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Test > Quantification and Costing of Construction Works > Flashcards

Quantification and Costing of Construction Works Flashcards

1
Q

What is measurement?

A

The transformation of drawn information into descriptions and quantities, undertaken to value, cost and price construction work.

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2
Q

What are the different methods of measurement for a Cost Plan?

A
  • Functional unit
  • Floor area
  • Elemental
  • Approximate quantities
  • Bill of quantities
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3
Q

What is the most commonly used standard of measurement?

A

NRM, IPMS.

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4
Q

What are the benefits of having a standard method of measurement?

A
  • Provide structure for information
  • Defines unit of measurement for different items, e.g. m, m2, m3, t
  • Provides rules as to what is included within each item
  • Defines terms used to avoid disputes
  • Allows familiarity to development so measurement becomes quicker and easier
  • Provides clear system of structuring other project information
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5
Q

What is SMM7?

A

Standard Methods of Measurement, superseded by NRM2

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6
Q

What is NRM1?

A

NRM1: Order of Cost Estimating and Cost Planning for Capital Building Works

NRM1 is a best practice guidance note offering guidance on the preparation of:

  • Order of cost estimates
  • Elemental cost models
  • Cost plans
  • Cost analyses
  • Benchmark analyses
  • Capturing historical cost data for order of cost estimates and elemental cost plans
  • How to describe quantifying non-measurable items such as prelims, OH&P, fees, risk, inflation
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7
Q

How is NRM1 structured?

A

Part 1 - context and definitions

Part 2 - how to prepare an order of cost estimate

Part 3 -how to prepare an elemental cost plan

Part 4 - tabulated rules of measurement for preparing cost plans

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8
Q

What is NRM2?

A

NRM2: Detailed measurement for building works

NRM2 provides a set of detailed measurement rules for preparing a BoQ or schedules of rates for the purpose of obtaining a tender price.

It also deals with quantification of non-measurable work items, Contractor designed works and risks.

NRM2 also offers guidance on the content, structure and format of bills of quantities.

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9
Q

How is NRM2 structured?

A

Part 1: General - places measurement for works procurement in contrxt with RIBA PoW and OGC Gateway Process, explains symbols, abbreviations and definitions used in rules

Part 2: Rules for detailed measurement of building works - explains the function of BoQ, provides work breakdown structures for BoQ, defines information reqired to enable preparation of BoQ, describes key constituents of BoQ and how to prepare BoQ

Part 3: Tabulated rules of measurement for building works - comprises the majority of NRM2. Tabulated rules for measurement and description of building works.

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10
Q

What is in appendix A of NRM2?

A

Guidance on the preparation of BoQ

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11
Q

What is in appendix B and C of NRM2?

A

Template for preliminaries (main contract) pricing schedule (condensed / expanded)

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12
Q

What is in Appendix A of NRM1?

A

Core definitions of GIA

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13
Q

What is in Appendix B of NRM1?

A

Commonly used functional units and functional units of measurement

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14
Q

What is in Appendix C of NRM1?

A

Core definitions of NIA

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15
Q

What is the RICS Code of Measurement Practice?

A

A guidance note that provides precise definitions to permit accurate measurement of buildings and land, the calculation of sizes, and description or specification of land and buildings on a common and consistent basis.

GEA, GIA, NIA, NSA

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16
Q

What is the GEA as defined in the Code of Measurement Practice and what does it include?

A

Gross External Area.

GEA is the area of a building measured externally at each floor level.

  • Includes footprint of building (perimeter wall thickness, external projections)
  • Includes internal balconies, columns, internal walls, lift rooms, horizontal floors below structural/stepped floors regardless of accessibility
  • loading bays
  • Areas with less headroom than 1.5m
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17
Q

What does GEA as defined in the Code of Measurement Practice exclude?

A
  • External open-sided balconies, covered ways and fire escapes
  • Canopies
  • Open vehicle parking areas, roof terraces and the like
  • Voids over or under structural structural, raked or stepped floors
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18
Q

What is the GIA in NRM and what does it include?

