PC5 Building Procurement

Question 1

Procurement

Answer 1

Process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering of competitive bidding process. In construction this commonly refers to the means to which the design and construction will be purchased and delivered. Architects often advise appropriate type of procurement route so important to understand different types of contracts. Route will depend on scope and nature of proposed work, level of risk, responsibility of design, coordination of work and price basis of a contract.

Question 2

Pre-Construction Services Agreement (PCSA)

Answer 2

Enable clients to employ contractors before main construction contract commences. Typically part of a two-stage tender process, used in the first stage to procure contractor involvement in the design process. Should improve buildability and cost-certainty of design as well as better integrated project team.

Question 3

Prime Contracting

Answer 3

Procurement form where client enters relationship with contractor who provides a single point of contact to a supply chain to deliver one or more projects.

Question 4

Novation

Answer 4

Process by which contractual rights and obligations are transferred from one party to another. Common in D&B projects. Beneficial to clients as it maintains continuinity between pre-tender and post-tender design whilst leaving sole responsibility for designing and building with contractor.

Question 5

Consultant Switch

Answer 5

Alternative to Novation. Transfers the consultants from working for the client to working for the contractor without altering the contractual history. Original agreement between consultant and client is terminated on appointment of contractor and new agreement made between contractor and consultant. Arguably greater risk of conflict of interest because of consultant’s liability to the client remains.

Question 6

Design Responsibility Matrix

Answer 6

Its prime objective is to clearly set out who is doing what, which may then lead to any gaps or overlaps in services being identified. The matrix should clearly define the responsibilities of each party (client, architect, consultants) in relation to each stage of the project. It should also be reviewed regularly and updated accordingly, throughout the stages of the project. The RIBA Plan of work advises that the Design Responsibility Matrix is formulated early in the process (Stage 1), once the
design team/consultants have been appointed.

Question 7

Estoppel Contracts

Answer 7

In very broad terms ‘estoppel’ prevents a party from asserting a claim or right that contradicts something they have previously said or done, or something that has been legally established to be true. Courts have held that in the absence of the essentials of a contract, a contract could still come into existence between parties if they have so conducted themselves as to a common assumption, in fact or law, that there is a contract & that it would be wrong or unreasonable for the parties thereafter to deny the existence of such a contract.

Question 8

Task Orders (NEC)

Answer 8

Issued for distinct pieces of work which are managed as ‘mini projects’ with specific starting dates, completion dates, and delay damages for late completion. Contactor required to prepare and maintain Task Order programme.

Question 9

Compensation Events (NEC)

Answer 9

Are referred to in NEC4, & are similar to relevant events & relevant matters referred to in JCT. If events occur during the course of the works that cause the completion of the works to be delayed, then these may be compensation events but are not the C’s fault. Compensation events will normally result in additional payment being made to the C & may result in adjustment of the completion date or key dates. The contract limits compensation events to only those, identified in the contract. If an event occurs that the C considers to be a compensation event, they must notify the PM within 8w of becoming aware of the event. The PM has 1w to agree. The C then has up to 3w to provide quotation, & the PM a further 2w to respond. When agreement has been reached, any changes to the contract are implemented.

Question 10

Early Warning procedures (NEC):

Answer 10

included provisions in NEC contracts. Both parties must give early warning of anything that may delay the works or increase costs. They should then hold an early warning meeting to discuss how to avoid or mitigate impacts on the project. If the Contractor fails to give early warning of a possible delay to the works, or increase in costs, they will only be compensated for effects that would have remained anyway even if they had given early warning. If the Contractor fails to give warning of an event that may give rise to a possible delay to the works, or increase in costs, within 8w of becoming aware of the event, they will not be entitled to a change in price, completion date or key date, unless the project manager should have notified the event to the Contractor but did not.

