3.7 Contract Admin

Question 1

What is the JCT structure?

Answer 1

1- articles of agreement
2- particulars (filling in project specific)
3- Conditions
4- Schedules

Question 2

What are the changes in the latest JCT?

Answer 2

• Collaborative working
• Gender neutral language
• Target cost contracts
• Electronic communications

Question 3

Who administers the JCT and NEC?

Answer 3

NEC is PM
JCT is Employer’s Agent or Contract Administrator

Question 4

What is the NEC structure?

Answer 4

• Core + W
• Secondary + Y
• Contract data 1 - client
• Contract data 2 - contractor

Question 5

What is the FIDIC structure?

Answer 5

Red book - construction
Yellow book - design & build
Silver book - engineering

Question 6

Differences between the NEC3 and NEC4?

Answer 6

• Allow emails as as formal communication
• Final certificate
  Dispute avoidance board
  ECI

Question 7

What are the NEC main options?

Answer 7

A - Priced contract with activity schedule
B- Priced contract with BoQ
C - Target contract with activity schedule
D - Target contract with BoQ
E - Cost reimbursable
F - Management contract

Question 8

What is change management under NEC?

Answer 8

Compensation even section 6
Clause 60 - 64

Question 9

How are risk managed under NEC?

Answer 9

Early warnings
Clause 15

Question 10

How is quality managed under NEC?

Answer 10

Defects - Clause 40

Question 11

What are the Y(UK) clauses?

Answer 11

Country Specific
1 - project bank account
2 - HGCR Act
3 - third party rights

Question 12

What are the rules under Construction Act?

Answer 12

• Contracts don’t need to be written.
• Pay-When-Certified axed.
• Payment notice issued within 5 days of due date.
• Payment notice calc shown even when it’s Nil.
• Right to suspend work.
  -Default notices.
  -Pay less notice.

Question 13

What is an Early warning?

Answer 13

Clause 15
- increase in costs
- delay completion
- delay key date
- impair performance…

Question 14

What is completion and planned completion?

Answer 14

• Completion: done all the work and corrected notified defects
• Planned completion: when the contractor plans to complete

Question 15

What is loss and expense?

Answer 15

Direct Loss or expenses incurred due breach by others. NEC is the CE process. JCT is generally relevant matters and can include the following:
- Prolongation cost
- Disruption
- Finance charges
- Loss of profits
- Demonstratable overheads

Question 16

What is the difference between relevant matters and relevant events?

Answer 16

• RE - time only (possession of site)
• RM - loss and expense (client disruption)