1
Q
What is included within the contract documents for a project?
A
- Building Contract, Articles of Agreement
- Schedule of Amendments
- Design / Drawings
- Employer’s Requirements / Contractor’s Proposals (if relevant – D&B/CDP)
- Contract Sum Analysis
2
Q
Who are the key parties involved in construction contracts?
A
Employer
Contractor
Contract Administrator (Standard Building Contract)
- Expected to maintain impartiality whilst administering
- Contractor must comply with their instructions
Employer’s Agent (Design and Build Contract)
- Contractor must comply with their instructions
Quantity Surveyor
- SBC: Party to the contract
- DB: Not party to the contract but expected to maintain impartiality if involved in administering/
3
Q
What is the role of the QS in construction contracts?
A
- Value variations
- Ascertain loss and/or expense
- Carry out interim valuations
- Prepare the final account
4
Q
What is the Contractor’s obligations in construction contracts?
A
The contractors obligations are identified in clause 2.2 of the JCT SBC and clause 2.1 of the JCT DB contract.
- Complete and carry out the works in a proper and workmanlike manner
- All materials and goods are of the standard described in the specification / Employer’s Requirements.
- Give all notices required by the Statutory Requirements and comply.
5
Q
What is the clients obligations in construction contracts?
A
- Payment of the contractor on time
- Do not disturb the contractor from working with reasonable skill and care.
6
Q
What are the five key elements for contract formation?
A
- Offer
- Acceptance
- Consideration
- Capacity & Competence
- Intention to Create Legal Relations
7
Q
How are construction contracts executed and what are the main differences?
A
- A contract can be executed as a deed or under hand.
- The principle difference is the party’s liability period for breach of contract.
- 12 years if executed as a deed, 6 years if executed under hand.
8
Q
What is a standard form of contract?
A
- Set of formal, pre-determined arrangements and mechanisms that form the basis of agreement between parties.
9
Q
What are the typical amendments made to standard forms of contract?
A
- Transfer risk to the contractor by reducing the list of relevant events / matters
- Final date for payment due to contractor lengthened, from 14 to 21.
- Deadline to issue a Payless Notice
10
Q
What are the types of contract under traditional procurement?
A
Lump sum contracts
– Contractor agrees a fixed price based on completed design (most common).
Measurement contracts
– Final account based on measured quantities (e.g. bills of quantities).
Cost reimbursement contracts
– Contractor is paid actual cost plus a fee (used where scope is uncertain).
Target cost contracts
– A target price is agreed with pain/gain share mechanisms.
11
Q
What are the types of contract under design & build procurement?
A
- Turnkey Contract, Where the Client settles on a complete package (ready to move in) to a specification of a commercial firm.
- Design & build contract, Employer’s requirements will be written stating the Contractor’s design obligations for the whole of the works.
12
Q
What is the difference between JCT and NEC contracts?
A
- NEC references compensation events as events which may entitle a Contractor to claim both additional time and additional costs, whereas JCT differentiates Relevant Events and Relevant Matters.
- JCT contains provisional sums whilst the NEC does not.
- The activity schedule is a key contractual document of the NEC and is to be updated regularly.
13
Q
When is the JCT SBC used and who is responsible for administrating the contract?
A
- Designed for use when traditional procurement route has been chosen.
- CA and QS administer the performance of the contractual obligations.
14
Q
What are the types of contract under the SBC?
A
Standard Building Contract with Quantities
- Fixed price lump sum contracts with monthly interim payments.
Standard Building Contract without Quantities
- Contract Sum Analysis completed by Contractor defines the work.
Standard Building Contract with Approximate Quantities
- Re-measurement contracts are used in situations where the design/type of works can be described in reasonable detail but the amount cannot be given
15
Q
What is a SBC with contractors design portion?
A
- Option that allows the employer to require the contractor to design discrete parts of the works but not whole majority (otherwise DB might be more appropriate).
