1
Q
What are the key differences between JCT Minor Works and JCT Intermediate?
A
JCT Minor Works (MW):
- Simple, low-risk projects.
- Limited M&E & specialist works.
- Client retains most design responsibility.
- Minimal procedures & contractual administration,
JCT Intermediate (IC):
- Medium complexity projects, mulit-trades.
- More detailed specifications, more complex M&E.
- Emphasis on coordination and contractor obligations.
- More robust clauses for design portions, programming and variations.
2
Q
What documents make up a JCT contract package?
7
A
- Contract Conditions
- Prelims & programme
- Pricing documents / tender returns
- Employer’s Requirements / Specifications
- Schedule of Amendments (SOA)
- Drawings
- Clarification documents
3
Q
What is the primary duty of the Contract Administrator?
A
- Manage the contract for the client.
- Monitor progress, approve payments, and handle variations.
- Act as the main communication point between client and contractor.
4
Q
Name key CA responsibilities under JCT.
7 points
A
- Issue instructions (CI)
- Certify interim payments
- Certify EOTs
- Certify Practical Completion and Final Certificate
- Assess delays/claims: Evaluate extensions of time and related claims.
5
Q
What is a variation under JCT Minor Works?
5 points
A
- Change to the original work, materials, or specs.
- Issued by the Contract Administrator.
- May affect cost and completion time.
- Formally recorded to avoid disputes.
6
Q
How does a CA issue a valid Contract Instruction?
A
- Written and clear: Specify the work required.
- Refer to contract clauses (e.g., JCT).
- State cost/time impact if any.
- Officially issued to the contractor.
7
Q
How are variations valued?
6 points
A
- Use contract rates if available.
- Contractor quote for new or omitted work.
- Daywork based on labor, materials, and plant.
- Agree cost with contractor before proceeding.
8
Q
What is a Relevant Event under JCT?
A
Events potentially entitling the contractor to a EOT listed in the contract , such as:
* Variations
* Delay by CA/client
* Statutory undertaker delays
* Force majeure
* Exceptionally adverse weather
* Time relief only - Not automatically loss and expense
9
Q
What must the contractor do to claim an EOT?
A
- Notify the CA as soon as reasonably practicable
- Provide details of cause, delay impact, and evidence
10
Q
What is the CA’s duty when assessing EOTs?
A
- Act impartially
- Make a fair and reasonable assessment
- Issue decision before completion date
- Adjust Liquidated Damages accordingly
11
Q
What is a Relevant Matter?
A
An event entitling the contractor to recover additional cost, e.g.:
* Variations
* Failure to give possession
* Delay caused by CA/client
* Disruption
(Differs from Relevant Events which affect time)
12
Q
What is Loss & Expense in a JCT contract?
4 points
A
- Compensation for extra costs or delays beyond the contractor’s control.
- Covers direct costs (labour, plant, materials) and indirect costs (overheads, prolongation, lost profit)
- Must be recorded and agreed by the CA
13
Q
What evidence is needed for a Loss & Expense claim?
6 points
A
- Costs breakdown
- Prelims build-up
- Overheads & plant records
- Invocies/Receipts
- Justification
14
Q
How is Loss & Expense assessed?
5 points - direct, indirect
A
- Direct costs- Labour, plant, materials
- Indirect - prolongation cots, overheads, loss of profit
- Assessed by CA
- Must be evidenced, attributable and reasonable
15
Q
What are CA responsibilities during interim valuations?
6 points
A
- Assess and value work to date
- Include variations
- Issue Payment Notice & certificate
- Ensure compliance with Construction Act 1996
- Confirm Retention deductions if applicable
16
Q
What are the statutory payment requirements?
A
- Prompt interim payments for work done.
- Payment notices confirm amounts due.
- Pay less notices explain deductions.
- Final payment on completion.
- Adjudication: can be triggered anytime a payment dispute arises
17
Q
How is Practical Completion defined?
4 points
A
- Works are complete, fit for occupation
- No material defects remain
- Only minor snagging tolerated
- Building compliant with statutory requirements
18
Q
What does a tender analysis involve?
7 points
A
- Compare prices and scope.
- Assess contractor capability and experience.
- Evaluate risks and consistency.
- Recommend the most suitable contractor.
19
Q
Why are formal notices important?
4 points
A
- Protect contractual rights
- Avoid disputes
- Maintain audit trail
- Ensure compliance with time limits
20
Q
What is the difference between formal and informal communication?
2 points
A
- Formal: Contractual notices with legal effect
- Informal: Emails, discussion notes, minutes (supportive evidence only)
21
Q
What is the difference between a simple contract and a deed?
