General Flashcards
What is a pay less notice?
Following issue of a payment notice the Employer is under obligation to pay the money within 14 days from the due date. If he intends to pay less than the valuation subsequently then the CA needs to issue a pay less notice. This should be issued not later than 5 days before the final date to payment
What is the process for varying the contract under JCT?
If the client wants to use the site before the full works are completed what method could facilitate this?
Sectional completion
Partial possession
What is the difference between sectional completion and partial possession?
What is the significance of Practical Completion?
Client can no longer charge LAD’s
Half of the retention is released
Rectification/ defects period begins
Client has to insure the building
Building possession reverts back to the Client
What is the significance of the Contractor taking possession of the site?
The Contractor is liable for health & safety on the site.
The Contractor will be in occupation of the site for the purposes of the Occupier’s Liability Act 1957 and will therefore owe lawful visitors a duty of care to ensure the site is safe for their visit. Under the 1984 Occupier’s Liability Act they will also owe trespassers a duty if they are/ should be aware a trespasser is in the vicinity of the site and there is a danger the Contractor should reasonable protect against.
The Contractor may be liable directly for negligence or nuisance for damage to or interference with the property or land of adjoining owners or occupiers.
Liability for trespass (including crane oversailing for example)
Escape of matter from the site (see Rylands vs Fletcher)
What is acceleration?
Acceleration is an increase in the rate of progress of a contractor above that initially contemplated in the contract. In some cases a contractor may accelerate because it is directed to do so by the superintendent. In other cases, a contractor may make a commercial decision to accelerate.
What does the SBC say about delay in the Employer giving possession of the site to the Contractor?
The SBC says the Employer can give possession of the site 6 weeks late without being in breach of contract
Can you name the insurance options under Design and Build?
Option A - All risks insurance of the works by the Contractor
Option B - All Risks insurance of the Works by the Employer
Option C:
- Joint names insurance for specified perils for the existing structure
- The Works - Joint names all-risks policy
Can you name the insurance options under Minor Works?
5.4 A - Joint names Insurance of the Works by the Contractor
5.4 B - Joint names Insurance of the Works and existing Structures by the Employer:
- Existing structures - joint names insurance of existing structures for named perils
- Works - Joint names policy for all risks
5.4 C - Insurance of the works and existing structures by other means
What is required to form a contract?
Offer
Acceptance
Consideration
Intent to create legal relations
What are preliminaries
They are the section of the tender which describes the project so the contractor can assess the cost of the work which doesnt form part of the drawings or specs. E.g costs necessary to complete the works.
“the purpose of preliminaries is to describe the works as a whole, and to specify general conditions and requirements for their execution, including such things as subcontracting, approvals, testing and completion”
Would normally include:
Project particulars - Address of project, Employer’s consultants etc
Tender drawings locations
Information about the site - e.g. existing buildings, services, H and S file, access and parking,
Desription of the works
Information on the contract
Contract conditions
Tendering info
Documents - provision, content and use of documents
Management of the works (includes considerate constructros scheme, better health etc), insurance
Programme and progress
Monitoring
Cost
Products stored off site
Quality
Services
Completion
O and M’s and Building Safety/ H and S File
Contractors cost items - management, site accommodation, services
What are preambles?
Describes the documents in the tender
Could include:
Description of the parties
Description of the competence of the parties to the contract
Background to the document
Summary of the negotiations
Tendering procedures
Project objectives
Other related documents
What is the difference between domestic nominated and named subcontractors
Domestic - A sub-contractor selected and appointed by the main contractor
Nominated sub-contractor
Asub-contractorselected by theclientto carry out anelementof theworks. Theclientnegotiates apricewith thenominated sub-contractorand theninstructsthemain contractortoappointthem for thoseworks.
Themain contractorwill include thesub-contractorspriceas aprime cost sumin thecontract sumfor themain contract, to which they addoverheads,profitandattendance. Someformsof contract (such asJoint Contracts Tribunal(JCT) contracts) no longer include provision for thenominationofsub-contractors.
Named sub-contractor
A sub-contractor for a particular package selected from a list of acceptable sub-contractors provided by the client. Named sub-contractors are allowed for in the tender documents for the main contract in the form of a provisional sum for which the main contractor makes allowances for mark up, attendance and programme within it’s tender offer.
Once appointed, the main contractor seeks tenders for the package from the named sub-contractors, places a sub-contract with the successful tenderer, and the provisional sum is replaced with the tendered figure.
