WARRANTY Flashcards
case law for collateral warranty
parkwood vs laing o rouke where case wording meant the cw would be treated as a construction contract
explain how assignment might be applied
can arise when one party wants to assign a benefit of the building contract to a third party such as a purchaser/tenant
what is section 106?
A Section 106 Agreement (often referred to as a S106 Agreement) is a legal agreement between a local authority and a developer that is used to secure obligations from developers to offset the impact of a new development.
difference between rics ethics and rules
rules are what you need to follow and ethics are morals which you follow
what is the procurment route on the project your working on?
ours is d&b this was effective as time and cost were ultimately most important, they has limited funding as it was government funding. also time the tenants were due to be housed in December so there was a emphasis on the time. while design quality was an important factor, value for money was preferred
if the design team is novated in a db contract what should the client put in place.
Employer will transfer the Architect and Design team to the main contractor, who assumes full responsibility. The contract should clearly outline the transfer of obligations, risks, and rights from the original party to the incoming party.
case law of change vs design development
Skanska vs Egger Limited. Skanska was responsible for design in ER’s. Dispute arose additional works and whether this was a change or design dev. 2 water maines instead of 1 as shown on drawings. court held for ER’s these could be perfected at a later stage, this was part of the design risk that skanska assumed.
explain how a clients level of construction knowledge influenced your recommendation of a procurement strategy
Clients with significant construction knowledge may prefer a strategy that offers more control and involvement. Traditional Design-Build could be recommended, allowing them to have direct input at different stages, such as design, contractor selection, and construction oversight.Clients with limited construction knowledge may benefit from a procurement strategy that minimizes their involvement in complex decisions like construction management.
when would you use a pqq
ensure they can carry out works// check financial statements so we can do a creditcheck also check there turnover. Organogram for the organisations structure. Check for any h&s record of company. Confirmation of insurances.
purpose of pre-qualification scoring matrix
Preestablished scoring matrix sent out alongside pqq so everyone knows the basis of the scoring. clients use the process for selecting from a pool of contractors to save time and project costs by quickly removing inexperienced or incapable tenderers.
benefits of 2 stage tender
early contractor involvement. client retains control of design. collaborative working to secure subcontract packages. design starts then both stage 1/2 cone before construction starts.
what is submitted as part of the 1st stage of a 2 stage tender
Prequalification and Initial Tender. This stage of the tender is competitive and multiple Contractors submit the following:
-An outline price for the works
-Details of preliminary costs and overheads/profit forecast
-A design and site programme for the project
Upon receiving this the employer will decide on favoured bid and issue a letter of intent/PCSA
stage 2 of 2 stage tender
The Contractor enters into a detailed contract negotiation with the Employer that includes price, programme and contract conditions. During this process, they also create a bill of quantities, final price and final contract with the Contractor.
when to use 2 stage
Two Stage tendering is better suited to projects which are more bespoke and complex in their nature. These are projects where early contractor engagement is important to assist in finalising the design to ensure efficiencies on site in terms of time and cost.Two stage tendering works well with Design and Build Contracts because the contractor works closely with the design team during Stage One, ahead of being appointed as the primary point of responsibility for the design after Stage Two.
dis of 2 stage tendering
The cost of the Pre-Construction Services Agreement is typically a cost not envisaged in the initial cost plan. During Stage Two, the Contractor may hold more power over the Employer than during a typical tender negotiation as the Employer may have no viable alternative to the Contractor in that moment.
diff between single stage tender and two stage
single stage is an all in one submission. client will invite contractor to complete a final tender in response to a projects requirements.
what to include on instruction to tender?
location of works/project programme/deadline of submission/spec and drawings/dealing with errors process/PCSA/form of tender
how to deal with errors in tender
tenderer advised of errors and given opp to coreect genuine errors or withdraw
how to conduct tender analysis and what to include in tender evaluation report.
Compare to specification check if there is any outliers. Check if they are capable of carrying out the works then do the recommendation and make yours.
Tender report to include executive summary, intro, brief scow, mid terms interviews then make the recommendation.
How would you deal with a front loaded BQ?
Contractors may front-load costs in order to maximise their revenue early in a project by assigning overstated values to the preliminary elements of the work. Can be avoided by comparing competing bids to determine whether individual tenderers have submitted excessive prices for certain aspects or stages of the works.
front loaded BQ? example
For example, a contractor might front-load costs for preliminary construction work such as services diversions, demolition, setting out, groundworks, piling, and so on.
How can you ensure competitive prices are obtained at the 2nd stage of a Two Stage Tender?
–Conduct thorough market research to understand the prevailing market rates –
–Benchmark against similar projects. Ensure that only qualified and capable bidders participate in the second stage, leading to more competitive offers.
–if prices seem high engage in negotiations to achieve better prices.
What are the disadvantages of Open Tendering?
ads- no sense of favouritism/give opp for capable firms you might not have on the list.
dis- risk lowest tender is inexperienced or lots of errors. no guarantee lowest is capable of financially stable
how many tenderers would you include on tender list
the number of tenderers to include on a tender list can vary depending on the project’s size, complexity, and market conditions. 3-6 is ideal less then 3 might not ensure enough competition and more then 6 the process can become less efficient.
What would you do if you suspect the contractor submitting the lowest tender was in financial
difficulty?
it’s essential to handle the situation carefully to mitigate risks while ensuring a fair and transparent procurement process. Perform a credit check to understand their creditworthiness and any outstanding liabilities. Contact previous clients and suppliers to inquire about their experiences, particularly regarding payment terms and any issues with financial stability.
