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Construction > SCC > Flashcards

SCC Flashcards

1
Q

A1 Contract Agreement
What’s contained?

A

Agreement
Contract
Location
Between
Contract Price
Agree 1, 2, 3
1. Contractor carry out obligations on Contractor by Contract Documents.
2. Principal pay Contractor the Contract Price + GST.
3. Each party carry out obligations on party by Contract Documents

Contract Documents
- Principals LoA
- Post Tender correspondence
- Tender - submissions and Summary
- NTTs
- Schedules
- Additional docs; general conditions, Drawings and Specifications prior to Acceptance of Tender
signitures

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2
Q

SCC schedules?

A

Agreement, conditions, costs, bonds, certificates, insurances, warranty/security

A1 Contract Agreement
B1 Specific Conditions
B2 Special Conditions
C1 Fluctuations in Cost
C2 Schedule of Quantities
D1 Contractor’s performance bond
D2 Principals bond
D3 Bond in lieu of retentions
E1 Contractor’s application for PC
E3 PC Certificate
E4 DL Certificate
F1 Specific conditions of insurance
F2 Contract Works
F3 Public Liability
F4 Motor vehicle third party liability
F5 Construction Plant
F6 PI
G1 Warrany
G2 Security for off Site Goods

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3
Q

What are the general conditions

A

M, D, B, A, I, I, S, CW, V, MA,
T, PC, DL,
P, FP, S, D

Main obligations
Documents
Bonds
Administration
Indemnity
Insurance
Site
Contract Works
Variations
Monetary allowances
Time for completing the contract works
Practical completion
defects liability
Payments
Final payment
Suspending work and ending the contract
disputes
miscellaneous
interpretation

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4
Q

Defects notification period

A

Specific Conditions period.
Begins on Practical Completion. If the Architect certifies Practical Completion for a Separate Section of the Contract Works, it begins for that Separate Section on the date of Practical Completion of that Section.

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5
Q

SCC 7 Site

A

Principal: possession, survey, services, safety risks, access/inspect, permission other property
Contractor: setout, unforeseeable conditions, clean, clearance

Possession of site
Principal to provide survey information
Underground and above ground utilities
Principal to advise of known safety risks
Contractor must set out the Contract works
Principals right of access to the Contract works
Contract’s access to other property
Unforeseeable physical conditions
Contractor to keep Site clean and tidy
Clearance of Site on completion

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6
Q

Time for completing the contract works
11.5 Claim for extension of time
11.6 Time related costs

A

C, U, S, L/D, V, W, S, A, P, SC, S

Claim for extension of time
11.5
Contractor may apply to the architect to extend the time for practical completion due to a delay arising from any of the following causes.
a. a consent or approval is not obtained (is CCC is delayed, holding up PC)
b. Unforeseeable physical conditions
c. The contract works are suspended in a way allowed under the Contract
d. loss or damage to any part of the contract works
e. variations
f. weather that interferes with the progress of the works
g. Strike, lockout or industrial action
h. architect does not give a direction within a reasonable time after being asked by the contractor in writing to do so.
i. principal does not supply materials, work or services on time
j. a separate contractors act or omission
k. something else of significance beyond the contractor’s control

C, L/D, W, S, S
11.6.2 Contractor is not entitled to compensation for time related costs (P&G) for the following:
a. A delay in the issue of a consent or approval that the contractor had to obtain
b. loss or damage to any part of the contract works
c. weather that interferes with the progress of the works
d. strike lockout or industrial action
e. something else of significance beyond the Contractor’s control

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7
Q

B1 Specific Conditions

A

Contacts (P,C,A,QS).
T, D, B,
Dates (PC D, D, A, S, DL, P)
Contractors (S, S, S, S, D)
$ (P,P,C,F,O,R,L,B,F,G). A

Principal
Contractor,
Architect
QS where there is BoQ
Type - lump Sum, LS Monetary Allowances, LS with BoQ
Contract Documents
Bond in lieu of retentions
Principals Bond
Documents required at PC
Site possession date
Principal Supply items
Nomination Subcontractors
Separate Contractors
Contractor Design
Prime Cost Sums
Provisional Sums
Contingency Sum
Time for Completion
Construction Programme
Contractors Application for PC
Separate Sections
DLP
Fluctuations
Off Site Payments
Retentions
Liquidated Damages
Bonus for Early Completion
GST
Final Payment Claim
Appointment of Arbitrator

