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APC QS 2022 > Contract Practice SoE Q's > Flashcards

Contract Practice SoE Q's Flashcards

1
Q

What Contracts are available under the JCT Suite of Contracts?

A
  • JCT Standard
  • JCT Intermediate
  • JCT Minor Works
  • JCT Design and Build
  • JCT Construction Management
  • JCT Management Building
  • JCT Major Projects
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2
Q

What are some differences between JCT Contracts?

A

D&B includes for Employers Agent, not included in Standard, Intermediate or Minor Works

D&B and Standard include for third party rights, Intermediate and Minor Works do not

Minor works does not include provisions for collateral warranties

Minor Works unable to include sectional completion

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3
Q

When would you use certain JCT Contracts?

A

Standard = For larger projects involving complex services installations and specialist work

Intermediate = when proposed works are simple in nature, involving basic recognised trades within the industry, without complex services installations or specialist work.

Minor Works = When works are of a simple nature

Design & Build = When looking to transfer risk to the Contractor

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4
Q

What Contracts are available under the NEC Suite of Contracts?

A
  • Option A: Priced contract with Activity Schedule
  • Option B: Priced contract with Bills of Quantities
  • Option C: Target contract with Activity Schedule
  • Option D: Target contract with Bills of Quantities
  • Option E: Cost reimbursable contract
  • Option F: Management contract
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5
Q

What is the FIDIC Contract?

A

International Federation of Consulting Engineers

Geared towards larger engineering projects

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6
Q

What are the timescales of reviewing a CE under the NEC contract?

A

Notification of Compensation Event – within 8 weeks of becoming aware of the event

Quotation – within three weeks of request

Reply to quotation – within two weeks of receiving quotation

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7
Q

What are the timescales to agree the valuation after receiving the contractors application?

A

JCT = 5 days after due date
NEC = 7 days, 5 days to issue payment notice

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8
Q

What legislation governs construction contracts?

A

Housing Grants Construction and Regeneration Act 1996 (Construction Act)

Local Democracy, Economic Development and Construction Act 2009 (changes to payment regimes)

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9
Q

What changes did the LDEDC Act 2009 bring in?

A

Contracts no longer need to be in writing to commence adjudication.

Contract must have mechanism to determine what payments are due and when

Pay when certified clauses no longer used

Timescales around payment notices and final date for payment

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10
Q

What is the Contracts (Rights of Third Parties) Act 1999?

A

Allows parties who are not a party to the contract to enforce certain terms as if they were a party to the contract

Must be explicitly named in the contract

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11
Q

What are the advantages of third-party rights?

A

Saves on time and cost drafting up collateral warranties

Once the rights are negotiated and agreed, there is limited room to revisit the wording, provides certainty

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12
Q

What does JCT stand for?

A
  • Joint Contracts Tribunal
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13
Q

What is included within the guidance note on interim valuations and payment?

A

The document looks at interim valuations, payment under different forms of JCT and NEC contracts.

It further looks at the payment timelines of JCT and NEC, as well as the components of a valuation and retention.

It further discusses interim applications, certificates and pay less notices

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14
Q

What is a collateral warranty?

A

It is an contractual agreement between two parties that would usually not have one. For example, on a D&B contract, these would be used between members of the design team that sit beneath the contractor and the client

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15
Q

Please summarise the contractual mechanism of ‘Interim Valuation and Payment’ in JCT contract series?

A

Interim val date 7 days before the due date – contractor to make application

Due date is 7 days following the interim date

5 days following the due date is the date for the interim cert

14 days following the due date is the final date for payment

5 days prior to the final date for payment is when the payless notice would be due

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16
Q

What is a certificate of non-completion?

A

A formal notice that the contractor has not completed the works by the date for completion within the contract

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17
Q

Why would you issue a non completion cert?

A

The contractor has not completed the works by the contract completion date and has not submitted an extension of time claim.

This protects the client in case Liquidated Damages would have to be levied

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18
Q

What are Liquidated Damages?

A

A genuine pre-estimate of loss suffered by the Employer because of late completion of the works

Not a penalty

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19
Q

What is a loss and expense claim?

A

Where the Contractor incurs loss due to the failure of the employer (relevant matter)

Should be actual loss incurred by contractor when assessing the claim

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20
Q

How long do you have to assess an Extension of Time claim under the contract?

A
  • 12 weeks
21
Q

What was included in the contract documents for Project Zeta?

A
  • Contract
  • Schedule of amendments
  • Prelims
  • CSA
  • Drawings
  • Specs
  • ER’s
  • CP’s
  • PCI
22
Q

How did you ensure that the latest drawing revisions had been included?

A
  • I used the latest drawing register to ensure that I had copies of all the latest drawings.
23
Q

What were the CDP elements on the St Wilfrid’s project?

A
  • Steelwork connections
  • MEP elements
  • Roofing
24
Q

How was the design liability for the CDP elements captured within the contract?

A
  • Collateral Warranty
  • Guarantee
25
Q

You mentioned that you collated all of the design information for a JCT Intermediate Contract with CDP, what information did you provide the contractor in relation to the CDP element of works and was there anything additional the contractor needed to provide you?

A
  • Specifications included within ER’s
  • Pricing Document
26
Q

What are the advantages of using a D&B contract?

A

Overlap of design and construction, leading to an earlier start on site

Risk transfer to contractor

27
Q

What are the key differences between a JCT D&B contract and a JCT Intermediate?