16
Q
When is the JCT Minor Works contract used and who is responsible for administrating the contract?
A
- Designed for use when traditional procurement route has been chosen.
- Used on smaller, lower value, more basic, shorter programme construction projects.
- Architect/CA and QS administer the performance of the contractual obligations.
17
Q
What are the types of contract under the the Minor Works Contract?
A
Minor Works Building Contract
- Fixed price lump sum contract with interim monthly payments
- Employer must provide a pricing document, drawings and specifications to specify the quantity and quality of work
Minor Works Building Contract with Contractor’s Design
- Employer must detail the requirements for the parts of work that contractor is responsible for designing.
18
Q
When is the JCT Design & Build contract used and who is responsible for administrating the contract?
A
- Designed for use when design and build procurement route has been chosen.
- DB projects can vary in scale but are generally suitable where detailed provisions are needed.
- The EA administers the performance of the contractual obligations.
19
Q
What are the Employer’s Requirements in a DB contract?
A
- Details what the employer requires from the completed project and the required level of design responsibility from the contractor.
- Scale of design work can vary: contractor may be required to complete the design produced by a design team or they might be required to carry out all of it.
20
Q
What are the Contractor’s Proposals in a DB contract?
A
- Design prepared in response to employer’s requirements.
- Set out their proposals for designing and constructing the project, along with their price.
21
Q
What is Novation?
A
- Parties may agree that the design team initially engaged by the employer should be transferred from the employer to contractor to complete the design
- DB contract will require amendments as the standard contract does not provide provisions for novation.
22
Q
What are the key differences between standard building contracts and DB contracts?
A
- Full design at tender stage with a SBC, whereas a DB could range from simple set of ER’s to full design.
- Client retains control over design in SBC so quality is perceived to be higher.
- CA in a SBC and EA in DB.
23
Q
What are the Recitals under JCT contract suites?
A
- Recitals contextualise the agreement, giving factual explanations for the basis of the contract.
- The Recitals include:
24
Q
What are the Articles under JCT contract suites?
A
- The Articles set out what is agreed between the parties.
- The Articles include:
25
What are the Contract Particulars under JCT contract suites?
- Sets out the aspects of the contract that are specific to the project.
- For example the retention, completion dates and insurance requirements.
26
What are the Attestation under JCT contract suites?
- The attestation is the process of confirming that something is correct or genuine.
- This is how the contract is executed, either under hand or as a deed.
27
What are the Supplemental Provisions under JCT contract suites?
The Supplemental Provisions ensures the specific project requirements or risks are addressed.
They can include:
28
Who is the contract administrator and what is there role?
- Appointed by the Client to act on their behalf and responsible for administering the construction standard contracts.
- Role can include forming Contract Documents, Managing contract changes and monitoring the progress of works
29
Who is the employers agent and what is there role?
- An employers agent acts on behalf of the client as the contract administrator for design & build contracts.
- Issuing instructions, Managing change control procedures, Reviewing the progress of the works and preparing reports for the client.
30
What is deferment of possession under SBC clause 2.5?
- Stated in the CPs that the Employer may defer giving possession without the consent of the Contractor.
- If possession is deferred, the Contractor may claim an EoT and direct loss and/or expense.
31
what is a letter of intent (LOI)?
- Expression of the intention to enter into a contract at a future date.
- Does not create a contractual relationship but where there are good reasons to start work in advance of formalising the contract.
32
What is early use by the employer under SBC clause 2.6?
- Contractual mechanism whereby the Employer may, with the Contractor’s consent, use or occupy the site/part of the site before the date of issue of the Practical Completion.
33
What is section completion under a SBC?
- Express term of the contract that allows different dates for Practical Completion to allow the Client to take possession of the completed parts of the site whilst construction continues on the others.
34
What is the difference between partial possession and section completion?
- Sectional Completion is stated in the Contract Particulars however partial possession relies on the contractor’s agreement to allow the employer to take possession.
35
What is acceleration?
