Contract administration

Question 1

What are the key differences between NEC and JCT?

Answer 1

• JCT is traditionally used only for building projects, whereas the NEC is used for both building and civil engineering projects
• Th NEC has a variety of bespoke contract options where the JCT has a standard set of clauses
• JCT deals with time and cost separately, under variations and loss and expense claims

Question 2

What is the role of the Project Manager under the NEC?

Answer 2

They are the names person in Contract Data Pt1 who will administer the contract

Question 3

What is the role of the Supervisor under the NEC?

Answer 3

They are solely responsible for the checking of compliance in line with the works information

Question 4

What is the role of the Subcontractor under the NEC?

Answer 4

They are the person or organisation that has a contract with the Main Contractor

Question 5

What is the role of the Consultant under the NEC?

Answer 5

They are the person or organisation that delivers work under a Professional Services Contract

Question 6

What are the defined response times under the NEC?

Answer 6

• 1 week for a response to a CE under a ECC, 2 weeks under a ESC
• On OOC the Contractors period of reply is 3 weeks to a CE and 5 weeks to a quotation

Question 7

Explain your knowledge of the Housing Grants, Construction and Regeneration Act 1996?

Answer 7

• Suppliers have the right to be paid in interim, periodic or stage payments
• Suppliers have the right to be informed of the amount due or withheld
• Suppliers have the right to suspend performance for non-payment
• Suppliers have the right to adjudication
• Disallows pay when paid clauses
• A payment must be issued within 5 days of the payment due date

Question 8

What does the Construction Act state if there are no payments provisions in the contract?

Answer 8

• If the contract doesn’t specify a period then the payment due date will be every 28 days
• The payment notice must be issued no later than 5 days after the payment due date
• The Final Date for Payment is then 17 days after the payment due date

Question 9

When might a notional final account statement be issued on a project?

Answer 9

• The contractor or employer going into liquidation or
  administration
• The contract being terminated due to performance or
  other reasons in accordance with the contract by the
  employer
• The contract being terminated by the contractor.

Question 10

What is a reason for the Contractor to terminate contract?

Answer 10

• If it has not received payment within 13 weeks
• If work is suspended for more than 13 weeks following a project manager’s instruction, either party may terminate

Question 11

What is Prevention under NEC?

Answer 11

• Prevention (Clause 19) is the ‘Force Majeure’ clause
• It states if a Force Majeure event happens, the Employer is to give an instruction defining how it should be dealt with

Question 12

What is Force Majeure?

Answer 12

• An exceptional, unforeseen event or circumstance that are beyond the reasonable control of a party to a contract and which prevent or impede performance of their obligations under the contract