Technical - Contract Administration Flashcards

1
Q

what are the components of a legally binding contract?

A
  • Offer
  • Acceptance
  • Consideration
  • Intent to create legal relation
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2
Q

What is Assignment?

A

The transfer of benefits arising under contract but not burdens

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3
Q

What are collateral warranties?

A
  • Agreements that create direct contractual relationships between parties that would not otherwise exist.
  • Duty of care is extended.
  • May include step-in rights allowing beneficiary to step-into the role of client.
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4
Q

What are third-party right?

A
  • Enables a third party to enforce terms of a contract that they are not party to.
  • Must be named in the contract.
  • Only contained in JCT Standard Building Contracts.
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5
Q

What is the role of the Contract Administrator?

A
  • Impartial decision-making function role.
  • Administering construction contracts.
  • Project manager is the NEC equivalent.
  • Determining instructions, valuations, extensions of time and practical completion.
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6
Q

What is procurement?

A

The acquisition of goods or services in line with client requirements.

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7
Q

What are the factors which influence the choice of procurement

A
  • Cost, time and quality.
  • Nature of the project.
  • Scope of the works.
  • Measure of required control by the Client.
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8
Q

What is traditional procurement?

A
  • The design process is separate from construction.
  • Clients design team provides full documentation at tender.
  • Client has control over design and quality.
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9
Q

What are the ways of costing a contract?

A
  • Lump sum contract (sum is determined before works start)
  • Measurement contract (sum not finalized until after completion (re-measured))
  • Cost-reimbursement contract (actual costs plus overheads and profits.
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10
Q

What are the advantages of traditional procurement?

A
  • Tailored to meet clients needs (greater control).
  • Cost and time certainty.
  • Cost and programme risks sits with the contractor.
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11
Q

What are the disadvantages of traditional procurement?

A
  • Longer sequential processes.
  • Design risk sits with the Client.
  • Design changes require variation to the contract.
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12
Q

What is Design and Build Procurement?

A
  • The Client submits the employer’s requirements to Contractors.
  • The Contractor completes both the design and construction.
  • Often two-stage tendering.
  • Client has some control over design element, but not once contract is let for full detail.
  • Contractor usually has own consultants.
  • No provision for independent CA.
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13
Q

Advantages of Design and Build procurement?

A
  • Single point of responsibility.
  • Employer’s requirements give the client some control.
  • Contractor involved at design stage.
  • Quicker as work can start as design is being finalised.
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14
Q

What are the disadvantages of design and build procurement??

A
  • The employers’ requirements may be complicated.
  • Variations may be costly.
  • Cost driven so quality may fall short.
  • Not competitive as design proposals vary.
  • Less choice of contractors.
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15
Q

What is management procurement?

A
  • All works are subcontracted by main contractor.
  • Overall design is down to the client’s requirements.
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16
Q

Advantages of management procurement?

A
  • Roles are clearly defined.
  • Single point of responsibility.
  • Quicker start on site due to overlap in design work.
17
Q

Disadvantages of management procurement?

A
  • Price and time certainty not provided until last package is let.
  • Requires client knowledge to select team.
  • Little incentive for client to reduce cost.
18
Q

What is partnering procurement?

A
  • When the design, construction, and operation is fully integrated with collaboration and trust between parties.
  • Large, long and high risk projects.
  • Parties are dependent on one another for success.
  • Latham and Egan report pushed this style.
19
Q

What is tendering?

A
  • The process of establishing a price for works.
20
Q

What is single stage tendering?

A
  • Contractors are short-listed and invited to respond with competitive tender and a pre-determined time frame.
  • Used when there is a well-defined scope of works.
21
Q

What are the advantages of single stage tendering?

A
  • Competitive pricing
  • Cost Certainty
  • Clear defined time
  • Design finalized (know what you are getting)
22
Q

What are the disadvantages of single stage tendering?

A
  • No contractor input
  • Increased programme requirements
  • Design risk sits with Client (team)
  • Final account often includes variations and claims
23
Q

What is two-stage tendering?

A
  • Contractors are short-listed and invited to respond with initial design.
  • Contractor can join initial design team using pre-construction service agreement.
  • Contractor can join initial design team using pre-construction service agreement.
  • Preferred bidders are then invited to develop design and negotiate final sum.
24
Q

What are the advantages of two-stage tendering?

A
  • Earlier start date on site.
  • Contractor input during design.
  • Risk to programme as design requires completing.
25
Q

What are other Construction contract types?

A

FIDIC
NEC
ACA

These contracts are either Standard, modified or bespoke.

26
Q

What do you know about NEC contracts?

A

New Engineering Contract.
Encourages collaborative working between construction and engineering and is often used on government works contracts.

NEC3 was the previous version NEC4 is out now but NEC3 can still be used.

27
Q

What do you know about FIDIC contracts?

A

A publication of a suite of core international forms of contract. Allow for international legal systems principles included.

Multi-tier dispute resolution process / amicable settlement of disputes

Used to have a BIAS for the English Law principles.

Colour coded ‘books’ types of contract

Aim to provided a balanced approach of responsibilities and risk.

28
Q

Can you name some key differences between NEC and JCT contracts?

A

NEC has six main options and secondary options which can be mixed and matched as appropriate, whereas JCT has separate forms of contract.

NEC provides target cost whereas JCT are lump sum.
NEC does not allow for provisional sums.

JCT = variation. NEC = compensation event.

29
Q

What would you consider when advising on a contract?

A

Value, complexity, design risk, requirements for sectional completion.

30
Q

What does JCT stand for?

A

Joint Contracts Tribunal (formed by RIBA Institute)

31
Q

What are the main forms of JCT contract?

A

Minor works, Intermediate, Intermediate with Contractors Design, Design & Build, Standard.

32
Q

What is the difference between the JCT MW and a Intermediate?

A

The Intermediate Contract allows for:
- Sectional Completion
- Partial Possession
- Possession of the site can be deferred
- Extensions of time for listed relevant events
- Labour and materials cost and tax fluctuations

33
Q

What is the purpose of the planned update to the JCT suite?

A

Expected in 2024 the main features are to:
- Modernising and streamlining
- New Contract family Target Cost Contract
- Legislative changes in relation to the Building Safety Act
- Future Proofing

34
Q

What would you expect to find in a typical JCT contract?

A

A – Articles of Agreement (employer, contractor, date)

R – Recitals (address and description of the works, reference documentation)

A – Articles (contract sum, parties under CDM regs)

C – Contract Particulars (base date, completion date, LADs, rectification period)

A – Attestation (under hand or as a deed)

35
Q

What is the difference between under hand or as a deed?

A

Under hand = signed by both parties & disputes must be within 6 years of breach
As a deed = signed by both parties + witness & disputes must be within 12 years of breach

36
Q

What is the main difference between D&B contract and Standard form of contract?

A

With a D&B contract the design risk lies with the contractor.

37
Q

Tell me something from within the RICS Contract Administration Guidance note?

A

Now just used for reference but it includes guidance on how a CA should be appointed, when does the role begin and a summary of the basic responsibilities.

38
Q

What are Clients requirements?

A

This is a statement or document that defines the Project Outcomes and sets out what the Client is seeking to achieve.

39
Q

Take me through the Interim payment timeline under a MW?

A

The Valuation date is set by the contract, a due date is then set 7 days from this date for each interim valuation. 5 days from the due date the CA will issue an interim certificate for what they deem to be value of works complete to date.

The final date for payment shall be 14 days from the due date.