Contract Practice Flashcards
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?
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.
JCT D&B Payment timeframes
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.
Describe your role in administering a JCT Design and Build 2016 contract on a project. How did you handle payment mechanisms?
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.
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?
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.
What steps do you take to assess contractor proposals for variations, and how do you validate their cost submissions?
review contractor proposals by comparing them against the contract sum analysis and benchmarking data. For similar works, I use agreed contract rates, adjusting for scope and specification differences. For new items, I validate costs using market-tested rates or supplier quotes, ensuring the client receives fair and accurate pricing.
Describe how you handled a tendering issue, such as identifying and resolving errors in a contractor’s submission.
During tender analysis, I identified a double-counted item in one contractor’s submission. Following the JCT Tendering Practice Note Alternative 2 (ITT states alternative 2)
, I allowed the contractor to revise their submission, documenting the process for transparency. This ensured fairness and accuracy, enabling the client to make an informed decision.
How do you ensure contractual risks are managed effectively, particularly in relation to provisional sums or delayed design information?
I track provisional sums in cost reports and coordinate with the design team to release information promptly. I review contractor submissions for provisional sum expenditure to ensure alignment with the budget. Regular risk register updates and client meetings help proactively manage and mitigate risks.
Can you discuss how you ensured transparency and accuracy when preparing interim valuations and payment certificates?
Site visit to verify completed works
Documenting progress with photos and notes
Compare against application
Adjust to reflect on site and discuss with the contractor and agree
How did you manage the change control procedure on the Eastwick and Sweetwater project to minimize disputes and maintain programme objectives?
I used a Change Control Log to track all variations, ensuring each was reviewed against the contract requirements. I provided cost and programme impact assessments for client approval. Regular contractor meetings allowed for proactive resolution of potential issues, ensuring changes were implemented without significant delays or disputes.