Question 11

LUMP SUM CONTRACTS

Answer 11

Single price is quoted for the entire project based on the provision of drawings and specifications

Question 12

Private Finance Initiative (PFI)

Answer 12

Consolidated, single integrated supply team appointed to design, construct, operate and finance a project in exchange for rent over a certain period of time. Public sector clients. Types of work: hospitals, prison, and roads. Advantages: Risk is transferred from Client to Contractor; no capital expenditure from Client; promotes building efficiency with design, construction and operation taking place with only one party; promoted consideration of whole life-cost. Disadvantages: inflexible during long lease periods; finance is more expensive; indexed rental costs may exceed client finance rates. (A Troubled Route?)

Question 13

Design & Build Contracts

Answer 13

Refers to a procurement route whereby the main contractor will be appointed to take on the design responsibility as well as the construction of the works. A client would typically choose this route for the reduced risk associated with having a centralised point of liability with the contractor. An architect will be appointed early by the client to facilitate the outline design that typically provides sufficient information to satisfy planning authorities. The appointment would be terminated following the completion of this phase, with a new one between the architect and the contractor. This is referred to as a ‘novation’ device and what centralises the design and construction responsibility with the contractor.

Public/Private Sector client. Type of work: Commercial, industrial and office, typically simple in design. Advantages: Time and Cost Certainty; One/Central Point of Responsibility; Efficient Design/Building; Design and Construction can overlap. Disadvantage: harder to choose contractor; tendering process is expensive for contract (design, quantify, cost); Designs may be uninspiring and emphasis efficiency at expense of quality. (Dumbing down designs?) Documentation: Articles of Agreement/Contract Particulars; Employer’s Requirements; Contractor’s Proposals’; Contract Sum Analysis.

Question 14

Traditional with Quantities

Answer 14

In contrast to Traditional without Quantities, a QS will prepare a Bills of Quantities that removes the highly skilled, error prone, and costly process required by contractors in deducing their own quantities at the expense of the client. In order for a BoQ to be prepared, a full comprehensive and coordinated set of drawings needs to be prepared for tender.

Private Sector client. Types of Work: Landmark Projects. Advantages: Full detail design and specification; Cost-Efficient Design and Specification (only one design and one set of quantities produced); Easier to tender; Bill of Quantities provide future cost reference; Bill of quantities provide future interim payment references.

Disadvantages: Split Liability – Design and builder; Multiple parties for client to deal; longer project duration teams for production of details design and specification.

Documentation: Articles of Agreement/Contract Particulars; Working/Contract Drawings; Specifications; Bill of Quantities or Schedule of Works

Question 15

Measured Term contract

Answer 15

Form of procurement that has no definitive scope of works, drawings or specification but agrees that a certain type of work may occur over a certain duration of time. Reserved typically for projects with large quantities of small works and maintenance. Public/Private client. Type of work: Maintenance, small works. Advantages: Client engages single builder; tender based on the provision of rates; flexible scope of works; design not developed at time of tender. Disadvantages: require production of a schedule of rates; administration associated organizing tenders, contracts and supervision of works.

Question 16

COST REIMBURSEMENT CONTRACTS

Answer 16

Contractor is reimbursed for all the actual costs incurred while carrying out the works, plus an additional fee for their services.

Question 17

Simple Cost Reimbursement contracts:

Answer 17

1. Cost and fixed percentage 2. Cost and fixed fee. 3. Coste and fixed fee (maximum price)

Question 18

Target Cost Reimbursement Contracts

Answer 18

Contractor will be entitled to cost and varying fee as profit-based on shared gain/pain mechanisms surrounding a building cost and savings. Equally the contractor and consultants would also reduced their fee should the project costs overrun.

Question 19

Management Contracts

Answer 19

Management contractor contracts directly with all work packages acting as a principal point of management on behalf of the client. Public/Private Client. Types of Work: Large indeterminate projects, complicated projects, major alteration projects. Advantages: selectio of contractors can be based on overhead and profit and made early; Overlap of design and construction possible; flexible contract no defined scope. Disadvantages: Difficult to select appropriate tenderers as overheads and profits are only items tendered; Risk of performance and time is born by the client. Contractor is not always incentivized by a deadline or working efficiently; Administratively complex for client.

