Employers agent Flashcards
what are employers agent duties
to recieve and issue applications, consents from employer, instructions, notices
when is EA employed?
they should be identified in the PCSA document, they will assit employer in selection and appointment of design team and principal contractor/designer
define right of suspension
under housing grants, construction act the right of suspenion extends to all or any of the contractors obligations under his or her contract with employer.gives a party to a construction contract the right to suspend performance of his obligations if he is not paid.
if contractor fails to complete works by completion date
the ea will issue a non completion notice to that effect
termination by employer
employer to give notice specifying each default. if it continues for 14 days after recipt of notice, the employer may within the 21 days of expiry of that period terminate contract.
once pc cert is issued by ea
rectification period commences and half of the retention is released
EA responsibility to contractor
ea not to hinder or obstruct contractors work. they’re responsible for checking that contractor has complied with contractors obligations to complete contract in accordance with ER’s
EA’s responsibiltiy to employer
not to divulge any information of confidential matter given by employer//warning employer of possible breaches in contract and provide advice on his/her knowledge
where is EA role defined
defined in their appointment document, introduction of PID(project initiation doc) or pep (project execution plan)
what are contractors proposals
this is in response to ER’s these proposals prevail under JCT. if employer requires something not in the contractors proposals then its defined as a change
it is responsibility of ea to check er’s cover the following:
details of site, its boundaries, purpose of the building, specific requirements as to finishes, access restrictions.
who is PCG prepared by? and how is it executed
by employer and executed as a deed
if a performance bond is being provided is a PCG required as well?
depending on the project often in complex projects both will be required.
difference between bonds and pcg
bonds provide access to a pot of money to cover the cost of appointing a substitute contractor if the original contractor becomes insolvent. PCG guarantees attempt to ensure that the parent will see to it that their subsidiary performs in a default situation. If contractor doesn’t have a pcg then a bond can be sought.
purpose of bond
bonds are issued by specialist surety companies, banks, insurance comapnies. employer will wish to have sufficient secrutiy in place in case of insolvency. bons provides short term cover for a contractor default.
who is a bond executed by?
by both bondsman and contractor executed as a deed.
dis for contractor on collateral warranty
issue can arise where contractor has to procure subcontractor warranties. this is due to agreement of subcontract terms only takes place following completion of building contract. as a result contractor is agrreing to procure subc warranties which they have not agreed with subbies yet.
what is collateral warranty limiting clause
most cw’s include clause limiting the period during which the beneficary may make a claim against the warrantor. often it is 12 years from pc.
cw clause for professional indemnity
warrantor to obtain pi insurance cover often for 12 years from pc. provided that the warrantor has a design obligation. level of insurance stated in underlying contract.
step in right meaning
step in right allows a funder to take over the employers role in a project.
difference between warranties executed under hand vs warranties executed as a deed
warranties under hand are subject to a 6 year period of limitation of action (i.e. legal proceedings have to be instituted within 6 yrs of the breach complained) whereas as a deed are subject to a 12 year limitation period
define third party rights
rights provided under the TPR act( third parties act 1999) which allows an interested third party beneficiary to enforce the terms of a building contract, sub-contract-subconsultant. such rights can create a contractual relationship in the same manner as cw.
ads and dis of 3rd party rights
may help reduce paperwork, save time on construction projects. dis party may still be reluctant to accept third party rights instead of receiving hard copy, signed and dated cw.
define latents defects insurance policy
is a non-cancellable policy covering the cost of rectifying certain types of defects that may arise in a building during a 10 or 12 year period. covers owners tenants
why would a budget evolve?
=tender addendums: depending on procruement route client may issue changes to a contract after contract has been signed.
=variations: throughout the contract there will be changes to manage
=value eng: detailed estimate may have been priced a certain way but during the job its had to be delivered another way i.e. concrete pumps might be used to save on labour and reduce time on site.
how is company overheads calculated
determined by expressing the budgeted annual overheads as a percentage of budgeted turnover and applied as a proportion of the cost of indivudal contracts
what is reverse of value engineering
design growth which is the reverse and is effectively scope creep. Without a proactive discipline in the commercial team, additional costs resulting from design
growth may not be picked up and affect the profitability of the project for the contracting
organisation. This, in turn, may result in disputes with the client.
how does supply chain insurance effect mc
when the supply chain has insurance at a particular level, this effectively indemnifies the main contractor for this
amount for the works undertaken in the wider project, subject to the terms of the policy.
define contractural indemnity
is an agreement by one party to reimburse another party for any
loss suffered as a result of specified items that the indemnity covers, thereby transferring the risk to the party providing the indemnity.
define insurance
Insurance is a separate contract (usually called a policy), taken out with a third-party insurer
after the payment of a premium, to provide a party with certain costs and expenses to cover
a legal liability that the party may owe to another party, or to cover the party’s own costs and
expenses suffered as a result of a particular event. The risk in this case is transferred to the
insurer.
what to consider when procuring with subbies
The programme: it is worth stressing that programme requirements and dates should be documented and accepted prior to finalising any further agreement.
Attendances: it is worth reconfirming and checking attendances, as not only will there be a cost implication if there is any confusion, but also a potential impact on the programme, if the attendance items are not readily available.
common forms of security requested by employer.accrual define
pcg and performance bonds.n to represent the difference between the total liability assessed as owed to a subcontractor and the amount already paid to that subcontractor.
how does cvr help commercially
CVR data allows the commercial manager to make decisions on people and equipment resource levels, construction methods, programme and preliminaries, as well as to develop
recovery strategies in terms of contractual claims or procurement.
how to retain cashflor
Any advance, mobilisation or other pre-contract payments for contract set-up or mobilisation will improve cash flow.extend the payment terms to their supply chain.: it is certainly not best practice. RICS’ construction policy calls for prompt
payment.
