Contract Practice Level 2 Flashcards
What is a Traditional Procurement route?
- One stage tender process
- The client appoints an independent design team to prepare detailed drawings, - - specifications, and tender documentation before construction work begins.
- The design is fully completed before the contractor is engaged.
What are the advantages to using a traditional procurement route?
- Client has greater control over the design
- Costs are usually fixed before construction begins
- The routes is well understood and widely practiced
What are some disadvantages to using a traditional procurement route?
- Longer project duration
- Limited contractor input into design
- Potential for disputes
What are the insurances options listed within a JCT Minor Works Contract?
Option A - Insurance of Works by the Contractor (All Risks)
Option B - Insurance of the Works by the Employer (All Risks)
Option C - Insurance of Existing Structures by the Employer
What type of insurance cover would you expect the contractor to provide?
- Public Liability Insurance
- Employer’s Liability
- Professional Indemnity Insurance
- Contractor’s All Risk
What is a provisional sum?
An allowance included in a contract to cover work that is anticipated but cannot be precisely defined or quantified at the time the contract is agreed upon.
What is a defined provisional sum?
The general nature and scope of the work are known, but precise details and unavailable.
What is an undefined provisional sum?
The scope of work is unclear or uncertain.
Why would you include provisional sums within a scope of works?
- Flexibility - allows the project to proceed even when certain aspects are undefined.
- Cost Control - provides a budget for anticipated but unclear work, offering a degree of predictability.
- Time Efficiency - avoids delays in contract negotiation by addressing uncertainties later.