Question 20

Construction Management Contracts

Answer 20

A construction manager is hired as part of the consultant team and the client engages directly with all work packages, client maintains clarity of all financial handling for the works taking place. Public/Private client. Type of work: Large indeterminate projects, complicated projects, major alteration projects. Advantages: selection of contractors can be based on overheads and profit and made earlier; overlap of design and consturciotn is possible; flexible contract, no defined scope. Disadvantages: difficult to select appropriate tenderers as overheads and profits are only items that are tendered; risk of performance and time is borne by the client; Contractor is not always incentivized by a deadline or working efficiently; Administratively complex for client

Question 21

Open tendering

Answer 21

is open for all to enter, typically advertised in a newspaper, journal or online. Such a procedure presents the most competition, but provides the opportunity for lesser known practices to partake, at the risk for the client of receiving inexperienced services and inadequate building standards. Public procurement is a form of open tendering.

Types of work: public sector. Advantages: maximum competition for client; New companies have ability to tender; Avoid restrictive and collusive practices. Disadvantages: Greater risk of financial failure or inadequate building standards; tender ratio to project is high; post tender checks are administratively cumbersome and time consuming.

Question 22

Selective tendering

Answer 22

the most typically used, a drafted list of appropriate tenders by the lead consultant, project manager or architect are invited to tender for the project. These normally consist of up to four tenderers with any more usually being a deterrent due to the increased competition. The limited pool of entrants statistically lends itself to increased construction costs compared to open tendering but with a more reliable pool of entrants.

Types of work: public and private sector works. Advantages: selection increases likelihood of a chosen firm being capable of carrying out works in both practice and financial terms; tender ratio to project is lower – less expensive to industry. Disadvantages: increased tender prices on any one project; requires maintaining a list of suitable contractors; pre-tender checks should be conducted by professionals; getting onto tender lists can be difficult for new firms.

Question 23

Serial tendering

Answer 23

Method of engaging in a series of works rather than a single project. Types of works: schools, hospitals and road building programmes. Advantages: opportunity to develop plong-term relationships; competitive pricing considering whole series of works; maintains clarity with initial costs standing for the length of the contract; framework agreements and single let projects can be let competitively; framework agreements and single let projects can be let competitively; framework agreements reduce cost of tendering administration. Disadvantages: not necessarily a guarantee for work; market dependent could be more expensive to Client or Contractor.

Question 24

Single tendering

Answer 24

the objective of having multiple tenders under any procedure is to be able to review costing, reputation and methods of construction between potential builders. In exceptional circumstances there will be occasions where it will be difficult to find three or more contractors for specialist works. Single tendering operates the same as selective but with a non-competitive element. Whoever the single tenderer is should never know they are the only one bidding to ensure they price competitively, while quotations can be checked by a quantity surveyor to review if value for money is being achieved..

Advantages: Quick form of tendering; Disadvantages: not competitive, not suitable for public projects.

Question 25

Two Stage tendering

Answer 25

Two-stage procurement (sometimes referred to as two-stage contracting or two-stage tendering) is when a main contractor is instructed on a construction project in two stages: firstly, for the pre-construction phase to carry out pre-construction services (often competitively tendered on a limited design basis) and, then, for the construction phase to carry out the main works for the project (often competitively tendered once the design has been sufficiently developed, for example to RIBA Stage 3 or 4). Is best described as a mix of selective and negotiated.

Question 26

Tendering Codes and Procedures

Answer 26

JCT Tendering 2017. 1. Enquiry Letter 2. Invitation to Tender 3 Mid-Tender Interviews/Site visits 4. Submission 4. Compliance Review 5. Assessment 5. Awarded Tender

Question 27

Framework Agreement

Answer 27

a type of contract that is commonly used as a multi supplier agreement, establishing a long-term relationship to deliver works as an approved supplier for the buyer. FA rarely provides any specific commitment in terms of project and value of works that you have won/secured. It is more focused around being an approved supplier, allowing you to be awarded work during the period the agreement lasts.

