1
Q
Are there contracts that are particularly suited to managing risk well?
A
-To manage risk, I would advise the client to use a JCT D&B contract.
- The risk of design is transferred to the contractor who is obliged to carry out the works in accordance with the design which they have proposed.
- Minimising the risk the client faces.
2
Q
What informs which JCT suite you should use?
A
- I would use the practice note deciding on the appropriate JCT contract 2016 which provides general guidance for employers, contractors and consultants involved in private and public sector procurement for the letting of construction contracts in the UK.
3
Q
What is a collateral warranty and what is its purpose?
A
- Create contractual relationship between the third party and the contractor or professional consultant which sits alongside the building contract and grants rights to a third party which can be sued upon.
- . It is normally between the contractor and the subcontractor which allows the client to call upon the subcontractor if anything goes wrong
4
Q
What is the difference between unliquidated and liquidated damages?
A
- Liquidated damages are a genuine pre-estimate of the loss suffered by the employer as a result of non-completion.
- Unliquidated damages are not capped and if they are to be used in the contract clause 2.29.2 will be left blank.
5
Q
When can a client claim liquidated damages?
A
- Client can only claim for LAD’s once they have issued a non-completion certificate and pay less notice, the LAD’s will then be deducted in the valuation by the CA or EA.
6
Q
What is alternative A payment and when would you recommend it ?
A
- Alternative A payment refers to payments made in stages on particular dates or milestones
- It used on smaller lower value D&B projects, therefore a QS is not listed in the contract as they are not required to value the works for a small amount.
7
Q
What is the retention amount held?
A
- The standard retention amount held is 3% within MW, SBC and D&B contracts
- From my own experience 5% has been included within the contract due to the value of projects being worked on in order to ensure the client has sufficient funding for any defects in the rectification period.
8
Q
What is the unamended rectification period?
A
6 months
9
Q
What is the difference between under hand and as a deed when executing a project?
A
- The difference is the liability period – for under hand it is 6 years and for as a deed it is 12 years
10
Q
What is meant by the liability period for under hand and as a deed?
A
- The liability period refers to the period the contractor can legally be taken to the court of law for the occurrence on any latent defects which occur after the rectification period.
11
Q
Can the QS and EA be the same person?
A
- Yes they can be but I would recommend to separate the EA and QS on project to have two discrete individuals and for there to be different perspectives.
12
Q
What is the purpose of a vesting certificate?
A
- Provides a chain of vesting as it creates a contractual link between the client and subcontractors materials which wouldn’t normally exist.
- This is to protect the client if contractor becomes insolvent another third party as creditors cannot claim the materials on site as the vesting cert shows the materials are the clients property.
13
Q
Does a JCT Contract mention anything about a Vesting certificate?
A
Yes, JCT Contracts already include provisions that the contractor provides reasonable proof of:
- off-site property is vested in the client,
- materials are set apart or clearly marked
- they are insured.
14
Q
What is meant by a rolling final account and what are the benefits?
A
- As per the final account procedures guidance note 2016 a rolling final account ensures all instructions and costs effects to a project are agreed and up to date at the point of the latest financial report.
- The QS must be organised as well as the contractor with regular discussions between parties to make agreements on an ongoing basis.
15
Q
What is a provisional sum and what should the contractor include for within the sum?
A
- A provisional sum is a sum on money included within the contract works that cannot be described or measured in accordance with NRM2 at the time of tender.
16
Q
When would you use a SBC CDP?
A
- When the client wants the contractor to design a discrete part of the works but not the majority, depending on the size and value of the project.
- For smaller lower value and shorter programme a minor building works contract with contractors design can also be used.
17
Q
How many certificates are there under a SBC?
A
- Interim payment certificates
- Practical/sectional completion certificates
- Non completion certificates
- Make good defects certificate/rectification certificate
- Final account certificate
18
Q
What is time at large and when would you use it?
A
- Time at large refers to the contractor no longer being obliged to complete the works by a particular date.
- But they must complete the works within a reasonable timeframe which is decided on a case by case basis.
- Time at large would be used where the clauses describing relevant events do not cover all eventualities
19
Q
When do you issue the rectification certificate?
A
- On the day the rectification period ends
20
Q
Is there any alternative to holding retention?
A
Retention bonds are way of avoiding problems associated with retention recovery.
- Amounts that would otherwise have been held as retention are instead paid, with a bond being provided to secure the amount.
- Similar to retention, the bond’s value will usually reduce after the certification of practical completion.
- Only if practical completion is not achieved by the subcontractor or if they prevent a certificate of making good defects from being issued will the retention bond take effect.
