Standard Forms

Question 1

JCT 98

construction contract completion

Answer 1

• works are ‘practically complete’ in the opinion of the architect or contract administrator
• can’t be practically complete whilst patent defects of any significance in their constructions are apparent
• latent defects will not prevent certification
• minor items of ‘snagging’ will not prevent certification
• practical completion is completion of all construction work to be done

Question 2

Extension of time clauses

Answer 2

1. Provide necessary flexibility by adjusting the date for completed works in certain defined circumstances
2. Allowing contract period to be extended following occurrence of certain events which may otherwise constitute a breach of contract by employer
3. To revise contractors contractual obligation to complete by certain date

Question 3

LAD 1

Answer 3

Provides easy means of recompense for employer if contractor is in culpable delay

Question 4

LAD 2

Answer 4

Bring certainty to the tender process, rather than tenderer having to price for an unquantifiable contingency if general damages for delays are allowed

Question 5

LAD 3

Answer 5

Employer is better able to compare and evaluate tenders which have prices a contingency in a uniform way

Question 6

LAD 4

Answer 6

Allow contractor to assess potential liabilities to the employer, allowing contractor to choose between price of accelerated works or incurring LADs

Question 7

LAD 5

Answer 7

Frequently used as a commercial cap on financial capabilities of contractor

Question 8

LAD 6

Answer 8

Permit parties to agree on a sum payable as damages where the task of precise pre-estimation would be impossible or extremely impractical

Question 9

EEC Objectives

Answer 9

1. Flexibility
2. Clarity & Simplicity
3. Stimulus to Good Management

Question 10

EEC Flexibility

Answer 10

• used for all disciplines, civil, electrical, mechanical, building
• intended for a range of contractor responsibility
• some terminology is used for all disciplines
• used for Competitive Tender, Target Contracts and Cost Reimbursable Contracts

Question 11

EEC Clarity and Simplicity

Answer 11

• written in ordinary language, no long sentences
• easily translated to other languages
• familiar order and structure used throughout
• consequent actions after EEC are defined precisely
• compensation events, not claims
• minimal use of text, no cross-reference between clauses
• fundamental objective is to reduce disputes

Question 12

EEC Stimulus to Good Management

Answer 12

• most important characteristic
• each procedures implementation should contribute to the effectiveness of management of the work
• foresighted co-op management can reduce inherent risks in construction work
• clear division of functionality and responsibility helps accountability and motivates
• people are motivated to play their part in collaborative management if its in their commercial and professional interest to do so

Question 13

EEC Structure

Answer 13

1. Core clauses
2. Optional clauses
3. Schedule of cost components
4. Contract data

• 6 main options cover the basic types of contract
• secondary options provide for such things as the use of multiple currencies, retention, bonds & price adjustment

Question 14

EEC roles

Answer 14

1. Employer
2. Project Manager
3. Supervisor
4. Contractor
5. Subcontractor
6. Supplier
7. Adjudicator
8. Arbitrator