1.5 Basic contractual mechanisms and procedures at various stages of the contra Flashcards
1
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Client / Contractor Protection
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2
Q
Give a list of mechanisms to protect the main contractor from the client.
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3
Q
Give a list of mechanisms which protect the client from the main contractor?
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4
Q
How would a dispute be dealt with in the contract?
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5
Q
What is meant by adjudication?
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6
Q
Which party under the contract has a right to adjudicate?
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7
Q
What is meant by arbitration?
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8
Q
Explain how provisions relating to Testing and opening up might benefit the client under a construction contract.
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9
Q
How do you deal with defective work?
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10
Q
What is meant by fluctuation provisions?
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11
Q
Can you explain what is meant by contribution levy and tax fluctuations
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12
Q
Can you explain what is meant by labour and materials cost and tax fluctuations
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13
Q
How are fluctuations rates worked out?
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14
Q
What is an advance payment? Why might the client wish to use one?
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15
Q
What is an advance payment bond?
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16
Q
Can you tell me the advantages and disadvantages of using an advanced payment compared to an advanced payment bond?
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17
Q
Explain what is meant by retention
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18
Q
Why is it beneficial to the client to use retention?
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19
Q
At what RIBA stage will retention firstly need to be considered?
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20
Q
Explain the significance of retention at tender stage and how it may be incorporated into particular tender documents.
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21
Q
What is a typical rate of retention?
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22
Q
Explain the process of releasing half then full retention.
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23
Q
What is an alternative to retention?
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24
Q
What is a retention bond? Why might this be used?
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25
What might be a typical rate of retention?
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26
What is the rectification (or defects) period?
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27
What is a typical timescale for a rectification period?
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28
Why is it beneficial to the client to include a rectification period under the contract?
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29
Under a construction contract what contractual provisions may be in place to deal with materials off site?
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30
Explain what a Performance Bond is.
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31
At what RIBA stage will a Performance Bond firstly need to be considered?
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32
How does the use of a Performance Bond affect certain processes at tender stage?
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33
What is a typical value of a Performance Bond?
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34
How will the client go about claiming a Performance Bond?
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35
Explain what a Parent Company Guarantee is.
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36
What are the benefits to the client of using a Parent Company Guarantee?
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37
At what RIBA stage do we firstly need to consider Parent Company Guarantees?
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38
How is a Parent Company Guarantee triggered? What are step-in rights?
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39
Can you tell me the advantages and disadvantages of using a performance bond compared to a parent company guarantee?
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40
What do you understand about the Third Parties Rights Act?
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41
What are the disadvantages of using the Third Parties Rights Act?
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42
How might a construction contract be suspended?
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43
What is force majeure?
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44
How can a construction contract be terminated by the contractor?
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45
How can a construction contract be terminated by the employer?
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46
What are LADs? How are they calculated?
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47
What is the process for deducting Liquidated Damages?
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48
Can Liquidated Damages be challenged by the contractor?
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49
What provisions are within the JCT SBC to protect the client financially should the contractor become insolvent?
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50
Can you tell me some of the reasons why an employer may determine the contract? What are the procedures in relation to this?
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51
What is acceleration?
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52
What is the process of acceleration?
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53
What do we mean by a claim for Loss & Expense?
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54
Why is it beneficial to the contractor to be able to claim for Loss & Expense?
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55
What are the general heads of claims for loss & expense?
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56
Give an example of the procedures and timescales which may govern a claim for loss & expense under a given construction contract.
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57
What is an Extension of Time?
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58
For what reasons may a contractor claim for an Extension of Time?
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59
Why is it beneficial to the contractor to be able to claim for an Extension of Time?
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60
Give an example of the procedures and timescales which may govern an Extension of Time claim under a given construction contract.
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61
Can you explain what a Collateral Warranty is?
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62
Why is it beneficial to the client to use a Collateral Warranty?
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63
At what RIBA stage do we firstly need to consider a collateral warranty?
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64
How is a Collateral Warranty triggered?
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65
Timescales
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66
Give an example of mechanisms which place timescales on parties named under a construction contract
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67
Commencement & Completion
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68
What do you understand by sectional completion?
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69
What contractual considerations are required if the works are divided into sections?
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70
What do you understand by partial possession?
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71
What things do you have to consider if the client takes partial possession of a site?
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72
How does partial possession effect LADs and insurances as set out in the contract?
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73
What are the advantages and disadvantages of Partial Possession?
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74
What is the difference between sectional completion and partial possession?
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75
What is meant by deferment of possession? How long might deferment of possession typically be?
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76
What is an Extension of Time? How is it granted?
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77
What is meant by a relevant event? Give some examples.
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78
Sub-contractors
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79
What are the different types of sub-contractors which may be named under a construction contract?
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80
What are the contractual implications of using domestic sub-contractors?
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81
What are the contractual implications of using a named sub-contractor?
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82
Variations / CEs
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83
What constitutes a variation under a JCT contract?
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84
What are the rules for valuing variations under JCT?
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85
If you are using JCT in relation to a variation how can you make it so that time and cost for implications are agreed upfront?
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86
What is a Schedule 2 variation quotation? Why might this be beneficial to the client?
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87
What constitutes a Compensation Event under a NEC contract?
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88
What are the rules for valuing Compensation Events under NEC?
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89
What is the difference between valuing variations under a JCT compared to an NEC contract?
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90
Explain what a verbal instruction is.
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91
Is a verbal instruction applicable to both JCT and NEC?
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92
Payment
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93
What are the different types of payment mechanisms used under various construction contracts?
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94
Explain the procedures and timescales which govern interim valuations under a JCT SBC.
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95
How would the roles in the interim valuation process (in relation to the certifier and the valuer) differ under a JCT SBC and a JCT D&B Contract?
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96
What do we mean by stage payments?
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97
What do we mean by milestone payments?
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98
What do we mean by payment against an activity schedule?
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99
What do we mean by Valuation of works done to date on site (third-party certification)?
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100
What is your understanding of a pay less notice? When might the client issue one?
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101
Which timescales are governed by statute in relation to interim valuations?
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102
If the contract did not state any rules for interim valuations and stage payments how would you know which rules to follow?
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103
Insurances
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104
What insurances are likely to be included under a construction contract?
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105
Can you explain what Employers Liability insurance is?
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106
Can you explain what Public Liability insurance is?
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107
Can you explain what insurance of the works and existing structures is? How is this dealt with under a JCT contract?
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108
What other optional insurances might be used under a construction contract?
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109
Can you tell me about Professional Indemnity Insurance?
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110
Other
1.5
111
What are the implications if an Employer is deemed to be a residential occupier within the meaning of section 106 of the Housing Grants Construction and Regeneration Act 1996?
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112
What is an information release schedule and why might the client choose to provide one?
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113
What are the implications if an Employer is considered a 'contractor' for the purposes of the Construction Industry (CIS) scheme?
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114
What is the significance of inserting a Base Date into a construction contract?
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115
Under a construction contract what is meant by listed items? How are these significant?
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116
Why might you have a bond for a listed item?
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117
Under a construction contract what is meant by 'assignment of rights'?
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118
What is the difference between executing a contract underhand or as a deed?
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119
For NEC contracts what is the mechanism for amending the terms?
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120
What is your understanding of Practical Completion? What needs to be in place to grant Practical Completion?
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121
What obligations do the Contractor commit to after Practical Completion?
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122
Explain the process and timescales in relation to interim valuations under JCT and NEC
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123
Explain the process of Early Warning Notices through to instructing a Compensation Even under an NEC contract
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124
What is the Joint Fire Code and when does it apply to a contract? What effect does it have?
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