Key Lists

Question 1

Tender Report sections?

Answer 1

Tender Background;
Tender Returns;
Tender Analysis (high level);
Tender Scores
Recommendation
Appendices: -
Tender Analysis (detailed);
Tender Comparison;
Quality Matrix;
Post Tender Clarifications Log.

Question 2

Cost Report sections?

Answer 2

a) Executive Summary (inc Key Report Analysis - CSUM; pay to date; AFA..)
o b) Authorised Expenditure
o c) Summary table of costs
o d) PSUMs and Contingency
o e) Instructions
o e) Anticipated Instructions
o f) Claims/Anticipated Claims (inc EoT costs)
g) Cash Flow Forecast

Question 3

Order of Cost Estimate sections?

Answer 3

Constituents of an order of cost estimate
The key constituents of an order of cost estimate are shown in Table 2.1.
# Constituent Cross reference
1 Facilitating works estimate See section 2.5
2 Building works estimate See section 2.6
3 Main contractor’s preliminaries estimate See section 2.11
4 Subtotal = 1 + 2 + 3
5 Main contractor’s overheads and profit estimate See section 2.12
6 Works cost estimate = 4 + 5
7 Project and design team fees estimate = 7a + 7b + 7c, where:
* 7a = consultant’s fees
* 7b = main contractor’s pre-construction fee estimate (if
applicable) and
* 7c = main contractor’s design fees estimate (if applicable.
See section 2.13
8 Subtotal = 6 + 7
9 Other project costs estimate See section 2.14
10 Base cost estimate = 8 + 9
11 Risk allowances estimate = 11a + 11b + 11c + 11d, where:
* 11a = design development risks estimate
* 11b = construction risks estimate
* 11c = employer change risks estimate and
* 11d = employer other risks estimate.
See section 2.15
12 Cost limit (excluding inflation) = 10 + 11
13 Tender inflation estimate See section 2.16
14 Cost limit (excluding construction inflation) = 12 + 13
15 Construction inflation estimate See section 2.16
16 Cost limit (including inflation) = 14 + 15
17 VAT assessment See section 2.17

Question 4

Cost Plan sections? (Document and Breakdown of costs)

Answer 4

The Report: (taken from Ridge template)

-Executive Summary (concise high level presentation)
-Introduction and background (brief, previous, further considerations)
-Design Basis of Report (info, drawings, used)
-Financial Basis of Report (NRM, cost sources, risks)
-Schedule of Accommodation (rooms and GIFA areas)
-Exclusions and Qualifications (lists)
-Estimate of Project Costs
-Documents Register

Name the main elements of an elemental estimate (taken from Ridge template):
*Facilitating Works
* Substructure:
o Excavation.
o Disposal.
o Foundations.
* Superstructure:
o Frame.
o Upper floors.
o External walls.
o Roof.
* Internal finishes.
* FFE
*Services.
*Complete Buildings and Building Units
*Works to Existing Buildings
*External works.
*Statutory Services

*Preliminaries
*OHP

*Project and Design Team Fees
*Other Development and Project Costs

*Risks

*Inflation

*VAT (excluded)

What is usually excluded from a cost estimate? [COST OF CONSTRUCTION ONLY WORKS?] - ‘Works Cost Estimate’]
* Professional fees.
* VAT.
* Client decant costs.
* Loose fixtures and fittings.?????
* Inflation.
* Site acquisition costs.
* Section 106 Agreement.
* Removal of asbestos.

Question 5

Briefing Items? (this is worked up between client and consultant with a resulting scope of works and cost limit defined ie finalised on completion of RIBA Stage 1) (think of a BCIS Cost Model)

Answer 5

Building Location.
* The type of building.
* Floor area or number of functional units.
* Storey height.
* Whether raised access floors or deep suspended ceiling are envisaged.
* Initial floor plans, roof plans, elevations and sections.
* Requirements for refurbishment to existing buildings and enabling works.
* Indication of specification and quality.
* Indicative programme, procurement and contract strategy.
* Budget & cashflow constraints.
* Site conditions, probable ground conditions.
* Indicative M&E design intent, availability of utility services and the sustainability strategy.
* Details of professional fees, development costs, VAT and treatment of inflation.

Question 6

Tender Pack documents?

