Contract Administration Flashcards
1
Q
For the ECFRS decorations project, what was the type of contract and procurement?
A
Minor Works, should have been intermediate for sectional completion.
Traditional, client retains control over design, client can specify exact works required, single stage and design finalised so cost certainty achieved, straightforward to analyse tender returns, flexibility with variations post tender, contractor does not price design risk.
2
Q
What were the relevant events for the ECFRS decorations project?
A
No relevant events, the contractor was not entitled to an extension of time
3
Q
How do you assess the delays for the ECFRS decorations project?
A
Reviewed on site progress and revised dates against original programme and investigated reasons why.
4
Q
How did you calculate the LAD amount for the ECFRS decorations project?
A
Loss of rent / income, fees, storage costs, financing costs, etc
for ext decs client had calculated amount due to the storage costs and project team fees
5
Q
Referring to the ECFRS decorations project, what entitles the contractor to an EoT?
A
Inclement weather
Force majeure
Additional instructions
Impediment due to client
Suspending works due to client not paying
Contractor wasn’t entitled to any of these
6
Q
How long after issuing a 7 day notice can you terminate contract?
A
If the contractor does not comply within those 7 days within 10 days
7
Q
For Burnham Road what are the consequences of issuing a MGD certificate?
A
- Contractor’s obligations are complete.
- Release of final retention
- Start of latent defect period
8
Q
What are latent and patent defects? Was the defect at Burnham Road latent or patent?
A
A patent defect is one that has been identified during the works or during the defect liability period, whereas a latent defect could be concealed and may not be apparent until many years later, for example a building cracking due to inadequate foundation design.
Worktop issue was a patent defect.
9
Q
For Burnham Road, when was the worktop defect recorded?
A
During the rectification period.
10
Q
What made you think the Burnham Road defect was the contractor’s responsibility?
A
Pipe leaking within a couple weeks of completion not fit for purpose.
Contractor agreed rectification is required.
Also responsible to rectify associated making good.
Contractor agreed to rectify worktop during EOD inspection.
11
Q
For Kelsey Street, how do you chair a meeting? Explain the process?
A
- Arrange a suitable date between the parties
- Circulate invitation on site or teams
- Send agenda or previous meeting minutes before
- Run through items with the parties
- Make notes and issue minutes within a week thereafter
- Carry out site inspection or valuation accordingly
12
Q
Who is responsible for the risk of additional asbestos for the Kelsey Street project? Was an R&D survey undertaken?
A
The client because they did not have up to date asbestos records and undertake an R&D survey prior to commencement.
An R&D survey was undertaken once the contractor was on site and then there was a significant delay due to client indecisiveness, therefore contractor entitled to additional time and money.
13
Q
For Kelsey Street what information was submitted with the EoT claim?
A
- Explanation and contract conditions
- Delay impact on programme
- Photographs
- Likely costs in accordance with relevant matter claim
14
Q
For Appleford Court, how do you determine the due date?
A
Interim valuation date where not stated is one month after date of possession. Due date 7 day after normally.
15
Q
For Appleford Court, what was the consequence of late payment?
A
There was no consequence on this occasion, the client apologised and confirmed payment would be one or two days late. The contractor confirmed that this was okay provided it did not happen again and took no further action.
16
Q
What would happen if you fail to issue a payment certificate within 5 days of the due date?
A
Contractor is to issue their payment notice and final date for payment extended by delayed days that a notice wasnt issued
17
Q
What happens if the contractor does not make application by the due date?
A
Even if interim valuation not submitted works should be valued
18
Q
For Appleford Court how did you undertake a valuation? Explain the process?
A
- Receive application for payment on interim valuation date
- Attend site on due date with application
- Review items with contractor and query any as necessary
- Reach agreement on valuation, return to office and issue payment certificates.
19
Q
For Burnham Road, what information was required to achieve PC?
A
Final BC certificates, NHBC warranties, NICEIC certificates, snag lists, tv aerial certiciate, kitchen and bathroom guarantees, contractor reports, O&M manual, H&S file.
