What is a non-conformance report?
A formal document used to identify, record and address instances where materials, processes or work don’t meet the specified requirements or standards. This helps to maintain quality control on a project ensuring it complies with contractual, regulatory or industry standards.
What are the JCT SBC Payment Terms for the 3MW Data Centre Project?
The first interim valuation date (IVD) is one month after the Date of Possession and afterwards the same date in each month or the nearest Business Day in that month.
The due date is 7 days after the IVD.
The Contractor’s interim application for payment must not be issued less than 7 days before the due date
Then 5 days after the due date the interim certificate must be issued
The final date for payment is 14 days after the due date.
Should a pay less notice be issued this must be done before 5 days before the final date for payment.
If no interim certificate has been issued the contractor can issue an interim payment notice at any time after the 5-day expiry. The final date for payment is extended by the same number of days as the delay between the due date and the interim payment notice being issued.
How does change work under JCT SBC?
Under JCT (Joint Contracts Tribunal) standard building contracts, changes typically occur through a process known as variations. Variations are adjustments or modifications to the original terms of the contract, such as design alterations, scope changes, or additions to the works.
Here is an overview of how changes work under JCT standard building contracts:
Instruction: The architect, contract administrator, or employer issues an instruction detailing the proposed change.
Quotation: Upon receiving the instruction, the contractor provides a quotation for the cost and time implications of the proposed variation.
Valuation: The contract administrator assesses the quotation and determines the valuation of the variation.
Agreement: Both parties (employer and contractor) need to agree on the valuation before the variation works commence.
Documentation: Any agreed variations should be documented and formalized through a formal instruction process to avoid disputes later on.
Adjustment: The contract sum and completion date may be adjusted to reflect the effects of the variation.
It’s important to follow the specific procedures outlined in the JCT contract regarding variations to ensure that changes are managed effectively and fairly for all parties involved.
What are the main differences between JCT and NEC contracts?
The Joint Contracts Tribunal (JCT) and the New Engineering Contract (NEC) are two popular forms of contracts used in the construction industry. Here are some key differences between JCT and NEC contracts:
Standard Forms: JCT contracts are more traditional and commonly used in the UK construction industry. They provide a comprehensive set of standard forms that cover different types of construction projects. NEC contracts are more modern and collaborative, focusing on project management and risk allocation. NEC uses more simple language, eliminating the use of legal terms.
Risk Allocation: NEC contracts are known for their risk-sharing provisions and collaborative approach, with a strong focus on effective project management. JCT contracts, on the other hand, may have more traditional risk allocation methods that can result in disputes.
Payment Mechanism: NEC contracts often include a more detailed and transparent payment mechanism, with provisions for early warning notices and compensation events. JCT contracts may have simpler payment terms that are less flexible.
Dispute Resolution: NEC contracts typically promote early resolution of disputes through their dispute resolution mechanisms, such as adjudication and dispute avoidance board. JCT contracts may have more traditional dispute resolution processes that can be more time-consuming and costly.
Flexibility: NEC contracts are designed to be more flexible and adaptable to different project requirements, allowing for easier customization. JCT contracts may offer less flexibility in terms of contract administration and project management.
JCT splits up the elements of time and cost dealing with them at various stages after a change arises, whereas NEC deals with cost and time together.
JCT uses variations and NEC uses compensation events. NEC requires the use of early warning notices to ensure any matters that could affect time, cost or quality have been identified.
Under NEC the programme is a contract document. If no programme has been submitted in the contract data one quarter for the price of the for the work done to date is retained in assessments, until the contractor has submitted a first programme for acceptance.
Overall, the choice between JCT and NEC contracts often depends on the specific requirements of the project and the preferred approach to risk allocation, project management, and dispute resolution. Each contract has its strengths and weaknesses, and contractors should carefully consider which contract best suits their needs.
What is a CDP?
Contractors Design Portion, which is associated with JCT contracts. This is an agreement for the contractor to design specific parts of the works. This is different to a design and build contract where the contractor is appointed to design the whole of the works. Often this is done when there is a specialist work package where contractors can apply practical knowledge to the design.
What is the Construction Act?
Housing Grants, Construction and Regeneration Act 1996
Local Democracy, Economic Development and Construction Act 2009
What is the importance of the second Construction Act?
Local Democracy, Economic Development and Construction Act 2009
This is an amendment to the Housing Grants, Construction and Regeneration Act 1996. It changed the way construction contracts are entered into and introduced a new regime for payment and adjudication.