- To increase the planned or current rate of progress in order to complete the project earlier than would otherwise be the case.
36
What is Extension of Time under SBC clauses 2.27-2.28?
- A mechanism by which a contractor requests a longer period than had been contractually agreed in order to complete the building works.
- The contractor must give written notice to the CA identifying the relevant event that has caused the delay.
37
What are the relevant events?
Situations which entitle the Contractor to an Extension of Time.
- Variations/Instructions
- Deferment of giving possession of the site
- Employers failure to perform his obligations
- Force Majeure
- Adverse Weather
- Strike/Lock-out
- Civil Commotion
38
What is meant by the term ‘Time at Large’?
- Contractor is no longer obligated to complete the works by a particular date.
- Contractor would be expected to complete the works in a "reasonable timeframe" however what is reasonable is decided on a case by case basis.
39
What are reasons for 'Time at Large’ arising?
- When the employer causes delay but the contractual completion date cannot be enforced
- Usually due to Employer prevention or failure to operate the extension of time mechanism
- Leaving the contractor to complete within a reasonable time.
40
What is the rectification period?
- Time when the contractor may be recalled to rectify defects which appear following practical completion.
- Typically 12 months is stated to encounter all seasons. CPs state that 6 months applies if no other length is stated.
41
What is retention within a contract?
- Percentage of each interim certificate that is deducted to be retained by the employer as a safeguard against defective work or materials provided by the Contractor.
- Provides an incentive for the contractor to complete the works promptly by ensuring defects is rectified.
42
What is the standard retention percentage and when is it released?
- Under a SBC and DB contract the retention is 3% unless otherwise stated.
- Half retention is issued back when a Practical Certificate has been issued.
- The remainder is released when the rectification period or defects liability period has expired, typically 12 months.
43
What is the contract sum?
- Price agreed by the Employer to pay the Contractor to carry out the works.
- Entered into the contract at Article 2.
44
What is the base date within a contract?
- A 'base date' within a contract is a reference date from which changes in conditions can be assessed.
45
What are stage payments (Alternative A) under DB clause 4.7.1?
- Payment of agreed amounts on agreed dates or milestones.
- The Work stages will be identified in the Contract Particulars.
46
What are interim payments (Alternative B) under DB clause 4.7.1?
- Contractor submits an application for payment and the work is valued by the QS based upon the value of work executed by the Contract by that date.
- This is a Default option (DB). Only option (SBC).
47
What are the reasons for interim payment?
Under HGCRA 1996 any contract in excess of 45 days is entitled to interim/stage payments.
- To relieve the Contractor of the burden of financing the whole of the works until completion.
48
What are the timescales for interim payment?
- under a SBC the Interim Valuation Date is stated in the Contract Particulars.
- If no date is stated, the first Interim Valuation Date is one month after the Date of Possession
- Each Interim Valuation Date is the same date in each month or the nearest business day in that month
49
What must the contractors payment application include?
- Gross valuation and net valuation
- Details showing how the sum has been calculated
- Deduction of retention
- Deduction of advanced payments
- Deduction of the sum of previous certificates and any other payments since.
50
What is an interim valuation?
- Total value of the work executed, materials on site and any other amounts payable under the contract.
- Made by the QS to provide advice to the certifier (CA/EA) for the issue of interim certificates and payment notices.
51
Describe the QS assessment process after receiving the contractors interim application?
1. Ascertain works are in accordance with the contract
2. Make a fair assessment of the value of the works carried out.
3. Ascertain valuation ensuring any deductions required are accounted for
4. Check valuation (comp check)
5. Assemble associated documentation (issue letters for the Employer and Contractor)
6. Issue recommendation to CA/EA
52
When conducting a valuation, what are the key areas that are to be assessed within the application?
- Preliminaries
- Main contract works
- Materials on-site
- Materials off-site
- Agreed variations
- Retention
53
What is the due date within a contract?
