Contract Practice

Question 1

Provide an example where you advised a client on selecting the appropriate form of contract for a procurement route. How did you evaluate and justify your recommendation?

Answer 1

Client’s Priorities: The client prioritized cost certainty and a single point of responsibility for design and construction.

Project Complexity: The project involved standard construction techniques, making the Design and Build approach suitable.

Risk Allocation: I assessed that the client wanted to transfer design risk to the contractor, aligning with the JCT D&B structure.

I explained that JCT D&B offers cost certainty due to its lump sum nature, which aligns with the client’s budget constraints.

The contractor would take on design responsibility, reducing the client’s exposure to design risks.

The contract included provisions for Contractor’s Proposals and Employer’s Requirements, allowing the client some control over key design elements.

Question 2

JCT D&B Payment timeframes

Answer 2

Interim Valuation Date: As agreed in the contract (e.g., monthly).
Due Date for Payment: 7 days after the valuation date.
Payment Notice Deadline: Within 5 days of the Due Date.
Final Date for Payment: 14 days after the Due Date.
Pay Less Notice Deadline: No later than 5 days before the Final Date for Payment.

Question 3

Describe your role in administering a JCT Design and Build 2016 contract on a project. How did you handle payment mechanisms?

Answer 3

Schedule of Payment Dates: I compiled and agreed on a schedule with all relevant parties to ensure clarity and compliance with the contract. The schedule detailed key dates such as:

The submission of the contractor’s interim application.
The due date for payment.
Deadlines for the employer’s Payment Notice and Pay Less Notice.

Monthly Interim Valuations: I conducted valuations based on the work completed, ensuring accuracy by referencing the agreed Contract Sum Analysis (CSA). For any variations, I applied the valuation rules set out in the contract, using comparable rates for works of a similar nature.

Compliance with Contractual Rules: I adhered to the timelines for issuing certifications, ensuring that the contractor was paid promptly in compliance with the Construction Act. I communicated my assessments transparently with the employer’s agent and the contractor, resolving any discrepancies amicably.

Question 4

Provide an example where you advised a client on selecting the appropriate form of contract and why. How did your advice align with the client’s objectives?

Answer 4

On the Harrow Road project, I advised the client to adopt the JCT Design and Build 2016 form of contract. The client prioritized early contractor involvement, risk transfer, and cost certainty. Here’s how my advice was structured:

Evaluation of Client Objectives:

The client wanted to minimize their design risk by delegating responsibility to the contractor.
They sought a streamlined process to enable overlap between design and construction stages, reducing the overall project timeline.
Recommendation:

I recommended the JCT Design and Build 2016 form as it aligned perfectly with these objectives. This form allows the employer to specify their requirements (Employer’s Requirements), while the contractor takes responsibility for completing the design and construction (Contractor’s Proposals).
This reduced the client’s exposure to design-related risks while providing a single point of responsibility for the contractor.
Outcome:

I explained the implications of this choice, including the contractor’s entitlement to variations where Employer’s Requirements change. I ensured the client understood the importance of a well-defined scope to mitigate potential cost increases.
The client adopted my recommendation, and the project progressed with clear roles, leading to effective risk management and timely delivery.