Time

Question 1

What are the main issues in relation to time within a contract?

Answer 1

Commencement
Progress
Completion
Obligations after completion

Question 2

What is meant by the term ‘regularly and diligently’?

Answer 2

Regularly – contractor must attend on a daily basis with adequate labour and materials to progress the works in line with the contract.

Diligently – the need for the contractor to apply that physical capacity efficiently

Question 3

What happens if no date for completion is inserted in contract?

Answer 3

If a contract does not specify a completion date, then the works should be completed within a reasonable time (time is at large), although it is unlikely that such an ambiguous arrangement would allow the client to deduct liquidated and ascertained damages.

Question 4

What is the difference between sectional completion and partial possession?

Answer 4

Sectional Completion – provision within contracts allowing different completion dates for different sections of the works which are handed over in phases

Partial Possession – contractor keeping possession of the site or relevant part until the contract administrator has issued the practical completion certificate

Sectional completion differs from partial possession in that it is pre-planned and defined in the contract documents

Question 5

Define the term Practical Completion.

Answer 5

completion of the works except for minor defects which allows the client to take possession and use the works for the intended use. CA issues a practical completion certificate.

Question 6

What are the effects of a practical completion certificate (JCT SBC16) explaining the meaning / consequence of each one?

Answer 6

MC Insurance liability may end 
 Half retention released 
 Site possession handovers back to Emp 
 Beginning of defects liability period 
 LAD’s no longer apply 
 EOT reviewed 
 MC no longer right to be on site 
 AI’s cannot be issued

Question 7

What significance does a programme have under NEC4? What are the sanctions available if an accepted programme is not submitted?

Answer 7

Prescriptive – management tool, high important

Key dates (access dates, start date, sequencing, method statements etc)

Need to be regularly updated (monthly – but variations may occur to revise it, PM may request too change in scope EW/CE, contractor too may think subbies in delay to issue EW and update)

Project Manager can use as a tool to assess progress, early warning notices and compensation events

Question 8

Why do we have extension of time mechanisms in building contracts?

Answer 8

To allow for delays that are inevitable and uncontrollable (bad weather) – less risk to MC

Classed as breach of contract if you over run so can prevent this from happening

Question 9

What is the difference between the Date for Completion and the Completion Date?(JCT)

Answer 9

The date for completion is the date by which the contractor is expected to complete the works, which may be earlier or later than the contract completion date.

Completion Date - by which ‘practical completion’ must be certified.

Question 10

1What is a time risk allowance (TRA)? What is the difference between TRA, terminal float and activity float? Who does this float time belong to in JCT SBC 16 and NEC4 and why?

Answer 10

TRA = amount of time allowed by the contractor in programming activities to allow for the risk of delay should problems arise

Terminal Float = The difference between a contractor’s planned completion date and the completion date set in the contract.

Activity Float = time a task can overrun without impacting a subsequent task

Question 11

If the MC does not complete by the completion date, what must the CA do? Why? (JCT)

Answer 11

Issue a non-completion cert on the original date of completion – in order to claim liquidated damages
a) Could also add a clause ‘time is of the
essence’ to say complete asap

Issue extension of time if its due to a relevant event for example

Question 12

When should the programme be revised/ updated and submitted for acceptance by the PM under NEC4?

Answer 12

Variations may occur

PM may request to change in scope EW/CE

Contractors’ plans aren’t practicable

Contractor too may think subbies in delay to issue EW and update

Question 13

The NEC4 contract details Key Dates within the contract, what are these dates? Provide examples

Answer 13

Provided by employer where they may need areas of build ready for contractors to come and install/fit out parts of the project
- E.g. Room in hospital needs to be ready by a set
date to fit x ray machine (floor, wiring etc
needs to be done)