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Project Management Year 1 > Contract / Admin Law > Flashcards

Contract / Admin Law Flashcards

1
Q

CDM 2015 Principal Objectives

A
  • Ensure consideration of HS issues (feasibil-complet),
  • Encourage better safety management
  • Adequate resource/sufficient time to complete duties
  • Involve directly clients/PD/other D/PC/other C/suppliers.
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2
Q

Difference between CDM 2007/15

A
  • Apply dome/ind projects, 2/3 of 44 deaths smaller sites,
  • Removal of CDM Coordi role (often appointed late),
  • Introduction of principal contractor,
  • HSE notif +30 days/500 pers days/<20 workers at once
  • PD and PC where there are 2 or more contractors,
  • Requirement to have necessary skills/knowledge/experience/org capacity for the project.
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3
Q

What Commercial Clients have to do

A
  • Appoint principal contractor and designer
  • Confirm competence of duty holder
  • Duty holder has nec skill/knowle/experi/org capa for proj
  • Notify HSE
  • Prov pre-const info Docu/commu/co-op w/ proj member
  • Check PC construction phase health and safety plan
  • Ensure minimum HS standards are maintained on site
  • Necessary minimum welfare facilit are provided on site
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4
Q

Principal Designer Role

A
  • PD control over the pre-construction phase.
  • Identify/eliminate/control foreseeable risks
  • Ensure other designers are carrying out their duties
  • Provide info to PC to help then plan/manage/monitor and co-ord HS in the Const Phase HS Plan,
  • Provide info for HS file
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5
Q

Designer Role

A
  • An org/individ who prep/modifie design for const project
  • Eliminate/reduce/control foreseeable risks in construction/maintenance
  • Provide design information
  • Establish how designs interacts and influence HS
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6
Q

Principal Contractor Role

A
  • Prepare construction phase HS plan
  • Plan/manage/control/monitor HS in construction phase
  • Provide info for HS file,
  • Provide adequate welfare facilit/suitable site inductions,
  • Steps to prevent unauthorised entry,
  • Ensure workers are consulted on HS on site
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7
Q

Contractor Role

A
  • Plan/manage/monitor const work in control w/ HS risk
  • 1 contractor projects prep the HS plan /welfare facilities
  • Multi-contractor must comply with PD/PC,
  • Mustn’t employ without neces skill/knowle/exper/training
  • Prov worker with appropiate supervision/instructions/info
  • Steps to prevent unauthorised entry before work begins.
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8
Q

Expressions of Interest Stage

A
  • Skills/knowledge/train assess in the tender process
  • Company/org HS mngm procedure check, again at formal tender stage when specific to project.
  • May include Company HS policy,
  • Qualification/experience of employees
  • Accident reporting/enforcement action
  • Welfare provisions
  • RIDDOR Procedures
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9
Q

RIDDOR

A

-(The Reporting of Injuries, Diseases and Dangerous Occurrence’s Regulations)

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10
Q

Pre-Construction Information Individuals

A
  • Principal Designer
  • Architect
  • Structural engineer
  • BSE
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11
Q

Construction HS Plan

A

Principal Contract/Other Contract/Sub-contract/Supplier

Develop before constr, otherwise gross negligence

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12
Q

Pre-Construction Information

A
  • Prov info those bid/plan work/devel const phase plan/HS file.
  • Info client has about building or reasonably attainable,
  • Provide basis for prep of the const phase plan
  • Info appro to project/appro detail/proportio to risks
  • Include client brief/key const dates, resources used/time allocat to each stage arrange to ensure coop
  • Site HS hazards and how they will be addressed
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13
Q

Construction Phase Plan

A
  • How HS will be managed during the const phase
  • Level of detail proportionate to risks involved
  • HS arrangements for construction phase
  • Site rules,
  • Where relevant specific measures
  • Record plan for significant HS / how to comm this
  • Doesn’t include risk asses/records of how decisions were reached/const method statement
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14
Q

Health and Safety File

A
  • Principal Designers responsibility
  • Presented to client on conclusion of works
  • Collection of infor on foreseeable hazards/materi used
  • Retained to ensure safe mainten/cleaning/altera/demolit
  • Passed onto and made available to leaseholders
  • Hazards not eliminated
  • Construction processes
  • Hazardous materials used
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15
Q