A

There is no mention of a QS in D&B, whereas there is in Intermediate.

D&B is administered by an EA as opposed to CA.

Contractor is responsible for completing all of the design under D&B, but limited to CDP under Intermediate.

D&B gives the option for stage payments, whereas Intermediate does not.

28
Q

What risk would the client retain using a JCT Intermediate compared to a D&B contract?

A

Design risk, this would typically be complete by the client prior to tendering.

29
Q

What was included within the monthly valuations on Project Zeta?

A
  • Measured work
  • Time and fixed prelims
  • Prov sums
  • Variations
  • Material on site
  • Material off site
  • Retention
30
Q

What were the methods for valuing change?

A
  • Bill rates
  • Star rates
  • Dayworks
  • Schedule 2 Quotation
31
Q

What were the reasons of adopting JCT Design and Build 2016 on Project Zeta and Alberton House?

A

On Project Zeta, this was to allow for an earlier start on site. This allowed design and construction to overlap.

On Alberton House, this was to receive buildability input from the contractor on a complex scheme.

32
Q

What were the reasons of adopting JCT Intermediate Contract 2016 on St. Wilfrid?

A

Fairly simple in nature, with no complex installations.

This was also due to the fact that the design was fairly developed.

The client wanted cost certainty at the start of the project.

It was further advised that use of a Bill of Quantities would be good for post contract cost control.

33
Q

What is ‘Contractor Design Portion’? Does it appear in other JCT contracts besides JCT Intermediate Contract 2016?

A

CDP is specific elements of work that require contractors design.
JCT Standard Building Contract
JCT Minor Works Contract

34
Q

What were the alternative forms of contract proposed on the GMMH project?

A

JCT Intermediate Contract as the employer wanted cost certainty and it was thought that this would present the best option.

NEC Option A as this was the form of contract that was being used on the Theatre Extension project. Specified contract under the Procure framework.

35
Q

What is a Bill of Quantities?

A

It is a document that is prepared by the quantity surveyor that provides project specific measured quantities of the items of work measured on the drawings and specifications.

36
Q

What are the different types of Bill of Quantities?

A
  • Firm Bill of Quantities
  • Approximate Bill of Quantities
37
Q

Why was the use of a Bill of Quantities proposed on the GMMH?

A

This was proposed as the employer wanted cost certainty and a BoQ would have provided them with this.

38
Q

What advice did you give to the client regarding the use of the differing contract forms?

A

I advised the client to proceed with a JCT D&B. They wanted to relinquish design control and they needed an earlier start on site. Overlap of design and construction would allow this.

39
Q

Was there a preference on design risk allocation on the GMMH project?

A
  • Yes, the client wanted to relinquish design risk.
40
Q

You mentioned on the Wythenshawe GMMH project that you prepared a comparison of contract types including risk allocation. Which contract did you advise the client was most suitable?

A

I proposed that a JCT D&B was the most suitable contract choice for the GMMH project. This was due to the fact that the employer was most comfortable with this form of contract and they were going to be administering it. Further to this, the client wanted to start on site as quickly as possible and the overlap of design and construction allowed this. A JCT intermediate with BoQ would have taken considerably more time and led to project delay.

41
Q

What is the difference between interim and stage payments and what was proposed on Project Zeta?

A

Stage payments are not based on time, but yet by the stages detailed in the contract. Payment is made when the stipulated work has been completed and achieved.

Interim payments are made on the basis of time and are completed on a monthly basis to reflect progress on site and this is what was used on Project Zeta.

42
Q

What type of contract was used on Project Zeta? And can you elaborate on the payment terms?

A

JCT D&B 2016 as the client had a tight programme and overlap of design and construction would allow for the earliest start on site.

Payment terms were 28 days – this differed to the standard terms of 21 days. The difference was the time period between due date and final date for payment.

43
Q

What was the purpose of 28 day payment terms?

A

Request by the client and this is why it was included.

The schedule of amendments was provided to all tenderers and therefore they had visibility and it was fair.

Amended to coincide with clients payment dates.

44
Q

What was the purpose of the valuation schedule on Project Zeta?

A

To make all parties aware of the key dates in relation to payment. Informed the contractor of when the interim application needed to be made by and the client of final date for payment.

45
Q

You mention on the Project Zeta job that payment terms were 28 days. From what point do the 28-day payment terms come into effect under a JCT Design and Build 2016?

A

This is from the interim valuation date. 21 days from the due date to the final date for payment.

46
Q

What are the Employer’s Requirements and what is their purpose?

A

Employer’s Requirements set out the client’s design requirements for construction. These are used by the contractor, and they produce contractor’s proposals which are used as a basis for design and construction.

47
Q

What are ‘Bill of Quantities’, ‘Schedule of Rates’ and ‘Schedule of Works’?

A

Pricing documents that are used for differing contract types and the level of detail available to the QS.

Schedule of rates are pre agreed costs with a contractor that are agreed in advance, typically seen under continuous work, framework agreements or serial tendering practices.

Bill of Quantities are seen to be used on a JCT Standard Building Contract, Intermediate. Produced when there is a greater level of detail available which results in a more detailed document with quantities. Offers greater cost certainty.

Schedule of Works will be used on a D&B and are less detailed than a BoQ. The work elements will be listed out for the contractor to measure and price.

48
Q

What are the considerations when you are deciding which pricing document is to be used?

A
  • Cost
  • Time
  • Risk allocation
  • Control
  • Quality

APC QS 2022 (40 decks)

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