4 points each
A
Simple Contract
* Can be oral or written
* Limitation period: 6 years
* Common for standard construction contrac6s
Deed
* Must be written, signed, witnessed, and delivered as a deed
* Limitation period: 12 years
* Used for formal agreements, warranties or higher risk projects
22
Q
What is the difference between an express term and an implied term?
A
Express Term
* A term explicitly stated in the contract
* Usually written or verbally agreed
Implied Term
* A term not written down, but implied by law etc.
23
Q
How do you ensure impartiality when acting as Contract Administrator while being employed by the client?
6 points
A
- Follow contract terms.
- Document all decisions clearly.
- Be transparent with client and contractor.
- Avoid conflicts of interest.
- Refer to professional guidance if needed.
24
Q
What are the changes to JCT?
2016 and 6 points
A
- JCT 2016 no longer purchasable from 31 March 26
JCT 2024:
* Modernisation: gender‑neutral wording, electronic notices & e‑signatures permitted.
* New Relevant Events: epidemics, asbestos
* Design liability clarified: limited to skill and care, excludes fitness for purpose.
* Dispute and payment updates
25
What is the payment cycle?
| 6 Points & purpose
* Application: Contractor submits interim payment
* Due Date: Payment becomes due - 7 days
* Last date for CA to issue Payment Cert 12 days
* Payment Notice: Employer states reduced sum due within 5 days of the Due Date - 16 days
* Final Date for Payment: 21 days
Day 0 → Interim Valuation
Day 7 → Due date - Payment becomes “due”
Day 12 → Last date for CA to issue Payment Cert
Day 16 → Last chance for a Pay Less Notice
Day 21 → Final date for Payment
26
What is HGCRA 1996
* Housing Grants, Construction and Regeneration Act 1996,
* Key piece of UK legislation governing construction contracts
27
HGCRA purpose?
| 3 points
* Encourage prompt payment in construction contracts
* Provide a mechanism for dispute resolution
* Improve cash flow in the construction industry
28
What is a payment notice
* Formal notice stating amount due and payment date.
* Ensures clarity and compliance with contract rules.
* Helps prevent payment disputes.
* It is a statutory requirement under the HGCRA 1996
29
What is a pay less notice?
* Employer notifies they will pay less than claimed.
* States amount and reason.
* Ensures compliance and clarity to avoid disputes.
* Serve within contract period or ≥ 5 days before Final Date for Payment.
30
What would you do if the client wanted to pay less than the sum on the certificate?
| 7 points
* Check contract/statutory rules.
* Advise client on legal requirements.
* Issue pay-less notice with amount and reason.
* Send before payment due date.
* Document all actions.
31
What happens if the contractor disputes an undervaluation?
| 3 steps
* Contractor notifies CA / Employer in writing with evidence.
* CA reviews and may amend the Interim Certificate, updating the notified sum.
* If unresolved, dispute can go to adjudication or contractual dispute resolution.
32
Why is prompt payment important in construction and what is the purpose of HGCRA 1996?
* Maintainscash flow healthy.
* Reduces disputes.
* Supports project progress.
HGCRA 1996 Purpose:
* Guarantees statutory interim payments.
* Ensures prompt payment and fair treatment.
* Provides adjudication for quick dispute resolution.
33
What act brought about the current valuation process?
| Act, introduced for & ensures
* Housing Grants, Construction and Regeneration Act 1996
* Ensures: cashflow + clear payment mechanism
34
What rights does the HGCRA 1996 give a contractor if the employer fails to pay?
| 3 points
* Right to interim payment
* Right to interest: On late payments.
* Right to suspend work: If payment is not made after proper notice.
* Right to adjudication
35
Why did you use a JCT MW Contract for your case study
* Project size/value:
* Low complexity
* Clear roles: Obligations of contractor, CA, and client defined.
* Single-stage tender: Suits traditional procurement for small projects.
* Time/cost certainty: Fixed sum and 7–9 week programme.
36
What is a certificate of Non-completion
* Issued by Contract Administrator when works are not complete by the completion date
* Confirms areas or items of work still outstanding
* Can trigger liquidated damages or extensions of time considerations
* Provides formal record
37
What is the effect of PC?
* Release of half retention
* Employer takes possession + insurance responsibility
* Defects rectification period starts
* LADs stop at PC
38
When and how do you issue a certificate of making good defects and what are the implications?
* Issued at end of defects rectification period (6–12 months post-PC)
* CA inspects → confirms defects remedied → issues certificate
* Contractor receives final half retention
39
What happens if the contractor does not return to make good defects?
* If contractor doesn’t return → CA can instruct others to fix defects
* Employer recovers cost (set-off against retention or sums due)
* No MGD issued until works rectified
* Contractor still liable for defects
40
When preparing tender reports, do you always make recommendations based on cost?
