Contract Selection

Question 1

What are the main criteria for selecting a form of contract?

Answer 1

1. ) Procurement type,
2. ) How risk averse the client is,
3. ) Size of project
4. ) Client (public or private)

Question 2

How might the type of client affect the choice of contract?

Answer 2

Private (quality) vs Public (cost and programme),
Risk averse or non risk averse
Experienced or not

Question 3

What different types are there of SBC?

Answer 3

1. ) JCT SBC,
2. ) D&B,
3. ) Minor Works,
4. ) Intermediate,
5. ) Major Works,
6. ) Constructing Excellence

Question 4

What different types are there of SBC?

Answer 4

With quants, without quants, approximate quants.

Question 5

When would you use JCT minor works?

Answer 5

Small, simple, short duration, roughly up to £200,000, lump sum form.

Question 6

When would you use JCT SBC with quants?

Answer 6

Full design, There is BoQ, Lump sum, contractors risk of price only, employer takes risk on quant errors.

Question 7

When would you use JCT SBC without quants?

Answer 7

Work designed but there are no quants in BoQ, lump sum form, contractors risk on price and quants.

Question 8

When would you use JCT SBC approx quants?

Answer 8

Remeasurable contract, no contract sum, design is not complete, approx BoQ prepared, construction commencing prior to complete design.

Question 9

When would you use JCT major works?

Answer 9

Significant size.

Question 10

When would you use JCT prime cost contract?

Answer 10

Contractor paid cost of carrying out the works plus a percentage fee for OH&P, may be used if contractor is selected following insolvency [of the previous contractor on the job], total cost unknown until completion.

Question 11

What management contract is produced by the JCT?

Answer 11

Constructing Excellence

Question 12

Please name the NEC options?

Answer 12

A = Priced Activity Schedule, 
B = Priced BoQ, 
C = Target cost Activity Schedule, 
D= Target Cost BoQ, 
E = Cost Reimbursable, 
F = Management

Question 13

How does the NEC incorporate D&B?

Answer 13

NEC4 Design, Build and Operate Contract (DBO), released in 2017.

Question 14

Are you aware of any of the core clauses in the NEC suite?

Answer 14

Payment, Compensation Events, Liabilities and Insurance, Termination

Question 15

Are you aware of any of the secondary option clauses in the NEC suite?

Answer 15

X1 = inflation, 
X4 = PCG, 
X5 = Sectional Completion, 
X7 = Delay damages, 
X12 = Partnering, 
X13 = Performance bond, 
X16 = Retention

Question 16

Parties in JCT SBC contract?

Answer 16

Employer, Contractor, CA, QS, Principle Designer

Question 17

Parties in JCT D&B contract?

Answer 17

Employer, Contractor, EA

Question 18

Parties in NEC contract?

Answer 18

Employer, Contractor, PM, Supervisor

Question 19

What are key differences between NEC and JCT?

Answer 19

1. ) NEC uses 6 main options and sub-options where as the JCT uses separate contracts.
2. ) NEC is written in laymen terms where as JCT is a more complicated read.
3. ) The parties are different; there’s no QS mentioned in the NEC and the EA or CA is referred to as the PM.
4. ) NEC fosters collaboration where as the JCT is said to be adversarial.
5. ) The programme and risk register are contractual documents under NEC.
6. ) Variations, EoTs and Loss and Expense claims are handled by Compensation Events under the NEC.
7. ) NEC has “periods of reply” to encourage parties to respond to each other.
8. ) The NEC has an early warning notice system where to contractor should highlight risks.

Question 20

Explain to me as an uninformed Client the comparative dangers of using a bespoke form of contract and advantages of using a standard form of contract?

Answer 20

Standard form = written by experts, rights and obligations clearly stated, risks allocated fairly, well understood within industry, time and expense of preparing bespoke is avoided, case law available.

Question 21

Why use a bespoke contract?

Answer 21

Apportionment of risk can be questioned and altered, you will have to be familiar with what’s in a bespoke contract as it is drafted by yourself, using an inappropriate standard form cancels out advantages.

Question 22

What is the legal principle of “contra proferentum”?

Answer 22

Would apply to a bespoke contract and not a standard form. “Interpretation against the draftsman”, is a doctrine of contractual interpretation where a term is ambiguous, the preferred meaning should be the one that works against the interests of the party who provided the wording.

Question 23

What are the common contract documents?

Answer 23

ER’s
Pricing document i.e. CSA in D&B contracts.
CP’s
Preliminary pricing document.

Question 24

What is a named sub-contractor?

Answer 24

Employer supplies list of names in prelims to the contractor.

Question 25

How do you include client amendments into your forms of contract?

Answer 25

Append amendments to contract.