Objectives of HS At Work Act 1974

A
  • Secure HS of persons at work
  • Control keeping and use of dangerous substances
  • Control the emission of noxious / offensive substances
  • Protect persons other than persons at work against HS risks out of work activities
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16
Q

HS Laws

A
  • Ensure, reasonab practicable, HS/welf of employees
  • Ensure, service/mainte of safe plant/systems of work
  • Prov safe systems use/storage/transport of substances
  • Prov correct info/instruct/training/supervision
  • Safe place of work/safe access to and egress
  • Prov/maintain a safe working environment
  • Prov/maint a written statement of safety detailing policy
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17
Q

What is Procurement

A

Establishes roles, responsibilities, relationships and the risks carried out by parties that form the organisation and the contractual arrangements for the project

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18
Q

Traditional Procurement Information

A
  • Sequential one stage finishes before next starts
  • Sequence of working Brief, Design, Competition, Const
  • Low cost risk, Med time, Low quali/perfor/design
  • Up front time to devel design before const time if profit
  • Separate parties involved project time overrun/cost
  • Separate Design and build stages
  • Slow start on site have to do complete design first
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19
Q

Traditional Contractual Relationships

A

Client -PM/Main Contrac/Desi+Cost consult/CDM Regs

Main Contractor - Sub Contractor / Suppliers

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20
Q

Design and Build Variants

A
  • Direct
  • Competitive
  • Develop and Construct
  • Novated Develop and Construct
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21
Q

D+B Common feature

A

Contractor led, providing client with single point of contact and single point of responsibility
One organisation totally responsible
Lowest bid or MEAT

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22
Q

D+B Contractual Relationships

A
  • Client - PM / CDM 2015 / D+B COntractor
  • D+B - Sub contractor / Designers / Suppliers
  • Brief / Competition / Design + Construction
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23
Q

D+B Risks to Client / Information

A
  • Lowest overall risk / buildability + lump sum tender
  • Low design risk
  • Low cost risk
  • High quality/performance/design risk
  • Client driven changes expensive / difficult
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24
Q

Management Contractual Relationships

A
  • Client - PM / Mngm Contractor / Desig/Cost/HS consult
  • Mngm Contractor - Works packages / Trade contractors
  • Brief / Design + Construction
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25
Q

Management Risks to Client / Information

A
  • Medium Cost / Time Risk Low quality/perform/time risk
  • Mngm contract have responsib to program/plan work
  • Overlap in const/design package competitive tender
  • Buildability better team performance
  • Client doesn’t know package costs added up/time
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26
Q

Management Contracting Contractual Relationships

A

Client - PM/Work Pack/Des/£/HS consult + Const Manag

  • Brief / Design + Construction
  • Medium Cost / Time Risk Low quality/perform/time risk
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27
Q

Management Contracting Information

A
  • Experiences clients develop with own project teams
  • Trade contractors in direct connection to client
  • Overlap client later design decisions modify/develop
  • Design tender build for each stage sequential design
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28
Q

Procurement Project Managers

A
  • Appointed by client as advisers
  • Help develop business case
  • Project investment appraisals
  • Risk assessments
  • Procurement selection
  • Appointing / selecting team monitoring performance
  • More experienced the client less help don’t have PM
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29
Q

The Construction Round Table 1995

A

Procurement Choice Considerations

  • Clients objectives/priorities
  • Time
  • Price Certainty - Importance of lump sum tender
  • Qual/Perform level - D+B contract respon may change
  • Complexity - Technically complex may turn org complex
  • Competition
  • Controllable variation - Ability to change design
  • Division of Mngm responsibility - Manage 1 or many
  • Extent of professional responsibility required -
  • Risk avoidance
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30
Q

D+B / Traditional / Management Reason Why

A

Offers reliable quality / economy / speed
Innovative design / higher perform / more cost/program
Flexible / fast completion / trade off client risk early start

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31
Q

Time / Quality
Quality / Cost
Cost / Time

A

Management Procurement
Traditional Procurement
Design + Build

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32
Q

Cost Led Procurement

A

Client selects integrated supply chain teams from framework
Based on collaborative manner to complete at low cost
Need to maintain quality as well

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33
Q

Integrated Project Insurance

A

Competition for team responsible for delivery
Single insurance policy to cover all delivery risks
Packaging up all insurances normally held by client/SCM
Supply chain memebers

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34
Q

Two Stage Open Book

A

Invite suppliers on a framework
Bid basis on outline brief / cost benchmark
Successful team works up a detailed proposal
Detailed proposal based on open book cost