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8
Q

Adjudication

A

adjudication under CCA

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9
Q

Arbitration

A

arbitration under arbitration act

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10
Q

Construction Plant

A

provision, operation and maintenance of equipment, cranes, hoists, pumps, compressors, generators, for construction of contractor works

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11
Q

Fluctuation

A

increase or decrease in Basic costs

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12
Q

On-site overheads
Off-site overheads and profit

A

E/L - CW
E/L - B, not CW + P

expenses/losses incurred by Contractor for carrying out the contract works

expenses/losses incurred in operation of contractors business, not required for carrying out contract works + profit

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13
Q

C1 Fluctuations

A

Contractor, Statement of fluctuations. Architect, decr. Payment schedule, QS.
Government,
Material, date, fluctuation.
QS/Accountant - fair.
3months from claim incl.
Subcontractor 5%, Recovery 10%.

  1. Contractor submit Statement of Fluctuations on items Contractor Submitted Basic Costs.
  2. Decrease in cost. Architect prepare statement covering fluctuations resulting in decrease if Contractor fails to include in Statement of Fluctuations
    2.2 Architect’s Statement must be included in next Payment Schedule
    verified by QS
  3. incr. or decrease in cost from changes in government, authority fees, changes from Tender date.
  4. Statement of Fluctuations for Basic Costs include: materials affected, dates of purchase, dates of fluctuations, prices of materials, fluctuations on them, materials in contract works,
  5. Verification by QS. Fair and Reasonable. Or by Chartered Accountant
  6. Time for Claim . 3 moths of date of Payment Claim that cost which fluctuation relates were included.
    After final payment claim not accepted.
  7. Subcontractors - add 5%
  8. Contractors cost recovery. 10% in first 12 months, 11% second 12 months, 12% each year after.
  9. Fluctuations in labour claim. Labour cost Index.
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14
Q

Schedule of Quantities

A

Price, QS assess/variations, discrepancies.

  1. Contractor to supply priced Schedule of Quantities
  2. Quantity Surveyor appointed by Principal
    3.Schedule of Quantities is a contract doc for assessing variations and payment claims. Contractors payment claim detail value of work related to numbered items in SoQ.
  3. Discrepancies. Architect/Contractor request remeasure by QS is error.
    If Contractor request, QS fees to be paid by Contractor if no error.
    4.3 discrepancy found, issue Architects direction to resolve, adjusted as variation.
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15
Q

Schedules D1, 2,3

A

Contract, Location, Principal, Bond sum, Deed is made on Date, By Contractor and Surety.
Circumstances: contractor entered into a contract with Principal to carry out obligations imposed on contractor by the contract.
By this deed the Contractor and sureties are jointly and severally held.

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16
Q

E1 Contractors application for Practical completion

A

Contract, Location, Issued by Contractor to Architect.
Application, we consider the contract works will qualify for PC on:
Deferred parts of the contract works.

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17
Q

E3 PC certificate
(6 items)

A

Contract works or separable portion when - -

  • able to be used for their intended purpose without material inconvenience
  • generally built in accordance with Contract document
  • complete except for minor defects > DPL
  • undiscovered defects could not have reasonably discovered
  • deferred works agreed
  • warranties provided.
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18
Q

E4 Defects Liability Certificate

A

Architect issue DL certificate.
To Principal copy to Contractor.
- Defects notification period has ended
- deferred work/omissions completed
- all defects corrected

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19
Q

F1 insurances
(what these are, begin, transfer)

A

Contract works, existing structures, motor vehicle third party, public liability construction plant.
- begin by earlier of date in Specific conditions for contractor given possession of Site or when Contractor commences work
- continue until the date of PC certificate and notification from Principal that the Principal has taken over risk and then continue to cover loss/damage and liability risks from deffered work/remedy defects.

