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APC Technical > Contract Administration > Flashcards

Contract Administration Flashcards

1
Q

What is the contractors design proportion?

A

-Agreement for contractors to design a specific part of the work
- contractor submits a proposal for review and approval

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2
Q

What is a PCSA (pre contract service agreement)

A

Letter of intent, typically part of a two stage tendering process.

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3
Q

In Rugby how did you deal with works not been completed on time?

A
  • Issued certificate of non completion
  • Time would be at large, no set completion date if didn’t.
  • Contrator has responsibility to complete in reasonable time
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4
Q

What has to be in place to deduct LADS?

A

Non completion certificate
Witholding notice, similar to pay less.

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5
Q

How would you confirm if an EoT is warranted.

A

Refer to contract
Request evidence

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6
Q

How are variations managed

A

If an instruction constitutes a variation then a contractor should give a variations quote
works described should not begin until quotation agreed

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7
Q

what happens during snagging

A

undertaken before PC otherwise known as a schedule of defects.

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8
Q

How do you manage/review valuations?

A
  • Prepared by contractor and reviewed by CA.
  • Check on site and assess if works have been complete
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9
Q

What are prelims?

A

Describes the project and contractual procedures.

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10
Q

Does minor works outline relevant events/matters

A

no. would have to refer to JCT guidance note, can bring claim under common law

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11
Q

What is your understanding of making good defects and what does it involve?

A
  • The contractor administrator issues an instruction to make good the defects.
  • At the end of defects liability the CA prepares a schedule of defects nd agrees to a time to be remedied by.
  • Once works are complete a making good is issued to trigger retention release and the final CFP.
  • If the contractor does not undertake work, the cost is taken out of the retention.
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12
Q

What do you understand by partial possession?

A

Client takes occupation of site (or part of) even if works are on going or defects not remedied.
Contractor is not obliged to allow it if disrupts work.
could result In E0T claim

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13
Q

If you knew a contractor was in financial difficulty what would you do?

A
  • Value works carefully
  • Check materials on site
  • Arrange meeting
  • Review cash flow.
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14
Q

What is a framework agreement?

A

For on going construction works
reduces procurement timescales
Normally based on set pricing schedules

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15
Q

What is a final account?

A

Detailed statement of all adjustments to contract sum, total amount is liable to pay

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16
Q

What is a bill of quantities

A

-Ordinerily prepared by QS
-Project measured quantities
-

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17
Q

What is a termination mechanism in a contract.

A

When a party no longer intends to meet obligations:
- refusal to carry out works
-abandoning site
-failure to pay
-Failure to allow access
- failure to remedy defective works

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18
Q

What is your understanding of novations?

A
  • Transferring contractual rights from one party to another
  • ## Common in design and build scenarios
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19
Q

What is your understanding of non completion and when would one be agreed?

A
  • Issued when works not complete by PC date outlined, this is when LADS can be deducted.
  • When the client is responsible for delay an EoT may be issued and the completion date adjusted. Contractor can claim losses and expenses (additional prelims).
  • Cert of non completion gives formal notice that contractor has not met PC
  • Minor works do not require issuing non completion.
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20
Q

What are the impacts of partial possession?

A

The part possessed is deemed to have had PC
Half of the retention for that part is released.
Defect liability starts on that section
LADS reduce proportionally

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21
Q

What is insolvency?

A

Inability to pay debts

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22
Q

What does JCT stand for?

A

Joint contract tribunal

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23
Q

What do you consider when choosing procurement route?

A

Consider speed, cost, quality, constraints, risk. options include:
- Traditional (single stage)
- Two stage
- D&B

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24
Q

What is meant by loss and expense?

A

These can be claimed by the contractor in the event the works are affected by a relevant matter for which the client is responsible for?
- Failure to give contractor possession of site
- Delay in recieving instruction
- Opening up works or testing works
- failure by client to supply goods or materials
- Issues relating to CDM.

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25
Q

What is a contract instruction and when is it issued

A
  • Vary the work
  • postpone the work
  • to sanction a variation
  • to carry out tests
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26
Q

What is the definition of PC?

A

Ready for beneficial occupation and use.

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27
Q

What are the reason why CI are tracked and issued?

A

To avoid conflicts and provide clear and transparent instructions.

28
Q

When would you issue an interim certificate and what does it include?

A
  • Mechanism for client to make payment
  • more than 45 days long entitled to interim payments
    -If the client intends to pay less then a pay less notice should be issued.
  • CA must issue cert within 5 days of
29
Q

In what situation would you issue a letter of intent?

A

Where there are materials with a long lead in time to provide assurance prior to a contract

30
Q

When would you use an intermediate contract?

A

projects can be procured traditionally
Sections
private or public employers

31
Q

When is needed for Practical completion

A
  • Draft building owners manual
  • Health and safety file
  • Defects should be remedied before PC
32
Q

What are third party rights?

A

The contract (rights of third parties) act 1999 enables third party rights to be created by a contract.
Offers an alternative to collateral warranties
Needs to be expressed in the contract

33
Q

What are employers requirements?

