Contract practice (L1) Flashcards
What standard forms of contract are you aware of?
- NEC
- JCT
- FIDIC
- IChemE
Can you name some contracts from the JCT suite of contracts?
- JCT Standard Building Contract (with Qunats, Without Qunats or with Approx Quants versions)
- JCT Intermediate Building Contract (with Contractor’s Design version)
- JCT Minor Works Contract (with Contractor’s Design version)
- JCT Design and Build Contract
- JCT Major Project Construction Contract
- JCT Management Building Contract
- JCT Construction Management Contract
Contract families contain main and sub-contracts
Can you name some contracts from the NEC suite of contracts?
- NEC Engineering and Construction Contract (ECC) - Main Options A-F
- NEC Engineering and Construction Subcontract (ECS) - Main Options A-E
- NEC Engineering and Construction Short Contract (ECSC) - Hybrid between Option A and Option B
- NEC Engineering and Construction Short Subcontract (ECSS) - Hybrid between Option A and Option B
- NEC Professional Services Contract (PSC) - Main Options A, C and E
Note: The client can include the requirement for the Contractor to be doing some element or all of the design by including such requirements within the scope/ works information. This avoids the need for a separate ‘design and build’ option within the NEC family of contracts.
What are the Main Option clauses under the NEC Engineering and Construction Contract?
There are 6:
- Main Option A: Priced contract with Activity Schedule
- Main Option B: Priced contract with Bills of Quantities
- Main Option C: Target contract with Activity Schedule
- Main Option D: Target contract with Bill of Quantities
- Main Option E: Cost reimbursable contract
- Main Option F: Management contract
Can you give me some examples of Secondary Option clauses under the NEC Engineering and Construction Contract?
- X5: Sectional completion
- X6: Bonus for early completion
- X7: Delay Damages
- X16: Retention
What contracts could you use where a project is procured on a Traditional (Lump Sum) basis?
NEC Contracts where Main Option A can be selected such as the:
- Engineering and Construction Contract (ECC)
- Engineering and Construction Subcontract (ECS)
- Professional Services Contract (PSC)
and also
- JCT Standard Building Contract (with Quants and without Quants versions)
- JCT Intermediate Building Contract
- JCT Minor Works Building Contract
What contracts could you use where a project is procured on a Traditional (Re-measurement ) basis?
NEC Contracts where Main Option B can be selected such as the:
- Engineering and Construction Contract (ECC)
- Engineering and Construction Subcontract (ECS)
and also
- NEC Engineering and Construction Short Contract (ECSC)
- NEC Engineering and Construction Short Subcontract (ECSS)
- JCT Standard Building Contract (with Approx Quants version)
What contracts could you use where a project is procured on a Design and Build basis?
- NEC Engineering and Construction Contract (ECC) - Where Main Options A-E are selected (not F)
- NEC Engineering and Construction Subcontract (ECS)
- NEC Engineering and Construction Short Contract (ECSC)
- NEC Engineering and Construction Short Subcontract (ECSS)
noting under the NEC requirements for design are set out in the scope/ works information and not the contract - JCT Design and Build Contract
- JCT Major Project Construction Contract
What contracts could you use where a project is procured on a Construction Management basis?
- NEC Engineering and Construction Contract (ECC) - Only where Main Option F is selected
- JCT Construction Management Contract
What contracts could you use where a project is procured on a Management Contracting basis?
- NEC Engineering and Construction Contract (ECC) - Only where Main Option F is selected
- JCT Management Building Contract
What contracts could you use for a project that is of high complexity?
- NEC Engineering and Construction Contract (ECC)
- NEC Engineering and Construction Subcontract (ECS)
- JCT Standard Building Contract (with Qunats, Without Qunats or with Approx Quants versions)
- JCT Major Project Construction Contract
- JCT Management Building Contract
- JCT Construction Management Contract
- JCT Design and Build Contract
What contracts could you use for a project that is of medium complexity?
- NEC Engineering and Construction Contract (ECC)
- NEC Engineering and Construction Subcontract (ECS)
- JCT Intermediate Building Contract (with Contractor’s Design version)
- JCT Design and Build Contract
What contracts could you use for a project that is of low complexity?
- NEC Engineering and Construction Short Contract (ECSC)
- NEC Engineering and Construction Short Subcontract (ECSS)
- JCT Minor Works Contract (with Contractor’s Design version)
What factors can influence the selection of the type of construction contract?
- Procurement route
- Size, value and complexity of a project
- Size of contracting organisation carrying out the works (smaller contractors wouldn’t expect a length and detailed contract unlike larger contractors)
- Particular sector
What is a contract?
A written or spoken agreement between two or more parties that is enforceable in a court of law