Contracting Process in construction

Question 1

What Makes a contract ?

Answer 1

Offer

Acceptance

Consideration

Certainty

Intention

Question 2

in what forms does a offer come ?

Answer 2

Tenders

Qualified tenders

Tender report

No obligation to accept

Question 3

what is the contract process in consideration ?

Answer 3

Both Parties must offer something to the contract:
Client offers money/ payment
Contractor offers resources to build

Question 4

what is the contract process in certainty ?

Answer 4

Contract Conditions must be understood by both Parties

Obligations must be definable achievable and legal

Question 5

what is the contract process with intention

Answer 5

Both Parties must have the intention to enter into contract

Both Parties must have the means to fulfil their Contract obligations

Question 6

name some Client’s Obligations

Answer 6

Pay VAT as applicable (usually on products such as appliances)

Take out insurance as required

Inform Contractor if Liquidated Damages will be deducted

Take back possession of the Works

Question 7

when choosing a type of contract what type of factors should be considered ? (JCT)

Answer 7

Procurement method
Client type e.g. 
government, L.A. Private. Etc
Experience, major, minor, 
Size and complexity of the project- nature and category of work
Risk attitude of the client 
Policy and accountability mechanism
External factors 
Design responsibility
Need for documentation

Question 8

name some sources of JCT form

Answer 8

The sales of goods act 1979

The supply of goods and services act 1982

Defective premises act 1972

Unfair Contract Terms Act 1977

Unfair Terms in Consumer Contracts Regs 1999

The housing grants, Construction and Regeneration act 1996

Question 9

what act covers late payment ?

Answer 9

Late payments of commercial debts interest Act 1999

Question 10

what questions should be considered when choosing a contract ?

Answer 10

What is the nature or category of the work?

Who is to be responsible for design?

Will the nature of the work allow full and accurate tender documents to be prepared?

Is there enough time to prepare full information at tender stage?

What documents are needed for a particular type of contract?

What is the method of selecting the contractor?

Is the client able to state his requirements precisely before work starts?

Does the client need to know a precise Contract Sum before work starts?

Who is to be mainly responsible for coordinating the work on site?

Question 11

what does JCT SBS stand for ?

Answer 11

The Joint Contracts Tribunal Standard Building Contract