Answer 6

In accordance with JCT practice note 2017 I would include:-
o ITT (Invitation to tender letter)
o Instruction to tenderers with:-
 The date and time for return, to whom, site visits, programme, errors procedures,
scoring matrix.
 Conditions of proposed contract.[preliminaries document?]
 Pricing documentation.
 Specifications.
 Drawings.
 Employers requirements.[further info on the works? further info on working conditions? further info on standards? CDP requirements?- ie FEEDS INTO PRELIMINARIES DOCUMENT, CDP??]
 Pre-construction H&S information.
 Form of tender.

Question 7

Contract Pack documents?

Answer 7

JCT Contract and Amendments Document
Contractor’s Proposals
Qualitative Submission
Clarifications and Adjustments
Priced Document/Contract Sum Analysis
Contract Drawings and Specifications (tender doc)
Employer’s Requirements (tender doc)
Client Working Policies (tender doc)
Pre-Construction Information (tender doc)
CDP Requirements (tender doc)
Preliminaries document (tender doc)

Question 8

Schedule of Payments Doc?

Answer 8

Valuation date (this is the date in Particulars - date for contractor submission)
Due date (7 days later)
Date of Certificate (5 days later)
Date for final payment (14 days later if not amended)
Pay less notice date (at least 5 days before payment date)

Set out in a monthly basis

Question 9

Valuation Submission/Assessment doc?

Answer 9

• Summary of Valuation (gross costs; previous costs; previous payment; retention; net recommended payment)

*Preliminaries.
*PSUMS/Contingency/Dayworks
* Measured work.
*Advance Payments?
* Materials on site.
* Materials off site.
*Variations
* Claims/Loss and expense.

Question 10

Final Account List of items?

Answer 10

As Valuation Submission ie:

• Summary (gross costs; previous costs; previous payment; retention; net recommended payment)
  *Preliminaries.
• Measured work.
• Variations.
• Materials on site. - NO!!!
• Materials off site. - NO!!!
• Claims/Loss and expense.

Question 11

L&E claim items? (heads of claim)

Checking costs?

Answer 11

Heads of Claim:
P - expense
T - expense
U - loss
I - expense

O - expense
P - loss
F - expense

A - expense
C - expense

Checking Costs [OH STAFF]:
Timesheets
Staff grades and rates
Project codes? [correct project?]
Payroll burden

—Hudson formula—

Site Works:
Invoices
Subcontract accounts
Applications and payments
Materials invoices

Dates
Rates [???]
Quants
Delivery tickets
etc

Question 12

L&E claim items? (Heads of Claim)

Answer 12

Prolongation.
* Thickening of preliminaries for example extra supervision required due to variations.
* Disruption causing plant or labour to be underemployed.
* Increases in labour or material costs during the period of delay.
* Head office overheads.
* Loss of profit.
* Finance charges.
* Acceleration costs.
* Claim preparation costs.

Question 13

Variations submission items?

Answer 13

Breakdown: alterations or modifications to:
-design
-quality
-quantity
-access/working conditions

Additions/omissions (of works)

Additions/omissions (of costs)

[Additions (L&E and EoT) - this will be separate!]

Basis of costs (contract rates, adjustment to rates, quotations, dayworks)

OHP

Question 14

Risk Register format?

Answer 14

A risk register format will typically include:-
o 1) A description of the risk.
o 2) The risk owner.
o 3) A probability of occurrence.
o 4) The impact of its occurrence (£/wks).
o 5) Risk factors (probability x impact). [EMV? expected monetary value?]
o 6) Actions required.[eg accept, reduce, etc]
o 7) Review date.
o 8) Status (open or closed).

Question 15

Pricing Document sections? (Before work starts, so does not contain variations, claims, materials on or off site, etc)

Answer 15

Basis and Conditions of Pricing Doc
Preliminary costs
Provisional Sums, Prime Costs, and Contingencies (also including Dayworks sections)
Measured Works
Summary of Costs

Question 16

Preliminaries (contract document) sections?

Answer 16

Condensed:
DESCRIPTION OF THE WORKS, CONTRACT, AND TENDERING PROCESS:
Project particulars (high level-name, works required, team members, etc)
The site
The works
[workmanship?]
Tender procedure
Contract details
Supply chain

CARRYING OUT THE WORKS:
Management of works
Quality of works
Security
Limitations on carrying out works
Facilitation requirements eg utilities

PREPARATION FOR HANDOVER:
Requirements to enable operation and future maintenance.