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20
Q

F2 Contract works

A

Contract price
- items in contract works
- Variations
- Increased costs due to fluctuations
- prof fees
- demo costs
- incr costs from lost/damage
- existing structure

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21
Q

G1 Warranty Agreement

A

Contract
Location
Contractor
Principal
Warrantor
Warranted Works
Warranty period

Contractor arrange warranty of warranted works for warranty period.

materials, fittings undertaken in good trade practice

Warrantor promptly take steps to remedy defect
Failure by warrantor to perform warranty work>Principal may arrange work by others>first give warrantor 10 working days to carry out and complete work

Warrantor is not the contractor, executed by
Warrantor and Principal.
If Company, Warranty executed by signed, name of company 2 directors.

22
Q

G2 Security for off site goods or materials

A

Contractor, sub-contractor, Principal, present, location, labelled, insurance.

Issued by contractor
Subcontractor
To Principal
Contract
Location
- Contract provides payment for goods not on site.
- Contractor/subcontractor advise manufacture of goods in schedule below to be used in contract works
- Warrant Contractor/subcontractor autority to manage, identify, store insure and arrange together with the Principal registration of a Financing Statement.
ON PPS Register. Personal Properties Securities Register complying with PPS Act.
Contractor/Subcontractor arrange insurance while good are off site in the name of the Principal.
Store securely, at location below.Goods set apart, clearly marked as property of the Principal.

Architect to inspect goods.

Location
Address
number of goods
signed

23
Q

General Conditions 1
Main Obligations

A

1.1Contractor do work [er contract docs

1.2 Principals obligations -
- Architect appointed
- Pay Contractor
- Site possession
- consent approvals

1.3 Architect
- represents Principal
- issues Documents
- Administers Contract impartially

1.4 Architect’s rep
- competent
- Contractor may object, notify Architect 5 WDs, Architect issue Direction confirming rep

1.6 Change of Architect
- Architect stops, Principal notify Contractor. Principal appoint Architect and notify notify Contractor. Contractor can object if Principal accepts.

24
Q

General Conditions 2 Documents

A

Contract Docs
- Principal/Contractor sign 2 copies
- Architect provide Contractor: docs in specific conditions, additional copies if requested.

Contractor must keep on site:
- Copy of Contract Documents, all changes to contract documents directed by Architect, all Architect’s directions.

Inconsistencies
- Notify
- Architect provide direction
a. figured dims over scaled dims
b/c. details over GAs
d. drawings over specs
e. drawings/spec over SoQ
f. drawings/spec over general conditions
g. specific/special over general
inconsistency doesn’t invalidate contract.

Direction results in additional cost by Contractor, Contractor could not reasonably foreseen at Tender, 9 Variations.

Copyright
- Principal owns
- Contractor not reproduce other than for contract
- Principal/Contractor warrants intellectual property not breached.

25
Q

General Conditions 3 Bonds

A

Contractors Performance Bond
- specific conditions amount
- 2months prior Acceptance of Tender
- Schedule D1
- Surety

No payment, if executed bond isn’t provided by Contractor

If not provided, Principal treat as default.

Release of Contractor’s performance bond
- Within 5 WDs PC , Principal notice to Contractor, surety’s obligations discharged. Signed bond form returned to Contractor.

Bond in lieu of retentions
- in additional to performance bond
- specific conditions amount
- Schedule D3
- surety
- retentions deducted until executed bond delivered to principal. retentions deducted, certified for payment next payment schedule following receipt of bond.

Breach of bond obligations
- Principal considers Contractor failed to perform, Architect notify Contractor. Architect notify bond called up 10 WDs of notice if failure not rectified. Architect estimate of costs , remedial/outstanding , notify Principal/Contractor.

Principals bond
a. specific conditions
b. prior to Contractor commencing work
c. schedule D2
d. surety
- if bond not delivered, default by Principal, Contractor can suspend work. 20 WDs of suspension, bond not delivered = default by principle.

Release of Principals Performance bond = Within 5 WDs of Contractor receiving Final Payment. Contractor deliver notice + original signed bond form.

Breach of bond obligations by Principal. Contractor considers Principal failed perform, give Principal/surety notice of sums due owed

26
Q

4 Administration

A

Architects Directions

Architect not responsible for payment to Contractor. Improperly administering>Principal pay>Contractor Claim as variation> delay, additional time, EoT

Contractor supervision and site rep.

