Contract Practise COPY

Question 1

What is a contract?

Answer 1

A legal agreement between two parties.

Question 2

Why are Contracts required / relevant for the construction industry?

Answer 2

Provides protection for both the employer and the contractors. It also prevents disputes.

Question 3

What are the different ways in which a contract can be made?

Answer 3

Verbally and written

Question 4

What are the key requirements for a contract to be made binding?

Answer 4

• Offer
• Acceptance
• Consideration
• Intention to create legal relation

Question 5

What are common main contract documents in JCT Design and Build.

Answer 5

Form of contract, employers requirements, contractors proposals, CSA, programme and clarifications.

Question 6

What are common main contract documents in JCT Intermediate.

Answer 6

Contract Drawings, specifications, bill of quantities.

Question 7

What standard forms of JCT contracts are you aware of?

Answer 7

Intermediate, Design and Build, Intermediate, Major, and Minor.

Question 8

Under what procurement route would you consider using a JCT Minor Works Building Contract.

Answer 8

Traditional procurement route.

Question 9

When might a JCT Minor Works Building Contract be appropriate?

Answer 9

Small, low value, basic construction projects where the work involved is simple in character.

Question 10

Under what procurement route would you consider using a JCT Intermediate Building Contract?

Answer 10

Traditional procurement route.

Question 11

What is retention?

Answer 11

An amount of money owed to the contractor held by the employer, to ensure the contractor is completing the works in accordance with the contract, until the end of the rectification period.

Question 12

How is retention released?

Answer 12

Typically 1/2 s released on practical completion and 1/2 released at the end of the rectification period. This may vary depending on what is agreed at contract negotiation.

Question 13

What is a Notice of Completion of Making Good?

Answer 13

A certificate confirming that the contractor has made good any defects during the rectification period.

Question 14

What are the advantages for standard contracts?

Answer 14

• Standardised contracts backed up by case law
• Known across the industry
• Reduced legal costs

Question 15

What are the advantages for bespoke contracts?

Answer 15

• Contracts can be customised to address project specific needs
• Greater control over the agreed dispute resolution and payment methods.

Question 16

What are the disadvantages for standard contracts?

Answer 16

• Can be overly complicated for smaller projects
• Limited flexibility to address specific project needs

Question 17

What are the disadvantages for bespoke contracts?

Answer 17

• Increased legal costs to draft a bespoke contract
• Time consuming
• Lack of case law or precedent can make it difficult to resolve disputes

Question 18

What is a relevant event?

Answer 18

An occurrence, such as delays caused by the client or external factors, that entitles the contractor to an extension of time for project completion.

Question 19

What is a relevant matter?

Answer 19

An occurrence, such as changes in design or unforeseen site conditions, that affects the contractor’s ability to perform the work as originally agreed and may justify a claim for additional costs or time.

Question 20

What are some examples of relevant events?

Answer 20

In JCT D&B
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