Pre-Qual Questions

Question 1

Why did they use a bespoke change control procedure?

Answer 1

The JCT makes provision for instructions, but does not provide a specific procedure for change. Therefore, a bespoke change control procedure was used.

Question 2

Would you recommend to the Client deviating away from the standard contract?

Answer 2

Only if it had benefit to my client, for example:
- change control
- retention
- Rectification period
- Stand down days etc

Question 3

How were changes dealt with under the procedure?

Answer 3

Smartsheet - client raised, contractor/designer review, QS review, client approval. 3 days contractor/designer, 3 days 3 days QS, 5 days client. However, these are maximum limits and are often completed quicker.

Question 4

How are CDP changes dealt with?

Answer 4

Depends if raised by the client or by the contractor.

Question 5

Was a collateral warranty in place? Pro’s & con’s

Answer 5

Yes, with the sub-contractors. This firstly gives the client the ability to sue them, but also step in rights if the main contractor was to go bust. The client could then continue with the sub-contractors to complete the project.

Pro’s - same design team, client assurance, TPR don’t have step in rights, client can draft the collateral warranty. Only downside may be increased legal fees and administrative costs.

No need for collateral warranty with Main Contractor as there is a direct contractual link.

Question 6

Under JCT standard building contract who is responsible for pricing change?

Answer 6

The contractor would price the change, but it would have to be agreed with the client before being instructed.

Question 7

What happens if there are disagreements over the value of a change?

Answer 7

Where agreement has not been reached, the quantity surveyor is obliged to carry out a valuation
of the variation in accordance with the ‘Valuation Rules’. In reality, the quantity surveyor will often be
acting for the employer in reaching mutual agreement. Imposing a valuation is to be a least favoured option.

Question 8

What happens if a contractor refuses to implement an instruction?

Answer 8

The Employer has the right to issue a notice to the Contractor which after 7 days allows the Employer to employ others to complete the instruction and the additional costs can be deducted from the Contractor.

Question 9

What are the contract documents under JCT SBC?

Answer 9

• The printed contract.
• The Contract Sum analysis.
• The Stage 4 design information.
• The BIM protocol (if applicable).

Question 10

What are the contract documents under JCT D&B?

Answer 10

• The printed contract.
• The Contract Sum analysis.
• The Employer’s Requirements.
• The Contractor’s Proposals.
• The BIM protocol (if applicable).

Question 11

What are the elements of a contract?

Answer 11

• The Agreement (recitals, particulars, attestation), the Conditions, Schedules.

Question 12

What 3 documents are required as a basis for the CDP.

Question 13

What documents were included in the contract for the ERs?

Answer 13

Arup specification and Stage 3 architectural drawings.

Question 14

What insurances were in place in addition to the works insurance?

Answer 14

Works insurance was JCT option C - professional indemnity and public liability.

Question 15

What dispute resolution procedures are available?

Answer 15

• Negotiation
• Mediation
• Adjudication
• Arbitration
• Litigation

Question 16

How would you assess an extension of time?

Answer 16

• Firstly understand if relevant event or a relevant matter.
• Fully assess all the information and discuss with the professional team.
• If deemed reasonable, instruct the contractor.

Question 17

Key Milestones?

Answer 17

• RIBA Stages
• Funding approval - due dilligence, design and bid, execution
• LTA
• CWG

Question 18

What are LADs?

Answer 18

A genuine pre-determined estimate of loss calculated by the client.

Question 19

Elements of a cost report?

Answer 19

• Contract Sum
• Contingency
• Spend in period
• Movement since last period
• Cash Flow
• Instructed changes
• Anticipated changes
• Professional fees
• Valuations

Question 20

What is the difference between CAT A and CAT B?

Answer 20

• CAT A is a functioning space but not ready for occupation. M&E systems functional, raised access floor in place, ceilings in place etc.
• CAT B - all the above but is ready for tenant occupation. So it includes furniture, desking, all necessary provisions for the space to be used.

Question 21

What are the dangers of a two stage procurement route?

Answer 21

• Higher costs associated with the tender process due to length.
• Price possibly less competitive with the successful first stage contractor, but this is why I like to see 3 sub-contractor returns per package and 1 chosen by Arcadis.
• Higher price due to increased information - site surveys etc.

Question 22

What are the benefits of D&B?

Answer 22

• Allows demolition of the Link Bridge and design of the facade to overlap - thus reducing the length of the overall programme.
• Allows specialist input to the methodology and assess market appetite.
• As the requirement was to match existing facade - no need for copious client design input like Aviva.

Question 23

What is a business case?

Answer 23

A business case is a document that analyses a particular venture in respect of a companies overall objectives and strategy. Is it worth pursuing, what are the risks, what are the opportunities.

Question 24

What is the difference between a feasibility study and a development appraisal?

Answer 24

A development appraisal seeks to make an assessment of a piece of land prior to purchase, and ascertain if the venture is profitable for a developer for example.

A feasibility study on the other hand, undertakes an analysis of specific elements of a project, to ascertain if it meets the functional requirements of the client. For example, number of people relative to the fire strategy, the provision of fresh air etc.

Question 25

What are some key differences between JCT and NEC?

Answer 25

• The programme is not a contract document under JCT, but it is under NEC.
• NEC deals with relevant events and matters, whilst NEC deals with compensation events as a whole which encompass both.
• In terms of float, JCT has free float and total float, whereas NEC has time risk allowance and terminal float.
• Risks are also dealt with differently, in that NEC assigns risk owners and the contractor has an obligation to submit early warning notices, whereas JCT has a more traditional employer/contractor approach to risk.

Question 26

Who is liable for cost increases under JCT?

Answer 26

The contractor, unless a mechanism for fluctuations (Alternative A, B or C) has been selected.

Question 27

What happens if defects are not rectified?

Answer 27

The Employer can use retention money to cover the cost. If the cost exceeds the retention, the employer may choose to sue for professional negligence. The contractor may then make a claim on the professional indemnity insurance.

Question 28

Can a verbal instruction be given?

Answer 28

Yes, but it must be confirmed in writing. If either party doesn’t respond, it can be taken as an EAI/CAI.

Question 29

What are some common amendments to the JCT?

Answer 29

• Change control procedure.
• Retention 3% to 4 or 5.
• Rectification period.
• Stand down days.

Question 30

What are the key elements of a contract?

Answer 30

Agreement - recitals, particulars, attestation

Conditions - payment, change, termination, CDM etc

Schedules: - insurance, bonds, third party rights, Schedule of amendments etc.