Principal to obtain consents and approvals
- RCs, PIM, BC, pay costs related
- Supplementary BC required because work by Contractor no comply with Contract, Contractor give Architect all information for Principal to obtain BC and costs deducted from Contract Price.

Contractor to obtain consents and approvals. costs for temp amenities and services

Architect direct Contract on consent conditions/direct variation

Documents at PC.
Contractor provide warranties G1

AD’s, no delay, Architect not pay if improper admin Principal pays. Contractor supervise site works. Principal obtain RC, PIM, BC, CCC. Contractor consents temp amenities

27
Q

5 Indemnity

A

Contractor compensate Principal loss/damage/injury from contractor works.
Doesn’t apply: loss by occupy from Principal, injury unavoidable, injury/damage by Principal/Architect.

28
Q

6 Insurance

A

Contractor excess any loss/damage carrying out contract works. Loss/Liability/existing structures by Principal, Principal pay excess.
Contractor doesn’t arrange insurance/breech insurance requirement, Principal insure, pay premium, notify Contractor, deduct from Contract Price
Or Principal insurance not arranged, Contractor arrange, add to Contract price.
Insurances evidence provide prior commencement to Architect.
Early occupation, Principal insurance transfer cover part.
If Contractor Contract works insurance, continue cover damages to areas Principal occupies from carrying out deferred/defects until completed.

29
Q

7 Site

A

Principal give Contractor possession for Contract works takes back on PC. Provide survey, existing services information, known H&S. Principal, rep, council inspect works. Obtain permission/cost assess to other property.

Contractor locate, protect, isolate, reinstate services.
Contractor responsible set out Contract works even if checked by Architect, variation if incorrect info, not reasonably foreseen. Contractor make good to other property asap. Access withdrawn, Contractor variation. Unforeseen physical conditions/obstructions at tender notify, not climatic conditions, claim EoT 10 WDs after notifying Architect.
At PC Contractor clear site, can keep elements required for DLP works.

30
Q

8 Contract works

A

Contractor supply requirements, appoint subcontractors, Contractor employ nominated subcontractors. Separate Contractors contractor cooperate/coordinate activities. Contractor make good loss/damage they’re responsible caused by contractor.
Contractor Design, specific conditions, Principal provide brief. Approval by Principal doesn’t releieve Contractor of responsibility.
Contractor make good loss/damage, unless unforeseen circumstances, Principal Pay.
Site/Contract works in Contractor’s control, not Architect/Consultants.

31
Q

9 Variations

A

Admin of variations. Contractor notify Architect 10WDs direction involves variation.10WDs Architect notify Contractor if agrees. After PC, variation not bound.
Claiming/valuing variations: 10WDs Contractor advise value, Architect request further information within 10WDs, 5 WDs contractor to provide.

32
Q

10 Monetary Allowances

A
  • Prime Cost (purchase, supply not selected at tender, includes % off-site overheads/profit, not include installation) Contract Price adjusted by substituting Prime Cost Sum or net purchase price/delivery/% Offsite Overheads+Profit.
  • Provisional (executed, not fully described at Tender, expense % Offsite overheads/profit). Contract Price adjusted by substituting Provisional sum with cost executed + Offsite Overheads+Profit.
  • Contingency-allowance work unknown, Variation.
  • Monetary allowance expenditure, inclusion of monetary allowance doesn’t mean it will be carried out/purchased. Principal not to supply/engage others to do work. Contractor notify Architect date Direction given how monetary allowance spent.
33
Q

11 Time for completing Contract Works

A

Contractor start work 5WDs given site possession. Architect require Contractor provide updated programme. Architect may accept deferred work. Claim for EoT: no consent principal/contractor, unforeseeable conditions, suspended, loss/damage, variations, weather, strike, Direction not given reasonable time, principal not supply materials, separate contractor omission, beyond Contractor’s control.
Contractor: apply in 5WDs, ground for extension/cause, #WDs claimed.
Architect: respond 10WDs/assess claim. If Architect fails respond, Contractor notify, then 5WDs PC extended as claimed.
Contractor Claim time related costs delay caused by Principal/Principal’s risk: consent
Contractor not compensated