A

Gross Internal Area

Includes:

  • Areas occupied by internal walls and partitions
  • Columns, piers, chimney breasts, stairwells, lift wells, vertical ducts and the like
  • Structural, raked or stepped floors are to be
    treated as a level floor measured horizontally
  • Mezzanine floor areas with permanent access
  • Service accommodation eg halls, toilets, changing rooms
  • voids over stairwells and lift shafts on upper floors
  • loading bays
  • pavement vaults
  • garages
  • Atria and entrance halls, with clear height above,
    measured at base level only
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19
Q

What does GIA in NRM exclude?

A
  • Perimeter wall thicknesses and external
    projections
  • External open-sided balconies, covered ways
    and fire escapes
  • Canopies
  • Voids over or under structural, raked or
    stepped floors
  • Greenhouses, garden stores, fuel stores, and the
    like in residential property
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20
Q

What functional unit of measurement would you use for car parks?

A

Cost/parking space

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21
Q

What unit of measurement would you use for measuring an office?

A

Cost/m2 of NIA

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22
Q

What unit of measurement may you use for schools?

A

Cost/pupil

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23
Q

What unit of measurement may you use for hospitals?

A

Cost/bed space

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24
Q

In the NRM, what is the definition of NIA and what does it include?

A

Net Internal Area

Includes:

  • Atria with clear height above, measured at
    base level only
  • Entrance Halls [in tenant area, not in common spaces]
  • Notional lift lobbies and notional fire
    corridors
  • Built-in units, cupboards, and the like
    occupying usable areas
  • Ramps, sloping areas and steps within usable
    areas
  • Areas occupied by ventilation/heating grilles
  • Areas occupied by skirting and perimeter
    trunking
  • Areas occupied by non-structural walls
    subdividing accommodation in sole occupancy
  • Pavement vaults
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25
Q

What is excluded from NIA as defined in the NRM?

A
  • Common areas such as hallways, landings, balconies
  • Toilets, changing rooms, cleaners rooms and the like
  • Lift rooms, plant rooms, tank rooms (other than
    those of a trade process nature), fuel stores, and
    the like
  • Stairwells, Liftwells
  • Internal structural walls, walls enclosing excluded areas
  • Columns, piers etc
  • Area occupied by permanent and continuous air conditioning, heating or cooling apparatus and ducting if it renders the area unusable
  • The space occupied by permanent, intermittent
    air-conditioning, heating or cooling apparatus
    protruding 0.25m or more into the usable area
  • Area with headroom less than 1.5m
  • Areas rendered substantially unusable by vir tue
    of having a dimension between opposite faces of
    less than 0.25m
  • Vehicle parking areas
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26
Q

What is the build up to an Elemental Cost Plan recommended in NRM?

A 
0 - Facilitating Works
1 - Substructure
2 - Superstructure
3 - Internal Finishes
4 - FF&E (Fittings, Furnishings and Equipment)
5 - Services
6 - Prefabricated units
7 - Works to existing building
8 - External Works
9 - Main Contractor Prelims
10 - Main Contractor OH&P
11 - Project Design Team Fees
12 - Other development/project costs (e.g. cost to acquire land, planning fees, insurances)
13 - Risk
14 - Inflation
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27
Q

Where can you find the formal requirements needed to produce a Cost Plan at different stages?

A

NRM1 Appendix F

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28
Q

What is IPMS?

A

International Property Measurement Standards

Property Measurement Standards that supersede NRM. Building function specific.

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29
Q

When was the first IPMS released?

A

2014 - IPMS: Office Buildings

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30
Q

When was the residential volume of IPMS released?

A

2016

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31
Q

What is IPMS1?

A
  • The sum of the areas of each floor of a building measured to the outer perimeter of external construction features and reported on a floor by floor basis
  • GEA
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32
Q

What is included in IPMS1?

A
  • Basement included. Calculated by taking exterior plane of GF and extending it downwards, or by taking the GIA of the BF and estimating the external perimeter wall thickness
  • Balconies, galleries and accessible rooftop terraces are included but should be stated separately
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33
Q

What is excluded in IPMS1?

