Contract Practice

Question 1

• What is the difference between reasonable v best endeavors in contract terms?

Answer 1

Best endeavors is the most stringent method.
Reasonable endeavors in least onerous obligation.

Question 2

• What is a collateral warranty? when would it be used? Who do they apply to? What are the disadvantages of a CW?

Answer 2

To bridge the contractual gap between parties who don’t have direct contractual relationship
Can apply to subcontractors and designers
Disadvantages could be the complexity and cost of preparing and negotiating.

Question 3

• What would you expect to see in a Letter of Intent?

Answer 3

Identification of parties, project description
Scope of works, pricing and timelines. Key deliverable.

Date- signature – termination conditions.

Question 4

• What are the implications for the client for using an NEC contract?

Answer 4

NEC promotes collaborative working
Encourages early warnings notices,
Client to be responsive and proactive
Project Management focused
Simple and clear language
Dispute res
Payment mechanisms ie – Stage payment and certification

Question 5

• What is the definition Partial Possession? What implications does it have under the JCT contract?

Answer 5

This means the client request possession from the contractor and the contractor can agree to this or not

Question 6

• What current challenges is Covid and/or Brexit bringing to Contract Practice?

Answer 6

Supply chain disruption, H*S provisions,
Regulatory issues, currency fluctuations,
Data protection. Staffing provisions.

Question 7

• When might the NEC suite of contracts be used

Answer 7

Engineering contract
Public sector works

Question 8

• What is a performance bond?

Answer 8

It is a financial guarantee provided by the contract to the client. It offers financial protection – contractors have ability to win bigger projects.

Question 9

• When might a performance bond be used?

Answer 9

For large projects - Government contracts/ high value projects.

Question 10

• Typically, what insurance options are available under the JCT suite of contracts?

Answer 10

5.4 Joint Names – 5.5 Employer covers the works on a joint Names.

Question 11

• What are the typical elements of a project that need to be considered when selecting a form of contract?

Answer 11

Complexity, scope of project, H*S, design liability and timeline, Procurement

Question 12

• What elements of a project might be relevant when considering which building contract would be most appropriate?

Answer 12

Contractors design? time line and client obligations, Nominated contractor.

Question 13

• If a lump sum contract is one type, what other types of building contract are there?

Answer 13

Target Cost Contract, Cost plus, Remeasurement contract, Management contract.

Question 14

• Does a contract need to be in writing?

Answer 14

OFFER, ACEPTANCE, CONSIDERATION, INTENTION TO CREATE CONTRACT, CAPACITY OF PARTIES TO CONTRACT.

Question 15

Unit 15 Warnford * Explain the content of the contract documentation.

Answer 15

Drawings, SOW, Priced Tender, Tender Return,

Question 16

Unit 15 Warnford * What were the liquidated damages and how were they calculated?

Answer 16

Client chose this as their rent

Question 17

Unit 15 Warnford * Why was a minor works contract used

Answer 17

Simple in Nature.
No Sectional Completion
No nominated SC

Question 18

Unit 15 Warnford* Was it necessary to consider a collateral warranty for anything?

Answer 18

No

Question 19

Unit 15 Warnford* How were the valuation dates set in the contract?

Answer 19

Fortnightly.

Question 20

Manor Joinery* Why as an intermediate contract used for this project?

Answer 20

The works were quite complex and the contract sum was above 500k – contractor also designed the works and client wanted sectional completion.

Question 21

Manor Joinery* What was included in the employer’s schedule of amendments?

Answer 21

Contract amendments were- retention release should not be released to half on PC until all H&S/o&Ms are received.
Insurance option B is used for new builds rather then Option A.

Question 22

Manor Joinery* What was the contractor’s design portion for?

Answer 22

Design of the CCTV and mechanical works.