- The contractor is then able to ‘call’ on the retention bond.
21
Q
Explain how you would measure for ceilings?
A
I would measure for ceilings by referring to NRM1, which states:
- Ceiling finishes are to be measured in m2.
- The area measured is the surface area of the ceiling.
- I would ensure to measure over all obstructions.
22
Q
explain different methods of cost benchmarking?
A
The methods of cost benchmarking I have had experience with are:
- Cost-Per-Square-Foot Benchmarking: Comparing the cost per square foot of similar projects.
- Unit Cost Benchmarking: This method compares the costs of specific construction elements
- Historical Cost Data Benchmarking: By comparing current project costs to historical data from past similar projects
23
Q
How do calculate for tender price inflation?
A
- I calculate for tender price inflation with the use of Tender Price Indices which are provided by Arcadis in house.
- The calculation is (current TPI / Base TPI) - 1
- This gives the percentage change in tender prices from the base period to the current period.
24
Q
what is the purpose of CDM regulations?
A
- The purpose of the CDM Regulations is to improve health, safety, and welfare in the construction industry.
- These regulations aim to ensure that construction projects are well planned, managed, and executed.
25
What should the QS do if the contractor was to go insolvent?
1. Notify the employer or client promptly about the insolvency.
2. Secure the construction site, equipment, and materials.
3. Evaluate financial obligations, including outstanding payments
These actions help mitigate the effects of contractor insolvency and facilitate the continuation of the project with minimal disruption.
26
What should the QS do if asbestos is found on site?
- Ensure safety of workers and individuals on the site.
- Halt work in the affected area or entire site if necessary.
- Engage asbestos specialists to assess and develop a plan for safe removal or containment.
- Evaluate the financial and time impact on the project.
- Document the asbestos discovery and communicate with relevant parties.
27
How does NRM1 expect us to show risk in the cost plan?
NRM1 expects risk to be shown in the cost plan through:
- Contingencies: Including allowances for unknown risks as a percentage of estimated costs.
- Risk allowances: Identifying and quantifying specific risks and adding associated costs to the plan.
- Clear documentation: Justifying risk allowances with supporting information (risk register).
28
What are the different types of asbestos?
Three main types of asbestos commonly found in buildings are:
- Chrysotile (white asbestos)
- Amosite (brown asbestos)
- Crocidolite (blue asbestos)
29
How do internal partitions work?
- In office fit-outs, internal partitions are constructed using metal stud framing.
- Materials like plasterboard or glass are attached to the framing, creating separate rooms.
- Insulation and finishes are added for soundproofing and aesthetics.
30
Is a cost plan a re-active document or pro active document?
- A cost plan in quantity surveying is both proactive and reactive.
- It proactively forecasts estimated costs at the project's early stages.
- However, it also reacts to changes during the project by updating and adjusting the plan.
31
How would you deal with a late tender return on a project?
- When a tender return is late on a construction project, review the contract terms and assess the reasons for the delay.
- Consult the project team and client to evaluate the impact. Apply contractual consequences if necessary, such as rejecting the tender.
32
How do you deal with errors in a tender submission?
The QS should amend computing errors arriving at a new tender sum.
Alternative A: the contractor must confirm or withdraw any errors.
- Ensures a fair process
- Most competitive tenderer might withdraw.
Alternative B: the contractor must confirm or amend any errors.
- Ensures maximum competition.
- Disadvantage: could be considered unfair.
33
If the contractor submits his payment application late, what happens to the payment dates
- In a SBC, If the contractor misses their payment application date then then the due date and Payment Certificate date remain the same. If the certificate date is missed then the dates slide back.
- In a DB, If the contractor misses their payment application date then the timescales slide back until he does and it starts from there.
34
What provisions are needed for materials off site?
- In accordance with the contract.
- Proven that the contractor has the title to the goods in a Vesting Certificate.
- Set aside, clearly visible and identifiable, appropriately marked with the Employer’s name and the name and location of the project.
- Insured by the Contractor against specified perils until delivered to site.
35
When would you use a JCT Intermediate Contract?
- Recommended for projects that do do not exceed 1 year
- Projects that are simple in nature and works already designed
36
Have you read anything recently on Modus?
- Recently read an Article on Modus that supported Arcadis' current market view.
- That 28% of people in the UK still split their time from working at home and being in the office.
- It highlights that many companies are re-evaluating their office real estate needs.
37
Can you name me some of the RICS black books
The black books collection of technical practice documents. For QS's this includes:
- Cost Reporting.
- Change Control.
- Final Account Procedures.
- Management of Risk.
38
Have you read any journals recently on the RICS?
