Contracts Flashcards
Where to find:
- Contracts 3910 and SCC
- 3910 Form of Tender
- 3910 Schedules to Conditions of Tender
SCC located on NZIA website, template.
https://www.nzia.co.nz/member-area/resources/practice-resources/contract-documents#series=&keyword=,&pg=2
Schedules to Conditions of Tender template: in 3910 appendix
Form of Tender
- Contract number
- Project name
- Tender for: Client
- Name of Tenderer: Main Contractor offers to complete and maintain the above mentioned work in accordance with the drawings, spec and conditions of contract for SUM
- Tenderers GST registration #
- Signature
- Address and contract details
Schedules to Conditions of Tender
- deposit
- View site
- Tender close at time and location
- supplementary information required
- On-site Overheads and Off-site Overheads and Profit
- Working Day rate
- percentage for processing variations
- tender evaluation
Schedule of Quantities
Which schedule is it in SCC?
C2
SCC schedules
A1 Contract Agreement
B1 Specific Conditions
B2 Special conditions
C1 Fluctuations in cost
C2 Schedule of quantities
D1 Contractor’s performance bond
D2 Principal’s bond
D3 Contractor’s bond in lieu of retentions
E1 Contractor’s application for Practical Completion
E3 Practical Completion Certificate
E4 Defects liability certificate
F1 Specific Conditions of insurance
F2 Confirmation of insurance - Contract works
F3 Confirmation of insurance - public liability
F4 Confirmation of insurance Motor vehicle third party liability
F5 Confirmation of insurance - Contractor arranged professional indemnity insurance
G1 Warranty agreement
G2 Security for off Site goods or materials. - Architect must not allow any amount claimed to materials and fittings not yet delivered to site unless it has been provided for in the specific conditions and the Contractor has provided the duly executed G2, properly and separately stored, labelled property of the Principal and insured in the names of the Principal and Contractor
SCC General conditions: Release of Contractors Bond
Within 5 Working Days of the date of issue of the Practical Completion Certificate the Principal must deliver to the Contractor a notice stating that the surety’s obligations under the bond are discharged. The original signed bond form must be returned to the Contractor with this notice.
Surety is a third party company - BANK! KiwiBankLtd
compensate CMDHB if Focus does not perform
SCC General conditions 3.4 Breach of bond obligations by Contractor
Who notifies?
How many does notice?
Breach of bond obligations by Contractor
If at any time the Principal considers that the Contractor has failed to perform the Contractor’s obligations under the Contract or has otherwise failed to satisfy the bond conditions, the Architect must notify the Contractor of this.
The Architect must advise the Contractor that the bond will be called up in 10 Working Days of the notice if the failure has not been rectified within that time.
The Architect must make an estimate of the costs of any remedial or other work outstanding and of all other liabilities of the Contractor under the Contract.
The Architect must notify the Principal and the Contractor of the estimate.
What does SCC stand for
NZIA
Standard Construction Contract
On site overheads
Provide examples
What is P&G
Expenses or losses incurred by the Contractor for the carrying out of the Contract works which are not readily identifiable with an particular work item
The cost of site management personnel, such as project managers and supervisors.
The cost of site facilities, such as storage containers, offices, and restrooms.
The cost of site utilities, such as electricity, water, and internet.
The cost of site security personnel and equipment.
The cost of site transportation, such as vehicles and fuel.
The cost of site equipment rental and maintenance.
The cost of site insurance, such as liability and workers’ compensation.
The cost of site permits and inspections.
The cost of site cleanup and waste disposal.
The cost of site communication systems and equipment.
P&G is on site and off site overheads
Offsite overheads, and onsite overheads (commonly referred to as Preliminary & General, or P&G).
To figure out what fits into each category, you need to understand the definition each term has.
Onsite overheads – costs that exist because the job you are charging them to exist.
Offsite overheads – costs that directly relate to running your business.
To break it down further, here are some things that would be considered Onsite Overheads;
Cartage
Health and Safety
Access equipment hire
Signage
Site supervision
Site set out
Job administration
Asbestos testing
Site security
Portaloo
Tool and plant hire
Now for offsite overheads, remember, these are related to running your business;
Marketing
Yard lease
Entertainment
Office administration
Accounting
Legal fees
Company uniforms
Stationery and printing
Computers and IT
Power/Internet/Phone
Offsite overheads and profit
Expenses or losses incurred in the operation of the Contractor’s business and which are not required for carrying out of the Contract works plus and allowance for profit
- what is contained in a Contract Agreement
- What are the contract documents?
Q1 Project
Between Principal and Contractor
Agreed:
1. Contractor will carry out the obligations imposed on the Contractor by the Contract documents
2. Principal will pay the Contractor the Contract price or such greater or lesser sum as will become payable under the contract documents together with good and services tax at the times and in the manner provided in the contract documents
3. each part will carry out and fulfil all other obligations imposed on that party by the Contract Documents
Q2
the Contract Agreement and all other schedules
Principal’s letter of acceptance
post tender correspondence
tender - contractors tender submissions, and summary
NTTs
Documents required at Practical Completion
Warranties and another information from the Contractor essential for Principals use of the Contract works
Docs required for certificate of public use
docs required for Code of Compliance Certificate
CPU and CCC stand for?
Certificate of Public use
Code of Compliance Certificate
How are retentions calculated?
When are retentions released and how much ?
Set out in SCC
10% of the first $200K
5% of next 800K
1.75% of any mount over 1mil
max 200K
40% payable when Practical Completion has been achieved.
Phase 2: FCC demanded rest of retentions be released for Phase 1, however Phase 2 was a separable portion and the contract noted the DLP of Phase 1 would be at the end of Phase 2 rather than after 12months, so I did not release the retentions
3910
Amount agreed
50% at PC
50% at DLP
Principals main obligations ?
Pay the contractor - section 14 payments
Provide contractor possession of the site - section 7 site
Provide Contractor all necessary consent appoval documentation - 4.4 Principal to obtain consent and approvals.
Architect’s role
Architect’s rep
represents the Principal
issues all direction (AIs)
administers the contract impartially
Contractor may object to the appointed architect’s rep - do in 5 working days - Architect to consider the objection and issue a direction
Architects rep is acting on behalf of the architect and is not assuming personal responsibility
Change of architect
Principal must notify the contractor as soon as reasonability practicable
appoint a suitably qualitied architect to act in the interim
notify the contractor as soon as possible of proposed new architect . If contractor objects for reasons the principal accepts, Principal to appoint new architect.
New architect to have regard for previous directions issued
Contractor must keep on site?
a copy of the contract documents including all changes to the contract documents directed by the architect
copies of all architects directions
Which sections in general SCC conditions advise how how Variations are claimed and valued?
way stated in section 9 variations and section 11 time for completing the contract works
