1
Q
What is the difference between JCT 2016 suite and JCT 2024?
A
- Recognizing electronic signature
- Relevant event recognition for epidemic
- Modernised Language - removed previous terminology referring to ‘he/him’ and instead refers to ‘the contractor’.
- Collaborative working - Optional provisions such as collaborative working are now inserted into the main body of the contract
- Principle Designer / Contractor - Alongside the appointment of a principle designer and contractor under CDM. Building regulations 2022.
2
Q
What is a contract administrator
A
- A CA is the person who is responsible for administrating a contract and managing the contractual procedures after the contract has begun.
3
Q
What is the role of a CA
A
Precon:
- Aid prep of contact docs
- inviting and processing tenders
- aiding tender analysis and negotiation
- Preparing contract documents for execution
Postcon:
- issue of certs - payment notices, PC, Sectional completion
- Seeking approval for and issuing instructions such as variations
- Considering claims for L&E, EOTs
- Chairing meetings
- Defects schedule and making good
4
Q
What is an Employer’s Agent
A
- The EA is appointed by the client to act on their behalf on all matters relating to the project expect for those the client states otherwise. A D&B
- Contractor will work with the EA as if they were the client themselves
- Can be anyone but typically a project manager
5
Q
What is the role of the EA
A
- Only official when contract starts
- EA is only under a D&B contract
Similar role to a CA
6
Q
What is the difference between a CA and EA
A
- Both appointed by the client to oversee the contractual procedures on a project once a contract has been executed.
- A CA is under traditional procurement route (SBC, IC, MW)
- An EA is only for design and Build
- A CA is to act impartially, where as an EA is acting on behalf of a clients best interest
7
Q
What are the different JCT Suites of Contract
A
1) Standard Building Contract
2) Minor Works Contract
3) Intermediate Building Contract
4) Design and Build Contract
5) Major Project Construction Contract
6) Construction Management Contract
7) Management Building Contract
etc…
8
Q
What are the different types of the standard building contract
A
- With Quantities
- Without Quantities
- Approximate Quantities
9
Q
What Key project characteristics influence which JCT is used
A
- Size, vale and type of project
- need for contractor design
- Certainty on final cost
- Risk appetite and transfer
- Employers experience
- Programme requirements
10
Q
When would you use a JCT Minor Works Contract
A
- Projects that are short duration, small and simple
- RICS guidance is for a value up to £200,000 but it has to be simple
- It’s a short and easy to follow contract
- Lump sum form, design should be complete
- Employer provides specification
- Not suitable for bill of quants
11
Q
When would you use a JCT Intermediate Contract
A
- Recommended for a project that does not exceed a year duration
- For projects that are simple in content, require basic skills and trades that are not complex and design is already complete
12
Q
When would you use a JCT Standard Building Contract WITH Quantities
A
- Work has already been designed by the employer. Provision in the contract for CDP.
- There is a bill of quantities
- Lump Sum Costing
- Contractor’s risk is to price only
- Employer takes the risk of errors in the bill
13
Q
When would you use a JCT Standard Building Contract WITHOUT Quantities
A
- Work has been designed prior to contract but there is no bill
- Contract includes drawings, specification and schedule of rates
- Lump sum contract
- Contractor’s risk includes both price and quantity
14
Q
When would you use a JCT Standard Building Contract with approximate quantities
A
- This is a remeasurement contract
- There is no contract sum
- used when design is not complete at time of execution
- Prepared an approx. bill
- Construction commences before design is finished
15
Q
When would you use a JCT Major Works
A
- Projects that are significant in both size and quantity
- Generally for clients with their own contractual procedures
- Work is generally carried out by contractors with experience and ability to take greater risk than would arise under other JCT’s
16
Q
When would you use a JCT Design and Build
A
- When the contractor is responsible for design and construction
- Similar complexity to standard building contracts
- The contractor’s proposals form the basis of contract
- No mention of an architect or QS. Employer uses a EA to administer contract
- Works in sections
17
Q
What does NEC Stand for
A
- New Engineering Contact
18
Q
When would you use a New Engineering Contract
A
- Civil Engineering and large infrastructure projects
19
Q
What are the different contract options under New Engingering Contracts
A
Option A: Priced Contract with activity schedule
Option B: Priced contract with bill of quantities
Option C: Target Contract with Activity Schedule
Option D: Target Contract with Bill of Quantities
Option E: Cost reimbursable contract
Option F: Management Contract
20
Q
What is a bill of quantities
A
A Bill of Quantities is a detailed document to itemize everything needed to complete the work.
