Contracts Flashcards
What do contract documents typically consist of?
- The conditions of the contract and articles of the agreement;
- Drawings;
- Specifications;
- Bill of Quantities;
- Preliminaries;
- Risk Assessment
What is a Specification?
‘It is a written description of the quality of the built product and its component parts.’
Performance Specification - define the characteristics of the final product… clients will state what quality of finish they are after in essence or brief.
Descriptive Method Specification - A written document providing detailed descriptions of the quality required in terms of construction, Workmanship and materials.
Whats the role of Clerk of Works?
To visit the site during construction phase and produce progress reports for the Client.
When does the Rectification period starts?
When practical completion is achieved.
How much of the Retention fee is returned to the Contractor at Practical Completion
Half of the withheld amount.
What is a valuation?
It is the process of the Contract Administrator visiting the site during the construction phase to verify works progress and issue certificates.
Which is a dispute resolution method based in Court based?
Litigation
In a Local Planning Authority would always accept the lowest tender?
Yes, would always accept the lowest one, since it’s all about cost savings
How would you request for a minor change on the design during construction?
Through a variation.
When does the Defects liability period start and how long does usually last?
12 months after Practical Completion and last 12months
When do you need to produce the snagging list?
At the Practical Completion
When is the Penultimate Certificate issued?
At Practical Completion
Which certificates needs to be issued right before issuing the Final Certificate?
The Making good defects certificate
What is novation?
Novation is a mechanism whereby one party can transfer all its obligations under a contract and all its benefits arising from that contract to a third party.
What is discussed at a pre-contract meeting?
Roles & responsibilities. Agree lines of communication. CDM regulations & responsibilities. Programme of work & dates. Issuing outstanding pre-start information, e.g site details that weren't included in tender documents. Nominations of suppliers, subcontractors. Agree progress meeting schedule etc. Construction phase plan.
How are contracts discharged?
A Pear Fell Bounce Bounce Bounce
- Agreement
- Performance
- Frustration
- By contractual stipulation/terms of contract
- By lapse of time
- Breach
What is a collateral warranty?
A side legal agreement with a 3rd party that runs alongside an existing contract between two parties. LAs typically encounter them when working with a developer or occupier.
e.g. Dock 9: Architect, Landscape Architect, Developer and Tenant
What does the term “agent” mean in a contract?
“Agency” = the relationship that comes into being when one party is employed by another to make legally binding contracts with a 3rd party on behalf of the principal.
The client is giving permission for LA to act on their behalf.
It is an obligation of the LA to behave as a ‘responsible agent’ and to:
- Act in the best interests of the client
- Not to make underhand profits / take bribes
- Not to delegate their responsibilities
What branches of the law should landscape architects be aware of?
- Criminal Law
- Civil Law
- Contract Law
- Law of Tort
What is the privity of contract?
- principal feature of contract law is that it defines the rights of and obligations between the parties of a contract
- = only a party to a contract can take the benefits of that contract or is subject to its obligations
- defines whether someone can be sued or not
- JCLI and JCT exclude above - instead provide for the use of traditional common law rules and collateral warranties
Current court structure
Court of Justice of the European Communities
Supreme Court of the UK
Court of Appeal
Criminal Division Crown Court- Magistrates Court
Civil Division High Court - County Court
What is the difference between latent defects and patent defects?
The difference between latent and patent defects is that latent may not become apparent until a few or many years after the completion of the project whereas patent defects, on the other hand, are the ones that are immediately obvious and are included in the snagging report.
How would you agree terms of appointment in a private practice?
As required by the CoC, all agreements should be in writing.Whether a LA uses the standard Landscape Consultant’s Appointment (LCA) form or a custom one that has been thoroughly checked by a lawyer before being used, is up to the individual professional. This contract of appointment should clearly set out the scope of works that the LA will deliver based on the client’sbrief, the expected output in terms of provision of drawings material and the fees required to complete these services.
