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16 Contract Administration > Level 3 > Flashcards

Level 3 Flashcards

1
Q

Why did you use a IC for HWS?

A

As the works had a named subcontractor and it was important that relevent events were defined.

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2
Q

What is a Nominated Subcontractor

A

Nominated subcontractors are stated within a contract are the principal contractor has no option but to use them. It is usual that the Employer will take responsibility for nominated subcontractors and a collateral warranty will be put into place.

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3
Q

What is a Named Subcontractor?

A

Named subcontractors are domestic, which means the principal contractor has freedom of choice to employ which subcontractor they wish and the terms on which they are employed.

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4
Q

Do JCT contracts no longer have provisions for nominated sub contractors?

A

SBC form no longer makes provision for nomination of subcontractors or suppliers, the Intermediate forms retain a method for appointing a ‘Named Sub-Contractor’. Responsibility for the named subcontractor remains with the contractor. The Minor Works forms do not provide for naming specialists or nomination of subcontractors.

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5
Q

What is a critical path?

A

A sequence of stages determining the minimum time needed from start to finish of a project.

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6
Q

What is Critical Path Analysis?

A

The primary purpose of critical path analysis is to show which activities on a programme of works are critical to completion and which are non-critical.

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7
Q

What is a critical path item?

A

The items on the critical path are important to achieve completion. Any delay in the critical path delays the project finish date.

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8
Q

What is the critical path method?

A

Calculates the minimum time needed to complete a construction project alongside the possible start and end times for the different activities.

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9
Q

What is an extension of time?

A

An additional period added on to the duration of the works.

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10
Q

What is an extension of time procedure needed in a construction contract?

A

1) Contractor must give notice to the CA.
2) Inform about the relevant event and the time predicted to be extended.
3) CA review and provide cert.

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11
Q

What are relevant events?

A

Events that are listed within the contract that allow the contractor to claim an extension of time. Reasons that are not the contractors fault.

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12
Q

What’s the difference between a relevant event and a relevant matter?

A

Relevant events allow an extension of time and is beyond the contractors control,

Relevant matter is the employers fault= will allow a claim for loss and expense

Event : justifies additional time
Matter : Justifies additional payment

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13
Q

List some relevant events (13)

A 
Variations.
Any impediment by the employer 
Force majure 
Exceptionally adverse weather conditions
works by statutory undertakers
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14
Q

List relevant matter (11)

A

1) Failure to give the contractor possession of the site.
2) Delays in providing instructions.
3) Discrepancies in the contract documents.
4) Disruption caused by works being carried out by the client.
5) Instructions relating to variations and expenditure of provisional sums
6) Opening Up Works

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15
Q

What can a contractor claim with regards to the above.

A

Either:
Extension of Time
Loss & Expense

Dependent on relevant event/matter.

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16
Q

What is loss and expense?

A
  • Loss the contractor has incurred due to delay that was the fault of the client

To claim loss and expense the contractor must show that a Relevant Matter has occurred.

  • Contractor has to prove loss and expense
17
Q

What is the process of claiming loss and expense?

A
  • The contractor must give written notice of a claim as soon as it becomes reasonably apparent that the regular progress of the works is being materially affected.
  • Detail relevant matter and estimated costs
  • CA to review and approve
18
Q

What is direct loss and consequential loss?

A

Direct loss = fairly and reasonably arise naturally from the breach of contract. Most foreseeable kinds of loss are direct, including the cost of repairs, loss of rent.

Consequential loss = arises from a special circumstance of the case, not in the usual course of things. It is recoverable only if the paying party knew or should have known of that circumstance when it made the contract. This would include loss of profit (envisaged profit).

19
Q

How did you determine that and extension of time request was fair and reasonable?

A

I compared works undertaken against works left within the programme.

*I analysed the critical path

20
Q

What is a prolongation cost?

A

Prolongation costs are the additional costs that a contractor has incurred as a result of the completion of the works being delayed by the employer

21
Q

How would this have differed if you had been using a minor works contract?

A
  • No listed relevent events
  • Up to CA
  • I would still refer to the IC
22
Q

What is Deferment of site.