A
  • Set out requirements, including function, size and quality
  • level of detail depends on how much design done pre tender.
  • should detail the level of design, structure and spec
34
Q

What is collateral warranty

A

-provides a link between the client and consultant of sub contractor where none exists
-stepping in rights can be assigned

35
Q

At Rugby what did you ensure was in sub contractor collateral warranty?

A

Sub contractor details
main contractor details
employer details
date of main contract
Details of main contract works
details of the sub contract works
warranty particulars
attestation

36
Q

When would you use a minor works contract?

A
  • Straight forward works
  • typically less than 500k
  • less than 12 months programme
  • the client is responsible for procuring the design or where the contractor is responsible for designing specific parts of the work
    Not suitable if:
  • Project complex
  • Bills of quantities
    Multiple phases required
    there are provisions to govern works carried out by names specialists.
37
Q

What do you understand about the role of a CA

A

Role is to administer the terms of the contract in a fair, reasonable and impartial manner.

38
Q

How did you select the contractor?

A

Initially gathered contractors based on previous jobs and client recommendations, did credit and insurance checks etc. collated tenders in an analysis spreadsheet, comparing item by item and querying any stray costs. Presented recommendations to client in a tender report.

39
Q

You’ve completed a number of JCT contracts, please tell me what the construction industry scheme is?

A

CIS is a scheme created by HM Revenue and customs for tax from contractors and subcontractors.
Scheme is in place to minimise tax evasion within construction industry

40
Q

When is the client deemed a contractor under CIS.

A

If their business doesn’t do construction work, but has spent more than 3m on construction in the 12 months since final payment.

41
Q

What advice did you provide the client with to determine the LADS figure

A

Figure should be a reflection of the actual loss that is likely to occur.

42
Q

Can you tell me the purpose of stepping in rights?

A

Allow a party to step in to the role of the client, to ensure a project is complete if the client becomes insolvent.

43
Q

What are the negatives with contractors design?

A
  • Can increase consultant costs for reviewing deisgns
  • Hard to compare tenders with different proposals
  • May provide designs that are easy to build as opposed to aesthetically pleasing
  • need to create a comprehensive brief.
  • ease of construction may be favoured over quality.
44
Q

What is a pay less notice?

A
  • notice to the contractor to inform them of the intention to pay less than the amount set out in their application for payment.
    -Issued by the client but can be prepared by the CA.
45
Q

What happens if the CA didn’t issue a CFP.

A

The contractors application for payment would apply.

46
Q

What happens if contractor not paid?

A

Right for contractor to suspend performance for non payment, contractor can claim expenses and EoT

47
Q

What allows contractor to terminate?

A

-Non payment
-Failure of client CDM
-If the client suspends works for a prolonged period

48
Q

How is termination triggered?

A

Under section 6, refer to JCT guidance, notice in writing and reason (recorded delivery)

49
Q

What are unliquidated damages

A

Payable for breach that are not pre established
determined by court

50
Q

How do minor works and intermediate differ?

A

-No relevant events outlined in minor works
intermediate more detailed
-intermediate allows for sectional completion

51
Q

When would you use a standard building contract?

A

When traditionally procured
when project is large or complex
Where detailed contract provisions are required

52
Q

What brought in changes as to how contractors are paid

A

Latham report

53
Q

How long is defects liability?

A

Standard set for 6 months on MW, IC, but advise 12 months as goes through all seasons

54
Q

What if contractor refuses to undertake work?

A

Issue notice to comply, if no action within 7 days others can be employed to carry out works and additional costs charge to contractor

55
Q

When is an EoT issued and what is involved

A

Issued when there is a delay that is not the contractors fault
Contractor gives notice with relevant events

56
Q

What is a warranty/guarentee?

A

Legally binding assurance of promise
product warranties can be obtained
a warranty can be for a service and guarantee can’t
warranty has to be written

57
Q

Give an example of how you have assessed a job to PC.

A

Lowestoft and Rugby, attended site, works complete and welfare removed. Client able to use building as intended.

58
Q

What is your knowledge of NEC contracts

A

Never used them,

59
Q

What is liquidated and ascertained damages?

A
  • Relate to contractor failing to achieve PC
  • Client can claim unliquidated damages through court
60
Q

What are the difference insurance options in a contrcat?

A

Option A - Insurance of new works by contractor
Option B - Insurance of new works by the employer
Option C - Insurance of existing works to existing structure by employer

61
Q

When is a letter of intent used?

A
  • Expressing interest to enter into a contract at future date
  • Place orders
  • Put a figure to what the contractor is to work to.
  • Should not be used as a contract
  • Legally binding until signed contract out
62
Q

What is a concurrent delay?

A

Occurs when two or more delays are events occur at the same time and each affect the PC date.

63
Q

What is included in a letter of intent?

A

client authorisation
contract sum
tender doc reference
instruction to proceed on a certain date
Insurance
LADS

64
Q

What are the implications of PC?

A
  • Client able to take beneficial occupational of the building
  • Client should insure
  • Defect liability begins
  • 2.5% retention release
65
Q

if a loss and expense claim went in, how would you confirm it was a suitable cost?

A

Refer to prelims
request evidence

66
Q

What is a tender addendum?

A

Modification to the tender, this could be return dates or individual items
Must be issued to all parties

APC Technical (10 decks)

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