Regulation 38 certification not required because it wasnot multi storey and multi occupancy.
20
Q
How did you undertake handover for Burnham Road?
A
- Visit properties with client and contractor
- Check the remaining snags
- Complete key and meter schedule
- Issue certificates
21
Q
For Burnham Road, what triggered the EOD inspections?
A
The end of the rectification period as stated on the PC certificate.
22
Q
For Burnham Road, how did you arrange the EOD inspections?
A
Contacted client, they arranged access. Then contacted the contractor to let them know the proposed date and we all attend the properties.
23
Q
Talk me through the process of carrying out an EOD inspection?
A
- Arrange date with client and contractor
- Send letters to notify residents
- Inspect the property and identify any defects. Check the snag lists.
- Note down any defects of EOD schedule
- Request client obtains resident sign off forms
- Issue CMGD and release retention once rectification is complete of all defects.
24
Q
What are the implications of issuing a PC certificate?
A
Releasing Retention Money.
Ending Contractor Liability for Liquidated Damages.
Starting the Defects Liability Period.
Triggering the Final Account Stage.
25
For the appliance bay floor project, what do you record in minutes?
The discussions from the meeting, it includes:
Apologies, introductions, previous minutes, contract, site, programme, client and contractor requirements, post contract administration, H&S, environment, other business, next meeting.
26
Within the Appliance Bay Floor Project meetings, what items were discussed?
Items included on the previous minutes. Contract, site, H&S, programme, client and contractor requirements, environmental issues were all discussed
27
What projects are more suitable for minor works rather than intermediate?
Minor Works Building Contract - Low complexity, minor structural works up to £250,000
Intermediate Building Contract - Medium complexity, structural works up to £1 million
28
Can you provide the payment timescales from receipt of an interim valuation in 2016 JCT contracts?
They place responsibility on the Contractor Administrator (CA) to issue a payment notice no later that five days (calendar) from the due date for payment. The due date for payment is generally seven days from the interim valuation date. The final date for payment is typically 14 days from its due date.
29
What is typically contained within the preliminaries?
Preliminaries provide a description of a project that allows the contractor to assess costs which, whilst they do not form a part of any of the packages of works required by the contract, are required by the method and circumstances of the works.
- A general summary.
- A description of any planning conditions or other conditions that may affect the works.
- A description of any outstanding statutory approvals that may fall to the supplier to satisfy.
- Party wall requirements or other agreements with, or rights of, neighbours (such as rights to light).
- A description of the reporting information that the contractor will be required to submit (often on a monthly basis)
- A description of the commissioning strategy
- Relevant reports (such as soil reports).
- Quality management procedures.
- Requirements for insurance, performance bonds, warranties and product guarantees.
- Requirements for the operating and maintenance manual.
- Requirement for progress photos to be taken.
- Contract Particulars
- Building information modelling (BIM) requirements
- Site waste management plan.
- Contractor's site preliminaries, such as; staff, welfare provisions, site offices, plant, site waste clearance, water, electricity, furniture, ICT and consumables, rates, protection of work, protective clothing, site transport, setting out, building control fees, and so on.
30
For Appleford Court you mention that contractor confirmed payment wasn’t received, how was this resolved?
- Contacted client who apologised and confirmed that it would be paid in next two days.
- Asked them to put it in writing and let the contractor know.
- Contractor confirmed that only on this occasion it would be acceptable.
31
For Appleford Court explain the procedure that you had in place with the contractor with regards to valuations?
- Due date undertaken on date of meetings.
- Valuation with contractor and any queries communicated.
- Application 7 days before, valuation on due date and I issue certificates within 5 days of due date.
- Contractor issues there invoice and client advised to pay within 14 days of due date.
32
For Burnham Road what were the implications of PC under the terms of the contract?
- Properties handed back to client
- Start of rectification period
- Release of moiety retention
33
For Burnham Road, after checking whether all items were complete when the rectification period was due to expire, what did you then do under the contract?
Produced an EOD schedule identifying any items not complete and issued within 14 days of end of rectification period. I then checked once the contractor had confirmed these items were complete and then issued a certificate of making good defects.