Question 28

Invitation to tender

Answer 28

Preparation of tender documentation typically by architect.

Question 29

Tender Documentation

Answer 29

A tender is a submission made by a supplier in response to an invitation to tender. Should be broken down into a series of packages each with its own design drawings and specifications. Ensure interfaces between packages are properly identified and clearly allocated to one package or another. Cost plan (pre-tender estimate) should also be re-assembled package by package to allow easy appraisal of tenders. Tender documents should include: letter of invitation, form of tender, pre-construction information and site waste management plan, form of contract, tender pricing document, design drawings, specifications describing products, materials and works, tender return slip.

Question 30

Tender Pricing Document

Answer 30

sets out the way in which the design team and client wish to review the breakdown of the overall tender prices provided by tendering contractors. It is effectively an unpriced bill of quantities. Generally follows the format of the cost plan. Purpose of Tender Pricing Document is to enable comparison between tenders and the cost plan, enable cost consultant to assess where value lies within the different tenders allowing assessment of value for money, identify any significant differences in pricing between tenderers to ensure the design has been correctly interpreted, identify areas of savings that might be negotiated with tenderers while still in competition, form the financial basis of the tender report. Effectively priced bill of quantities.

Question 31

Preliminaries

Answer 31

Provide a description of the project that allows the contractor to assess cost. Part of tender documentation. May include: general summary, method statement, pre-construction information, description of planning conditions that may affect the works, party wall requirements, outstanding statutory approvals, schedule of mock-ups, quality management procedures etc.

Question 32

Specifications

Answer 32

Describe the product, materials, and work required by a construction contract. Do not include cost, quantity or drawn information and so should be read alongside other information such as quantities, schedules, and drawings.

Question 33

Performance Specifications (Open Specifications)

Answer 33

Describe the result that is required from particular items and leave it to the contractor to satisfy the requirement. In effect it requires the contractor to complete the design. Typically for straight-forward, standard building types. Allows contractor more scope to innovate and adopt cost-effective methods of work, potentially offering better value for money.

Question 34

Prescriptive Specifications (Closed Specifications)

Answer 34

Details description of general requirements relating to regulations and standards, type of products and materials required, execution and installation method required. Give client more certainty about the end product when they appoint the contractor. Typically for more complex buildings or where client has specific requirements that might not be familiar to contractor or need a specific end result.

Question 35

Bill of Quantities

Answer 35

Document generally prepared by a cost consultant (QS) that provides project specific measured quantities of the items identified in drawings and specifications for building. Requires that the design is complete, and a specification has been prepared. Measured in terms of number, length, area, volume, weight, or time. Normally prepared on larger projects. It helps create low-risk and low-cost tendering environment which encourages submission of competitive bids since the risk better understood and defined.

Question 36

Schedule of Works

Answer 36

Without quantities instruction lists produced on smaller projects or for alteration work. Alternative to BoQ. Typically prepared by designers rather than cost consultant. Should allow contractor to identify significant work and materials needed to complete the works and to calculate the quantities required. Can be arranged on an elemental basis (groundwork, concrete, masonry etc.) or room by room basis.

Question 37

Interim Certificates

Answer 37

Mechanisms within construction contracts that notify the Client to make payments to the Contractor. Any works lasting 45 days is entitled to receiving interim of stage payments as stated under the HGCR Act.

Question 38

Architect’s Instruction

Answer 38

Mechanisms within construction contracts giving architect power to issue instruction upon Contractor such as vary works, postpone works, remedy workmanship, open up works for inspection, carry out tests or exclude persons from site. Can also be referred to as Contract Administrator’s instructions.

Question 39

Notice of Partial Possession

Answer 39

By agreement between all parties, the employer can take passion of part of the works before the Completion Date, permitting the re-posession does not impede the Contractor in completing the remainder of the works. The proportion of reoccupied spaces should be reflected in the equal reduction of insurance covered by the Contractor and their liability for liquidated damages. Replaces formal procedures in absence of overring Practical Completion Certificate.