What is the Landscape Consultants Appointment (LCA)?
The Landscape Institute’s official document that: advises Landscape Consultants and their Clients in the execution of landscape commissions & sets out the Memorandum of Agreement as well as the standard and additional services provided, conditions of service which apply and a schedule of services and fees
What action should a consultant take if negligence claims are pursued?
If there’s a claim of professional negligence against the consultant, the consultant should not respond in writing & should contact PII insurers. PII insurers will provide guidance on handling of the claim and any info that should/ should not be shared.
What contractual obligations may a LA have?
- Contracts for services to clients 2.Contracts of employment 3. Collateral warranty
What types of terms of contract might establish the parties obligations?
- Implied – by the court, by custom and by the statue
- Express – written terms agreed by both parties
What is the significance of Practical Completion?
- fit for purpose
- site handover meeting will be arraigned
- The site is handed back to the client
- The contractor is no longer required to carry insurance - for the site
- The contractor can request a penultimate payment certificate
- The contractor can request the release of the Bonds
- The contractor can request half the retention fund can be released
- Period of final measurements may start
- The defect/rectification and maintenance period begins
- The Health & Safety File will be compiled and handed to the client
Example: swimming pool being offered as fit for purpose. If there is no water in it, you would not accept it as fit for purpose, because you cannot swim in it, you cannot tell if it leaks, whether the pumps work and whether any water purification is effective
The contractor builds a path in the wrong location - what do you do?
Check the contract documents see what was agreed If the path was placed in the wrong location then I would submit a request to the Contract Administrator to issue an instruction to the contractor to put right the path.
What is the Role of a Contract Administrator?
To administer change control procedures
Issues Instructions and Progress Certificates
Issue progress reports
Collate and issue Schedule of Defects
Issue payments certificates
What is an instruction?
A written instruction to proceed with, omit, or change any aspect of the works.
What is the difference between an Instruction and a Variation?
Instruction - if you are putting right something the contactor has done wrong
Variation - if it involves time money or a decision by the client. Variations are issued on the same form as instructions
If there was an injury on-site - what do you do?
There is a legal requirement through RIDDOR (Reporting of Injuries, diseases, and dangerous Occurrences Regulations) to notify and keep records by a competent person. This also includes near misses.
A reasonable person is required to inform the Health & Safety Executive and Local Authority about the accident or near-miss. a report must be received within 10 working days from the incident.
If the contractor goes into Liquidation - what do you do? What are the issues?
The contractor has gone into liquidation - most contract s will allow the termination of the contract, to enable a replacement contractor.
The ownership of goods, materials that the client has paid for but not in precession; Defects in the work that the contractor has not rectified, Outstanding payments, Outstanding disputes
What protection does the client have?
Parent company guarantees
Retention
Performance bonds
Project bank accounts
What is a Performance Bond?
It is a means of protection for the client to ensure the contractor fulfil their contractual obligation. By requesting typically 10% of the contract value.
This would be set out in the tender documents
Planning Enforcement, what are the different types
Types of enforcement:
- Planning contravention notice - breach of planning control;
- Enforcement notice - breach to be remedied or prosecution
- Breach of condition notice - Failure to comply with conditions/limitations;
- Stop notice - Offence to continue works
Explain the process of Novation?
D&B with Novation
· Initial consultation agreement must propose novation
· Contractual relationship gets transferred between two different parties
· Benefit – Maintains design continuity pre-and post-contract
Explain the process of the Design & Build procurement route?
· Main Contractor appointed to design and construct the works
· Single point of responsibility
· Landscape Architect appointed directly to the contractor from the оut set
· The contractor is your client
What factors would you consider when deciding which procurement route to choose?
Deciding Factors → who carries the risk = Cost certainty / Quality / Time
Cost certainty = Traditional or Design &Build
Time = Design & Build or ManagementContracts or Framework Contracts
Quality = Design Competition or Partnering or Traditional