Level 2 & 3 Questions Flashcards
- Why did the CWs only relate to design works?
They only related to design works as it was stated within the X clause ‘X8 undertakings to others’ that only consultants or subcontractors who have carried out design responsibility should have an executed collateral warranty in place
Is it possible to cover other works with a collateral warranty other than design works?
Yes, but it is hard to obtain if they have not carried out design responsibility.
- Who can be connected by CWs? (3 connections)
The 3 connections to a CW are:
Client to subcontractor
Main contractor to end user
End user to subcontractor
31BHS – would it have been possible to use X5? How?
Yes, it would have been possible, however as X5 wasn’t already included within the contract, there would have to have been a variation to the original contract that was signed, this seemed like a more efficient solution
Use of Z clause / Take over for BHS – did this trigger other contractual mechanisms?
It triggered a compensation event, as the completion date was affected by the late instruction of the works
How is impact on the end date handled under NECand BHS take over?
The completion date was moved to the revised completion date, however the NEC project Manager issued a Take Over certificate stating the clause that was being used.
WHBG – How did you know the dates and timescale for valuations?
The assessment date was included within the contract data part 1, it was the 28th of every month at 4 week intervals.
The dates for issuing payment cert and final date for payment are included within the core clauses.
31BHS – What is the difference between early warnings and CEs?
Early warnings are a mechanism within the contract that provides a warning for an event that may alter the price of the works / time taken to do the works, while a CE is an actual event that has altered either the cost/time.
Programme a contractual document – what if there is no accepted programme?
Without an accepted programme the assessment of all compensation events is taken out of the hands of the contractor altogether. The project manager is required to reject all compensation event quotations and make his or her own assessment of each compensation event
How are EW and CE’s linked?
Sometimes CE’s can be raised without early warnings, this could be due to sudden events that occur e.g. adverse weather conditions etc.
However, according to clause 63.7, if a compensation event occurs whereby the contractor did not issue an early warning, and it is deemed that an early warning could have been issued at the time from an experience contractor, then the quotation should be assessed by the PM based off (purely retrospectively) the contractor issuing an early warning before hand.
What are the different payment options under NEC? Be able to explain them, aware of schedule of cost components and their use.
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