Question 40

Practical Completion Certificates

Answer 40

Architect certifies completion of works by issuing PCC. Will start rectification period, ending the Contractor’s responsibility for insuring the works, ending the Contractor’s liability for liquidated damages; halving the retention held and starting period final adjustment of Contract Sum.

Question 41

Section Completion Certificates

Answer 41

Provision in construction contracts allowing different completin dates for differ sections of work. Different from partial possession because if it pre-planned and defined. Must be an express term.

Question 42

Certificate of Non-Completion:

Answer 42

formal written notice to contractor they have failed to complete works described in contract by completion date that was last agreed. CA must give consideration to any applications of EOT before issue this. If contractor is responsible for delay, client may be entitled to claim liquidated and ascertained damages. Some contracts such as JCT Standard Form of Building requires the CA issues this prior to claiming such damages.

Question 43

Making Good of Defects

Answer 43

Once Practical Completion has been achieved, the Rectification Period commences - typically lasting six to twelve months. If any defects arise from a reasonably thorough inspection, the Client reports these to the Architect who in turn decides whether they are defects or maintenance issues. Should they be defects, then instructions may be issued to the contractor to make good the defects within a reasonable time. At the end of the rectification period the Architect draws up a schedule of defects with dates for delivery - once these are all rectified, the Making Good of Defects Certificate is issued and discussions towards the Final Account can proceed

Question 44

Final Certificates

Answer 44

issued by the Architect/Contract Administrator to certify the completion of the construction contract, releasing the remaining retention and signalling the beginning of the limitation period. The value of the certificate is based on the final account agreed by the cost consultant and contractor.

Question 45

Rectification Period

Answer 45

The period of time following Practical Completion whereby the Contractor remains liable for remedying any ‘patent’ (discoverable by reasonable inspection) defects. The length of the Defects Liability Period is typically a period of 6 or 12 months depending on the project and complexity of the works. All defects during this period should be fully rectified, triggering the Architect in sending the Making Good of Defects Certificate and subsequently kicking off Final Account discussions.

Question 46

Limitation Period

Answer 46

The period of time following the issuing of the Final Certificate whereby a claim in relation to a simple contract must be made within 6 years of the date on which the cause of action accrued, for contracts executed as a deed, this period is extended to 12 years.

Question 47

Force Majeure

Answer 47

Provision in contract that frees both parties from obligation if an extraordinary event directly prevents one or both parties from performing such as exceptionally adverse weather, legislation, war, figures.

Question 48

Concurrent Delay

Answer 48

A situation where a construction project is delayed by two events at the same time, one being an event for which the employer takes responsibility under the contract and the other for which the contractor takes responsibility. Under a typical construction contract, the contractor would claim for an extension of time and possibly damages for delay caused by an employer risk event. The employer would claim liquidated damages for delay caused by a contractor risk event.

Question 49

Extension of Time (EOT)

Answer 49

An express contractual provision that contemplates the adjustment of the contract completion date in defined circumstances. If CA accepts the delay was caused by a relevant event, they may grant an EOT and the completion date is adjustsed. Relevant events include variations, exceptionally adverse weather, failure to provide information.

Question 50

Liquidated Damages (LADs)

Answer 50

A fixed or determined sum agreed by the parties to a contract to be payable on breach by one of the parties. Based on a calculation of the actual loss the client is likely to incur if the contractor fails to meet the completion date.

Question 51

Loss and Expense Claim

Answer 51

Term often used (most notably in JCT contracts) to describe additional costs incurred by a contractor as a result of disturbance to the regular progress of the works caused by matters either within the employer’s control or by breaches of contract by the employer. One of Contract Administrator’s mandatory tasks to decide Loss and or Expense Applications. A Contractor can bring a claim under the contract by means of Loss and/Or Expense Claims.