34
Q

12 PC

A

Contractor notify Architect PC date or separable portion. Detail deferred works/period.
PC=used for intended purpose without material invonvenience, built to contract docs, minor defects for DLP. Architect must inspect whether achieved PC after 5 WDs of notice; issue PC Certificate to Principal, copy Contractor or notify Contractor what has to be done.
Early occupation, principal may, in Architect’s opinion ready occupied before PC, Principal give Contractor 15 WDs notice. 10WDs Contractor notify effect of early occupation/cause variation.

35
Q

13 Defects Liability

A

Architect notify defects during DLP. Reasonable date Contractor to comply, search for reason of defect prior to DLP. Contractor correct defects in DLP, notify architect defects/deferred completed. Architect inspect work 5WDs of notice; if Contractor does not remediate, architect give Contractor 5WD notice employ another person remediate. Architect issue DL certificate.

36
Q

14 Payment

A

Contractor submit claim once a month. Claim must: in writing, contract, construction work/period, due date, claimed amount/calculated, value of work, variations, fluctuations, materials delivered to site not yet fixed, value of materials not yet delivered to site, CCA.
Architect assess claim, not allow for claimed for materials not yet on site unless specific condition, G2. Architect deduct: retentions, total amounts previous certified. 5WDs issue provisional payment schedule. If contractor insurance/bond not provided payment schedule state no sum payable. Unfixed materials paid becomes Principals property. If Principal doesn’t pay, interest compounding monthly. Delay in payment schedule, Contractor interest in owed amount.
Corrections: any payment schedule correct previous payment schedule, Principal amendments response to any/all prior payment claims.
Principal retain retentions for performance/defects.
PC same time issue Payment Schedule retentions payable. DLP ended, next payment schedule include balance of retentions less omissions. Payment schedule re retentions, due 12 WDs.
PC not achieved, Principal deduct liquidated damages until PC.

37
Q

15 Final Payment

A

After PC certificate, Final payment claim submit to Architect, copy Principal.
Must: in writing, contract, construction work, period, payment due 45 WDs, claimed amount/calculated (value work done, variations, fluctuations, outstanding claims), CCA 2002.
Architect 20 WDs issue Final Payment Schedule to Principal. Architect deduct retentions retained, total amounts previously certified for payment.
Final Payment Schedule must: in writing, ‘Final Payment Schedule’, date received, payment due date 45 WDs, identify Payment Claim/period, Sum certified after deductions/calculated, reasons for different between sum certified vs. claimed. Architect Final Payment Schedule longer 20WDs, payment required 12WDs after.

Final Payment Claim 0, Final Payment Schedule day20, Principal notify day 30, Architect replacement Day 35, 45 pay. Day55 cannot dispute or 20Wds after adjudicators determination.
Delay; Principal notify amendments 3, Replacement Payment Schedule 5, pay 12.
Principal fails to pay, compound interest.
No Final Payment Claim, Architect make assessment, forward Contractor, Contractor 10WDs objections to assessment/reasons.

38
Q

16 Suspending work

A

Contractor suspend work if Principal doesn’t pay after 5WDs.
Contractor end Contract if, Principal bankrupt, liquidator fails 10WDs take over, contract works suspended/legal proceedings against Principal delay 10WDs.
Architect may direct Contractor to suspend work, Contractor leave work, claim cost. Suspension 60 WDs more, Contractor permission continue, Architect not grant 20 WDs, deletes uncompleted from contract/abandonment by Principal.

Principal end contact, Principal in possession of Contract works, Contractor’s interest in Contracto Works, materials, Construction plant transferred to Principal to employ someone else to complete works.
If Contractor bankrupt/dies, Principal notify Contract end if Liquidator doesn’t make arrangement in 10WDs. Contractor failure begin work, comply notice, failure obligations.
Frustration of Contract – Architect certify, Principal pay work carried out, materials, fluctuations, SoQ, construction machinery, making safe contract works.

