Level 1

Question 1

Is there any guidance you can refer to when undertaking Contract Administrative service

Answer 1

RICS Guidance note: Contract Administration

Question 2

What edition is the CA Guidance Note?

Answer 2

1st Edition- although aware this has been withdrawn (out of date).

Question 3

What are the key tasks of a CA

Answer 3

• Inviting and processing tenders.
• Preparing contract documents for execution.
• Chairing construction progress meetings &*Preparing and issuing construction progress reports (Meeting Minutes)
• Issuing instructions such as variations, or relating to prime cost sums or making good defects.
• Issuing certificates of practical completion, interim certificates, certificate of making good

Defects
Defects and Final certificate

Question 4

What JCT Contracts are you aware of

Answer 4

Minor Works Building Contract
Intermediate Building Contract
Standard Building Contract
Design & Build
Management contract

Question 5

When would you use JCT MW

Answer 5

Works simple in nature Simple (No Bills of Quantity)

No need for provisions set out in different contract types

Question 6

When would you use JCT IM

Answer 6

More complex works (complex and detailed procedures)

Sectional completion is needed

Named sub contractors.

Not suitable for D&B Contracts.

Question 7

What can be used to assist with selecting contracts.

Answer 7

*JCT Decision Tree.

Question 8

What are the difference between Minor Works and Intermediate contracts?

Answer 8

• More detailed procedures
• Relevant Events defined
• Early possession
• Sectional completion
• When named sub-contractors are required
• Collateral warranties for Sub contractor with design responsibility
• Bill of quantities
• Advance payment

Question 9

Who is responsible for valuations under the intermediate contract used?

Answer 9

• QS in the case of IC standard terms

* Can be undertaken by the CA

Question 10

Other types of Contract

Answer 10

New Engineering Contract

Recommended in the Latham Report (constructing the team)

Intended/designed to accommodate both engineering and construction & promote cooperative working.

The NEC contracts are used for:

• Stimulate good management.
• Used internationally
• Easy to understand

Interlocking
 Produce an interlocking suite of contracts written

Clear and Simple
 Be clear and simple, written in plain English, in the present tense and without legal terminology.

Variety
 Be useable in a wide variety of situations from minor works to major projects.

Options
There are a number of options from A-G such as Priced Contract with activities schedule or Target Contract with Bill of Quantities

Issues
Key issues surround payments, compensation events, Dispute resolution.

Question 11

What’s the difference between NEC and JCT?

Answer 11

JCT - No programme
NEC - Programme is the heart of the contract

JCT - lump sum contract with Provisional Sums
NEC - Based on target for D and C

JCT - 4 weekly interim payments
NEC - Can be set period related to programme

Question 12

What is FIDIC?

Answer 12

International Federation of Consulting Engineers

Question 13

How did you decide whether PC had been achieved?/ When can you certify practical completion?

Answer 13

1) works substantially completed
2) free of patent defects (other than those that are minor or trivial).
3) Complete health and safety file has been issued in draft.
4) The client ability to take possession and make beneficial use of the building.

Question 14

What are the consequences of issuing the PC certificate?

Answer 14

1) Rectification period begins,
2) Retention reduces
3) Insurance (passes back to the client).
4) Final account is then prepared.

Question 15

What are the timescales for final account?

Answer 15

• contractor has 6 months after PC to prepare

* 3 months after that date CA to issue final account

Question 16

What is required to have a contract?

Answer 16

• Offer
• Acceptance
• Consideration
• Time
• capacity

Question 17

What are the parts of the contract?

Answer 17

*Agreement
The ‘articles of agreement’ setting out the core obligations/details of the parties involved

*Recitals
Recitals contextualise the agreement, giving factual explanations for the basis of the contract. recitals describe what is required and the events that have taken place.

*Articles
Set out what is agreed between the parties.

*Contract Particulars
Sets out the aspects of the contract that are particular to the project to which the contract relates.

*Attestation
Act of signing &/or witnessing a legal document (Contract agreement / Execution) to formally execute the document

*Execution
Under hand - disputes must proceed to court within 6 years

As a deed - disputes must proceed to court within 12 years

Question 18

What makes up a building contract

Answer 18

a. The building contract - This is a legal document, usually in standard form. It sets out the roles, rights and responsibilities of the employer and the contractor.

b. The specification:
i. Prelims - Preliminaries are activities or costs that are not necessarily linked to the building work. They are costs associated with administration, setting up and Statutory Authorities regulations and fees.
ii. Preambles – Quality of materials and workmanship.
iii. Works - The technical requirement to complete, execute and/or perform every little task or material being incorporated in the construction project. It specifies common standards, deviations accepted, materials accepted and the required testing for all materials. Specific referencing to construction standards and codes.
iv. The drawings/plans – Drawings detailing the works to be undertaken referring to and to be read in conjunction with the specification to gain a full understanding of the works.

c. Priced schedule of work/bill of quants - Breakdown of all items being incorporated in the construction project. This is usually the base of the application for payment.
d. Pre Construction Information Pack – Details of all the health and safety, security, welfare, access considerations that need to be taken into account. The response to which should be the contractors construction phase health and safety plan.

Question 19

Difference between Preambles and prelims?

Answer 19

Prelims detail non construction related works that the contractor needs to cost

Preambles detail the quality requirements for materials and workmanship.

Question 20

What should you include in the premlins and M&W

Answer 20

• Prelims - Does not form part of the main works package - Welfare, access, emergency services, statutory requirements, party wall.
• M&W - provides details of the material and workmanship requirements for the project to ensure a high standard of workmanship.

Question 21

what happens when the rectification period ends?

Answer 21

1) Joint snagging inspection should be undertaken by the CA and Contractor. The contractor should rectify any defects
2) Second inspection should be undertaken to check.
3) Certificate of making good defects and a final payment certificate should be issued for the remaining retention.
4) The contractor will then issue this to the client with his final invoice.

Question 22

Can you give me some examples of how a construction contract could be terminated.

Answer 22

Actions by the contractor - Solvency, Corruption.
Actions by the employer - Solvency, Corruption.

Breach of contract.

Contractor - abandoning site.
Employer - failure to make payment etc

Both - force majure, specified peril.

Question 23

How should H&S issues be report on site.

Answer 23

RIDDOR - Reporting of Injuries, disease and dangerous occurrences regs.

Question 24

What is the base date?

Answer 24

Reference date
The conditions under which the tender was prepared are considered to have been known by the contractor (so are properly reflected in their price).

Question 25

How do you calculate if a employer is a Contractor for the purpose of CIS (Construction Industry Scheme)

Answer 25

1) You pay subcontractors for construction work
2) Your business doesn’t do construction work but you spend an average of more than £1 million a year on construction in any 3-year period

Question 26

what is the difference between 2011 and 2016 update

Answer 26

1) The Payment Terms (Common Valuation Date)
2) CDM 2015 regulations (are now fully integrated).
3) Insurance Provisions - JCT 2016 incorporates 3 options.

Question 27

How do you value materials that are held off site?

Answer 27

Vesting certificate may be required from the contractor (or sub-contractors or suppliers), certifying that ownership of the goods, plant or materials listed in a schedule will transfer from one party to the other upon payment and confirming that they will be will be properly identified, separately stored, insured and are free from encumbrances (such as retention of title).

Advance payment bond may be more appropriate.