Contract Practice L2 Flashcards
What is the purpose of the Letter of Intent?
Facilitate the start of the works while contracts terms are pending agreements.
What do you include within the Letter of Intent?
- Agreed Contract Particulars (start/completion date, costs, LADS)
- Cost to facilitate works (%, element progress with, cost lump sum)
- Completed by the client (surveyor can advise) and to be issued on their letter head to the contractor.
Why did you proceed with using a LOI?
To allow the contractor to place orders for cubicles.
Why would you select specific contract for a project?
Dependent on the procurement method.
Standard with or without quantities - Large projects, complex details
Intermediate - Simple content with common trades, more control procedures then Minor Works
Minor Works - Simple, designed majority by employer with work schedules, shorter period
What payment types are available for traditional procurement payment options?
- Lump Sum (determined before works progress)
- Measurement (Not confirmed until after when volume of rate agreed)
- Reimbursement (Where real cost is provided and OH&P % added on top)
What documents for tender are used on minor works?
- Drawings
- Preliminaries
- Priced specification
What are the contract options for signing?
- Underhand typically used where design work is only infrastructure (scaffold) so 6 years run off.
- As a deed used where design work extensive (piling, structure) so 12 year run off.
What makes a contract?
Offer (presents something of value) Acceptance Consideration (payment) Intention Legality (Is it legal) Capacity (ensure that person can actually sign it)