A10 Project particulars
A11 Tender and contract documents
A12 The site/ existing buildings
A13 Description of the work
A20 JCT minor works building contract with contractor’s design (MWD)
A30 Tendering/ subletting/ supply
A31 Provision, content and use of documents
A32 Management of the works
A33 Quality standards/ control
A34 Security/ safety/ protection
A35 Specific limitations on method/ sequence/ timing
A36 Facilities/ temporary work/ services
A37 Operation/ maintenance of the finished works

Question 17

Preliminaries items? (pricing doc)

Answer 17

list of items: staff; welfare provisions; site offices; plant; site waste clearance; water; electricity; furniture; ICT; consumables; rates; protection fo work; clothing; site transport; setting out; building control fees; …insurances, bonds, …

Question 18

What information is required to measure preliminaries? FOR ESTIMATING!! [site, management, contract, costs] [information that would identified directly from the contract document when filled out ie RACacs?]

Answer 18

Contract duration.
* Location.
* Type of project (New Build vs. Refurb).
* The size of the project.
* Temporary works.
* Employers accommodation.

• Security.
• Methodology.
• Programme.
• Services.
• Contractor designed work.
• Sectional completion.
• Insurances / Bonds.

Question 19

ITT contents?

Answer 19

Condensed (OVERVIEW OF):

PROJECT, TENDER DOCUMENTATION, CONTRACT:
Project title and where
Statement of ‘invited..’
List docs to be based on
Proposed contract

TENDERING PROCESS AND CONDITIONS:
Submit by: date, FOT, docs requested
Price/Quality scoring
Queries addressed to.
Confidentiality/Collusion
Processes accordance JCT Practice

RESERVATION OF RIGHTS
After award
Reserve right: postpone/accept any or no tender
No tender expenses to claim
Signature

To; Project Title; Works Location
Invited to tender on the basis of…(list of documents/drawings/etc)
Accordance with contract
Submit using the FoT and by closing date
Submit documents requested
Queries addressed to….
Basis of assessment (price/quality)
Confidentiality
After award - will list tenderers
Procedure conducted in accordance with JCT Tendering Practice Note 2017
Reserve right to postpone closing date and accept ANY TENDER or NO TENDER AT ALL.
No tendering expenses will be payable.
SIGNATURE

Question 20

FoT contents?

Answer 20

Condensed
Formal statement, confirming project and documentation, will carry out works as stated in the tender docs for sum and programme period, when start, how long offer open for.

Project Title
Tender from and to
Documents identified in ITT have been examined
Offer (tender sum; within…; programme duration)
Adjustment rule
Parent company guarantee statement
Will execute contract within…days
Signature, position, date

Question 21

JCT Contract Sections?

Answer 21

What are the main parts of the JCT contracts?
* Recitals.
* Articles.
* Contract Particulars.
* Attestation.
* Conditions divided into 9 sections (7 for minor works - no Variations; Assigment…)
* Schedules.

Name the 9 sections
* Definition and interpretation.
* Carrying out the works.
* Control of the works.
* Payment.
* Variations.

• Injury, damage and insurance.
• Assignment, Third Party Rights and collateral Warranties.
• Termination.
• Settlement of disputes.

Question 22

CDP ER contents?

Answer 22

Function, quality, size, location
Design reqs; spec requirements; performance requirements

Question 23

Prime Cost item allowances?

Answer 23

Supplier quote figure (supply only or install as well?)
Attendances (or installation if supply only)
OHP

Question 24

Examples of Defined PSUMs?

Answer 24

Below seems to be good definitions all round:

Defined Provisional Sums in a JCT contract typically cover ANTICIPATED COSTS for items with uncertain quantities or specifications at the contract stage.

Examples include
- allowances for client-selected items yet to be finalized, or
- provisional quantities for variations expected during construction.

Question 25

Examples of Undefined PSUMs?

Answer 25

• groundworks for unforeseen conditions,
  …..

Question 26

Examples of CDP items?

Answer 26

SPECIALISED DESIGN elements not fully specified in the employer’s requirements, such as

• bespoke finishes,
• structural modifications,
• mechanical and electrical systems design, and
• temporary works.

