Week 1: Introduction, Project Delivery and Procurement Flashcards
What is a Contract?
Promise:
- between capable parties
- creates obligation
- enforceable by law
Dispute hearing:
- is it a contract?
- if so, what is the exact meaning of the wording
Types of Laws
Public Law:
- Criminal law
- Revenue and taxation law
Private Law:
- Contract law
- Law of tort (Happiness)
International Law
What is the purpose of Building Act
- Performance Standard
- Safe
- Evacuation
- Sustainable
What is the purpose of CPEng
Mark of Quality
Registered System
Code of ethics, disciplinary
what is the purpose of Contracts
Protection
Fair and balanced
fast and effective dispute resolution
enforcement
what is Privity of Contract
The relation between two contracting parties - only the person who is a party of the contract can sue on it
what are the 2 forms of contract
Contract
Deed - Covenant
Contract elements
Offer
acceptance
consideration
capacity
legality
intention to be bound
consent
what is an offer
a promise
expressed or implied
intend to be in a binding obligation
time dependency
revocable
what are offer revocations
withdraw before acceptance
Scheduled revocation “Good until”
Offer revoked by counter-offer
what is a Quote
an offer to do the job, quoting person is bound by the offer
should include: work type, dates, rates and costs.
How do you accept an offer
Formal notification
placing an order
standard of industry
reliance
tacit acceptance
what does Capacity mean in terms of contract law
whether the person have ability to enter contracts
- age
- unintoxicated
reality of Consent
Mistake - e.g. wrong calculation (common practise is to accept)
Misrepresentation
Duress
Tender qualities
Responsive: All terms are met
Responsible: meets the requirements to submit offer
types of Delivery Methods
Negotiated
DBB
Design and construct
Project Manager Agent
Alliances
PPP
DBB Design-bid-build (traditional) method?
3 Linear Phases
3 Primary Players
2 Contracts
designer - qualification
GC - lowest bid
PMA (project manager agent)
3 Linear phases
4 Primary players
3 Contracts (all with owner)
PM - qualification
A/E - qualification
GC - lowest bid
(Design-build) method
2 continuous phases
2 primary players (owner - db)
1 contract (owner - db)
DB - qualifications/low bid
Alliance
major contractors and consultants become stakeholders.
form a group of innovation and cooperation to manage the project.
PPP (Public-Private-Partnership)
Large scale
Long duration
complex
-output focused
-private expertise required
-asset delivery
- high maintenance requirements
-risk transfer
-opportunity for innovation
-value for money
Define:
Practical completion
Provisional sum
Prime cost amount
Practical Completion:
when all building work is completed
Provisional sum: sum that can be used when there is not enough detail to set a fixed price
Prime cost amount:
the estimated cost that can be adjusted later
Guaranteed maximum price (GMP)
A Principal shares in cost savings
Contractor will not be paid more if it is in excess of the GMP
bonds
a guarantee that the terms of a contract are met. If the contractor fails to met the conditions, the owner can claim the bond to recover financial losses
retention
amount withheld by Party A to a contract as security for the performance Party B
risks of using subcontractors
if the sub behind on schedule, it will result in an extension of the project time for the contractor
