Definitions Flashcards
Scope Change
Scope change refers to alterations or adjustments made to the project’s defined objectives, requirements, or deliverables.
Difference between Scope Change and Value Engineering
Scope change refers to altering project objectives, while VE focuses on optimizing value within the existing scope.
Retention
It is an amount that is retained from the amount due this is a percentage set out in contract data part 1. The amount retained is then released at Completion of the whole of the works and when the Defects certificate is issued.
It provides financial protection for the client in case the contractor defaults or fails to complete the works.
If a client asks you what a cash flow projection is and what are the benefits of having one regularly updated, what would be your advice?
Cash flow is the anticipated spend of a project against the actual spend and forecast spend.
Ensures there is enough funding at different stages, it indicates whether cash flow is as anticipated or over /under the contractors initial cash flow submission.
It can act as a cash prediction, forecast when costs will incur and provides an indicative idea of whether the project is on programme.
Standard Form of Contracts
Standard Form of Contract- Are agreements that employ standardised, non-negotiated provisions.
What is a Bespoke Contract
What is a Bespoke Contract?
A bespoke contract is a custom-made contract specifically tailored to suit the unique requirements of a particular project.
When would you use a bespoke contract?
Complex projects when standard forms do not cover all the intricacies. For niche requirements.
However…
Its time consuming due to need for customization. Lacks case law, disputes difficult to defend.
Need to ensure not inadvertently increasing their liability.
What are Liquidated Damages?
Liquidated Damages are a genuine pre-estimate of the likely loss incurred by the employer should the completion date not be met. A non-completion certificate and a withholding notice must be in place before LDs can be deducted.
Damages can still be deducted even if the Employer suffered no loss or damage.
NEC ECC has an optional X clause X7 - Delay Damages (liquidated damages). This can be selected in part 1 of the contract data, and the level of damages payable can be defined (e.g. a rate per day or is sectional completion X5 then section, description, and amount per day).
If option X7 is selected, and the contractor does not achieve the completion date then delay damages will be due from the contractor.
What is PSC?
Professional Services Contract
Used for providing a service. Is for a fairly significant consultancy service, PSSC can be used for smaller services, or small firm that is PM for a NEC.
Parties - Client and Consultant
Service Manager - same as PM in ECC, day to day acting on behalf of the client.
Freedom of Information
Freedom of Information Act 2000 – Provides public access to information held by public authorities.
Everybody has a right to access official information. The Act covers all recorded information held by a public authority.
The Act does not give people access to their own personal data (information about themselves) such as their health records or credit reference file. If a member of the public wants to see information that a public auth6ority holds about them, they should make a data protection subject access request.