- Due date is the target date by which the QS must make their interim valuation recommendation
54
What is the interim certificate?
- Provides a mechanism for the client to make payments to the contractor before the works are complete.
- Issued by the CA/EA to both the Contractor and Employer and QS. Must be issued within 5 calendar days from the due date.
55
What is the final date for payment?
- Date by which the Employer must pay the Contractor the amount stated in the Interim Certificate.
- The period of 14 days from the due date for the final date for payment can be amended. This is because it is prescribed by the Contract and not by statute.
56
What is a pay less notice and when might it be issued?
- A method of notifying the other party that they intend to pay less than the sum stated on the interim certificate or interim payment notice.
- can arise if works have not been constructed in accordance with the contract.
57
What are the valuation rules within a contract?
- Valuation rules apply to all works instructed by the CA/EA, all variations and any expenditure of provisional sums
- Works can either be valued based on measurable works or day works dependent on the nature of the variation
58
What are the valuation rules for measurable works?
There are three rules for measurable work:-
- If it is of a similar character, quantity and in the same conditions as existing work, then the bill rates should be used.
- If it is of a similar character, but different quantity or conditions, the bill rates should be used as a basis but a fair allowance should be made to take account of the difference.
- If it is not of a similar character, fair rates and prices should be used.
59
What are the valuation rules for dayworks?
- Used when variations cannot be valued in another way.
- Valued based on the prime cost of carrying out the works at the current base date including any additional percentages as identified in the Contract Particulars
60
What is loss and expense?
- L&E reimburses the contractor for direct loss and/or expense incurred in carrying out additional work or from an employer’s breach of contract.
61
What are Relevant Matters under JCT Forms of Contract?
- Events listed in the Contract that entitle the contractor to loss and/or expense
62
What are the relevant matters?
- Variations.
- Instructions.
- Suspension by the contractor for non-payment.
- Any impediment or default by the employer.
63
What are the common heads of claim in loss and expense applications?
- Prolongation.
- Increasing of preliminaries.
- Increases in labour or material costs
- Loss of profit.
64
What is the final account and who is responsible for it?
- Mechanism for the final payment to be made to the contractor on completion of the works described in the contract.
- Employer’s Quantity Surveyor assesses the final account and recommends a figure to the CA to include within his final certificate.
65
What are the typical headings included in a final account statement?
- Agreed Contract Sum
- Variable costs i.e. provisional sums, daywork
- Contract Instructions.
- Loss and Expense.
- Risk Allowances.
66
What is a breach of contract?
- If one of the parties to a contract fails to perform as required by the contract, this may constitute a breach of contract.
67
What are the three types of a breach of contract?
Minor Breach = Less serious breach where the innocent party may claim for damages but not consider it is discharged from further obligations under the contract
Material Breach = Serious breach where the innocent party might claim damages and also consider that it is discharged from any further obligation under the contract
Repudiatory Breach = Where one party behaves in such a way that it indicates it no longer intends to accept its obligations under the contract therefore the innocent party can claim damages and terminate the contract
68
What are liquidated Damages (LDs)?
- Genuine pre-estimate of loss suffered by the Employer as a result of non-completion.
69
What are the rules regarding LDs and how are they calculated?
- LD's cannot be punitive (a penalty to the Contractor), must be a realistic pre-determination of the actual loss the Client is likely to incur.
- Generally incurred on a daily or weekly basis.
- QS not qualified or insured to calculate LDs but can inform of what they are and the principles / considerations of their calculation
70
What are the advantages of LDs?
- Limit liability of the Contractor to a known amount and act as an incentive for completion.
71
What are the grounds for termination of a contract by an employer under a SBC?
Default by the Contractor (contractor suspends carrying out the works/doesn't comply with CDM)
Insolvency of the Contractor
Corruption of the Contractor (Under Bribery Act 2010, Applies to any Contractor or any person employed by him)
(Section 8)
72
What are the grounds for termination of a contract by a contractor under a SBC?
