Paul B Questions Flashcards
Does an EA need to issue a non-completion certificate?
If I was unsure I would refer to Practice Information 2017 1st edition Employer’s agent: design and
build
If the employer’s agent has decided that the contractor has not achieved the necessary
criteria to allow the employer’s agent to issue a practical completion statement, the
employer’s agent must issue a non-completion notice.
Where the project is not complete, the employer’s agent may wish to discuss with the
employer and contractor the option of taking beneficial access of the building. This should be
done using the partial possession provisions within the contract (see 3.18.1).
What are the timescales for responding to a request for an EOT?
The contractor must give notice of a potential delay “as and when it becomes reasonably apparent”. While JCT contracts don’t specify a strict time limit for this notice, it’s generally understood to be within a few days of the contractor becoming aware of the delay.
Within 12 weeks, a decision must be made and fed back to the contractor.
Refer to Extensions of time practice information 1st edition 2014
What are the client’s options if their costs arising from contractor’s lateness exceed the LD’s that were placed in the Contract Particulars?
The LADs should be a genuine pre-estimate of loss if calculated properly. Therefore in most cases the LDs in the contract will stand.
A last resort option for the client can pursue a claim for unliquidated damages through the courts. This requires proving the actual losses and costs incurred due to the delay.
Refer to Damages for delay
to completion 2nd edition 2024 P
Can you give an example of what 6.5.1 insurance is intended to cover?
6.5.1 covers damage to adjacent buildings or properties.
Example could be neighbouring property subsiding days after a demolition project in the vicinity.
What would you do if the client advised you their funding for a contractor’s payment was going to be late by 20 days?
What is the difference between an aggregate and each and every claim PII policy? Which is better for the employer.
Aggregate is where the cost of claims are accumulated together so the limit of indemnity is the total amount the insurer will pay out over a policy term for multiple claims so you are more likely as a company to be at risk of running out of cover than each and every claim where the limit of indemnity over a term is for each and every claim made (per occurrence).
Each and every is better for the employer. Less likely to run out of cover.
Name three different types of bond on a construction contract and what they are used for
Performance Bond
Performance bonds are typically set at 10% of the contract value. This compensation can enable the client to overcome difficulties that have been caused by non-performance of the contractor, such as, finding a new contractor to complete the works.
Retention Bond
An alternative to retention is a retention bond, where the client agrees to pay the amounts which would otherwise have been held as retention, but instead a bond is provided to secure the amount that would have been retained. As with retention, the value of the bond will usually reduce after practical completion has been certified.
Advanced payment Bond:
An advanced payment bond will be required by the client if the contractor requests advance payment to help them meet significant start up or procurement costs that may have to be incurred before construction begins.
For example, where the contractor has had to purchase high-value plant, equipment or materials specifically for the project.
In an unamended JCT D&B who pays if there is a discrepancy between the ER’s and CP’s
The contractors proposals take precedent so should there be a discrepancy.
If there is any discrepancy within the Contractor’s Proposals and/or Contractor’s Design Documents then the Contractor is responsible for the cost of rectification. Where there is any discrepancy within the Employer’s Requirements (or in designs contained in them) which is not dealt with in the Contractor’s Proposals, the Employer is responsible for the cost of rectification; the Employer decides how the discrepancy is dealt with and such decision is treated as a Change.
How long do you have to agree a final account in a JCT D&B
3 months
JCT Design and Build Contract states that two months after the three-month period the employer can make their own assessment
If the contractor disagrees at this stage then they would have to go through formal dispute
resolution in theory but it is still suggested that a period of discussion and cooperation is
carried out first, even if the contractor has indeed weakened their position by not issuing
their information in line with the agreed timescales
Refer to final account procedures practice information 2015 1st edition
