Forms of Contract Flashcards
What factors are involved in the selection of construction contract?
- Professional team involved
- Approx. value of the works
- Time available for procurement
- Time available to complete works
- Cost constraints
- Any specialist design requirements
- Nature of the works
- Complexity of the works
- Time constraints for site start
- Amount of information available
What is the most recent update to JCT/SBCC contracts?
2015 - with some more recent amendments
Name the different forms of JCT/SBCC contract?
- Minor Works
- Intermediate Building Contract
- Standard Building Contract
- Design & Build
- Management Contract
- Construction Management
- Major Projects Construction
- Measure Term Contract
- Framework Agreements
Name different types of standard form contract
- Joint Contract Tribunal (JCT) / Scottish Building Contract Committee (SBCC)
- New Engineering Contract (NEC)
- International Federation of Consulting Engineers (FIDIC)
Where would you use a Minor Works building contract?
- Low cost projects (generally £500,000 or less)
- Simple projects
- Projects that last less than 12 months
- Where the client is responsible for the procuring the design
- Or where the contractor is responsible for specific areas of design (with contractor’s design)
Where would the use of a Minor Works contract be inappropriate?
- High cost projects (above £500,000)
- Complex projects
- The design includes Bills of Quantities
- The project has details control procedures
- There are provisions to govern works carried out by named specialists
What is available under the Intermediate Building Contract that isn’t under a Minor Works contract?
- Sectional Completion
- Naming of sub-contractors
- Definitions of relevant events
- Advance payment mechanisms
- Collateral Warranties
- Materials off site
- Rules for Valuations (day rates etc.)
What is involved in the available under the Standard Building Contract that isn’t under the Intermediate Building Contract?
- Advanced payment bonds
- Retention bonds
- Master programme
- Arrangement of acceleration quotes
What is the difference between the Standard Building Contract and the Design & Build Contract?
The Design & Build contract excludes provision for the appointment of a Contract Administrator/Quantity Surveyor. Instead the appointment of an Employers Agent is required. Otherwise, the detail is similar to the Standard Building Contract
What contract within the JCT/SBCC suite has detail similar to that contained within the Management Contract?
The detail within the Management Contract is similar to that within the Standard Building Contract
What is contained within the Construction Management contract?
A collection of documents and procurement options
What is involved in the Major Works Construction contract?
It is similar to a Design & Build contract, but with a higher degree of risk on the contractor. It is used for very large projects where the parties are assumed to be experts
What is involved in the Measured Term Contract, and when would it be used?
The Measured Term Contract is designed for use when a client has maintenance or minor works required over a specified period of time (usually 1 or 3 years) to be carried out by one contractor.
The contract includes a schedule of rates for expected works, and all works are issued as an instruction by the client.
What is in involved in the JCT Framework Agreement contract, and then would it be used?
The Framework Agreement is designed for use when a client has regular construction projects to carry out, and wants to use the benefits of a working relationship.
It is suitable for use where partnering is desired. It generally sets conditions over a period of time, and details of assumptions (like preliminaries) and management requirements.
Tell me about the NEC Suites of contract
New Engineering Contract (NEC) contracts were first published in 1993, and are suitable for both engineering and construction projects. They are intended to promote collaborative working, cost savings are shared by both the contractor and the employer. They were developed as a reaction to more traditional forms of contract that are considered to adversarial. They were highly recommended within the 1994 Latham Report. They are written in plain English and generally require a lot of admin.