Default by Employer (non payment)
Insolvency of the Employer
Interference with certs
(Section 8)
73
Which insurance provisions are expected under SBC clause 6.4?
The contractor is expected to have insurance against personal injury and property damage. This is usually satisfied by:
- Public liability Insurance – covers the liability for damages arising from injury to third parties or damage to their property in connection with the project.
The Contractor must, on demand, provide evidence of the policy. Amount is expected to be at least the value of the project
74
Under SBC clause 6.5 what is the insurance of liability of Employer?
- It requires insurance to be arranged, in the joint names of the employer and contractor, to protect the employer from legal liability for injury or property damage – other than damage caused by negligence
- Cover to protect in the case where the Contractor has taken all reasonable measures to prevent the event from occurring but it does arise.
75
What are the insurance options under SBC clause 6.7?
Option A: New Buildings – All Risks Insurance of the Works by Contractor.
Option B: New Buildings – All Risks Insurance of the Works by Employer.
Option C: Refurbishments – Joint Names Insurance by the Employer of Existing Structures and Works in Extensions to them.
C.1 Replacement Schedule
76
Give an example where insurance Option A might be used?
- For use on a new build project where the contractor is required to take out the insurance for the works.
- E.g. they undertake a lot of construction work and so can add it onto existing policies at a low premium.
77
Give an example where insurance Option B might be used?
- For use on a new build project where the employer elects to take out the insurance for the works.
- E.g. they undertake a lot of construction work and so can add it onto existing policies at a low premium.
78
Give an example where insurance Option C might be used?
- For use where the construction work is going to take place within an existing structure. This will include fit-out or refurbishment works.
79
Give an example where C1 replacement schedule might be used?
- The party carrying out the works is not the building owner and therefore doesn’t have existing structures insurance (E.g. tenant of a multi-storied building & it's the landlord’s responsibility to take out insurance)
- The schedule can specify alternative insurance arrangements, such as using the contractor's public liability insurance.
80
What is professional indemnity insurance under SBC clause 6.15 and why is it required?
- Taken out by anyone providing design and the Contractor if he provides CDP/DB.
- Various members of design and construction team will have their own insurance policy to indemnify them against liability for professional negligence.
81
What is the joint fire code and when would it apply?
- Sets out a series of provisions and standards to minimise the risk of accidental or malicious fires on site.
- Not mandatory however is stated within clause 6.17 to state whether or not it applies.
82
What are collateral warranties?
- A collateral warranty creates a contractual relationship where otherwise one would not exist.
- Provide for a duty of care to be extended by one of the contracting parties to a third party who is not party to the original contract.
83
What are bonds in construction contracts?
- Bonds are a means of protection against the non-performance of the contractor.
- They are an undertaking by a bondsman or surety to make a payment to the client in the event of non-performance of the contractor.
84
What are on-demand bonds and conditional bonds?
- On-demand bond entitles the beneficiary to call upon the surety for payment whether or not there has been any default by the contractor under the principal contract.
- Conditional bond is where the employer must prove evidence that Contractor has not performed obligations and that they have suffered a loss as a consequence.
85
what is a performance bond?
- Means of insuring an Employer against the risk of a Contractor failing to fulfil contractual obligations.
- In the case of Contractor insolvency the bond finances the Employer to re-tender or negotiate to get another Contractor on site.
86
What is a parent company guarantee?
- Provided by a contractor's parent company in connection with the contractor's obligations.
- Can be preferable to performance bond considering there is no additional fee and also the parent company will step in to do the works rather than money and hassle of claims.
87
What is the difference between an EA and CA?
- EA in D&B and CA in standard contract.
- The employer's agent represents the employer and manages the overall project, while the contract.
- Administrator focuses on overseeing the contract between the employer and the contractor.
88
What are the different NEC contract options?
NEC3 Engineering and Construction Contract (ECC):
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
89
What is the difference between Novation and Assignment?