Question 27

NRM1 contents? (for work breakdowns - OoCE and cost plans are same, but cost plans have greater breakdown levels)

Answer 27

The key sections of NRM1 are:
o Part 1: General introduction explaining the purpose of the document and how it should be
used.
o Part 2: Measurement rules for the production of order of cost estimates.
o Part 3: Measurement rules for the production of elemental cost plans.
o Part 4: Tabulated rules of measurement for elemental cost planning.
o Appendices: With references to the definitions for GIA, functional units, NIA, elemental
breakdowns, templates and general information required for cost plan production.

Question 28

NRM2 measurement categories? (ref handwritten notes when reviewed NRM docs ie BoQ: Elemental (as NRM1?); Work Sections; (01-041) Works Packages (1-27))

Answer 28

REPLACE BELOW:

Question 29

Names of the NRM documents?

Answer 29

The RICS New Rules of Measurement 1 is the
Order of Cost Estimating and Elemental Cost
Planning for Capital Works

NRM 2: Detailed Measurement for Building Works

NRM 3: Order of Cost Estimating and Elemental Cost
Planning for Maintenance Works

Question 30

The RIBA stages?

Answer 30

0 Strategic Definition
1 Preparation and Brief
2 Concept Design
3 Spatial Coordination
4 Technical Design
5 Manufacturing and Construction
6 Handover
7 Use

Question 31

Approved Documents?

Answer 31

A. Structure.
B. Fire safety.

C. Site preparation and damp proofing.
D. Toxic substances.

E. Sound proofing.
F. Ventilation.

G. Hygiene.
H. Drainage and waste disposal.

I. Not in use.
J. Heating appliances.
K. Protection from falling, collision and impact.
L. Conservation of fuel and power.
M. Disabled access and facilities.
N. Glazing.
O. Not in use.
P. Electrical safety.

Question 32

PQQ categories?

Answer 32

• Contractors are pre-selected based on:-
  o Financial standing.
  o Qualifications and certifications.
  o Previous track record.
  o References.
  o Organisational structure.
  o Capacity and resources.
  o Size of work previously undertaken.

Details of contract particulars.
* Company turnover.
* Previous relevant experience and references.
* Company accounts.
* Management and organisational structure.
* Health and safety records.
* Quality systems and environmental policy.
* Provision of bonds, warranties & PCGs.

Question 33

Typical Quality Questionnaire questions?

Answer 33

Condensed:
Contract Management
Programme
Site Setup
Resident Liaison
Social Value
+PQQ type matters?

Q1 – Contract Management - Please detail how you have managed similar projects and fully explain how you intend to overcome any issues
affecting programme delivery to complete on time and on budget for this project.
2 A4 Page maximum
Q2 – Programme - Please provide a detailed programme of the works specific to this project, to explain how the works will be
coordinated throughout the project
2 A4 page maximum plus Gantt Chart Programme
Q3 – Site Set-up - Please detail how you will set up the site during the works and the location of your facilities.
2 A4 page maximum
Q4 – Resident Liaison - Please explain what actions you will take to engage with residents throughout the project and after completion,
dealing with any matters that may arise to ensure that a high level of customer satisfaction is obtained, with
particular focus on sheltered schemes.
Q5 – Social Value - Homes for Haringey /Haringey Council have a successful track record of generating socio-economic benefits from all
its major procurement exercises. The authority is keen to work with its partners to address skills shortages,
generating employment opportunities for local residents and businesses. The sustainable creation and development
of additional local labour, training and environmental benefits are high on the council’s regeneration agenda.
* Please outline your proposal for establishing and monitoring local employment programmes under this contract.
I.e. through a strong commitment to employment opportunities both full and part time.
* Please describe how you will promote local supply-chain opportunities through this contract, for example in areas
of labourers, materials or other associated works.
Please confirm your commitment to fair and equal pay including to the payment of at least the London Living Wage,
as defined by the Living Wage Foundation, to all staff during all hours of work all staff during all hours of work
2 A4 page maximum

Question 34

Quantitative Analysis Checks?
Tender Return Checks?

Answer 34

Arithmetic errors
Items not priced
Front Loading
CP against ER
FOT complete and signed
Qualifications

Normalisation [tenders compared on equal footing]
PSUMs
…

Question 35

LOI contents?
Types of LOI?

Answer 35

Work to be completed
Contract sum (if agreed)
Date for possession
Date for completion
Insurance required
Payment method
Expiration date of letter
Right not to award the main contract
Dispute resolution method

1. Comfort Letter
2. Proceed with consent to spend
3. Recognition of contract

Question 36

Collateral Warranty contents?