A
  • Open light wells or upper level voids of atriums
  • Open external stairwells that are not an integral part of the structure
  • Patios and decks at ground level, car parks, Cooling equipment and refuse areas and other areas that are not fully enclosed are not included but may be stated as a separate measure
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34
Q

What is IPMS2: Office for?

A
  • Measuring the internal area of offices

- Categorising use of space in an office building

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35
Q

What’s the definition of IPMS2: Office?

A

The sum of the areas of each floor level of an office building measured to the internal dominant face and reported on a component-by-component basis on each floor of the building.

GIA

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36
Q

What is included in IPMS2 Office?

A
  • Atria and the like only measured at GF level
  • All areas inside internal dominant face including partitions, columns
  • Enclosed passageways between two buildings
  • Balconies, galleries and accessible rooftop terraces are included but should be stated separately
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37
Q

What is excluded in IPMS2: Office?

A
  • Open light wells or upper level voids of atriums
  • Patios and decks at ground level, car parks, Cooling equipment and refuse areas and other areas that are not fully enclosed are not included but may be stated as a separate measure
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38
Q

What is an internal dominant face?

A

The inside finished surface comprising of 50% or more of the surface area of a vertical section forming an internal perimeter

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39
Q

What happens if there is no internal dominant face?

A

The measurement is taken to the wall to floor junction excluding skirting etc

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40
Q

What is IPMS3: Office for?

A
  • Measuring the occupation of floor areas for exclusive use

- IPMS3 is not directly related to IPMS1 or 2, nor a component area in IPMS2

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41
Q

What is the definition for IPMS3: Office?

A

The floor area available on an exclusive basis to an occupier, but excluding shared facilities and shared circulation areas.

Calculated on an occupier-by-occupier or floor-by-floor basis.

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42
Q

What is inclusive of IPMS3: Office?

A
  • All internal walls and columns within tenant area

- Taken to centre line of shared tenant walls

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43
Q

What is excluded from IPMS3: Office?

A

Standard facilities. These are parts of the building providing shared or common facilities that do not change over time, such as stairs, cleaners cupboards, escalators, plant rooms, fire refuge areas and maintenance rooms.

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44
Q

What are the 8 component areas as defined in IPMS2: Office?

A
  • Vertical penetrations
  • Structural elements
  • Technical services
  • Hygiene areas
  • Circulation areas
  • Amenities
  • Workspace
  • Other areas (incl. storage rooms, internal parking, balconies)
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45
Q

What does BIM stand for?

A

Building Information Modelling

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46
Q

What is BIM?

A

The process of creating information models containing both graphical and non-graphical information in a Common Data Environment (CDE)

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47
Q

What are the levels of CAD?

A

Level 0 - Unmanaged CAD

Level 1 - Managed CAD in 2D or 3D

Level 2 - Managed 3D environment with data attached, but separate model for each discipline (architect, structural engineer etc)

Level 3 - Single online project model with construction sequencing, cost and lifecycle management information.

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48
Q

What are the dimensions of BIM?

A

3D - Graphical and non-graphical information in a CDE

4D - Same as 3D but also includes construction sequencing. Info about lead times etc, ultimately enabling the creation of a more accurate programme

5D - Includes capital cost information

6D - Includes lifecycle cost information

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49
Q

What role would the QS have if 5D BIM was executed in the design phases of a project?

A
  • To check accuracy of information and fill the gaps. Cost info derived from model will only be as accurate as the information provided, which will generally be basic in the earlier design stages
  • QS will be able to pick up on costs not shown on construction model such as temporary works.
  • Quantities may not be visible on model but derived from it, such as window mouldings.
50
Q

What are the benefits of level 3 5D BIM for a QS?

A
  • Data can be queried at any time during a project, information is regularly updated. Can create a “Living Cost Plan”. Cost Reports will be more accurate when issued - currently they are historic dating to the last design release.
  • 3D visualisation can reduce the risk of missing anything out
51
Q

What is the purpose of a tender pricing document?

A
  • To enable a like for like comparison between Tender submissions and Cost Plan
  • To enable Cost Consultant to understand where value lies within Contract Sum (foundations, M&E etc.)
  • To identify significant differences in pricing to ensure design has been interpreted correctly
  • Identify areas of saving that may be negotiated with tenderers whilst in competition
  • Form the financial basis of Tender Report
52
Q

What is a Bill of Quantities?

A
  • A document that provides a list of quantities for a project
  • Put together by QS
  • Quantities taken from drawings and specification in the tender documentation.
  • Requires full specification of project
53
Q

What is the Bill of Quantities for?

A
  • For PQS to prepare a pre-tender cost estimate. Quantities are multiplied by rates to give costs.
  • To be sent out to Contractors during the tender period for them to price
  • Can be used as a schedule of rates to price variations
  • Can provide the basis for valuations of interim payments
  • Provide the basis for preparation of the Final Account
54
Q

What is a schedule of works?

A
  • Simply lists work to be carried out. Quality should be defined in specification, size and location defined in drawings.
  • Allow for pricing of items, builders work, fixing schedules
55
Q

Who would produce a schedule of work?

A
  • Produced by designers
56
Q

Why would a schedule of work be used?

A
  • Used on smaller projects or for alteration works
  • Alternative to BoQ
  • Sometimes form part of tender documentation/Contract Documents along with BoQ, specification etc
57
Q

What documents form Tender Documents?

A
  • A letter of invitation to tender
  • Form of Tender
  • Form of Contract to be used
  • Tender Pricing Document
  • EIR (Employers Information Requirements) for BIM
  • Design drawings, possibly BIM model
  • Specification
  • Tender return slip
58
Q

What is a schedule of rates?

A

A list in a Contract setting out costs for items ranging from labour, plant hire and staff (for cost reimbursable day rates), to rates for an extensive number of items (for Measured Term Contracts).

59
Q

What are the advantages of using a schedule of rates?

A
  • Variations are easier to value and usually cheaper
  • Client can stop and start work whenever they like
  • Tendering process is easy and inexpensive, so larger pool of Contractors can be invited to Tender (more competitive = cheaper)
  • Fast track procurement method as project can be tendered before design is complete
  • Flexible in relation to scope and contractual commitment
60
Q

What are the disadvantages of using a schedule of rates?

A
  • Client does not have final price when committing to works
  • Additional resources required to measure works before payment made to Contractor
  • Difficult for Contractors to predict long term resource, may result in loss of continuity
  • No sense of urgency or risk, so best resource may be taken away from these works
61
Q

What is a provisional sum?

A

An allowance in a Contract Sum for a specific element of works that is not yet defined in enough detail for tenderers to accurately price.

62
Q

What is a defined provisional sum?

A

An element of work defined in enough detail for the Contractor to have made an allowance in their:

  • Programme
  • Prelim pricing
  • Planning
63
Q

What is an undefined provisional sum?

A

An element of work NOT defined in sufficient detail, thus the Contractor cannot be expected to make an allowance in their:

  • Programme
  • Prelim pricing
  • Planning
64
Q

What is a prime cost sum?

A

An allowance for the supply of work or materials by the Contractor nominated by the client. This allowance is exclusive of any OH&P/attendance by the Main Contractor.

65
Q

How are payments for PC sums agreed?

A

Payments are agreed based on quotes/invoices provided by the Main Contractor. Any additional reasonable percentages for OH&P/prelims are added. This can result in the Contract Sum increasing/decreasing.

66
Q

What are target costs?

A
  • Relating to Cost Reimbursable Contracts

- Target costs set, allowing Contractor to share cost savings but also bear cost of overruns

67
Q

What are the benefits of target costing?

A
  • Encourages good collaboration

- Encourages good cost control

68
Q

What are the disadvantages of target costing?

A
  • Client must have sufficient knowledge to understand what the likely outcome of costs may be
  • Client must be good at negotiating target cost
69
Q

What Contracts have provisions for target costing?

A

NEC3 ECC - Option C Target Contract with Activity Schedule

NEC3 ECC - Option D Target Contract with Bill of Quantities

70
Q

What is loss and expense?

A

Contracts generally give provisions for the Contractor to claim loss and expense resulting from works being materially affected by relevant matters for which the client is responsible for.

71
Q

What are relevant matters?

A
  • Found in Contracts such as JCT
  • Refers to matter that the client is responsible for
  • The matter materially affects progress of work on site
72
Q

Give 5 examples of relevant matters.

A
  1. Failure to give Contractor possession of site
  2. Discrepancies in Contract Documents
  3. Delays in receiving instructions
  4. Failure to supply goods/materials
  5. Disruptions caused my work by the Client
73
Q

What can a Contractor claim for through the loss and expense provision?

A

Money for:

  • Disruption of works (resulting in greater cost)
  • Prolongation (delay of work)

Loss and expense does not necessarily grant an Extension of Time.

74
Q

What is a consequential loss, and is it covered through a loss and expense claim?

A
  • No, loss and expense only cover direct losses.

- Consequential losses such as loss of production are not directly related so are generally not covered.

75
Q

What are preliminaries?

A

The cost of administering a project and providing general plant, site staff, facilities, site based services and other items not included in any package.

76
Q

Name some items you may find in the preliminaries in the Tender Documents.

A
  • A general summary
  • Method statement
  • Pre-construction information
  • Planning conditions
  • Party wall conditions/agreements
  • Requirements for insurances/bond/warranties
  • Dates for partial possession
  • BIM requirements
  • Waste management plan
  • Site preliminaries
77
Q

What items would form the site preliminaries?

A
  • Staff
  • Welfare provisions
  • Staff offices
  • Plant
  • Site waste clearance
  • Electricity
  • Water
  • Furniture
  • ICT
  • Protection
  • Transport
78
Q

What is meant by Dayworks in Construction?

A

A Contractor is paid for specific works on the basis of the cost of labour + materials + plant + OH&P.

79
Q

When would dayworks be used?

A

In a variation/prime cost/PSUM when work cannot be priced the regular way, for example:

  • When an unforeseen obstruction is encountered
  • When works are instructed that have no comparable rates in BoQ
80
Q

How are dayworks priced in NEC3?

A

Option A - percentage addition on top of prime cost

Option C - all inclusive rates quoted at tender

81
Q

What is the purpose of an interim valuation?

A

To provide advice to the certified for the issue of interim certificates and payment notices

82
Q

Who will be the certified of an interim valuation?

A

Contract dependent, one of the following:

  • Contract Administrator
  • Employer’s Agent
  • PM
  • Employer
83
Q

What is the role of a QS with interim valuations?

A
  • To assess value of work complete, not cost incurred by Contractor
  • To value the whole project, NOT value work done since the last valuation.
  • QS must value work carried out that is assumed to be properly executed. CA/PM/EA’s role to inform QS if deductions need to be made/there are defects etc.
84
Q

What is the RICS guidance note on interim valuations?

A

RICS Professional Guidance - Interim Valuations and Payment 2015

85
Q

How may the Employer’s view of valuing works differ from the Contractor’s?

A

Employer - Value of the total Contract, minus costs to bring the Contract to completion (including costs to bring in another Contractor to complete works if necessary)

Contractor - valuing completed works is calculated using a BoQ, receiving payment on work completed + add ons.

This is of particular importance when reaching the end of the project, as the Employer’s method of valuing works protects themselves from costs incurred if the Contractor does not finish the project/doesn’t fix major defects (retention may not be enough to cover the costs)

86
Q

How would a QS value work that has been executed?

A

Site visit - visual inspection and/or measurement

87
Q

What are the implications of under valuing work?

A

Financial/cash flow problems for the Contractor

88
Q

What are the implications of over valuing work?

A

Risk for client as they are paying for works that have not been completed. If Contractor goes insolvent and client has overpaid, client loses out.

89
Q

What constitutes a change under JCT DBC?

A
  • Employer sets Employer’s Requirements
  • Lump Sum Contract
  • Contractor holds risk for having quantified scope correctly
  • ERs have no quantities
  • Only info PQS has is the Contract Sum Analysis, which they must ensure provides appropriate pricing detail to aid valuing change
  • Change is a change to ERs in quality/quantity/design
  • Change can also be further obligations/restrictions imposed by the Employer, or alteration/omission/addition of obligations/restrictions such as site access
90
Q

How is changed valued in JCT DBC?

A
  • The employer and Contractor will agree a value for the variation
  • Information will be exchanged. Rates from CSA will be used if possible, though often there will not be enough information. Quotes can be requested, a reasonable price must be agreed.
  • If an agreement is not reached, a valuation of the variation is made in line with Valuation Rules. It is not specified who carries out this valuation, most likely will be EA
91
Q

What constitutes a change under JCT SBC?

A
  • Contract Sum calculated with a fully priced BoQ (Contract Bills)
  • Employer holds risk for accuracy of quantities and errors.
  • Any errors are corrected as a variation
  • Any change to design/quantities/quality is a variation
  • Change can also be further obligations/restrictions imposed by the Employer, or alteration/omission/addition of obligations/restrictions such as site access
  • Benefit of having a BoQ for Employer is they have vast array of information from which they can take rates to value change
92
Q

How is changed valued in JCT SBC?

A
  • The employer and Contractor will agree a value for the variation
  • Information will be exchanges (quotes, measures), rates in BoQ used when possible.
  • If an agreement is not reached, a valuation of the variation is made in line with Valuation Rules. It is not specified who carries out this valuation, most likely will be EA
93
Q

What constitutes change in JCT Intermediate Building Contract?

A

Same as JCT SBC.

94
Q

What are the purposes of certificates?

A
  1. To record an event, e.g. Practical Completion, Certificate of Making Good, Final Certificate
  2. As a financial statement, e.g. Interim Certificates, Payment Notices, Pay Less Notices
95
Q

What legislation influences the way interim valuations and payments are made?

A
  • HGCRA 1996

- Local democracy, Economic Development and Construction Act 2009

96
Q

What does the HGCRA 1996 say about interim valuations and payments?

A
  • Contracts in excess of 45 days in duration must have interim/staged payment mechanisms in place
  • Contracts must have mechanism in place to determine the amount due, as well as date for final payment
  • Effective notice must be given before date for final payment if money is to be withheld
97
Q

What happens if the Contract two parties have entered into does not sufficiently define interim valuation and payment mechanisms?

A

The payment mechanism contained in The Scheme for Construction Contracts (England and Wales) Regulations 1998 (Amendment) (England) 2011 (the Scheme) comes into effect.

98
Q

What does LDEDC 2009 say about interim valuations and payments?

A

Came into force in 2011, amended payment provisions in HGCRA:

  • Payment notice must be issues within 5 days of due date for every interim payment, specifying amount owed
  • Impossible for payer to avoid making payment, as if works have failed to be paid/certified, as in this circumstances the PAYEE is entitled to issue payment notice
  • Payment notices are required to contain the basis
    upon which notified sums are calculated
  • A payer must pay the notified sum as contained in the
    relevant payment notice unless it serves a notice to
    pay less (or a pay less notice).
  • A notice to pay less than the notified sum must value
    the work at the date the notice is served, rather than
    the payment due date.
  • It is possible for either the notified sum or the sum
    given in a notice to pay less to be zero; however, the
    basis upon which the sum is calculated must be
    included.
99
Q

What is the Contract Sum?

A

The amount or consideration that the employer agrees to pay the contractor for carrying out the construction work

100
Q

Why does the Contract Sum rarely, if ever, a fixed amount?

A

Due to adjustments for:

  • Variations
  • PSUM adjustments
  • Prime Cost adjustments
  • Addition/Removal of scope
  • Loss and expense incurred by Contractor
  • Fluctuations such as labour cost, material costs (if Contract includes such provisions)
101
Q

Name some Contracts that are not lump sum.

A
  • JCT Standard Building Contract w/ approximate quantities
  • NEC3 ECC Option E (Cost Reimbursable Contract)

Any Contract that allows for remeasurement.

102
Q

What are the roles in JCT DB 2011 for interim payments?

A

Employer - payee
Contractor - payer
Employer’s Agent - Certified
QS - Valuer/validator

103
Q

What is the Employer’s Agent role named in JCT SBC?

A

Contract Administrator

104
Q

What is the payment timeline for JCT SBC?

A
  • 7 days = Contractor’s interim application for payment

[Valuation Period]

0 days = Due Date for valuation

[CA prepares certificate. LDEDC requirement must be latest 5 days after due date. If Contractor failed to issue interim application, CA must ensure QS values work within this time]

+5 days = Interim certificate issued by CA

+9 days = Last date to issue Pay Less Notice (5 days before Final Date for Payment

+14 days = Final Date for Payment

105
Q

How many days is the total payment cycle, from the issue of the Contractor’s interim application to the Final Date for Payment?

A

21 calendar days

106
Q

What happens if the Contractor does not issue his interim application on time?

A

In JCT DB 2016, the due date moves to 7 days after the interim application is recieved.

In JCT SBC 2016, the interim certificate/payment notice must be issued 5 days after the due date set in the Contract regardless

107
Q

After Practical Completion, when are interim applications submitted in JCT DB?

A

On the due date, every 2 months.

108
Q

When is the last due date in a JCT DB Contract?

A

On the expiry of the defect rectification period, or when the Certificate of Making Good Defects is issued.

109
Q

What happens if the CA fails to issue an interim certificate on or before the date stipulated in the Contract?

A

Either:

  • Interim Application made by the Contractor will become the payment notice
  • If no Interim Application was made, the Contractor may at any time issue a payment notice after +5 days from the Due Date
110
Q

What is the purpose of a Pay Less Notice?

A

This is how the Employer notifies the Contractor that he or she intends to pay less than the sum on the payment notice, and how this sum was calculated.

111
Q

Can the Employer pay the Contractor less than an amount stated on an Interim Payment Certificate/Notice?

A

Yes, the employer can issue a Pay Less Notice to the Contractor so long as it is 5+ days before the Final Date for Payment

112
Q

Can a pay less notice be issued before an Interim Certificate?

A

No

113
Q

How long is the interim payment period?

A

14 calendar days from due date

114
Q

What happens if the Employer fails to pay the Contractor?

A

Simple interest is charged on top of payment due at the interest rate of the period from final date for payment until payment is made.

Acceptance of payment of interest does not waiver his/her right to receive proper timely payment, suspend performance or terminate his/her employment.

115
Q

What are the two methods of payment in JCT DB 2011?

A

Alternative A: Staged payments. Stages are set in CPs and priced on a cumulative basis as each stage is completed using the Contract rates

Alternative B: Periodic payments. Contractor submits application on dates set out in CPs.

116
Q

What is the procedure for JCT DB 2011 Alternative B?

A

Periodic payments with the same procedure as in JCT SBC 2011. Rates taken from Contract Sum Analysis rather than BQ.

117
Q

What is the QS role in JCT DB Contracts?

A

The QS has no role, however it is common practice for QS to advise/validate interim valuations.

118
Q

What is the difference in the payment cycle for JCT DB in comparison to JCT SBC/

A
  • 14 calendar days instead of 21
  • No date for Contractor’s interim application to be submitted by, as the Contract does not recognise role of a QS so no need to have time for a QS to value works.
  • Interim application can be submitted on or before the Due Date
119
Q

What is a recommended amendment to the JCT DB Contract with regards to interim payments?

A

For the Contractor to submit their interim application X amount of days prior to the due date. This allows time for the QS to advice on the validity of the application.

120
Q

If the Employer’s Agent failed to issue an interim certificate, so the Contractor raised a payment notice +4 days after the Date for Interim Payment, how long will the total payment cycle have been?

A

18 days

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