Contract Practice L2

Question 1

What is the purpose of the Letter of Intent?

Answer 1

Facilitate the start of the works while contracts terms are pending agreements.

Question 2

What do you include within the Letter of Intent?

Answer 2

• Agreed Contract Particulars (start/completion date, costs, LADS)
• Cost to facilitate works (%, element progress with, cost lump sum)
• Completed by the client (surveyor can advise) and to be issued on their letter head to the contractor.

Question 3

Why did you proceed with using a LOI?

Answer 3

To allow the contractor to place orders for cubicles.

Question 4

Why would you select specific contract for a project?

Answer 4

Dependent on the procurement method.

Standard with or without quantities - Large projects, complex details

Intermediate - Simple content with common trades, more control procedures then Minor Works

Minor Works - Simple, designed majority by employer with work schedules, shorter period

Question 5

What payment types are available for traditional procurement payment options?

Answer 5

• Lump Sum (determined before works progress)
• Measurement (Not confirmed until after when volume of rate agreed)
• Reimbursement (Where real cost is provided and OH&P % added on top)

Question 6

What documents for tender are used on minor works?

Answer 6

• Drawings
• Preliminaries
• Priced specification

Question 7

What are the contract options for signing?

Answer 7

• Underhand typically used where design work is only infrastructure (scaffold) so 6 years run off.
• As a deed used where design work extensive (piling, structure) so 12 year run off.

Question 8

What makes a contract?

Answer 8

Offer (presents something of value)
Acceptance
Consideration (payment)
Intention  
Legality (Is it legal)
Capacity (ensure that person can actually sign it)