21
Q
What are the main differences between NEC and JCT Contracts
A
- NEC is written in common English, and meant to be easier to understand
- NEC does not have provisional sums
- The programme is a contract document in NEC, not in JCT
- Provisions for payment in NEC are located in 3 different sections whereas payment under JCT is said to be clearer and is in one section (section 4)
- JCT contracts have relevant events (for EOTs) and relevant matters (for L&E) as separate
- NEC has compensation events which deals with both time and money (so effectively relevant events and matter combined)
- NEC has provision of early warning procedure and risk register - JCT does not
- No final account process in NEC
22
Q
What are listed items
A
- items listed in the contract particulars and will be subject to materials off site payments
- There cannot be payments for materials off site if these materials are not included in the contract as a listed item
23
Q
Where can you find the procedure for materials off site
A
- Section 4 - Payment - Clause 4.16 - Listed items
24
Q
How do you value materials off site
A
- Need to be listed item in contract
- vesting certificates
- Properly labeled, name of employer and delivery address to be shown
- Insured premises
- Not damaged
- ready for incorporation
- stored and protected adequately
25
What is a relevant event
Relates to an extension of time
26
What is a relevant matter
Relates to loss and expense
27
What's included in a final account
- CSA
- Adjustments of prime costs
- Adjustments of prov sums
- Variations
- Claims
- fluctuations
28
What's the effect of a final account
- Evidence of amount due
- end ability to ask for loss and expense
- Claim an EOT
- Claim variations
- Workmanship and materials is deemed acceptable
29
What is a variation
Any alteration to the design, quality and quantity of the contract works.
30
What is the contract procedure for variations
Section 5 - Variations (Know as Section 5 - Changes in D&B)
31
What is section 5 of a standard JCT Building contract
Section 5 is called ‘Variations. It ultimately provides details on
- The definition of a variation
- How variations are priced
- The valuation rules
- Variation quotations
- Day works
32
What is the definition of a change in a D&B contract
Essentially the same as a variation, but the term ‘change’ means a change in the employer’s requirements which makes necessary the alteration or modification of the design, quality or quantity of the works
33
How do you price variations
- Agreement between Employer and Contractor
- Variation Quotations
- Valuation Rules
34
What are the valuation rules
- Use contract rates for same items
- Use contract rates for items of similar character
- Fair rates and Prices based on market quotations
- day works
35
What are the key components of a legally binding contract
- Offer, acceptance, consideration, intent, competence and legality
36
In the JCT Contract, what insurances are included
Insurance Option A - Contractor takes out insurance under joint names
Insurance Option B - Employer Takes out insurance under joint names
Insurance Option C - When building works are being undertaken to existing structures, Employer arranges insurances on behalf of the contractor to cover risks and damages to existing structure and specified perils.
37
Explain Insurance Option C of the JCT in more details
- Option C relates to works to existing structures
- Taken out by the employer in joint names
- New works insured for all risks
- existing structure only for specified perils
38
What are specified perils
- Specified perils are significant events that would cause very significant damage to the works
- fire, explosions, earthquakes
39
What is a joint names insurance policy
- Policy is in the name of two or more parties (Contractor and Employer)
- Under a joint names insurance the insurer has no rights to subrogation
40
What is subrogation
- A principle where the insurer takes over the legal rights of another to recover losses
- Insurer pays for the loss, then sues the party that caused it to recover the loss
41
What is a waiver of subrogation
- Letting go of the rights to sue
- It is a clause in the contract where one party agrees to not allow their insurer to pursue action against the other party to recover costs for loss that's covered by the insurer
42
What is a collateral warranty
- A collateral warranty is an extension of the contract terms to a party otherwise not subject to them
43
Why is a collateral warranty important
- bridges the contractual gap
- safeguards financial interests
44
What is the latest Suite of NEC
- The latest suite of NEC is NEC4 which was released in 2017
45
Differences between NEC 3 and NEC 4
- Language update: Replaces employer with Client, general neutral language
- New Contract types such as D&B and operate contract for long term infra projects
- Clearer layout and clause organization: Reorganizes sections for better readability
APC
flashcards
Decks in class (19)
# Cards
-
Contract Practice45
-
Procurement and Tendering34
-
Construction Tech and Environmental Services44
-
Design Economics and Cost Planning43
-
Project Finance (Control and Reporting)19
-
Quantification and Costing26
-
Risk Management46
-
Sustainability38
-
Ethics, rules of conduct and Professionalism58
-
Client Care19
-
Communication and Negotiation11
-
Health and Safety14
-
Accounting Principles and Procedures8
-
Business Planning40
-
Conflict Avoidance, management and dispute resolution29
-
Data Management17
-
Diversity, Inclusion and teamworking15
-
Inclusive Environments14
-
RICS in General12