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35
Q

Main Idea of On Trial Procurement

A

Early involvement of Supply chain team
Create team to work in collaborative/integrative manner
Reduce risk / greater cost certainty / time performance

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36
Q

Bennett/Jayes report 1995

A 
Partnering can lead to:
Cost Saving
Improved quality
Better design/configuration
Safer const methods
Ealier completion time 
Bigger profits to be shared
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37
Q

High Profile unsuccessful; corporate prosecutions

A

R v PO Ferries Ltd 1990

Leaving Zeebrugge 193 people died

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38
Q

Corporate Manslaughter and Corporate Homicide Act

A

2007
Causes person deaths / gross breach of duty of care
Making decision or substantial part
Previously single controlling or directing mind v difficult
Need to have appropriate systems in place
Risk assessments / HS policy or procedure

39
Q

Freedom of Information Act

A

Jan 2005
Be informed by writing whether it hold to desired info
20 days of requesting
Any company acting on behalf of public authority

40
Q

Exam introduction quote

A

Sir Michael Latham 1994
No construction project is free of risk. Risks can be managed, minimised, shared, transferred or accepted. It cannot be ignored

41
Q

Risk Sources

A

Procurement - 29%
Project Definition - 16.5
Finance - 16.13%
Project Deign - 10%

42
Q

Principal Construction Risk

A 
Health and safety
Environmental
Design
Availability of resources 
Exisitng site / ground conditions
43
Q

Contractor or Employer Risk

A

D+B - Major Contractor
Management Contracting - Major Employer
Traditional - Varying depending on type

44
Q

NEC4

A

Promotes collaborative and cooperative working
Equal sharing of Risk
Managing risk rather than transferring it

45
Q

NEC4 Clause 15

A

Early Warning of potential problems
Increase total price / delay completion / reduce quality
Have to warn Contractor or PM when first aware

46
Q

Early Warning Register

A

PM has to create one
Clause 15.3 early warning meeting formalised
Risk register avoided or reduced
Solutions to bring advantage to all

47
Q

Risk Register

A

Risk Identification - Early warning system
Risk Analysis - Probability/likelihood of risk occurring
Risk Response - Risk planning/tracking/controlling/commun

48
Q

Importance of Cost Control

A
  • Clients now less likely to tolerate delays
  • Clients likely financial institu/gov require accountability
  • Greater emphasis of sustain reduce waste cost control
  • Cost effectiveness trend in WLC / LCC
49
Q

Client Issues of Cost Control

A

Achieve most economical design
Clients expenditure to be within agreed budget
Balance design expenditure, consideration of alternative

50
Q

CIOB Code of Practice for Project Management for Construction and Development 5 Stages

A 
Feasibility
Strategy
Pre-Construction (design)
Construction
Commissioning
51
Q

RIBA Outline Plan of Work 2013

A 
Strategic Definition
Preparation and brief
Concept design
Developed design
Technical design
Construction
Handover and close out
In use
52
Q

Relationship between scope of change and cost of change

A

CIOB 5 Stages
X - Cost to change design
Y - Project Stages
Scope for change Decr sudden after feas to asymptotic
Cost of design changes increasing suddenly at end

53
Q

Design Freeze

A

The point after feasibility where the scope for change reduces significantly.
Design changes significantly increase price over the cost savings from changing

54
Q

Maximise Cost control at design stage

A

Client and PM must agree on design freeze and proejct briefing

55
Q

Cost Advice

A

Budget estimating based on clients brief
Pre-tender price estimating
Life cycle cost planning
Cost advice on diff tendering and contract arrangements

56
Q

Objectives of Cost Planning

A

Limit clients expenditure
Provide balanced and efficient design
Client receives value for money

57
Q

Order of Cost Estimating and Cost Planning

A

NRM1 Oder of Cost Estimating and Cost Planning
Optimistic Cost - Realistic Cost - Pessimistic Cost
Functional Unit - Inception
Cost - Strategic Definition
NRM1 Level 1 Group Element - Prep / Brief
NRM1 Level 2 Cost Plan - Concept Design
NRM Sub elemen Level 3 Cost Plan - Developed Design
Approximate Quantities - Technical Design
NRM2 Bill of Quantities - Tender Submission
Award of Contract

