cost re-imburseable management contract

Question 4

What is the broad difference in levying Liquidated Damages between NEC and JCT contracts

Answer 4

NEC: deducted from the Payment Certificate issued the Project Manager
JCT: Employer or EA notifies the contractor outsidd of the Payment Notice their intention to pay less than the amount notified.

Question 5

What is the difference in QS’s role between NEC and JCT contracts?

Answer 5

JCT issue a valuation certificate on the due date
NEC they will make an assessment but the Project Manager will issue the Payment Certificate on the due date

Question 6

What is the key difference between how works are assessed in JCT and NEC contracts?

Answer 6

NEC: certified on 100% completion of the activity
JCT: can cerifty based on a percentage of the works completed for esch activity