Question 52

RIBA Plan of Work (Stages 6 and 7)

Answer 52

Stage 6 (Handover): Buildng handed over to client with Aftercare initiated and the Building contract concluded. Constrution team rectify any residual defects as promptly as possible. Usually 12 months after Practical Completion the Final Certificate will be issused which concludes the contractual involvement of the design and construction teams. Stage 7(Use): Post Occupancy evaluation, in some building contracts maintenance obligations might extend beyond Stage 6.

Question 53

Value Engineering

Answer 53

Used to solve problems and identiy and eliminate unwanted costs while improving function and quality. Value in this context is the ratio between benefit (outputs) and the cost or effort (inputs) required to achieve it.

Question 54

Pay Less Notice

Answer 54

Section 111 of the Housing Grants Construction and Regeneration Act 1996 (Construction Act) allows a paying party (e.g., the employer) to pay a payee (e.g., the contractor) less than the sums requested by the payee in any payment application issued (or indeed the sums certified in its own payment notice). Failure by a payer to issue a valid payment notice (PN) and/or PLN followed by a refusal to pay a payment application, leaves an employer vulnerable to a ‘Smash and Grab’ adjudication whereby the contractor is permitted by statute to recover the full amount claimed under their payment application. Should the contractor be successful in a ‘Smash and Grab’ adjudication (which is inevitable without service of a valid PN/PLN) the employer would be ordered to pay the full amount owed under the payment application in question before being able to argue the ‘true value’ of the amount they considered payable.

Question 55

Provisional Sums

Answer 55

Allowance in a fixed price construction contract for an item of work that cannot be priced by the contractor at the time of entering the contract. Value depends on actual cost to the contractor of performing the work or supplying the item and overheads and profit.

Question 56

RAMS – Risk Assessment and Method Statement

Answer 56

Health and safety document to identy steps to be taken to carry out a specific activity or task in a safe manner. Risk assessments identify and assess the hazards and risks involved in projects and suggest control measures. Method statements expand on the control measures outlined in the risk assessment, detailing how, when and why you should implement measures.

Question 57

Post-Occupancy Evaluation

Answer 57

RIBA Stage 7 - commissioned to determine how the building is performing in use. Collects information on building and energy use and user satisfaction. RIBA says POE helps make buildings greener and healthier; reveal how a building is used compared to designer’s intentions; reduces operational costs; allows for continuous improvement; reduce delays and overspends on future projects; increases user satisfaction.

Question 58

Government Construction Strategy 2016-2020

Answer 58

new plan to increase productivity in government construction; for smarter procurement, fairer payment, improving digital skills, reducing carbon emissions, and increasing client capability. Themes are consistent with wider ambitions for industry in ‘Construction 2025’ delivered by industry and government through he Construction Leadership Council.

Question 59

Pre-Contract Meeting

Answer 59

Meeting that takes place aftrer contract has been appointed but before works commences on site. Opportunity for project team to meet and plan construction stage. Chaired by the Contract Administrator. Opportunity to: clarify roles and lines of communication, agree meeting schedules, hand over outstanding documents, issue nomination instructions, discuss contractor’s master programme,discuss role of project team members, agree site access procedures and issues.

Question 60

Alternative Dispute Resolution (ADR)

Answer 60

A general term that refers to all dispute resolution processes that do not form part of the formal litigation procedure and where a third party is involved to aid with a view to the settlement of the case.

Question 61

Negotiation

Answer 61

SBC Schedule 8:6, ICD Sch 5:6, MWD Sch3:6 – Supplemental provision.
The most common form where parties and their legal representatives seek to reach an agreement either through written correspondence or in-person before any formal procedures are initiated. Potentially the best solution to the problem.

Question 62

Mediation

Answer 62

SBC/ICD cl 9.1, MWD cl7.1 – Voluntary process; takes place over a single day; mediator can meet with each party separately and/or both together; encourages parties to reach an agreement; any agreement can be recorded in writing; proceedings are private.

