Case Study Level 1 Flashcards
What is IPMS2?
International Property Measurement Standards for internal measurements for whole or part of a building
How was the project phasing determined?
The client had determined the phasing by grouping the stores into phases based on either the lease expiration date or break date
How were the approved contractors selected for inclusion in the tender?
The client had requested their approved contractors were included within the tender.
How were the additional contractors selected for inclusion in the programme?
Some of the other contractors had carried out some minor works under a different department for the client; the capital replacement department.
Some of them had carried out some work under a different remit; shopfitting supply and merchandising.
They had expressed an interest in carrying out works under the Property department and the client identified the closures as an opportunity to trial them.
You mention the approved contractor being signed up to a agreed rates. What was the duration of this agreement?
5 years
How did the agreed rates operate? Were they fixed or could they be adjusted for inflation over the time period of the framework?
They were fixed for a period of 3 years, and then would be subject to review dependent on market conditions and inflation over the time period.
What was the basis of the Purchase Order used to instruct new contractors? What were the risks of the approach?
The client’s in house procurement team decided to provide the new contractors with a Standard PO per store based on the agreed tender, prior to starting on site. The PO is accompanied by the client’s generic T&C’s.
Utilising PO’s to instruct contractors outside of a standard form of construction contract carried risk as the PO’s do not adequately or fairly make provision for all circumstances, such as:
- no contractual rules for change or managing change, including how they were to be defined or costed or the impact on time
- no contractual rules for completion
- no express terms for payment
- the risk was ambiguity and how this could materialise into a dispute
- therefore there’s a reliance on statute for both payment and dealing with dispute, rather than express terms
Where were the 10 contractors that tendered based? And were they national or regional contractors?
The contractors were a mix of national and regional. So 5 were national and 5 were regional.
Contractor 1 - based in Somerset
Contractor 2 - based in Hertfordshire
Contractor 3 - based in Hampshire
Contractor 4 - based in London
Contractor 5 - based in West Yorkshire
Contractor 6 - based in Lancashire
Contractor 7 - based in West Yorkshire
Contractor 8 - based in Glasgow
Contractor 9 - based in Newry
Contractor 10 - based in Belfast
So, in terms of the contractors that were awarded? What did their allocation in terms of the regions look like?
So, there were 5 winning contractors, contractor 2, 5, 8, 4 and 10.
Contractor 2 - based in Hertfordshire, was awarded London & SE England
Contractor 5 - based in West Yorkshire, was awarded Wales & South West England
Contractor 8 - based in Glasgow, was allocated Scotland and Northern England
Contractor 4 - based in London, was allocated Central & East England
Contractor 10 - based in Belfast, was allocated Northern Ireland
You mention Non-Disclosure Agreements, can you tell me a bit more about them?
NDAs are legally enforceable contracts that create a confidential relationship between a party who has sensitive information and a party who will gain access to that information.
A confidential relationships means that one or both parties has a duty to not share that information.
What was the nature of the NDA that the client issued?
To be checked with Ronan. It covered the disclosure of information relating to the number of stores closing?
You mention JCT SBC - under this contract, what is a variation?
Clause 5.1 defines a variation as:
- change to the scope of works (addition or omission)
- change of sequence of work
- change of conditions under which the work has to be carried out
You mention JCT SBC - under this contract, how are variations valued?
If accepted as a variation, clause 5.2 sets out various ways of dealing with the valuation of said variation:
1. An agreement between the Contractor and Employer (i.e. the parties to the contract)
2. Variation Quotation Procedure
3. Variation in line with the Valuation Rules
4. If all else fails, Dayworks Voucher Approach
Under JCT SBC, can you tell me what the Variation Quotation procedure is?
It is a mechanism within Schedule 2 that enable contractors to provide a variation quotation, identifying the impact that a variation will have on the project.
The quote will include cost of carrying out the work, any additional time on site required, any loss & expense.
It is then passed onto the CA and QS, if accepted it is added into the Variation Account and does not change.
Under JCT SBC, what does it mean to value a variation in line with the valuation rules?
Clause 5.6 outlines the Valuation Rules. It’s essentially where work is of a similar nature in the Contract Sum, it is to be valued in line with this, making allowance for any changes in conditions.
Where there is no work in the Contract Sum of a similar character then it is to be priced at fair value.