58
Q

Common Causes of Accidents

A 
Not knowing safe method of work
Unsafe manual handling 
Working too fast or cutting corners
Overloading equipment 
Falls 52%
Falling Objects 19%
Electricity 5%
Labourers 213 Fatalities of 5 year period
Roofers 99
59
Q

Breach of Contract 3 Qualifications

A

Remoteness
Mitigation
Third Parties

60
Q

Remoteness Case

A

Balfour Beatty Construction Ltd vs Scottish Power Plc

61
Q

Mitigation

A

Cannot recover loss which could have been avoided

62
Q

Third Parties

A

Claimant cannot recover loss in respect of a loss caused by another

63
Q

Liquidated Damages Case

A

Dunlop Pneumatic Tyre v New Garage and Motor Company 1915

Where both parties agree a fixed fee

64
Q

Cannot get more money after being paid Case

A

Philips Hong Kong Ltd v The Attorney General of Hong Kong 1993

65
Q

To claim liquidated damages must show

A

The LD doesn’t amount to a penalty
Definite date when damages can commence
Procedure to extend contract time carried out
Employer not waived the right to deduct LD

66
Q

Express terms

A

Amount and timing of payment
Work to be done
Materials to be provided
Timing of work

67
Q

Letter of Intent

A

No legal rights
Just says a contract may be formed in the future
Who works on this letter does at own risk

68
Q

Must be letter of acceptance for contract to be formed

A

Must be letter of acceptance for contract to be formed

Tesco Stores v Contain 2003

69
Q

Contract formed by allowing work to start

A

Westminster Building Co Ltd v Buckingham 2004

70
Q

No contract must provide contractor with reasonable sum for work

A

The Monk Construction Ltd v Norwich Union Life Assurance Society 1992

71
Q

Letter of intent in time constraints

A

Ampleforth Abbey Trust v Turner Townsend Project Management Ltd 2012

72
Q

Judge Coulson

A

Cunningham v Collett and Farmer
Need to state all necessary work for a contract
Letter should set out requirements in Letter of intent

73
Q

Financial Cap in letter of intent

A

Mowlem Plc v Stena Line Ports Ltd

74
Q

Payment by restitution

A

British Steel Corporation v Cleveland Bridge and Engineering Co Ltd
Fair and reasonable sum

75
Q

Contract by Conduct

A

Felton Construction v Liverpool City Council

76
Q

EU Directive Section

A

104.1 1998

Have to give both contractors same specification

77
Q

Certainty of Terms

A

All requirements and stipulations for the performance of a contract must be know before a contract is signed

78
Q

Invitation to Tender

A

An invitation to treat

79
Q

Employers look at every tender

A

Blackpool and Flyde Areo Club Ltd v Blackpool Borough Council 1990

80
Q

Same Specification Case

A

Harmon CFEM Facades Ltd v The Corporate Officer of the House of Commons

81
Q

Loss of Anticipated profit

A

Aquatron Marine v Strathclyde Fire Board 2007

82
Q

PAS91

A

2013
Publicly Available Specification
Pre qualification questions Core/Optional Categ
Must disclose all information to failing clients weighting system etc

83
Q

MEAT

A

Most Economically Advantageous Tender

Best quality/price ratio

84
Q

Function of Contract Law

A

Compensate the Claimant
Deter someone from breaking a contract
Provide customer protection
Provide a framework

85
Q

Valid Contract Requirements

A

Consideration
Offer and Acceptance
Contractual Intention

86
Q

COunter Offer

A

Original Offer is now void and the counter offer is the only offer which is on the table

87
Q

Consideration

A

What one party does or wants to do in in return for what the other party promises

88
Q

Tendering Process

A

Shows they are trying to enter into a contract

89
Q

Elements of a valid contract

A

No fundamental mistakes (abnormally low tenders)
Parties are capable of contract
Contract is for a legal purpose
Parties consented on own free will
Contract is in particular form 2 signatures

90
Q

Ask for Acceleration

A

Must Pay

Williams v Roffey Bros and Nicholls Contractors

91
Q

Free to Accept / reject any tender

A

Spencer v Harding 1870

92
Q

Contract by conduct through Payment

A

Contract by conduct through payments

Harvey Shop Fitters v ADI Ltd 2003

93
Q

Term is obvious

A

Term so obvious it doesnt need to be written on paper

Reigate v Union Manufacturing Co 1918

94
Q

Contract on a implied request

A

If they achieved insurance a contract no insurance

Marston Construction v Kigass Ltd

Project Management Year 1 (13 decks)

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