Contract Practice Level 2

Question 1

What is a Traditional Procurement route?

Answer 1

• One stage tender process
• The client appoints an independent design team to prepare detailed drawings, - - specifications, and tender documentation before construction work begins.
• The design is fully completed before the contractor is engaged.

Question 1

What are the advantages to using a traditional procurement route?

Answer 1

• Client has greater control over the design
• Costs are usually fixed before construction begins
• The routes is well understood and widely practiced

Question 2

What are some disadvantages to using a traditional procurement route?

Answer 2

• Longer project duration
• Limited contractor input into design
• Potential for disputes

Question 3

What are the insurances options listed within a JCT Minor Works Contract?

Answer 3

Option A - Insurance of Works by the Contractor (All Risks)
Option B - Insurance of the Works by the Employer (All Risks)
Option C - Insurance of Existing Structures by the Employer

Question 4

What type of insurance cover would you expect the contractor to provide?

Answer 4

• Public Liability Insurance
• Employer’s Liability
• Professional Indemnity Insurance
• Contractor’s All Risk

Question 5

What is a provisional sum?

Answer 5

An allowance included in a contract to cover work that is anticipated but cannot be precisely defined or quantified at the time the contract is agreed upon.

Question 6

What is a defined provisional sum?

Answer 6

The general nature and scope of the work are known, but precise details and unavailable.

Question 7

What is an undefined provisional sum?

Answer 7

The scope of work is unclear or uncertain.

Question 8

Why would you include provisional sums within a scope of works?

Answer 8

1. Flexibility - allows the project to proceed even when certain aspects are undefined.
2. Cost Control - provides a budget for anticipated but unclear work, offering a degree of predictability.
3. Time Efficiency - avoids delays in contract negotiation by addressing uncertainties later.