Project Finance

Question 1

What is a defined provisional sum?

Answer 1

works that are sufficiently well defined or detailed to allow the Contractor to make an allowance.

Question 2

What is an undefined provisional sum?

Answer 2

Cost allowance for works or services which is not known at the date of Contract.

Question 3

What is contingency?

Answer 3

An amount of money that is included to cover potential events not specifically accounted for.
Sometimes a percentage of the Build Contract price.

Question 4

What is Golden Brick?

Answer 4

The point at which HMRC designates that a building is residential. Therefore zero rated for VAT purposes.

Question 5

What are the JCT D&B 2016 Payment timescales?

Answer 5

IVD - One month from date of site possession
Due Date - 7 days from IVD
Payment Notice - 5 days from Due Date
Final Date for Payment - 14 days from the Due Date
Pay less notice - 5 days prior to the Final Date for Payment.

Question 6

What is retention?

Answer 6

It provides security for current and future performance by withholding a percentage of money due to the Contractor