Contract components

Question 1

What are the main components of a contract? 4

Answer 1

BoQ/Activity schedule

Contract data (Part 1, Part 2, Z Clauses)

Scope (Drawings, SHW, PCI)

Site information (reports, GI, testing etc.)

Question 2

What is the purpose of a BoQ

Answer 2

Provides a standard basis for pricing and rates are used to construct the actual cost

Actual cost = actual quantities x tendered rates

Question 3

What is the purpose of an Activity Schedule

Answer 3

Breaks works down into measurable activities, the completion of each activity can trigger payment. Incentivises performance and completion

Question 4

What is the purpose of CD1? )7/8)

Answer 4

Completed by the Client, sets out:
- Main option clause
- Secondary options
- Dispute mechanism
- Client information
- Scope/Site information location
- Language/law of contract
- Period for reply

Question 5

What is the purpose of CD2? (6)

Answer 5

Completed by the Contractor, sets out:
- Contractor information
- Fee %
- Proposed programme
- Subcontracting details
- Key people
- Insurance information

Question 6

Describe the Scope

Answer 6

The works or services the contractor must provide under the contract.

Question 7

Describe the Site information in NEC4 ECC and the purpose of it

Answer 7

Describes the physical and environmental condition of the sit and provided the Contractor with any constraints to building the proposed Scope, helping them to price risk.