* Not cost alone → based on client’s objectives
* Factors: programme, quality, contractor capability, risk, compliance, sustainability/social value
* Recommendation = balanced + aligned with client priorities
41
What guidance note did you refer to when tendering?
* Guidance: RICS Tendering Strategies (2010)
* Selecting and managing the tendering process to achieve value for money, fairness, and transparency
.
42
Can you explain the difference between single-stage and two-stage tendering?
| process, use, pros and cons
* Single-stage: full design and specifications provided; contractors submit final lump-sum bids once.
* Two-stage: Contractor selected first, price finalised later; used for complex or developing designs.
43
Sectional completion vs partial possession?
* SC: Pre-agreed in contract → sections with separate completion dates, LADs, retention.
* PP: Agreed during project → employer takes part early (contractor may refuse). DLP + insurance start for that part.
* Difference = SC = planned; PP = ad hoc
44
What are the benefits for the employer in taking partial possession?
| 3 points
* Early occupation/use of facilities
* Revenue generation earlier (rent, business use)
45
What are the risks for the employer in taking partial possession?
| 5 points
* Insurance → employer responsible from PP
* DLP → starts earlier for that part
* LADs → can’t claim on possessed section
* Employer assumes maintenance/H&S duties
46
If the contractor suspends works for non-payment, what happens to the completion date?
| 4 points
* Contractor suspension (non-payment) → entitled to EoT
* CA must adjust completion date
* Contractor entitled to costs of demob/remob
47
What is the difference between suspension and termination under JCT?
* Suspension: temporary, stays in contract, resumes after remedy, EoT + costs allowed
* Termination: Permanent end of contract due to serious breach or default
48
What are the termination grounds under JCT for both employer and contractor
Employer:
* Contractor abandons or delays work
* Persistent non-compliance
* Insolvency or bankruptcy
Contractor:
* Employer fails to pay
* Blocks access or withholds info
* Prolonged suspension/delay
49
What are the consequences of wrongful termination?
| 4 points
* Wrongful termination = contract breach
* Innocent party may claim damages
* Terminating party may be liable for damages costs
* Causes reputational damage.
50
What alternatives might you advise a client before terminating a contractor?
| 6 points
* Issue notices to remedy breaches or delays.
* Negotiate extensions or revised programme.
* Mediation or dispute resolution to settle issues.
51
What is the post-termination process for the Employer under JCT?
| 5 points
* Employer secures site, plant, materials, part works
* Contractor paid for work properly done to termination date
* Employer appoints new contractor to complete works
* Employer can recover extra costs if contractor defaulted
52
Which document takes priority if there’s a discrepancy?
| 7 points
JCT Order of Precedence
* Contract Agreement overrides all.
* Conditions of Contract follow.
* Specifications next.
* Drawings last; must comply with higher-priority documents.
53
When do you become a contract administrator?
| and duties
* CA role formally begins once contract is executed
* Pre-contract services (tender prep, procurement advice) may be agreed but not formal CA role
54
What duties change once you’re formally the CA vs pre-contract advisor?
| Pre vs Post
* Pre-contract (advisor): procurement advice, tender docs, tender reports, draft contract → client advocate.
* Post-contract (CA): certify impartially, issue instructions, value works, EoT/PC, defects → neutral administrator.
55
What’s the risk to your client if you act unfairly as CA?
| 6 points
* Legal disputes and claims from contractor.
* Financial loss from overpayments or penalties.
* Delays due to disagreements or adjudication.
56
What is a vesting certificate, and why is it important for off-site materials
| 3 points
* Confirms transfer of property ownership from seller to buyer.
*Protects employer if contractor insolvent (materials can’t be claimed by creditors)
57
Two types of provisional sums?
| 4 points
* Defined S: Scope, location, or specification is partially known
* Undefined PS: Scope or details are uncertain or unknown.
58
What is a CVI?
| 4 points
* Confirmation of Verbal Instruction
* Not formally recognised under JCT
* Must be followed up with written instruction to be binding
59
What risks arise if you rely only on CVIs without following up formally
| 3 points
* No legal proof of instructions; hard to enforce
* Risk of non-payment disputes
* Programme/EoT disputes
* No audit trail → harder to defend in adjudication
60
What is best practice process around CVIs to show control and professionalism?
| 5 points
* Record verbal instruction in site minutes
* Issue CVI form as temporary note
* CA issues formal written instruction (AI/CAI/CE)
* Maintain audit trail
61
Who is responsible for final account?
| 3 points and what it covers
* CA responsible for preparing/agreement of final account
* Covers: variations, PS adjustments, loss & expense, fluctuations
* Contractor submits info, but CA certifies
* CA issues Final Certificate
62
When should the final account be agreed?
* Contractor submits info → within 6 months of PC
* CA/QS issues Final Certificate → within 3 months of receipt
63
Information required to agree final account?
| 7 points
* Measured work: Quantities of completed work.