39
Q

17 Disputes

A

Mediation, adjudication, arbitration, court. Civil court commercial district court mum/dad

40
Q

Schedule T, T1, T2, T3, T4, T5

A

Tender Documents,
Specific
Special
General
Tender submission
Tender summary

41
Q

NZIA webinar
Contract Works Insurance
All Risk
Construction Works insurance

Who should insure when?

A

Contractor - risk overall generally

Principal - renovations or extentions to existing structure. No gaps between existing buildings, Principal best person to arrange.

Principal Tell insurer aware working being undertaken. Can invalidate insurance of existing structure if insurer is not notified.

Existing structures - waiver for contractor. Insurers of existing structure, noted and agreed to this.

42
Q

NZIA webinar
Contract works value?

A

cost of reinstatement of works

Contract Price.
Large variations
Inflation

Post lost re-instatement - event of damage before reinstatement works.
- Demolition, debris removal. 5-10% of contract price. Disposal if cant go to typ. landfil
- professional fees, nothing to do with original works, what additional fee to allow reinstatement. Re-engineering, drafting, consenting
- inflation of reinstatement, eg 1yr PC, but 6month damage then need to allow for inflation. Standard conditions allow for this.
- Inflation for un-built portion. Work yet to be completed, now delayed by further period may cost more.
- Materials stored off site. sub limits $250K. Substaintial materials held off site notify insurance company in policy
NZIA also includes
- Early occupation of works, insurance should allow for this, however insurer should be advised of this to ensure cover is continuous.
- CCC but not occupied, Insurers dont typ. continue insurance post CCC. Insurer should be advised.
- cessation of work - 30-60 days for work to cess on site. Anything over this, tell insurance beyond policy limits.
- temporary works
substantial tell insurance
- deductible levels area and parties aware of their responsibilities.

  • Contractors all risks; exclusions and conditions in policies.
43
Q

NZIA webinar
PUblic liability, broad form, general liability

A

Owners existing structures, removes some risk.

Owner isn’t normally insurerer, limited to viacarious liability. Limited to acts of contractor.
Not for their own acts of negligence/their own risks. Eg, site constrained, large retaining area, rock bolts inserted, could venture to neighbour property, neighbour consents to do on their property, contractor does under monitoring, cracks a pier, neighbour sues Principal not Contractor, Contractor not negligent, slim risk owner ask to this.

Mobile Plant

Third party damage
Waiver for ex structure
Principal insured

44
Q

NZIA webinar
Defects Insurance
F1

A

Defects in workmanship, materials, design, plan or specification

Not insured under contract works.
resultant damage prior to DLP
not cover for access costs.

45
Q

NZIA webinar
Professional indemnity
When should builder be required to hold PI?

A

Covers negligence from professional services design and specification

If they have design responsibilities

Design of temp works, significance, loss or delay.

Involved in any spec of materials that are not signed off

fire, lifts, seismic restraints - no these now need PS1 by the engineer/supplier.

46
Q

NZIA webinar
Plant and Motor vehicle

A

Plant - tower cranes, larger gantries.

Scaffolding Plant and Equipment, not temp works, are reusable.

Motor - damage from vehicle to ex. structures. cement truck hits ex. structure could be sued.

47
Q

NZIA webinar
Not required by contract.
Recommend review undertaken by Principal and covers available to mitigate

Statutory liability

A

Unintentional breech of statutory
H&S - injury on site, not applied to person, but developer could be brought in undertaking a business and think about Statutory liability

RMA - claims, surveys incorrectly, built not inaccordance with RMA, respond to defense costs at minimum.
Can insure the defense cost

48
Q

NZIA webinar
Exclusion - asbestos

A

Contractors touching, all subcontractors has appropriate cover. Cost effective.

49
Q

NZIA webinar
F2 - F6 completed prior to work starting on site.
Contract filled out properly, duration is from site possession to PC and end of DLP

A

annual policies, expiry dates should be followed up when expire

Owner discuss risks with broker. Can phone AON.

50
Q

NZIA webinar
Bren - Contract insurance
vs. all other construction insurance - who advice values?

A

Contract QS/Architect.
Ex. structures, third party motor vehicle, PI, PL, Plant Principals broker discuss

Construction (9 decks)

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