What is the Difference between a Lump Sum and a GMP?
lump sum is contract sum is determined before construction work is started. based on a defined sow.
GMP: A guaranteed maximum price (GMP) is a form of agreement with a contractor in which it is agreed that the contract sum will not exceed a specified maximum. “pain gain” contract incentivises contractor to make savings.
what to include in itt
invitation to tender–how to submit the tender, the valuation criteria, employer requirements if its design and build, indicative programme dates, any warranties or bond wording, tender period (as long as necessary not too long to effect design or programme). Local supply chain we use at MS. Drawings boq specification.
what is involved in managing the tender process
- notify client of tender list and get approval required. Specifiy date for return of tender. Carry out financial due diligence. Insurance checks and check if they will sign up to our t and c’s. complete tender analysis. Issue tender recommendations.
Meet the team and check proposals. When tender is returned conduct analysis. Late tenders not included within the recommendation.
If seen errors in tender, within jct you can give them a chance to withdraw the tender for example if you think its is a genuine error
identify main causes of conflict on construction projects.
Unclear contract terms, scope gaps, design changes, payment terms. Cash is the mine driver of the industry so I think payment is the most important factor. Discrepancies between original and valued works. Programme, having more robust dates, documenting progress of there works.
how to avoid conflict
Maintain a good relationship before referring back to the contract documentation. Keeping records in case disputes do arise. Having clear communication. Setting up proper communication channels i.e. precontract meeting minutes, making sure directors are on there. Having clear scope of works, having clear supervisors in place.
ads + dis of mediation/concilliation
Mediated won’t give a decision they work with both parties to come to a decision whereas concillation they will come to a decision. Not binding. Both parties need to be willing to mediate for this to be successful
ads + dis of adjud
not time consuming can take 28 days or extended if both parties agree 14 days extension. Any decision is legally binding. Cons- element of non recoverable costs, payment disputes are the biggest disputes that adjudication sees.
ads + dis of arb
Pros- cost effective saves time and effective and more flexible for both parties. More private then other forms of ADR. Cons- no appeal to it whatever is decided is final.
ads + dis of litigation
Run by a neutral party, easier to appeal, binding, protects intellectual properties better for design issues. Cons- public so damaging companies reputation , time consuming process
your commencing works on a new project how to avoid conflict?
clear contractural documentation/clear change control procedures/ effective communication methods/collab between parties/ good design team management
what would you consider to select a form of dispute resolution
the cost in proportion to the claim/timescales involved/impact on business relationships and reputation
diff between mediation & concilliation
The mediator is a neutral party who helps parties to rebuild business relationships and help them to work out a solution that is mutually agreeable. It is non binding and parties can revert to arbitration or litigation at any time.
-The conciliator is usually a figure of
authority that the parties have turned to for guidance. The conciliator makes suggestions and the parties make the
final decisions.
What if a building contract does not contain provisions for adjudication?
parties have the statutory right to adjudication assuming the contract qualifies under the construction act.
The Scheme for construction contracts will apply in its entirely
What is the different between Arbitration and Litigation?
arbitration- private proceeding/ both parties must agree to arbitration/quicker then litigation and less expensive then lits.
litigation- public/Either party can refer a dispute to Litigation without prior
consent from the other party.Slowest dispute resolution procedure
ads of adjudication
ads- independent assesment/quick decision and binding.
Dis- binding for duration of contract works only. can be reassessed after work is completed.
Questions to include in Client Satisfaction Survey
How satisfied are you with the quality of our services on your project?
* How satisfied are you with our team’s leadership, structure and continuity?
* Has the performance of a particular individual stood out?
* What are your suggestions to further improve our service?
* How likely are you to recommend our company to other organisations? ( 1 Not likely, 10 Definitely)
* Please rate our overall performance out of 10. (1 Not acceptable, 10 Exceptional)
What does the RICS say about a Complaints Handling Procedure? 8
Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS and maintain a complaints log.
*Should be available to all staff
*Should be agreed with PI Insurers
*Should include a designated Complaints Handler
*Include specific timelines for evaluation and response
*Should allow for escalation
Keeps records of all staff training
*Notified to PI Insurers
*Provide access to independent Redress
RICS regulated firms that operate a client account must
*Set clear segregation of duties for employees
*Client money must be kept separate and clearly identifiable —included ‘client’ in account name
*Client must always have access to funds
*Agree the terms and advise the client on bank details
*Interest on the account must be agreed with the client
*Must not be overdrawn
RICS Requirements for PI Insurance:
*Must be made on an ‘each and every’ claim basis
*Gives min wording
*Sets out minimum levels of indemnity
*Run off cover must be in place for at least 6 years
*Must be fully retroactive
*Should include cover for past and present employees, directors and partners
What are some of the Barriers to Effective Communication?
Verbal (Tone, clarity, language barriers, silence, etc.)Technical language (Jargon) Language barriers//Interruptions
What are the four stages of a negotiation? PDPB
prepare/discuss/propose/bargain
What is the difference between effective and efficient Communication?
effective= Communication wherein the intended message is successfully delivered, received and understood.
efficient=Efficient communication is the ability to deliver a clear and concise message in the shortest amount of time.
If you chair a meeting, how do you make it effective?
Be prepared, start and finish on time, stick to the agenda and limit distractions. set actions to get results. summarise the meeting in minutes.
