Contract practice Flashcards

1
Q

What experience do you have with different types of construction contracts, and what are the key differences between them?

A

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.

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2
Q

How do you understand and manage various aspects of a contract, such as retention, valuations, and change orders?

A

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.

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3
Q

What are the key differences between the JCT 2016 and JCT 2024 suite of contracts?

A

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.

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4
Q

Can you provide an example of how you managed contract documentation and payments on a project?

A

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.

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5
Q

How did you contribute to forming and amending contract documents for projects like 1 Triton Square?

A

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.

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6
Q

How do you handle situations involving contract amendments and delay claims?

A

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.

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7
Q

Can you explain the key differences between JCT and NEC contracts, particularly in terms of responsibilities and obligations?

A

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

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7
Q

What are the advantages and disadvantages of using JCT contracts compared to NEC contracts?

A

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.

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8
Q

How do you manage the transition from an LOI to a formal contract to avoid potential disputes or issues?

A

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.

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8
Q

How do the contract types influence risk allocation and project management?

A

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.

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9
Q

How do you approach managing budgets and fixed costs for variations during a project?

A

Monitoring costs closely, assessing the impact of variations on the budget, and negotiating fair compensation for changes.

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10
Q

What are the primary benefits and risks associated with using a Letter of Intent (LOI) in construction projects?

A

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.

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10
Q

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?

A

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.

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11
Q

What steps do you take when reviewing a contractor’s application for payment? How do you ensure accuracy and compliance with contract terms?

A

Verify work completed, cross-check with project milestones, ensure compliance with contract terms, and conduct regular audits.

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12
Q

How do you handle situations where a contractor requests payment for work that has not yet been completed or verified?

A

Verify the work completed against the request, ensure it aligns with contract terms, and only approve payment for work that meets the required standards.

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13
Q

Can you discuss a specific instance where your management of interim valuations had a significant impact on the project’s financial outcome?

A

Effective management of interim valuations ensured accurate cash flow and prevented financial discrepancies, significantly impacting the project’s financial stability.

14
Q

How do you manage and document changes to the scope of work during a project?

A

Document all changes, assess impact on cost and schedule, and ensure changes are formally approved and integrated into the project plan.

14
Q

How do you ensure that contract documents are accurately prepared and reflect the client’s needs and expectations?

A

Thoroughly review documents to ensure they align with client expectations, project requirements, and legal standards.

14
Q

How do you communicate key contract dates and procedures to clients to ensure they are aware of their obligations and deadlines?

A

Provide clear and timely updates to clients about deadlines, obligations, and procedures to ensure awareness and compliance.

14
Q

Can you provide an example of a challenge you faced with an interim valuation and how you resolved it?

A

Encountered discrepancies in the valuation of completed work; resolved by revising the valuation and conducting a detailed audit to ensure accuracy.

14
Q

Can you describe your role in forming contract documents for a project and how you ensure they are comprehensive and clear?

A

Drafting and reviewing contracts, ensuring clarity and comprehensiveness to avoid ambiguities and disputes.

15
Q

What factors do you consider when determining whether to approve or reject a payment request from a contractor?

A

Completion of work as per contract, compliance with quality standards, and verification against project milestones and documentation.

16
Q

How do you handle claims for extensions of time in construction contracts? What factors do you consider when recommending an extension?

A

Assess the validity of claims, consider contractual terms, and evaluate the impact on the project timeline and costs.

17
Q

What approach do you take when assessing and approving variations to the contract?

A

Evaluate the necessity, cost, and impact of variations, and ensure they are documented and approved according to contract terms.

18
Q

What are the implications of granting an extension of time, and how do you manage any associated cost considerations?

A

Consider the impact on project costs and schedule, and communicate clearly with stakeholders about any adjustments.

18
Q

Can you provide an example of a variation that significantly impacted the project and how you managed it?

A

A major design change required re-evaluation of the project scope and budget; managed by negotiating adjustments and ensuring clear documentation of the changes.

19
Q

Can you provide an example of a delay you managed and how you communicated the need for an extension to the client?

A

A delay caused by unforeseen site conditions required a formal extension of time request, managed by documenting the issue and negotiating with the client for an adjusted timeline.

20
Q

Can you discuss a situation where clear articulation of contractual responsibilities and risk allocation was critical to the project’s success?

A

Clear articulation of retention and rectification clauses was crucial in resolving a dispute over workmanship issues, ensuring successful project completion.

21
Q

How do you ensure that contractual clauses related to retention, valuations, and rectification are clearly defined and understood by all parties?

A

Define clauses related to retention, valuations, and rectification clearly, and ensure all parties understand their responsibilities and risks.

22
Q

How do you ensure compliance with contract terms throughout the project lifecycle?

A

Regularly monitor adherence to contract terms, conduct audits, and address any issues promptly.

23
Q

What strategies do you use to mitigate risks associated with contractual obligations and ensure successful project outcomes?

A

Include detailed risk management clauses, ensure thorough documentation, and maintain open communication with all parties.

24
Q

What lessons have you learned from managing contracts on various projects, and how have these lessons influenced your approach?

A

Importance of clear documentation and communication to prevent disputes and ensure smooth project execution.

24
Q

What quality assurance measures do you implement to ensure that contractual obligations are met?

A

Implement quality control procedures, conduct inspections, and ensure all work meets contractual and regulatory standards.

25
Q

Can you describe a time when you identified and addressed a compliance issue related to a contract?

A

Identified non-compliance with safety standards; addressed by implementing corrective actions and updating procedures to ensure future compliance.

26
Q

How do you incorporate feedback and experiences from past projects to improve your contract management practices?

A

Use feedback to refine contract management practices, enhance processes, and prevent recurrence of issues.

26
Q

How do you document and communicate contract-related decisions and changes to ensure clarity and avoid disputes?

A

Maintain thorough records of all contract-related decisions and changes, and ensure clear communication with all stakeholders.

27
Q

What strategies do you use to stay updated on changes in contract practices and standards?

A

Engage in ongoing professional development, review industry updates, and adapt practices to align with current standards.

27
Q

What methods do you use to ensure that all parties involved are informed about contractual changes and updates?

A

Regular updates, detailed reports, and using collaborative tools to ensure all parties are informed about contractual changes and updates.

28
Q

Can you provide an example of how effective communication and documentation helped resolve a contractual issue?

A

Clear documentation and communication resolved a contractual issue by providing a detailed record of decisions and changes, preventing misunderstandings.