Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

NZRAB Registration Study > D - Procurement > Flashcards

D - Procurement Flashcards

1
Q

What are some different construction contracts?

A

NZIA SCC
NBC (National Building Contract)
NZS3910
NZS3915

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is novation?

A

A form of design build contract.
In the context of the Agreement for Architects Services, „Novation‟ means replacing one party to the agreement (the Client) with another party (the Builder).
Design and documentation often limited to identifying the clients needs, intent, quality & price.
Contractor takes over the consultant agreements & responsibility to delivery project

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What type of project delivery methods are there?

A

Traditional
(architect design, documents/ contractor constructs)

Design & Build
(contractor responsible design & construction)

Management
(contractor manages packages of work)

Guaranteed Maximum Price
(Agreed max sum)

Private Finance Initiative
(Single integrated supply team formed for project)

Partnering
(Collaborative mgmt)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are some risks of novation?

A
  • resources of the contractor to manage
  • cost risk may impact design
  • risk transfer
  • check legal agreements with insurer & solicitor
  • conflict between contractor & client needs as consultant
  • fee & insolvency security
  • copyright
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What types of tender are there (long list)?

A
  • Lump Sum
  • Traditional with nominated subcontractors
  • Subcontrator design
  • Rates and margins (Cost plus)
  • Labour only
  • Staged/Packages
  • Guaranteed maximum price
  • Separate contractors
  • Early Contractor involvement
  • Direct negotiation
  • Fast track
  • 2 stage tender
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How would you evaluate multiple tenders?

A

Like for like comparison

Weight against criteria - scoring cost and non cost attributes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are things you must consider during tender?

A 
FAIRNESS
Honesty
Legal obligations
Ownership
Intention to proceed
No improper advantage = equality of conditions
No collusion
Clarity of evaluation criteria
Confidentiality
Conflict of interest
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How does SCC vs 3910 define Principal?

A

Same - person named in the specific conditions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Hows does SCC vs 3910 define Contractor?

A

3910 - person whose tender has been accepted by the principal or the person so named in the contract.

SCC - person named in specific conditions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Hows does SCC vs 3910 define Engineer/Architect?

A

3910 - professional engineer, architect, surveyor or NATURAL PERSON named in the specific conditions or natural person subsequently appointed by the Principal.

SCC - Architectural practice named in the specific conditions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the NZIA SCC for?

A

Contract between principal & contractor for construction of contract works of any size or complexity where the ARCHITECT ADMINISTERS the contract on behalf of the Principal.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the NZIA SCC SF intended for?

A

Alterations or new building work of simple nature with relatively low value and completed within short contract period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is NZS 3910 for?

A

Contract between principal & contractor for construction of contract works of any size or complexity where the ENGINEER to the contract ADMINISTERS the contract on behalf of the principal.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is NZS3915 intended for?

A

Building & civil engineering construction where no person is appointed engineer to the contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the Construction Contracts Act 2002 (amended 2015)?

A

Sets out:
- defaults for processing payment claims & payments
- dispute resolution
Applies to all NZ contracts, binds the Crown, cannot be contracted out of and affects all contract administration procedures.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is the purpose of the CCA?

A
  • facilitate regular & timely payments
  • provide for speedy resolution of disputes
  • provide remedies for the recovery of payments
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

How does the CCA specifically vary for Residential Construction Contracts?

A
  • contractor unable to seek a charging order over the land
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is a performance bond?

A

A Document arranged between Principal & Contractor to provide protection against financial loss resulting from default of a party. NZIA recommend these for contractors over 1.5M
Discharged at practical completion.
Suggest that if this is needed for trust then it should be offered by both parties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Who should fill in the Insurance Schedules?

A

The Principal

Architects are not experts in insurance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is the stated period for submission of final payment claims under NZIA SCC or the CCA?

A

No stated period

SCC has location to state (ie 3months)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are the standard rates for retentions (SCC)?

A

10% on first 200K
5% on next 800K
1.75% to max 200K

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What are implied warranties under the Building Act?