In terms of adjudication it removed the need to have contracts in writing which enables parties to go in to adjudication even if the contract has not been formalised in writing.
In terms of payment it ensures that any clause that states the due date for payment depends on the giving of a payment notice by the payer is ineffective. It removes the use of pay when certified clauses, so payment mechanisms can’t be linked to the performance of obligations under a subcontract, this change was to help create a more reliable cash flow for all parties. The system regarding payment notices was changed and for a payment notice to be valid it must specify the sums considered to be due on or before the due date for payment and it will set out the basis on which that sum is calculated with a payment notice required to be gievn not later than 5 days after the due date. The use of default payment notices if a payer does not give a valid payment notice, the default notice must state the sum the payee considers to be due and the basis on which the sum has been calculated. Withholidng notices have been replaced by pay less notices this must be issued no later than the prescribed period set out in the contract but if not set out in the contract this will be 7 days.
It also made changes to suspension of the works where the suspending parties rights have been enhanced.
What is the importance of the first Construction Act?
Housing Grants, Construction and Regeneration Act 1996
This intends to ensure that payments are made promtly througout the supply chain and disputes are resolved swifty. Provisions of the act include:
- The right to be paid in interim, periodic or stage payments.
- The right to be informed of the amount due, or any amounts to be withheld.
- The right to suspend performance for non-payment.
- The right to adjudication.
- Disallowing pay when paid clauses.
Where are ammendments made in the JCT suite of contracts?
The JCT (Joint Contracts Tribunal) Schedule of Amendments is a document used to make changes or modifications to the standard JCT contract. Here are some key points about the JCT Schedule of Amendments:
- Purpose: The Schedule of Amendments is used to tailor the standard JCT contract to suit the specific requirements of a construction project. It allows parties to make changes to clauses, terms, or provisions in the contract to better reflect the intentions of the parties involved.
- Customization: The Schedule of Amendments can be used to add, delete, or modify clauses in the standard JCT contract to address specific project requirements, risks, or special conditions.
- Legal Framework: The Schedule of Amendments forms part of the overall contract documentation and should be read in conjunction with the standard JCT contract. It is legally binding and should be agreed upon by all parties involved in the contract.
- Clarity and Consistency: By using the Schedule of Amendments, parties can ensure that the contract accurately reflects their agreements and intentions, reducing the likelihood of disputes or misunderstandings during the project.
- Professional Advice: It is recommended to seek legal advice or consult with a construction contract expert when drafting or reviewing the Schedule of Amendments to ensure that the modifications are compliant with the law and in the best interest of all parties.
- Overall, the JCT Schedule of Amendments is a valuable tool for tailoring the standard JCT contract to meet the specific requirements of a construction project and to ensure that the contract reflects the intentions and agreements of all parties involved.
What is the difference between a relevant matter and a relevant event under the JCT?
A relevant matter is related to money and time but a relevant event is only related to extensions of time
- Relevant Matters:
Definition: It when the client is responsible for an event that materially affects the progress of the works. The contractor is able to claim loss and/or expense. This does not always result in a delay to the completion date.
Examples: Discrepancies in the contract documents, failure to give the contractor access to and from site, delays in receiving instructions, disruption caused by works being carried out by the client. - Relevant Events:
Definition: A relevant event is an event that causes a delay to the completion date. This is caused by either the client or a neutral event not caused by either party. The contract should set out what constitutes a relevant event. They entitle the contractor to claim an extension of time so the completion date can be moved and the project is still successful. This does not necessarily entitle the contractor to claim a loss and expense (a relevant matter must occur before loss and expense can be claimed).
Examples: Exceptionally adverse weather, failure to provide information, the supply of materials and good by the client, delay in giving the contractor possession of the site, force majeure.
What are the insurance options covered under the contract particulars in JCT contracts (D&B)
- Option A: the Contractor is required to take out and maintain a Joint Names Policy for all risks insurance for the works;
- Option B: the Employer is required to take out and maintain a Joint Names Policy for all risks insurance for the works; or
- Option C: the Employer is required to take out and maintain (a) a Joint Names Policy in respect of the existing structures and their contents, and (b) a Joint Names Policy for all risks insurance for the works.
What insurance options are included in the 3MW Data Centre Project?
