JCT Claims Flashcards
The traditional approach to managing change in construction projects is normally dealt within three separate elements. How does JCT deal with these? (How does NEC4 deal with these?)
- scope of works (variations)
- schedule of works (
- conditions
Give me examples of types of instructions that may be issued that may allow a MC to claim L&E
- failure of employer to give access
- when delays have occurred
- postponement of works by client
- late receipt of instructions
- discrepancies in contract documents
Give me examples of acts or omissions by the emp or his team that may allow the MC to claim L&E.
- non payment
- suspension
- late receipt of instruction
What is the procedure for notifying a L&E claim?
- in writing to the CA
- CA assess claim within 28 days
- QS is then to ascertain the amount of loss incurred and then amounts will be added to contract sum
- CA then notify of amount payable
What is the procedure for assessing L&E claim
QS ascertains the amount of loss incurred
What does the MC have to demonstrate within a L&E claim. Give examples of the 4 elements.
cause
effect
entitlement
substantiation
Why are overheads and profit difficult to claim?
Losses that are purely economic are difficult to recover, but under common law they may be able to.
They are consequential losses.
Can the cost of producing the claim be included within a loss and expense claim?
No, normally the cost of producing a claim are not, but if the CA fails to respond to the claim this would constitute a breach and can be claimed against.
What is the difference between disruption and prolongation claims? How can a contractor claim for disruption?
Disruption - the loss of productivity due to a hinderence or interruption in progress of works which reduces the rate of efficiency.
Prolongation - additional costs that the MC has incurred as a result of the works being delayed by an event that is responsibility of other party.
Contractor can claim for relevant event if delay is caused by the employer.
Would need to provide evidence; additional costs, disruption and to which works
What is the aim of a claim?
To recover losses which have been incurred by one of the parties.
Could be breach in contract, relevant event etc.
If the project was almost complete and you then received an instruction to divide a room into 2, what would you claim for?
relevant event - variation to be made
Can a MC claim for L&E even if an extension of time hasn’t been granted?
Yes because a loss may not actually result in a delay of the project.
What is meant by uneconomical procurement and uneconomical working?
Uneconomical working - when disruption is severe, work productivity will decrease. Loss of production costs.
Uneconomical procurement - if a delay over a certain length of time occurs, then storage costs for plant may be charged.