Answer 36

Common terms include:-
o Limitation of liability.
o Reasonable skill and care or fitness for purpose [Duty of Care]
o Requirements for PI insurance.
o Assignment rights.
o Novation rights.

Question 37

What are the main elements included within a fee proposal?

Answer 37

Terms and conditions.
Scope of services.
Exclusions.
Assumptions.
Fee bid

Question 38

What are your firms Terms of Business?

Answer 38

Guide Book:
OOALPTFIACC

Our firms General Obligations to the client which is to provide ‘Services’ detailed in the
Engagement Letter with the skill, care and diligence expected of a professional person.
o The Client’s General Obligations for example they are not to solicit any Partner or Employee
with a job offer, if this occurs they must pay £35,000.00 compensation.
o Additional Service terms for example this sets out the entitlement for additional fees if the
work scope varies.
o My firms’ liability for example any claims raised are to be against the company and not any
Partner or Employee.
o Payment terms and interest entitlement in the event of late payment.
o Termination and Suspension terms which have a minimum 7 days notice to suspend the
works.
o Force Majeure terms for example the company is not liable for failure to carry out its service
obligations if this occurs.
o Intellectual Property Rights relating to copyright of documents provided by the firm.
o Assignment and Subcontracting terms set out the requirements for written consent from other
either party.
o Formal communication is to be in writing to the addresses set out within the Engagement
Letter.
o Problems and Complaints handling procedures are included within the terms of business.

Question 39

What is client care/principles?

Answer 39

GUIDE BOOK FLASH?

The principle of client care is looking after the clients’ best interests and providing an appropriate level
of service that satisfies the client’s needs and achieves VfM.
* Client care can be provided through:
o Professionalism.
o Competence.
o Punctuality.
o Trust.
o Reliability.
o Presentation.
o Regular communication.
o Review of services provided and standard.
o KPIs to monitor client satisfaction.
o Client Performance Feedback.

Question 40

Make-up of a fee bid proposal?

Answer 40

GUIDE BOOK:
SNIBECMOFRPSQ

The Executive Summary including reference to the Scope & Solution.
* Identification of the Client’s needs & key deliverables.
* Identification and analysis of Project issues.
* Communication of key Benefits for the Clients.
* References to relevant experience.
* The Conditions of engagement.
* A Methodology.
* An Organogram.
* The proposed fees.
* Supporting CVs.
* References to the project programme.
* Identification of sub consultants.
* A List of quality assurance procedures

Question 41

What are the 5 steps to risk assessment?

Answer 41

Step 1 - Identify the hazards.
* Step 2 - Decide who might be harmed and how.
* Step 3 - Evaluate the risks and decide on precautions.
* Step 4 - Record your findings and implement them.
* Step 5 - Review your assessment and update if necessary.

Question 42

What is your company’s Health and Safety policy at staff level?

Answer 42

Take responsibility for safety and comply with safe systems of work.
o Act responsively, report incidents and near misses.
o Regular training refresher courses.
o Risk assessments are compulsory for all projects with bi-monthly updates as a minimum.
o CSCS cards are mandatory.

Question 43

Measures to prevent accidents and death on construction sites occurring?

Answer 43

Eliminate the risk of accidents occurring at the source for example assembly on the ground
instead of working at height.
o 2) Planning & programming of works.
o 3) Allowing sufficient time for the works to be constructed effectively.
o 4) Carrying out risk assessments, method statements & educating workers.
o 5) Training inductions & CSCS qualifications.
o 6) Ensuring safe working sites and access & egress points.

Question 44

What information do you need to be able to carry out an order of cost
estimate? (think BCIS Cost Models)

Answer 44

Building Location.
* The type of building.
* Floor area or number of functional units.
* Storey height.
* Whether raised access floors or deep suspended ceiling are envisaged.
* Initial floor plans, roof plans, elevations and sections.
* Requirements for refurbishment to existing buildings and enabling works.
* Indication of specification and quality.
* Indicative programme, procurement and contract strategy.
* Budget & cashflow constraints.
* Site conditions, probable ground conditions.
* Indicative M&E design intent, availability of utility services and the sustainability strategy.
* Details of professional fees, development costs, VAT and treatment of inflation.