- I recently read a journal explaining the key difference between design development and design change which is often confused.
- Design development refers to a concept design being developed further into a technical design.
- Design change refers to the specification of the contract works being modified.
39
What is your companies net-carbon zero target?
- Arcadis has pledged to reach net zero greenhouse gas emissions by 2035.
- We have also set an interim goal of cutting our overall emissions in half by 2028.
40
What does RICS guidance say on working from height?
In the RICS surveying safely guidance note, it states any work at height should assess the following:
* risk assessment should be carried out.
* using a ladder, scaffolds or access tower required.
* am I working near unprotected edges.
41
What are the professional bodies that deal with disputes in a JCT contract?
- RIBA
- RICS
- constructionadjudicators.com
- Chartered Institute of Arbitrators
42
How do you use the BCIS location Indices on project X?
To adjust cost estimates based on the location, use the following formula:
Adjusted Cost =
(BCIS Location Index for Project Location)
(BCIS Location Index for National Average)
×
Original Cost Estimate
The result will give you an adjusted cost estimate that accounts for the regional variations in construction costs.
43
main factors that affect design economics?
Factors which can effect design economics can include:
- Scope and Complexity
- Materials
- Location
- Availability of labour
- Regulations
44
why did you recommend a separate contingency of 10% on the HTA project
- To clarify this allowance was for tender price inflation for the order of cost estimate at stage 1.
- during Q4 of 2021 we were seeing rising costs of key fitout elements on a monthly basis.
- I allowed for tender price inflation in line with Arcadis' TPI predictions at that time.
45
What advice did you give to colleagues on CAT A and B elements?
- This included plasterboard partitioning and suspended ceiling grid systems that were seeing rising costs.
- Also key services elements such as FCUs underfloor bus bars and UPS systems were on extremely long lead times.
46
what does the RICS guidance note on cost reporting discuss?
- the purpose of cost reporting
- cost reporting models
- report formats
- establishing the budget
47
How does a retention bond work in JCT contracts?
- Retention bonds are way of avoiding problems associated with retention recovery
- Amounts that would otherwise have been held as retention are instead paid,
- With a bond being provided to secure the amount. Similar to retention,
- The bond’s value will usually reduce after the certification of practical completion.
48
What are the key elements to contract formation?
- offer,
- acceptance,
- consideration,
- intention,
- capacity & competence.
49
When did you use a JCT Minor Works Building Contract?
On the Leadenhall Building Project.
50
Why would you advise the client to increase the retention percentage on Project X?
- I advised this to be increased slightly to ensure my client had a more sufficient retention held back to cover against any defective works from the contractor.
51
How are raised access floors constructed?
Constructing a raised access floor in office fit-outs involves:
- preparing the subfloor
- Installing pedestals and stringers,
- placing panels,
- integrating cabling and services,
- finishing with appropriate flooring.
52
How are suspended ceilings constructed?
- This is a suspended ceiling system formed by a square grid.
- These are normally quicker to construct than alternative options and allow for service runs through the void above.
- They also offer easy access for service repairs.
53
What were the different finishes you advised to the client during the VE workshop on Nottingham?
- Alternative suppliers for acoustic panelling and lockers (-£35,000).
- Engineered wood floor for laminated floor in teapoint areas (-£10,000).
54
What allowances do you make for BWIC, testing and commissioning, subcontractor prelims and OH&P?
BWIC @ 5%
Testing & Commissioning @ 5%
Subcontractor preliminaries @ 10%
Subcontractor OH&P @ 5%
55
What were the key differences in pod vs partitioning construction?
On DLA Piper, the key differences between pods and partitions were:
- The Pods had come with all finishes and furniture included.
- Ventilation requirements were minimal.
- Pods could be dissembled and moved to a another location.
- Saving on dilapidation costs.
56
How would you go about producing an area schedule?
- Gather Project Documentation:
- Divide and Measure Zones:
- Document and Verify Accuracy:
- Collaborate and Update:
57
What was the purpose of the feasibility estimate for google?
- Help understand if the project was financially feasible.
- Required to secure project funding up the chain.
58
What are the different types of RICS documents?
RICS professional standards = Set requirements or expectations for RICS members and regulated firms
RICS practice information = Information to support the practice, knowledge and performance of RICS members and regulated firms, and the demand for professional services.
59
What are the different cost report models?
- Construction Cost Report
- Project Cost Report
- Programme Cost Report
60
What are the different cost report formats?
- There is no single type of cost report format recommended by RICS.
- Most professional practices have a standard format which is used in the absence of specific client requirements.
APC Technical Competencies
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