Contracts Flashcards
What are the elements of a contract
Capacity Intention (5 days cooling off) Agreement (Offer - Acceptance) Consideration Operation
When does a contract legally have to be in writing according to the Building Services Act 1991
If the building work is more than $10,000 before building work has start or if the contract is less than $10,000 before building work is finished
What must the building contract state
The scope of the work When work will be completed The amount paid The retention amounts and securities The name of the contractor Licence number of the contractor The address of the building work
Best value of procurement
Best value requires that organisations operate effectively and efficiency
What is a generic procurement process (six principal activities)
The establishment of what is to be procured
A decision on strategies
The seeking tender offers
Evaluation on offers
Award of the contract
Administration and compliance of the contract
Fixed Price Contract
Risk is to the contractor
If cost overrun quality may be reduced
Schedule of Rates/ Fixed Price
Final Price not known
Variations easily implemented
Contractor risk of price changes
Delay Issues
What are some elements of cost Plus Contracts
Fixed percentage Time incentives Variable Percentage Target Estimate Scope is not known Risk to owner
Elements of a Construction Management Contract
AS 4916-2002 Project Manager -Design -Construct -Deliver
Difference between hard and soft risks in contracts
Hard - Risks are allocated
Soft - Risks are shared
Build Own Operate Transfer
A single organisation designs, builds, funds and operates for a period of time before transferring ownership to an agreed party.
What does AS 2124 Cover
General Conditions of Contract
- Variations
- Liquidated Damages
- Interest
- Defects Liability Period
- Dispute Resolution