34
For the floor refurbishment project, what typical insurances should be in place as part of the contract?
- Joint names insurance
- PII
- Employers Liability Insurance
- Public Liability Insurance
- Building Insurance
35
How did you determine that the contractor was in delay for the external decorations project?
Reviewed on site progress through my inspections and noted that the original programme was not being adhered to, the contractor failed to issue a revised programme or a programme with a dropline.
36
For the external decorations was the PPE incident reportable? How did you ensure that this would not happen again? Did works stop?
The PPE incident was not applicable to be reportable to RIDDOR. I immediately ensured that PPE was put on by that operative and informed the PD and site manager. The site manager said they would remind operatives of the need for PPE, works did not need to stop.
37
For Burnham Road, was the approach to deduct money from the contractor fair?
- Long lead in time
- Contractor did not particularly want to reattend as in isolated location
- Client knew a trade that could undertake the work
- Both seemed to want to reach an agreement so CMGD could be issued and project completed.
38
For Burnham Road, did the leak and worktop get rectified? How did this take place and who by?
The leak was rectified by the contractor. A cost was negotiated to be omitted from the retention for the worktop, both parties were happy to agree a cost and the client subsequently had their point of contact rectify the worktop.
39
For Kelsey Street, was there no survey or report that identified the asbestos?
Was not included in the asbestos management survey.
40
For Kelsey Street, what information did you request to review as part of the L&E claim?
- Original programme and revised programmes
- Records of labour and welfare on site
- Contract conditions under which requesting an EOT and L&E claim
- Quotes for weekly costs for their site set up
- Quotes for any management staff that were paid on day rates
- Essentially how they calculated the costs that they were claiming for.
- The costs were the same as their original preliminary costs.
41
For your Burnham Road project, how was the cost negotiated for the defect which had to be rectified by others?
- I discussed with the contractor
- I sought advice from a QS and also referred to SPONS so I knew a reasonable figure for the lifting worktop
- I suggested the cost which was agreed with the contractor
42
On the Kelsey Street project, please tell me how you went about analysing the delay claim from the contractor?
- I checked the original programme and revised programme and analysed the delay.
- I compared this to on site progress I had reviewed and recorded in my reports.
- I then analysed the contractor's loss and expense claim and checked the weeks duration that the contractor had applied their rates to.
- I checked whether the rates were in accordance with their original prelim costs.
43
Name the different sections of JCT minor works and intermediate building contracts?
- Section 1 Definitions and Interpretations
- Section 2 Carrying Out the Works
- Section 3 Control of the Works
- Section 4 Payment
- (Section 5 Variations)
- Section 5 (6) Injury, Damage and Insurance
- (Section 7 Assignment, Performance Bonds and Guarantees and Collateral Warranties)
- Section 6 (8) Termination
- Section 7 (9) Settlement of Disputes
44
What are the main differences between minor works and intermediate building contracts?
- Intermediate is more detailed.
- It includes sections for variations and collateral warranties and guarantees.
- Intermediate includes sectional completion.
- It details relevant events and relevant matters.
45
When should you use the different types of contract you have implemented. Please provide examples.
Minor Works - Simple nature works, value of under £250,000, minor structural works and client responsible for design.
Intermediate - Medium complexity, structural works, value up to £1,000,000 and client responsible for design.
46
Identify different contract suites other than JCT. What projects are these different types suitable for?
New Engineering Contract
Association of Consultant Architects
FIDIC
Institution of Civil Engineers
47
Name the main forms of the JCT contract.
Standard Building Contract
Intermediate Building Contract
Minor Works Building Contract
Major Project Construction Contract
Design and Build Contract
Management Building Contract
Construction Management Contract
JCT-CE Contract
Measured Term Contract
Prime Cost Building Contract
Repair & Maintenance Contract
48
What are the main elements required to form a contract.
Offer
Acceptance
Intention
Consideration
Awareness
Capacity
Legality
49
What are the main roles included in JCT contracts?
