Contract practice Flashcards
What are some of the forms of contract you’re aware of
JCT:
- intermediate (contractors design)
- minor works
- design and build
- management contracting
NEC:
- NEC 3
- NEC 4
What is a bond
Bonds are a means of protection against non-performance of the contractor
Name the type of bond you are aware of
Performance bond typically 10%
Payment bond guarantees that all suppliers subcontractors and labourers will be paid
Retention bond
Defects liability bond
What types of warranties are there
Collateral warranty which warrants to third-party
Builder warranty two years from the start date of the policy (NHBC)
Vender warranty which is made directly in favour of the owner (roofing warranties)
What is a parent company guarantee and why is it used
PCG - gives the employer the ability to recover from the guarantor all losses and expenses
It provides an extra level of comfort for employers
What are the types of insurance as you’re aware of
PI insurance
Contractors all risk
Employer liability
Public liability
Product liability
What are the pros and cons of a single stage tender
The pros are it’s a fix price it’s risk adverse and it’s quicker to get into contract
The cons are there is no chance of early input from contractor
Tendering on incomplete information can lead to cost increase
Limited opportunity for client to influence selection of specialist contractors
Design risk with the client
What are the pros and cons of 2 stage tendering
Pros: useful on complex projects, Greater cost certainty, potential cost saving, reduce risk of delay
Cons: more time consuming, reduced competitions at 2nd stage, negotiations can become drawn out
What were the scope and outputs that were defined in the PCSA
Develop the detailed designs to stage three
Discharge Pre-commencement conditions
Review the VE options
Develop the CSA
Develop the construction phasing plan and programme 
What is sectional completion
Practical completion of a section of works under the build contract
What does non-completion notice trigger
For when liquidated damages would be due under the contract
What is the process of levying damages
3 main steps
- non completion notice
- notice that the client intends to levy damages
- notice demanding payment of damages or withholding / deducting them
‘Instructions to change the facade’
What relevant event/matter was this?How do you know this would be considered a relevant event
As it was a client instruction which impacted the programme, the contractor was also due loss and expense
What is an expression of interest and why would you do this
The purpose is to establish a shortlist of contractors qualified and interested in the job
How would you carry out an enabling works package de-risk the site 
It could be carried out in tandem with preparing the tender pack
By preparing the site for construction
Understanding the extent of the site risks
