Contract Practice - Level 3

Question 1

Tell me about when you’ve been involved in advising on contract modifications with a client or subcontractor.

Answer 1

On a TI Fit-Out project in San Francisco, I reviewed proposed amendments to the AIA-A102 between the client and GC to address unforeseen MEP infrastructure works. I advised on wording changes to align with the client’s risk profile and ensure compliance with project timelines.

Question 2

Tell me about some of the modifications you’ve advised on and why.

Answer 2

I’ve advised on scope change clauses, liquidated damages adjustments, and cost-plus provisions, primarily to protect the client from cost escalation and ensure clearer risk allocation.

Question 3

Tell me about when you have provided reasoned advice on any specific matters of a contract.

Answer 3

For a data center project, I advised on retaining GMP NTE terms rather than shifting to a cost-plus model, as this offered greater cost certainty given volatile market conditions.

Question 4

Talk me through when you’ve led the selection of a form of contract for a project.

Answer 4

I led the selection of the AIA-A102 for a fit-out project due to the client’s preference for a GMP contract, balancing design flexibility with cost certainty.

Question 5

Talk me through when you’ve selected a form of sub-contract.

Answer 5

I recommended an AIA-A401 subcontract to mirror main contract terms, ensuring back-to-back obligations for schedule adherence and change order management.

Question 6

Talk me through when you’ve evaluated the appropriateness of a proposed contract amendment.

Answer 6

I assessed a GC’s proposed change to payment application procedures and advised against it as it reduced the client’s review period, potentially impacting cost control.

Question 7

Talk me through when you evaluated the implications of a proposed contract amendment.

Answer 7

I reviewed a proposal to alter escalation clauses on a long-lead procurement package and flagged the increased financial exposure to the client.

Question 8

How have you advised a client on the most appropriate form of contract?

Answer 8

For a retail project, I recommended a GMP form over lump sum to allow design development flexibility while maintaining budgetary control.

Question 9

How have you advised on post contract cost control?

Answer 9

I implemented monthly cost reports, change order logs, and risk registers to track budget performance and forecast final cost. (Competency:

Question 10

What advice would you give to a client regarding suitable systems for the ongoing management of risk?

Answer 10

I advise using a live risk register, holding monthly risk review meetings, and assigning clear risk ownership to project stakeholders.

Question 11

Fit Out Project, SF — What are the other AIA contracts available?

Answer 11

Other relevant AIA contracts include A101, A103, and A401, depending on payment structure and procurement strategy.

Question 12

What factors lead you to advise the client to use AIA-A102?

Answer 12

The AIA-A102 offered a GMP with cost-plus basis, balancing flexibility with an agreed cost ceiling.

Question 13

Were there any other options?

Answer 13

Yes, alternatives included AIA-A101 (Lump Sum) and AIA-A103 (Cost Plus without GMP), but these carried less flexibility or higher risk exposure.

Question 14

What advice did you give regarding the risks / lack of cost certainty with a cost plus contract?

Answer 14

I highlighted the risk of budget overruns and the need for tight change control and open-book cost verification.

Question 15

How was this risk / uncertainty managed?

Answer 15

Through GMP provisions, cost audit rights, and regular cost reporting to maintain transparency.

Question 16

Office Fitout, SF — Please discuss the advice you gave the client regarding the contract provisions for managing change orders, cost adjustments, and delays.

Answer 16

I recommended detailed change order procedures, predefined mark-ups, and schedule impact assessments to protect cost and time.

Question 17

Please outline how the contract used on this project ensured project stability and minimized risk.

Answer 17

The GMP structure capped exposure, while AIA provisions on delays and changes maintained control over cost and schedule.

Question 18

What are the clearly defined roles and responsibilities that the AIA-A101 contract sets out?

Answer 18

It clearly outlines obligations for the owner, contractor, and architect, including payment procedures, schedule compliance, and change management.