A

All residential building work is covered by implied warranties.
These last for 10 years and cannot be contracted out of:
- all building work will be done properly, competently and according to the plans and specifications in your approved consent
- all materials used will be suitable and, unless stated in the contract, new
- the building work will be consistent within the building act and the building code
- the building work will be carried out with reasonable care & skill, and completed within the time specified or a reasonable time if no times specified
- the home will be suitable for occupant at the end of the work.

Plus there is a 12 month defect repair period.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Summarise the relevancy of the Consumer Guarantees Act?

A

Applies to services provided by the building industry but not to buildings. Work should be done with reasonable skill and care, materials fit for purpose and done in a timely manner.

Residential buildings are covered by implied warranties under the Building Act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What should you consider when preparing documents for tender?

A

What is critical to a commercial offer by the tenderer?

25
Q

Why might you consider sectional completion?

A

Insurance
Cashflow
Ensure contractor engaged for staged work

26
Q

When would the contractor hold contract works insurance vs the principal?

A

If the principal has ownership then they have the contract works insurance. Ie vacant house, office building, small alteration while living in house.
New build contract not finished so no “ownership/asset”

27
Q

What should you consider for cost reimbursement contracts?

A

It is important that the Contractor at Tender Stage provides an estimate of direct costs and lump sum items when possible for the purpose of establishing a notionalContract Price, if only for insurance purposes. This can be revised as the project continues.The CRC does put an increased duty on the Architect administering the Contract to monitor costs on a regular basis to keep the Principal informed.

28
Q

What other insurance steps should be considered when working in an existing building?

A
  • the Principal should be advised to maintain the permanent insurance
  • the Principal should advise the permanent insurer of the intended alterations as a “material disclosure” to keep the existing insurance in force.
  • the Principal should take advice on other appropriate insurances –e.g.loss of business continuity etc should damage or destruction occur during the performance of the work.
29
Q

When might you allow you allow offsite payment of goods?

A
  • early procurement has been demonstrated to avoid significant cost increases
  • materials required are only available on indent and so would otherwise be unavailable to meet the agreed construction programme.
  • bulk materials identified for the works are required to be stored off site, but are progressively delivered to the site
30
Q

How do you deal with mistakes in tenders?

A

Ask them to stand by them or withdraw

31
Q

What is a Duty of Care Deed?

A

A principal may require a contractor under a design and build contract to procure such a deed from a sub-consultant for the benefit of the principal. Consultants should ensure there are no terms in a duty of care deed that extend liability or the scope of work beyond the original contract of engagement. Particularly that there are no higher standards of care or warranties, and that the limitations within the original contract of engagement are carried over into the duty of care deed.

32
Q

What is a Deed of Continuity?

A

A principal may require a head consultant or a contractor to procure such a deed from a sub-consultant for the benefit of the principal in the event that the head consultant or contractor’s agreements are terminated.
Consultants should ensure there are no terms in a deed of continuity that extend liability or the scope of work beyond the original contract of engagement. Particularly that there are no higher standards of care or warranties and the limitations within the original contract of engagement are carried over into the deed of continuity.

33
Q

What is deductible in contract works insurance arranged by principal?

A

Excess payable (ie for principal arranged insurance. amount builder may pay if their fault)

34
Q

Why might you apply liquidated damages?

A

Not as a penalty but to reflect actual cost risks - ie rent, moving costs of delay

35
Q

What are the 5 main tender types?

A 
Open/Public (advert)
Selected/Approved (from list)
Pre-Qualified (EOI)
Invited (recognised for specialist projects)
Direct Negotiation
36
Q

Why might you use selected or approved tender process?

A

Repetitive works types regularly carried out by a client who may rotate an established list

37
Q

Why might you use EOI/Pre-Qualified tender process?

A

Selection criteria can be set for complex projects with high risk and high cost.

38
Q

What are some key differences between SCC & 3910?

A

(WIP)

  1. Administrator (Architect vs Engineer)
  2. Payment timing (5+10 vs 7+12)
  3. Practical Completion sequence (Final payment, defects, retentions vs Claim, defects, Final claim)
39
Q

What is a CWA?