* Variations:
* Provisional sums:
* Adjustments:
64
Types of procurement methods?
* Traditional: Design by client/architect, then tender to contractor.
* Design & Build: Contractor responsible for design and construction.
* Management - Employer contracts directly with trade contractors — maximum control, employer takes risk.
65
What is the traditional procurement method?
| advantages and disadvantages
* Client provides design via architect/engineer.
* Contractor builds based on completed design.
* Tendered competitively for price.
* Separation of design and construction responsibilities.
66
What is the D&B procurement method?
* Contractor handles design and construction.
* Client provides brief, not detailed design.
* Single contract for design, build, and sometimes commissioning.
* Can reduce client risk but less design control.
67
What is a single-stage tender?
* Contractor submits full priced bid based on complete design.
* Awarded after one round of bidding.
* Suitable for straightforward projects with clear specifications.
68
What is a negotiated tender?
* Contractor is selected directly without competitive bidding.
* Price and terms are discussed and agreed with the client.
* Often used for specialist work or trusted contractors.
* Can be faster but less competitive than open tendering.
69
How did you calculate the level of LAD’s
| 4 points
* Fixed daily/weekly rate in Contract Particulars
* Genuine pre-estimate of likely loss (not a penalty)
* Based on finance costs, lost rent/income, extended fees, temporary costs
70
When can a MW be used?
| 4 points
* MW = simple, low-value, low-complexity works.
* Examples: refurbishments, extensions, maintenance.
* Design by employer/consultants (unless MWCD used).
* Not for complex phasing or nominated subcontractors.
71
What are the Notice Requirement for Delayed Completion
* Delay must be formally notified in writing
Should include:
* Cause of delay
* Likely effect on completion
* Triggers CA’s duty to consider an EOT
72
EOT Process
1. Contractor issues delay notice
2. CA reviews cause and impact
3. CA makes a fair and reasonable assessment
4. EOT granted (or refused) in writing
5. Completion Date adjusted if granted
73
Why should you Issue an EOT prior to completion date
* EOTs should be issued as soon as delay is apparent
* Avoids uncertainty and improper use of LADs
* Good contract administration practice
74
Liquidated and Ascertained Damages (LADs)
* Pre-agreed daily/weekly sum for delay
Employer must:
* Issue NCC
* Apply LADs strictly in accordance with contract
75
Impact of EOT on LADs
* Valid EOT pushes back Completion Date
* LADs only apply after revised Completion Date
* Prevents Employer benefiting from own delay (prevention principle)
76
Benefits of Formal Documentation
* Clear audit trail
* Reduces disputes
* Protects CA and Employer
* Demonstrates compliance with contract and RICS professionalism
77
Why Traditional Tender (NHSPS)
* NHSPS require 3 quotes for works that exceed £5,000 as standard policy
78
Requirements/Process when Selecting Contractors (NHS Projects)
* Constructionline Gold accreditation
* Approved IW / specialist contractor
* NHSPS may nominate contractors for tender
* Relevant experience
79
Chesterton HC - What checks do you carry out during a tender analysis?
* Check for arithmetical errors
* Review completeness of submission
* Assess programme and lead-in times
* Compare cost breakdowns
* Review quality and compliance with specification
80
Chesterton HC - How do you advise a client on contractor selection?
Provide a tender report and compare:
* Cost
* Programme
* Quality
* Risks
Recommend most economically advantageous tender
81
Shoebury HC -What happens when you issue Practical Completion?
* Start of Rectification Period
* Release of half retention (typically 2.5%)
* End of liquidated damages liability
* Transfer of possession to client
82
Shoebury HC - What is Practical Completion?
* Works are substantially complete
* Only minor defects/snags remain
* Building can be used for its intended purpose
83
Shoebury HC - What would stop you issuing Practical Completion?
* Significant incomplete works
* Health and safety risks
* Building not usable
* Major defects present
84
20 TW - Why did you grant the EOT?
* Delay caused by client variations
* Contractor not at fault
* Falls under relevant event
85
What is 'Time at Large' -
* No fixed completion date
* Employer breaches or delays
* Contractor must complete in reasonable time
* Client cannot apply LADs
86
Histon - Why did the variation lead to an EOT?
* Additional works increased programme duration
* Contractor not responsible for delay
* Loss and expense can be claimed
87
What is the JCT Extension of Time (EOT) clause?
* Under JCT Minor Works Building Contract 2016, the EOT clause is Clause 2.3
88
JCT 2024 payment cycle
Day 0 → Interim Valuation
Day 7 → Due date - Payment becomes “due”
Day 12 → Last date for CA to issue Payment Cert
Day 16 → Last chance for a Pay Less Notice
Day 21 → Final date for Payment
