Contract Practice

Question 1

NEC secondary clauses

Answer 1

inflation, multiple currencies, fluctuations, retention, changes in law, advance payment, PGC, bonus for early completion, KPIs, limitation of liability, sectional completion

Question 2

provisions of HGCRA 96

Answer 2

right to interim payments
right to be informed of the amount due
right to adjudication
right to suspend performance for non payment
disallowing pay when paid clauses

Question 3

LDEDCA 09?

Answer 3

payments dates must be stated in contract
client must issues a payment notice 5 days before final date for payments
if they dont the contractor can issue a default payment notice
client must issue a pay less notice 7 days before final date
disallowed pay when certified clauses

also contracts don’t have to be in writing, gives adjudicator provision to correct, and the referring party is not always liable

Question 4

what’s an option C contract?

Answer 4

form of target cost - incentive to contractor to come under the target to share the gain

pain/gain is calculated at completion

cost built up of a forecast of the works, prelims, fees

valuations built up through a schedule of cost components (short or long)

Question 5

when does a PMA take place?

Answer 5

when the contractor doesnt submit a quotation within the correct time, or correctly.

when they dont submit required programme or alteration with quotation, or the PM doesnt accept latest programme

Question 6

how would you assess a weather related CE?

Answer 6

assess delay, review local weather station report and ensure that the weather was less frequent than once in ten years

Question 7

section 38 and section 278?

Answer 7

s38 agreement - for highways authority to take responsibility for new built road and include within their maintenance

s278 agreement allows you to incorporate existing surface into you works

PP33 junction improvements

Question 8

Y clauses under NEC?

Answer 8

YUK1 project bank account
YUK2 HGCRA
YUK3 Contracts (rights of third party)

Question 9

insurance expected on site?

Answer 9

insurance of the works
PII
employers liability
public liability

Question 10

how is insurance dealt with in NEC?

Answer 10

within core clause 8 - contract and employer provide insurance for anything in the insurance table and any additional
from start on site until end of the defects date

Question 11

whats in the insurance table?

Answer 11

loss or damage to works, plant, materials
loss or damage to equipment
loss or damage to property
liability for injury or death (not an employee of contractor)
liability for injury or death to an employee of contractor