6.9.1 At the end of the clause insert: “The Contractor (at the Employer’s request from time to time) shall ensure, where Insurance Option A applies, and the Employer may arrange, where Insurance Option B or C applies, that the Joint Names Policy referred to in paragraph A.1, B.1, C.1 or C.2 of Schedule 3 shall provide for recognition of such additional persons as the Employer may reasonably require (including each Funder, Purchaser and Tenant) as an insured under the relevant Joint Names Policy”.
What are liquidated damages and are they required in the contract for the 3MW Data Centre?
Liquidated damages are a fixed sum of mony that a client/ employer can claim from a contractor if the contractor breaches the conract. They are often used to compensate for a contractor’s failure to meet a performance requirement to complete a project on time. They are roughly £150,000 per calendar week or pro-rate for part of a week on the 3MW Data Centre Project.
What is the Clerk of Works role under a JCT SBC?
The role of a Clerk of Works (CoW) under the Joint Contracts Tribunal (JCT) is crucial in ensuring the quality and compliance of construction projects. Here are the key responsibilities:
Supervision and Inspection: The CoW is responsible for overseeing the construction and maintenance of buildings or other works. This includes ensuring that the work is carried out to the required standards and specifications12.
Quality Assurance: They ensure the proper use of labor and materials, making sure that the construction meets the specified quality standards12.
Record Keeping: The CoW keeps detailed records of the construction process, including daily logs of weather conditions, tests carried out, and any delays or issues encountered3.
Compliance: They ensure that the construction complies with all relevant building regulations and standards12.
Reporting: The CoW provides regular reports to the client, highlighting any issues or deviations from the project plan and suggesting corrective actions12.
Overall, the Clerk of Works plays a vital role in protecting the client’s interests by ensuring that the construction project is completed to a high standard, on time, and within budget.
When are loss and expense and time claims dealt with?
In JCT contracts the Conbtractor is required to notify the Architect/ Contract Administrator when it becomes reasonable apparent that the progress of the works is being or is likely to be delayed by the occurance of a relevant event and or matter. There is no time limitation on this unless this has been ammended in the contract.
However, the NEC requires the contractor to notify the project manager of the occurance or anticipted occurence of a compensation even within 8 weeks of the contractor bevoming aware of the occurance. Failure to do so might result in the contractor not being entitled to the claim.
What are the statuatory requirements/ obligations for construction?
Building Regulations
Planning Permission
Health and Safety at Work Act
CDM Regs
Environmental and Pollution
Noise
Traffic
Public Procurement
Housing Grants Construction and Regeneration Act
Local Democracy, Economic Development and Construction Act
What is a contract?
A legally binding agreement between two or more parties to fulfil an obligation to each other. If one party does not comply with their obliations in a different manner from that agreed the other party has remidies against the defaulting party.
A basic binding contract should comprise of four elements: offer, acceptance, consideration and intent to create legal relations
What is expressed terms?
Expressed terms are the terms of an agreement which are expressly agreed between the parties. Ideally they will be written down in a contract bewteen parties but if the contratc is agreed verbally they will be terms discussed between parties
What is meant by implied terms?
A contractual term that has not been expressly agreed between the parties but has been implied inot the contract either by common law or statute
What is tort?
A tort is a civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the one who is in the wrong
How do statutory provisions and contract provisions differ?
Statutory provisions are set out in law and must be complied with regardless
Contract provisions relate to the contract in question and only apply to a specific project under that contract
What is your opinion of oral contracts?
Whilst they are legally binding, it can be difficult to agree and prove certain terms and conditions set out in the contract. A written contract is always preferred
What is a breach of contract?
It occurs when one party in a binding agreement fails to deliver according to the terms of agreement. A breach can happen in both written and oral contracts
What is a letter of intent?
This is a letter from an employer to a contractor indicating the employers intention to enter into a formal written contract for the works as described.
It usually asks the contractor to commence works before the formal contract is executed.
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Summary of Experience Q&A (Pre-Qual Only)69
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Development/ Project Briefs18
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Leading Projects, people and teams20
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Managing Projects17
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Ethics, Rules of Conduct & Professionalism55
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Client Care19
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Sustainability26
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Construction Technology31
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Health & Safety33
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RICS General Knowledge14
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Accounting Principals and Procedures34
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Business Planning24
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Data Management21
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Inclusive Environments12
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Stakeholder Engagement9
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Procurement & Tendering44
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Project Finance (Empty)20