Question 63

Adjudication

Answer 63

DB/SBC/ICD Article 7, cl19.2, MWD Article 6, cl7.2 – a Statutory and contractual right; either party may initiate at any time with an Adjudication notice; an Adjudicator and/or adjudicator nominating body is named in the contract particulars; adjudicator must reach a decision within 28 days; decision must be complied with immediately, if not can be enforced through courts; decision is binding unless or until it is resolved in arbitration or litigation; proceeding and decisions are private.

Question 64

Arbitration

Answer 64

DB SBC/ICD Article 8, cl9.3, MWD Article 7, Cl7.3 – Final method of resolving a dispute if selected in the contract; governed by the Arbitraction Act 1996 and the JCT Construction Industry Model Arbitration Rules; either party may initiate with an Arbitration Notice; an arbitrator appointing body is named in the contract particulars; the arbitrator decides the detailed procedure to be followed; the aware must be compiled with immediately if not can be enforced through the courts; the award is binding & rights of appeal are very limited; the proceeding and aware are private. With the absence of strict timings, the length of disputes can mimic those of litigation with the quality of the process being relied upon the quality of the arbitrator.

Question 65

Litigation

Answer 65

DB/SBC/ICD Article 9, MWD Article 8 – Legal proceedings is the final method of resolving a dispute if arbitration is not selected in the contract; governed by Civil Procedure rules; either party may initiate with an application to court; the court will normally be the Technology and Construction Court; the course judgement is binding and there are some rights of appeal to the Court of Appeal and the Supreme court; the proceedings and judgement are public.

Question 66

Traditional Without Quantities

Answer 66

A detailed set of drawings and separate written specifications are pepared for the builder’s preparation of a lump sum price. With the absence of quantities, as the name suggests, from the client, the contractor takes on the responsibilities for for the quantifying of works in generating their lump sum. Designers maintain post-contract responsibilities throughout the inspection of works to ensure that the building is constructed as per the agreed drawings. Such liabilities for the performance of the building are thus split between the designer and builder.

Question 67

Named Subcontractor

Answer 67

Named subcontractors are means by which a client could influence the contractors selection of subcontractors by providing a list of named parties. Such a list of potential subcontractors could all be invited to submit tenders allowing the inclusion of the sub-contractor’s package as a lump sum.

Question 68

Domestic Subcontractor

Answer 68

A domestic subcontractor is any subcontractor other than a nominated subcontractor, who has been freely selected by the contractor with from a list of at least three potential subcontractors.

Question 69

Nominated subcontractor

Answer 69

Such a subcontractor is nominated by the Client to execute a specific part of the works. For example, it could be a specialist carpentry contractor that the Client has insisted that the contractor works with in the completion of interior joinery on a residential project, or perhaps a specialist metalworker that the Client has identified to construct a bespoke staircase and balustrade. Nominated sub-contractors no longer exist within JCT contracts due to the complications that they inhibit through design responsibility and risk put upon the main contractor.

Question 70

Back to Back agreements

Answer 70

Subcontractor can be held to the same level of responsibility as the main contractor. Will refer to all key aspects of the original construction contract.

Question 71

Letter of Intent

Answer 71

A document that expresses an intention on the part of a party to enter into a formal contract at a later date. LOI generally represent bad practice in that they are a substitute/prolong the eventual signing of any contract document and attached documentation. The problem associated with LOI’s is their dubious legal standing and their limited prescription of works that tend to overrun. When used, LOI’s should go to great lengths to describe the very limited capacity to which that interim agreement should cover (in time, money and type of work).

Question 72

Schedule of Tender Adjustments

Answer 72

Track record of changes during the process of tendering (such as proactive pricing of alternatives by a Contractor or correction of erroneous information or changes for reasons relating to cost).