A

Some contracts (IC) will entitle the client to defer giving the contractor possession of the site period of up to six weeks unless a shorter period was stipulated in the contract particulars (it is probably unwise to reduce the period).

This provision enables the client to defer possession without being in breach of contract. Deferment of possession can be considered a relevant matter, the deferment must have a material effect on the regular progress of the works.

23
Q

What happens if the contractor is not given possession on the correct date.

A
  • Time is said to be at large.
  • No completion date and LADs cannot be applied.
  • Contractor only required to proceed regularly and diligently which is open to interpretation.
24
Q

How does NEC deal with relevant events?

A

Compensation events

25
Q

What other forms of Alternative dispute instead of mediation resolution do you know?

A
  • Adjudication - third party adjudicator - in 28 days - binding (Section 108 of the Housing Grants, Construction and Regeneration Act.)
  • Arbitration - private - third party arbitrator - not always fast
26
Q

How would you have advised your client if it had there was a delay to the project?

A
  • I would have advised my client that if the works were not completed on time the client would be welcome to claim for LDs as long as the contractor did not issue an extension of time claim with valid reasons. i.e relevent events stated.
27
Q

What is a patent defect?

A
  • A defect that is discovered from reasonable inspection
28
Q

What are the employer’s responsibilities under a contract?

A

Pay on time, allow access, do not inhibit the works

29
Q

When you reviewed the out of hours costs returned by the contractor, how did you ensure these were reasonable?

A
  • compare to other projects etc
30
Q

What sections of the JCT contract discusses insurance provisions?

A

Section 6 of JCT (Standard and Intermediate),

Section 5 in JCT minor works

31
Q

how do you review contractor valuation?

A

I assess the application against the works carried out on site to date.
Materials on site, Review Programme and works completed against it.

32
Q

What is the difference between a defined and undefined provisional sum?

A

A defined provisional sum - described in sufficient detail that the contractor is expected to have made allowances for them in their programming. E.g. defines amount of brickwork but the brick to be used has not been chosen.

An undefined provisional sum - less well described so the contractor cannot be expected to make an allowance for them in their programming, planning and pricing prelims. e.g. works required beneath an existing structure but the extent of the of the work required cannot be determined until the structure is removed and ground opened up.

33
Q

What’s the difference between partial possession and sectional completion?

A

Both involve the client taking exclusive possession of that area of the site

Sectional completion = written into the contract = liquidated damages associated with it.

Partial possession = client takes over part of the site that has been substantially completed with the contractor’s consent (which cannot be unreasonably withheld).

The CA will either issue a sectional completion certificate/notice to confirm the partial possession. Defects liability period (for that area) + Client insurance responsibility + Liquidated damages is reduced on a pro rata a basis.

34
Q

How do you select contractors for a project?

A

Size, experience, finances.

35
Q

Advantages and disadvantages of traditional procurement?

A

. Competive so cheaper

  • Greater cost and programme certainty
  • Clear allocation of risk
  • Tailored to meet client requirements - ensures higher quality
  • Most common - RIBA survey showed 86% used in 2012
  • Cost and time risk fully with contractor. Qulaity risk by employer
  • Longer and sequential process
  • Design risk with client
  • No contractors buildability input
  • Variations can come at a cost
36
Q

Advantages and disadvantages of Design & Build Procurement

A

Design & Build:
- No provision for CA. There is only employers agent. Design liability insurance required by Contractor. For simple projects where design quality is not the main consideration.

Advantages:

  • Suitable for experienced and inexperienced clients
  • Single point of contact and responsibility
  • Contractors buildability input throughout (in design too)
  • Early start on site, design & construction in parallel
  • Relative cost certainty

Disadvantages:

  • Quality can be compromised
  • Less D&B contractors so less choice
  • Less control on design for client
  • Client may find it difficult to develop comprensive brief
  • Often more expensive than tradional contracts
37
Q

What does procurement mean?

A

Acquisition of goods and services in line with requirements.

In a construction context, could be defined as the overall process of acquiring a building. The chosen procurement route should fit well with the client’s objectives.

38
Q

What does tendering mean?

A

Process of establishing a price for the works.

39
Q

At the rectification period, what certificates would be issued?

A

Certificate of making good defects.

Final payment certificates.

16 Contract Administration (3 decks)

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