A

A Contractual Works Agreement is a contractual arrangement which sees two parties enter a long-term business arrangement which is designed to deliver shared goals on integrated planning, customer service and delivery, efficiencies and value for money.

40
Q

What is the difference between demand and performance bonds?

A

Demand - on request

Performance (conditional) - if breached

41
Q

What do contractors P&G normally cover?

A

on-site overheads such as site supervision /

management, site offices, stores, hoardings, amenities, plant cranes , temporary works, etc

42
Q

What does the contractors margin normally cover?

A

Margins covers the cost of contributions to the Main Contractor’s Profit and off-site overhead costs.

43
Q

What is the difference between annual run-off or annual cut-off insurances?

A

Termination can be on either a cutoff or a runoff basis. Under cutoff provisions, the parties’ obligations are fixed as of the agreed cutoff date.
Otherwise, obligations incurred while the agreement was in force are run off to their natural extinction.

44
Q

What is the PPSR register?

A

Personal Property Security Register.
effectively an online noticeboard where you can register a legal claim to personal property, and check if there is any debt or obligation attached to goods you may wish to buy.

45
Q

What should be in a tender set?

A

a) Drawings and Specifications;
b) NZIA Standard Conditions of Contract; N
c) A copy of the schedule of quantities, where applicable; d) Copies of a tender form;
e) Instructions for the submission of the Tender, including date and time, to be recorded in the appropriate Addendum.

46
Q

Can tenderers know who is tendering?

A

No reason to stop them knowing ie. no requirement not to tell them

47
Q

Can the client be present at tender opening?

A

Yes, you are calling tenders on their behalf.
Advise the client that you will assess and recommend the best tender to give the best result for the project.
Manage client expectations.

48
Q

What if a tenderer submits a lower level of PL insurance than required?

A

Treat as mistake in tender, they can stand by to increase at same cost or withdraw.
Note insurances must be in place.

49
Q

What if you receive non-standard tender responses?

A

You could consider this, however if you wanted to avoid this it needs to be clear in the special conditions of tender that non-standard responses will be invalid.

50
Q

Can you move one subcontractor from one contractor offer to another?

A

No. The contractor has submitted their price and team and may have selected these people for relationship and workmanship reasons that the cost will not capture

51
Q

What is open book tendering?

A

Tender P+G and margins and day rates.

Essentially labour & materials contract

52
Q

How could you advertise an open tender?

A

GETS etc.

Note generally only government projects use this tendering model.

53
Q

What are examples of when you might need to include notes on lead time/programme in the tender (2019)?

A

Copper
Lifts - $ due to foreign exchange rates
Steelwork - upcoming price increase

Sequencing - ie keeping an existing basement, there is no demolition time to act as lead time

54
Q

What is a schedule of quantities?

A

A schedule of quantities is usually available at the later stages of the project’s development and often coincides with the tendering stage. … They relieve the tenderer of the onus and cost of compiling their own, a cost which could otherwise be passed onto the client in the tender price.

55
Q

What is a lump sum contract?

A

In a lump sum contract the Contract Price shall be the sum stated in the Contract subject
to such adjustments as are provided for in the Contract.

56
Q

What is a measure & value contract?

A

In a measure and value contract the Contract Price shall be calculated according to the
measured quantity, as determined by the Engineer, of each item of work carried out at
the rates set out in the Schedule of Prices, subject to such adjustments as are provided
for in the Contract.

57
Q

What is a cost reimbursement contract?

A

In a cost reimbursement contract the Contract Price shall be determined as follows:
The Net Cost or contract rates for the quantities of labour, Materials, Plant, and Subcontractors used in the execution of the Contract Works, and
(b) an allowance (if any) for On-site Overheads and/or Off-site Overheads and Profit at the relevant percentages stated in the Special Conditions;

58
Q

If asked to put forward contractors what should you do?

A

Never recommend.
Advise you have reason to believe the contractor may be suitable for the project.

Check financial & suitability first

NZRAB Registration Study (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions