questions session (tara)

Question 1

What is the board setup for in Project Alliancing?

Answer 1

To have representatives of each party and make decision

Question 2

What do the parties sign when in a Project Alliance?

Answer 2

A No Dispute agreement

Question 3

What is Guaranteed Maximum Price?

Answer 3

Its a form of Construction management but instead of the contracts being with the Owner, all contracts are with the Construction Manager. The contracts are not subject to time.

Question 4

What is Guaranteed Maximum Price also called?

Answer 4

“Managing contractor” or Commercial Construction Management”

Question 5

What procurement can be used to Overlap construction with Design?

Answer 5

Some sort of Design and Construct, Guaranteed Maximum Price or Cost Plus.

Question 6

Can the contractor have more than one bank guarantee against an asset? For example, different projects through different financial institutions against the same asset?

Answer 6

Thats the banks problem. Just make sure they are in the right name.

Question 7

What the hell is input tax credit?

Answer 7

Anything that you can claim back against your tax income.

Question 8

If the defects period has expired, can you get a contractor to rectify something under statutory warranty?

Answer 8

Not all buildings have statuatory warranties.

Nicole: Pretty sure it doesn’t apply to residential over three storeys.

Question 9

How do you test non-slip or make the contractor test it?

Answer 9

With a pendulum test. You can specify in the contract that the contractor has to do this test. Have it in your spec.

Question 10

If the non-slip/pendulum test isnt specifiied to be done in the contract, and you truly believe its defective, what do you do?

Answer 10

you can say its a defect and the contractor will have to prove that its not a defect.

Question 11

What should you do if you are in a novated contract with the builder and they build it differently on site?

Answer 11

You should get them to sign something saying they indemnify you of all the changes.
Nicole: because guaranteed that they will indemnify themselves against the design in your contract.

Question 12

How long is statuatory warranties?

Answer 12

6 year structural defects.

2 years for non-structural.

Question 13

If the contingency is written into the contract, where does the builders margin come in?

Answer 13

Treat it like a provisional sum.

Question 14

What happens if the contractor doesnt use up there weather days and are early? Can you get those days back?

Answer 14

no you cant get those days back.

They leave the site and save on prelims.

Question 15

What is the legal financial ability to use Cost Plus contract?

Answer 15

Its illegal for residential projects under $1 million.

Question 16

Another architect has done Townplanning/DA and your engaged for the rest. What do you need to do?

Answer 16

Ask to see a license to the design to give over copyright.

If they refuse that, ask them to sign something to indemnify.

Question 17

What is a ‘set of monies’ from the contract?

Answer 17

Money that is set off against contractor obligation to a responsibility in the design etc.
Nicole example: a limewash just was not going to come out correctly therefore the builder gave the client $2000 to forget about it.

Question 18

When would the Owner need to give a guarantee?

Answer 18

When the contractor is worried about the owners ability to pay.

Question 19

Can you contact a supplier a builder is tendering on your project or wanting to substitute? I.e. If the supplier is nominated by you and they want to substitute them as they claim their lead times are too long.

Answer 19

You can ring them for sure and ask them about lead times but dont instruct them or tell them anything. Just be careful about the conversation you have with them.