Question 73

Lead Consultant

Answer 73

Typically Architect who fulfils this role. Mentioned in RIBA Standard Agreements for Appointments. Main point of contact for design team. Increased responsibility and tasks associated should come with an increase in fee

Question 74

Performance Bonds

Answer 74

Means of insuring a client against the risk of a Contractor failing to fulfil contractual obligations to the client. Most common concerns relates to a contractor being insolvent before completing the contract. Bonds are typically 10% of the contract value.

Question 75

Information Release Schedule

Answer 75

If not all the information required to construct the works has been prepared or issued when the tender documentation is issued or the contract executed, then an information release schedule may be prepared which gives dates for the release of information from the consultant team.

Question 76

Contract Sum Analysis

Answer 76

A pricing document used by a Contractor when submitting a tender, typically under the D&B route.

Question 77

Working Drawings

Answer 77

Set of drawings including all of the details and structural information required to build project. Can be used by contractor to construct the works. May include architectural drawings, structural drawings, etc.

Question 78

Contractors Proposals

Answer 78

Documentation prepared by tenderers for design and build projects or on a traditional contract where the tenderer is to design discrete parts of the works. They are prepared in response to Employer’s Requirements which provide a description of the client’s requirements, including specification for the building, scope of services required, and an allocation of risk for unknown time.

CP sets out proposals for designing and constructing the project, along with their price.

Question 79

Employers Requirements

Answer 79

Typically used in design and build contract or on traditional contracts where the tenderer is to design discrete parts of the works. Provide a description of the client’s requirements, including the specification for the building, scope of services required from the contractor and an allocation of risk for unknown items. Contractor’s Proposals are then prepared in response to the ER.
Difference between ER and Specification

ER: ‘a hard wearing slip resistant vinyl floor’

Specification: Gerflor Tarasafe Ultra H20’

Question 80

Request for Information (RFI)

Answer 80

formal clarification of plans, drawings, specifications, and agreements. Typically this is a request from the contractor to the client’s consultant team.

Question 81

Opening Up Works

Answer 81

Should the client or architect request that any opening up of works be conducted for the purposes of quality monitoring (to review correct build-ups and details as per construction drawings) then the contractor is obliged to do so. Should the works be opened up and they are found to comply with drawings, the costs associated with opening and remedying this will be assigned to the client - if they are found not to be in accordance, they are apportioned to the contractor.

Question 82

Site Progress Meeting

Answer 82

interaction opportunity for multiple design team members to meet and review progress on-site while the contractor reviews the prepared meeting agenda for the necessary input of others for works to proceed.

Question 83

Site Meetings

Answer 83

opportunities for members of the design team and different stakeholders to review and facilitate progress on site. Such meetings are regularly and formally scheduled appropriately to the scale and complexity of the works, whereby the purpose of each project is to report progress, enable discussions surrounding any problems or issues that have arisen and allow for the proposal of potential solutions.

Question 84

Construction Progress Meeting

Answer 84

held by the contract administrator with the contractor and any necessary consultant team members as an opportunity to review progress reports from the contractor and consultant team members, review cost reports, receive records from sub-contractors and receive progress photos of site. Such meetings also are an opportunity to review mock-ups, quality issues, healthy & safety issues, etc.

Question 85

Relevant Matter

Answer 85

Matters relating to money. Entitle the Contractor to additional payment, including: Failure to give contractor possession of the site, failure to give contract access to and from site, disruption caused by works carried out by the client, failure by client to supply goods or materials etc. .

Question 86

Relevant Event

Answer 86

Matters relating to money and time. Items described entitle the Contractor to both the release of additional time and money, may include: variations, exceptionally adverse weather, failure to provide information, force majeure etc.

Question 87

Parity (Tender Process)

Answer 87

If alterations, clarifications, or a contractor suggests an alternative mode of design/construction, then the client must share the information with all tenderers.

Question 88

Retention Fee

Answer 88

Amount of money withheld from a contractor until a job is complete. This is normally 5-10% of the contract sum and acts as a kind of security deposit. If defects are left by the contractor that they fail to remedy, the money is rightfully retained by the employer to fix those defects.