- Novation involves a complete transfer of rights and obligations to a new party.
- Novation results in a substitution of parties.
- While assignment involves transferring specific rights or benefits to another party while retaining the original party's contractual obligations.
- while assignment allows for the sharing of rights between parties.
90
What is the difference between a notice and a certificate?
A notice informs, whereas a certificate confirms an entitlement under the contract.
91
What is standard retention amount in a MW contract?
5%
92
What is the difference between the CA & QS role?
CA: Manages the building contract. Roles: *Assess extensions of time *Certify payments *Manage change control processes *Act fairly between employer and contractor under JCT QS: Manages the cost and commercial side. Roles: *Ascertain loss and/or expense *Carry out interim valuations *Prepare the final account *Prepare cost plans, advise on procurement, carry out tendering, manage change control, value variations, assess costs, and ensure the project stays within budget.
93
JCT 2024 Updates?
*Electronic notices & e-signatures now fully allowed. *New “Relevant Events” & “Relevant Matters” (grounds for extension of time / loss & expense) include: epidemics (labour/materials disrupted), publication of new guidance or law, discovery of asbestos/contaminated material/unexploded ordnance. *Collaborative working and sustainability/environmental obligations *Gender-neutral language throughout *The Building Safety Act 2022 introduced a new role of dutyholder in relation to the Building Regulations. *Employer obligations on assessing delay added - 14 days to request further information, 8 weeks to review & award.
94
Sectional Completion - what happens with insurance?
When a section achieves Sectional Completion, insurance responsibility for that section shifts in the same way it would at Practical Completion for the whole works.
95
You granted an EOT on Addison Road, what relevant events did these fall under?
Adverse Weather
96
How did you determine that the weather was in fact adverse?
Compared the actual weather data during the delayed period with the 10-year historical averages for that specific location (from the Met Office). Under JCT, weather is considered adverse when it is exceptionally severe compared to long-term norms.
97
How did you assess the EOT on Addison Road?
Assessed weather by comparing actual data vs 10-year Met Office averages and checking critical path impact → met JCT threshold for adverse weather. Checked train strike against JCT Relevant Events → not applicable as it didn’t involve trades on the works or material supply chain → contractor’s risk.
98
What are reckoning of days?
Where the period would include a day which is a public holiday that day shall be excluded.
99
What was on your Eot?
*Reference to the Contract *Original completion date *Date notice was received & basis of the claim *Relevant Events assessed *Number of days granted (or refused/partially granted). *The revised Completion Date. *Signature and date.
100
How do the payment provisions on D&B compare with traditional?
The same dates, but in D&B if the internal payment application is received later than the IVD, the due date shall be 7 days after the date of receipt by the employer.
101
Explain how you deal with materials on site?
See them, labelled, separate to others, insurance & vesting.
102
On Addison Road, what did you advise the client in terms of Materials off site?
advised the Client that we should not release funds until the Contractor had suitably met their obligation under the contract to release payment for these materials.
103
Explain your advice of contract selection on Victoria Rd?
JCT SBC selected - due to the complexity and scope of the works.
104
What is the difference between Standard Building Contract & Intermediate?
SBC is for larger and more complex projects, IC is for medium-sized projects of less complexity, SBC has more details e.g. relevant matters list.
105
What is the difference between Standard Building Contract & Minor Works?
MW for work that is simple in character, it doesn't have provisions for names specialists or a detailed EOT/L&E procedures.
106
Please explain a collateral warranty schedule?
A collateral warranty schedule sets out who must provide warranties, to whom, and on what terms, ensuring third parties have direct contractual rights against the contractor or designers.
107
What is a target cost contract?
A target cost contract is a form of contract where the price is agreed as a target, not a fixed lump sum. The Employer wishes to incentivise the Contractor by the use of a Target Cost and difference sharing arrangements.
108
What is CDP?
Contractors Design Portion - where design responsibility is transferred from the employer/designer to the contractor.
109
When do you use CDP?