Question 45

What are the phases of the VE process?

Answer 45

Information
Speculation
Evaluation
Development
Presentation

Question 46

What is superstructure?

Answer 46

All internal and external works items above the damp proof course.
* This is made up of:
o External walls. (Structural)
o Stairs.(structural)
o Roof.)structural)
o Structural walls. (Structural)
o Suspended ceilings. (??)
o Raised floors. (Structural)

Question 47

What are the typical components of site investigations?

Answer 47

Their objective is to collect and record data to help with the design and construction process. This
should include matters in relation to the site that may impact the development for example:-
o Boundary hedges & fencing.
o Existing trees.
o Size, depth and location of services including gas, telephone, electricity, water & drains.
o Existing buildings.
o Ground water conditions.
o Soil investigations.
o Trial pit information.

Question 48

What are the main site considerations? (Contractor setting up)

Answer 48

Access considerations. (Enabling)
* Storage considerations.
* Accommodation.
* Temporary services.
* Plant.
* Fencing & hoarding.
* Health & Safety risks.

Question 49

What would be a typical programme for a new build structure?

Answer 49

Site clearance
* Site setup
* Haul & access roads.

• Setting out.
• Excavate to reduced levels.
• Excavate foundations.
• Cast foundations.
• Frame erection.
• Cladding.
• Roof.
• Floors.
• Services.
• FF&E.
• Testing.
• Commissioning.
• Landscaping.
• Snagging.

Question 50

How do you evaluate interim valuations? (Process not theory)

Answer 50

Go to site and inspect the works to form a view on the percentage of works undertaken.
* Check for materials on site and materials off site.
* Value time related and fixed preliminaries items undertaken.
* Value any agreed variations and claims.
* The valuation amount is presented as the gross valuation, less previous payment made and retention.
* Finally I would send my recommendation to the Architect or Contract Administrator for them to
prepare the payment certificate.

Question 51

What options may be considered to achieve acceleration?

Answer 51

Re-sequencing the works or making sequential activities parallel.
* Increasing the working time by using working longer hours.
* Increasing the resources employed by using larger gangs.
* Changing the working methods for example using a dehumidifier to dry out the works faster.
* Increasing incentives for example offering bonus payments.

Question 52

What are the different certificates you are aware of under JCT forms of
contract? (not Notices)

Answer 52

Interim certificates.
* Practical completion or sectional completion certificates.
[Certificate of Partial Possession]
* Non completion certificates.
* Certification of Making Good.
* Final Certificate.

NOTICES
Client:
-Termination
-Pay Less
-To comply?

Contractor:
-Suspend
-Confirmation of verbal instruction
-EoT
-L&E
…

Question 53

Examples of limitation clauses could be?

Answer 53

Limitation to a fixed sum.
o Limitation to the extent of PI insurance.
o Exclusion of consequential loss.
o Limitation to loss that can be recovered from a third party.
o Limitation to responsibility or a net contribution clause.

Question 54

What should be considered when selecting a procurement route?

Answer 54

The specifics of the project.
* The client objectives regarding:
o Cost.
o Time.
o Control.
o Quality.
o Risk.

Question 55

What are the benefits of partnering?

Answer 55

The overall construction and design programme is shortened because there is a prior understanding of
the Client and their requirements from previous projects.
o The potential for conflict is reduced.
o Communication is improved.
o Pooling of resources and ideas should result in innovative solutions.
o Improved client satisfaction is gained.
o RECOGNITION OF PROTECTION OF PROFIT MARGIN FOR CONTRACTORS AND SUPPLIERS.
o A team environment is formed that encourages innovation and technical development.
o Improved buildability with early involvement of contractors.
o Better predictability of time and cost.

Question 56

What are the main suites of construction contracts?

Answer 56

JCT.
* NEC 3 & 4.
* ECC.
* ICE.
* FIDIC.

Question 57

Name the main types of JCT contract?

Answer 57

Minor works.
* Intermediate.
* Standard building contract.
* Major Projects. [D&B type]
* Design and Build.
* Prime cost contract.
* Measured Term contract. [note: framework contract separate below]
* Construction Management Agreement.
* Management Contract.
* Framework Agreement.

