Contract practice Flashcards
What experience do you have with different types of construction contracts, and what are the key differences between them?
I have primarily worked with the JCT 2016 suite of contracts but am also familiar with NEC4. Key differences between these contracts include their terminology, responsibilities, and obligations. For example, JCT contracts often focus on detailed project specifications and risk allocation, while NEC4 contracts emphasize proactive project management and clear communication.
How do you understand and manage various aspects of a contract, such as retention, valuations, and change orders?
Contracts play a crucial role in defining retention, valuations, change orders, delays, and rectification periods. I ensure responsibilities, risk allocations, pricing options, and specific clauses are clearly articulated to manage these aspects effectively and achieve successful project outcomes.
What are the key differences between the JCT 2016 and JCT 2024 suite of contracts?
The JCT 2024 suite includes updates to reflect changes in industry practice and legal requirements compared to JCT 2016. Key differences may involve revised clauses for dispute resolution, contract administration, and updated requirements for managing changes and variations.
Can you provide an example of how you managed contract documentation and payments on a project?
On the Citi Bank project, I managed budgets and costs for variations, conducted interim valuations, and issued valuation certifications. For instance, when the contractor requested payment for a bespoke desk, I advised against it due to the lack of contract provisions for advance payments and incomplete documentation, ensuring the decision was clearly communicated.
How did you contribute to forming and amending contract documents for projects like 1 Triton Square?
For 1 Triton Square, I used a JCT Minor Works 2016 contract with amendments for the office fit-out. I advised on valuation procedures, such as payment dates and retentions, recommending a higher retention percentage for better security. I also guided the client on delay claims, recommending an extension of time without cost implications but advising on potential additional expenses for extended consultant services.
How do you handle situations involving contract amendments and delay claims?
For delay claims, I recommend issuing an extension of time based on the nature of the delay. On the 1 Triton Square project, I advised on extending the timeline for delays without cost adjustments and provided guidance on potential additional costs related to extended services, ensuring the client was prepared for any financial implications.
Can you explain the key differences between JCT and NEC contracts, particularly in terms of responsibilities and obligations?
JCT (Joint Contracts Tribunal): Focuses on traditional procurement methods, often more prescriptive. It clearly defines the contractor’s obligations and includes detailed clauses on scope, time, and cost.
NEC (New Engineering Contract): Emphasizes collaborative working and flexibility. It includes a more integrated approach with a focus on managing change and mitigating disputes through early warnings and
What are the advantages and disadvantages of using JCT contracts compared to NEC contracts?
JCT Advantages: Clear definitions of responsibilities, well-established in the industry, and extensive case law.
JCT Disadvantages: Can be rigid and less adaptable to changes.
NEC Advantages: Encourages proactive management, flexibility, and collaboration. It’s designed to handle changes more efficiently.
NEC Disadvantages: Can be complex to administer and may require more time to manage effectively.
How do you manage the transition from an LOI to a formal contract to avoid potential disputes or issues?
Ensuring all terms discussed in the LOI are incorporated into the final contract, and clearly documenting any work performed under the LOI to avoid disputes.
How do the contract types influence risk allocation and project management?
JCT: Risks are typically allocated according to the contract terms, which can be more rigid but predictable.
NEC: Risks are managed collaboratively, with a focus on early warnings and regular reviews, which can help in adjusting to changes and unforeseen issues more dynamically.
How do you approach managing budgets and fixed costs for variations during a project?
Monitoring costs closely, assessing the impact of variations on the budget, and negotiating fair compensation for changes.
What are the primary benefits and risks associated with using a Letter of Intent (LOI) in construction projects?
Benefits: Allows work to start before the final contract is signed, which can be crucial for project timelines.
Risks: LOIs can lead to disputes over scope, terms, and payment if the final contract terms are not clear or agreed upon.
Can you provide an example of how an LOI was used effectively in your experience? What were the challenges, and how did you address them?
An LOI was issued to start preliminary work while finalizing contract terms for a large project. Challenges included clarifying scope and ensuring that preliminary work was included in the final contract. These were addressed by detailed negotiations and clear documentation.
What steps do you take when reviewing a contractor’s application for payment? How do you ensure accuracy and compliance with contract terms?
Verify work completed, cross-check with project milestones, ensure compliance with contract terms, and conduct regular audits.
How do you handle situations where a contractor requests payment for work that has not yet been completed or verified?
Verify the work completed against the request, ensure it aligns with contract terms, and only approve payment for work that meets the required standards.