For specialist packages that requires specialist design input from the contractor.
110
Examples of CDP Items on your projects?
M&E, Lifts, Sprinkler Systems.
111
How do you value change?
Using CSA rates as a first basis if it is directly applicable, if the work is similar but not identical, adjust them, if not, build up a fair and reasonable cost.
112
What is the rectification period?
The rectification period is a period following Practical Completion during which the contractor must return to make good any defects.
113
What are advance payment bonds?
An advance payment bond is a financial guarantee provided by a contractor (usually via a bank or surety) to protect the employer when an advance payment is made before work or materials are delivered.
114
When do you levy damages?
Non Completion Cert → Notice to levy damages → Pay Less Notice.
115
What are the design submission stages?
Status A – Fully approved: the contractor can build exactly to it. Status B – Approved with comments: the contractor can build to it once comments are included and a revised copy is resubmitted. Status C – Not approved: the contractor must revise it and resubmit or formally respond to the CA; it cannot be built from yet.
116
What is CDP interface?
Boundary between the Employer’s design and the CDP, defining who is responsible for which elements of the design and how those elements connect.
117
When is the due date of the final payment?
2 months after whichever occurs last; end of rectification period, date of issue of certificate of making good, date the CA sends to the contractor copies of the statement.
118
What is a demarcation schedule?
A demarcation schedule is a document that clearly sets out the scope boundaries and responsibilities between different parties.
119
What are the consequences of a late payment?
Statutory interest becoming payable on the late amount. The contractor gaining the right to suspend the works after giving proper notice. Potential entitlement to loss and expense arising from suspension.
120
Order of contract signing?
1. Employer signs first 2. Contractor signs second 3. The contract is then dated, making it legally binding.
121
How long can you defer site possession?
6 weeks, or lesser.
122
What if you defer for longer than 6 weeks?
Considered suspension, 2 months maximum (unless specified in CP's) Following this, you could mutually decide to extend, or ground for termination.
123
How you respond to a default?
The non-defaulting party serves a written notice specifying the default. 14 days to remedy the default, if not solved a second notice issued to terminate the contract.
124
Why issue a payment recommendation & certificate?
The recommendation advises the Client; the certificate gives contractual effect and starts the payment timetable.
125
What do you do if works are not in accordance with the contract?
Its value can be adjusted or excluded from payment until it is remedied to the required standard.
126
What percentage of interest can be applied on late payments?
Interest on late payment under JCT is typically charged at 5% above the Bank of England base rate.
127
What does part there of mean?
One extra day into a new week counts as a full week for charging LD's.
128
Can you make repayment of LD's?
LDs must be repaid if it is later established that the Contractor was entitled to an EOT.
129
What are specified perils?
Defined risks listed in the JCT contract that relate to insured events causing loss or damage to the Works.
130
Specified perils examples?
Fire Lightning Explosion Storm Flood Escape of water from tanks, pipes or apparatus Riot and civil commotion Malicious damage Impact by aircraft or vehicles.
131
If the works are damaged by specified perils, what happens?
Where damage occurs due to a Specified Peril, the contractor is usually required to reinstate the Works, but the cost is recoverable through insurance proceeds.
132
What happens with LD's if you do partial possession/sectional completion?
With partial possession, LDs are reduced to reflect the part taken over, whereas with sectional completion, LDs apply separately to each section until it achieves practical completion.
133
What is All Risk insurance?
All Risks insurance covers physical loss or damage to the Works from any cause unless specifically excluded, and under JCT it must be taken out for no less than the full reinstatement value of the Works to ensure the project can be fully rebuilt if damage occurs.
134
What is the Joint Fire Code?
The Joint Fire Code provides best-practice guidance to minimise fire risk on construction sites and is commonly required by insurers.
135
What is a 'Large Project' under the Joint Fire Code?
£20m+
Often mandated by insurer
136
What are uniquely identified items?