Question 58

What are the key differences between JCT Minor Works, Intermediate and D&B Contracts? (difference between Minor/Intermediate came up in WW/JL Mock)

Answer 58

The minor works only has 7 sections of conditions instead of 9. Variations are included within the
Control of the Works section and there is no ‘assignment and collateral warranties provision’.
* There is no mention of the QS in minor works and D&B however there is in the Intermediate Form.
* In Minor Works there is no provision for named sub-contractors, no provision for bonds and collateral
warranties and no advance payment provision.
* Minor works also has no provision for sectional completion or partial possession.
* In Minor Works there are no relevant events listed for extension of time, instead it is referred to as
‘anything outside the contractor’s control’.
* The standard rectification period is 3 months for minor works and 6 months for D&B and
Intermediate.
* The standard retention is 5% for Minor Works and Intermediate and 3% for D&B.
* D&B is administered by an Employer’s Agent rather than a Contract Administrator.
* In Minor Works and the Intermediate Form, the Contractor may be responsible for completing
discrete part of the design whereas in D&B, he is responsible for completing the overall design.
* In D&B, the EA may request a quotation prior to instructing a change.
* There is no fluctuation mechanism for labour and materials costs in Minor Works and Intermediate
Forms.
* Payments are made at regular intervals in Minor Works and Intermediate Forms whereas D&B gives
the option of stage payments.
* In Minor Works, there is no option for the employer to take out a joint name all risk policy, only
options A and C.
* There is no provision for third party rights in Minor Works or Intermediate Forms.

Question 59

Explain the relative advantages & disadvantages of the NEC and JCT?

Answer 59

Advantages of the JCT Suite of Contracts:-
o They are considered by many as the “industry standard,” therefore they offer familiarity.
o They cover most forms of procurement and building types through the various impressive
ancillary documents to support the main forms.
o They are comprehensive in detail and considered by many to be fair and reasonable and not
loaded in favour of either party.

Disadvantages of the JCT Suite of Contracts
* They are sometimes though to “compromise conditions,” in which they try to satisfy the interests of all
parties.
* They can be considered as unnecessarily long and unnecessarily complex.

Advantages of the NEC Contract
* They are applicable to a variety of procurement strategies,
* They offer clarity and simplicity by using:-
o Ordinary language (minimal legal jargon).
o They include flow charts to support their users.
* They act as a stimulus to good management through maintaining:-
o Up-to-date programmes which are required to be clear and precise.
o Provision of early warning procedures and risk registers.
o They Embody key features of project partnering.
o Assessment of Compensation events by applying a “rolling Final Account.”

Disadvantages of the NEC Contract
* They are often only considered to be used for civil engineering projects and partnerships.
* They have limited exposure to the market so they are therefore not fully tried and tested with
supporting case law.
[administration heavy]

Question 60

What are the key differences between NEC and JCT?

Answer 60

The NEC is concise and written in plain English.
* There are a number of optional clauses reducing the need to amend contracts compared to the JCT.
* The Project Manager is presented with options to deal with problems as soon as they become apparent.
* Provision of early warning procedure and risk register encourage a proactive approach to the
management of the project whereas JCT is more reactive.
* Compensation events deal with issues affecting both time and money under NEC whereas under JCT,
variations deals with money and loss and expenses deal with time.
* Changes are based on quotations prior to commitment whenever possible under a rolling final account
under NEC whereas under JCT agreement of costs can be left to the very end of the project.
* Cost of compensation events are calculated using schedules of actual costs rather than bill rates under
JCT.
* There is no QS or Employers Agent mentioned in NEC only a Project Manager who takes on both
roles.
* The Programme is a contract document under NEC with 25% of money being deducted on interim
payments if the contractor does not submit an accepted programme at contract stage.
* The NEC has no provision for nomination of sub-contractors but preferred sub-contractors can be
listed within the Works Information.
* The Defects correction period has different periods specified depending on the impact of the defect
under NEC where the contractor must “make good” in these time periods. This approach is much
better at dealing with defects when compared to JCT.
* Short periods of reply are adopted under NEC which incentivise the parties to respond to each other
however is reality the NEC maybe considered as very administration heavy.
* Retention and delay damages are optional clauses under NEC.

Question 61

What are the stages of Risk Management? (This is managing risk item - H&S)

Answer 61

Identification.
* Analysis.
* Response.
Implement and record
* Monitor and control.

Question 62

Can you give me some examples of risk in a construction project?