Bespoke items specifically identified for the project and are clearly marked & set aside.
137
Uniquely identified items bond?
Where payment is made for uniquely identified items that are off-site or not yet fixed, the Employer will typically require a materials bond or vesting certificate.
138
What do you do if a contractor goes insolvent?
Inform the client, confirm insolvency, secure the site, terminate the contract, assess the final valuation, manage completion.
139
What are some completion strategy options in the event of contractor insolvency?
Re-tender the remaining works, negotiate with a replacement contractor, directly appoint subcontractors, novate existing subcontracts.
140
When would you use a retention bond?
On large or long-duration projects Where the contractor has strong financial standing Where the Employer and Contractor have an established working relationship, and the Contractor offers a commercial incentive.
141
When would you use an advance payment bond?
Where large upfront costs are needed Where long lead-in items must be procured early On overseas or high-risk supply chains.
142
Delay notice process?
The contractor should give notice of delay as soon as possible, QS/CA should request further information within 14 days of receiving EOT request, extension should be granted/rejected within 8 weeks (previously 12 weeks).
143
What if EOT is right before PC?
You can make an interim award.
144
What documents are required at PC?
H&S file, BC sign off, O&Ms, Testing & Commissioning.
145
When would you not pay a terminated contractor their due money?
Liquidated damages or other contractual deductions apply.
146
Signs of insolvency?
Management on site Front Leading Inflated Vals.
147
D&B notices?
Payment Notice Pay Less Notice Notice of Delay.
148
What are expressed and implied terms?
Express terms are expressly agreed between the parties, while implied terms are added by law or necessity to make the contract work.
149
Timelines for CDP sign off?
14 days from submission to comment status.
150
What if the architect doesn't respond to a CDP design item?
If there is no response it is marked as A.
151
Why is insurance in joint names?
The insurance covers the contractors works that are owned by the employer.
152
What is the contractor doesn't return in the defects period?
The Contract Administrator may instruct others to carry out the remedial works, and use the retention.
153
Why is adverse weather a relevant event but not a relevant matter?
It is neither the contractors or clients fault.
154
What are FIDIC contracts?
Internationally recognised standard forms of construction contract published by the Fédération Internationale des Ingénieurs-Conseils, commonly used on international and civil engineering projects
155
What dispute resolution methods are mentioned in the JCT Standard Contract?
Mediation, Adjudication & Arbitration
156
How does the QS role change between D&B and traditional contracts?
Preparation of ER's vs Pricing Document
157
What is included in a set of ER's?
Employer’s objectives & brief
Technical requirements
Drawings & information
Scope of works
Design responsibility
Programme requirements
158
What is a key risk in D&B?
If the ER's aren't comprehensive the works can not be up to standard and the contractor has opportunity to try to make savings
159
When would you use a re-measurement contract?
Urgency to get on site. No time to agree quantities. But a lack of cost certainty
160
What are included in the contract particulars?
Key Personnel
Dates (start & completion)
Damages
Retention
161
What are fluctuation provisions?
Clauses that deal with changes in labour, materials, and certain statutory costs after the contract is entered into, allocating inflation risk between the employer and the contractor.
Option A: No fluctuations – contractor bears all risk
Option B: Adjustments using published indices
Molly - APC
flashcards
Decks in class (23)
# Cards
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Mandatory COPY191
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Project Finance36
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Quantification & Costing34
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Risk Management18
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Contract Administration12
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Random Q&A Practice60
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Design Economics & Cost Planning65
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Procurement & Tendering90
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Case study59
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CONSTRUCTION TECH 142 Q148
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Construction Tech MO83
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Contract Practice161
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Ethics, rules of conduct and professionalism50
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Client care22
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Communication & Negotiation13
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Health & Safety25
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Accounting principles and procedures11
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Business Planning9
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Conflict avoidance, management and dispute resolution procedures21
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Data Management15
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Diversity, inclusion and teamworking8
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Inclusive environments4
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Sustainability16