Answer 62

External risks for example include economic uncertainty, legislation changes and changes in
government policy.
* Financial risks for example include exchange rate changes or the increased cost of borrowing.
* Site risks such as restricted access, planning difficulties and environmental issues can also be considered
as further examples.
* Client risks may include a lack of experience, a multi-headed client and the likelihood of post contract
changes.
* Design risks including an inappropriate consultant team, poor team ethos, an incomplete design or lack
of design co-ordination.
* Construction and delivery risks may include adverse weather, H&S and availability of resources.

Question 63

Risk Analysis techniques?

Answer 63

Risk analysis sets out to achieve a better understanding of the risks identified & quantify their effects in
terms of probability (likelihood of the risk occurring as a percentage) & impact (the effect if the risk
occurs either in cost impact or programme delays).
* Methods of risk analysis available include:-
o 1) Subjective probability where a persons confidence within a specific risk is assessed by a
number of professionals independently to avoid bias.
o 2) Decision Analysis where risk exposure and attitudes are assessed in addition to consideration
of alternative options and outcomes (Decision Trees).
o 3) Sensitivity Analysis where the adjustment of a single input variable is made to determine
acceptable parameters & identify those variables most sensitive to change.
o 4) Monte Carlo Simulation where variables are changed simultaneously. This uses triangular
distribution & repeating the analysis 1,000 times to ensure there is no bias & to generate an
appropriate contingency fund for the project.
o 5) Intuition & Experience where risks are identified and impact on time & cost are assessed
through professional judgement.

Question 64

What forms of risk response are available?

Answer 64

Condensed:
Avoid;
Reduce;
Retain (but give ownership to party best able to manage);
Transfer (to outside client side team eg contractor by contract; insurances/bonds)

Risk avoidance where the approach is changed in order to avoid the risk completely. For example
plotting an alternative excavation route in order to avoid underground cabling.
* Reduction where the probability or impact of the risk occurring is reduced. This could include staff
training, employing security, placement of early material orders and scheduling an earlier start on site.
* Retention where the risk is considered and retained by a particular party who is best placed to manage
the risk. For example it may be best managed by the employer if it is an internal risk with a sufficient
contingency being put in place.
* Transfer is when the risk is considered and transferred from one party to another who is considered to
be in a better position to manage the risk. This can be achieved through contracts & insurances. Clients
should note the importance of paying risk premiums and comparing these against the potential
financial impact of the risk.

Question 65

What happens during a risk workshop?

Answer 65

project team will be formed prior to the workshop and a facilitator being appointed.
* The workshop facilitator will brief the team by issuing appropriate information about the scheme and
the purpose and objectives of the workshop to allow preparation to occur prior to the workshop.
* The key operations of the workshops I have attended include:-
o 1) Identification of risk & generation of the risk register.
o 2) Identification of risk probability.
o 3) Identification of risk impact.
o 4) Allocation of risk items to the owner.
o 4) Agreement of upcoming actions which are usually design led.
o 5) Agreement of review dates for each risk item for the following workshops.

Question 66

Progress Meeting Agenda?

Answer 66

Introductions & Apologies
Review of Previous Minutes
Contractors Progress Report
Client Comments
Consultant Matters
Health and Safety Matters
AOB
Date of Next Meeting

Previous Minutes and Actions
Contractor Progress Report
Client
Contract Administrator
Principal Designer
Clerk of Works
Resident Liaison Officer
Quantity Surveyor
H&S
AOB
Next meeting

Question 67

Pre-Start Meeting Agenda?

Answer 67

Introductions and Apologies
[Legal]:
H&S
Contract
Insurance
Statutory Approvals

[Start Up]:

Site
Communications

[Works Management and Control]:
Finance
Quality Control

[Anything Else]:

AOB
Date of next meeting

Question 68

Pre-Start Meeting Process (Pre-Contract Meeting) Considerations?

Answer 68

Initial project team meeting:
Plan construction stage.
Exchange contact details.
Establish lines of communication.
Future meeting schedule:
Determine frequency and structure.
Discuss handover of outstanding documents.
Outstanding information:
Issue variations since contract award.
Discuss program adjustments.
Incorporation of other works:
Address works outside the contract.
Plan inspections and testing.
Project team roles:
Clarify responsibilities.
Establish information procedures.
Site access:
Agree on access procedures.
Review contractor’s procurement and mobilization schedules.