Contract Administrator / Architect
Employer's Agent
Quantity Surveyor
Principal Designer
Client
Principal Contractor
50
What contractual processes do you have to apply as Contract Administrator. Please provide some examples.
- Variations and contract instructions
- Certificates for payment
- Practical completion
- End of defects
51
What certificates might you issue as Contract Administrator?
- Certificate for payment
- Practical Completion certificate
- CMGD
- Seven Day Notice
- Contract Instruction
52
When do you issue certificates for payment? When do you issue contract instructions?
Issue certificates for payment monthly.
Issue CIs as and when variations arise.
53
What is the difference between preliminaries and preambles?
Preliminaries provide a description of a project that allows the contractor to assess costs which, whilst they do not form a part of any of the packages of works, are required by the method and circumstances of the works.
Preambles are an explanation of a document, commonly found in contracts. It can help with the interpretation of the document.
54
What are the different items which need to be included in a Schedule of Works?
Prelims
Preambles
The Works
Prov Sums
Summary
Appendices
55
For Appleford Court, what is the application submission date also known as? What other dates did you set out in the schedule?
Interim valuation date
Due date
Issue of payment certificate
Issue of contractor invoice
Final date for payment
56
What would happen if the Contract Administrator does not issue payment within five days of the due date?
The contractor is able to issue a payment notice to the client and the final date for payment is extended by the amount of days that there was delay to issuing the certificate.
57
For Appleford Court, what would happen if the contractor did not submit an interim valuation?
I would still undertake a valuation on the due date and issue payment certificates as normal
58
For Appleford Court, what happened when the contractor did not receive payment? What action could they otherwise take?
I spoke to the client who resolved the matter, the contractor accepted that on this occasion payment would be a couple of days late.
If no payment, the contractor should provide their notice to suspend works and if this continues 7 days after they can then suspend works and this is deemed a relevant matter.
59
List the documentation that you had to track for the Burnham Road project?
- Final BC certs
- NHBC warranty
- Electrical certs
- Snag lists
- TV aerial
- Kitchen and sanitaryware guarantees
- Confirmation of planning condition completion
60
In regards to Burnham Road, what actions should the Contract Administrator undertake prior to completion?
- Receive and review all the handover certificates and documentation
- Snag the properties
- Check all contractor obligations are complete in accordance with the contract
- Undertake key and meter schedule
61
What are the implications of issuing a Practical Completion certificate for Burnham Road?
- Building is practically complete and building can or has handed over to client
- Release of moiety retention
- Start of rectification period
62
How do you determine what items the contractor is obliged to rectify in end of defects?
It should be anything which is not in accordance with the contract, anything not fit for purpose or a deficiency in the work. NHBC guidance can assist, e.g. hairline cracks are under 2mm.
63
Why would the contractor not rectify a hairline crack? What is a hairline crack?
The building is fit for purpose and the hairline crack usually occurs within a year for normal settlement of a building, it is not deemed a defect due to contractor error or quality issues.
64
What items did you cover in the floor refurbishment meeting?
- Introductions and Apologies
- Accuracy of Previous Minutes
- Contract Matters
- Site Matters
- Progress
- Client Requirements
- Contractor Outstanding Information
- Post Contract Administration
- Health and Safety
- Date of Next Meeting
- Any Other Business
65
With regards to the floor refurbishment meeting, give examples of the contractual actions that you raised and contractual procedures that you explained?
Contractual actions raised - Issue insurances for project, provide signed contract to be reviewed and scanned in, check VAT status with advisor.
Contractual procedures explained - payment procedures, variations, completion / handover.
66
What is the procedure for dealing with a variation?
- Visit site to inspect variation.
- Request quote and notify client.
- Issue quote to cost if reasonable and request approval.
- Then confirm for contractor to proceed, issue a contract or change instruction.
67
When do you normally hold pre-commencement meetings? How is this arranged?
- Before commencement on site after the signing of the contract during the lead in period.
- Contact the client and contractor and any other relevant parties and arrange a date to meet on site.
68
For the external decorations project, why did you consider if there were any RFIs or inclement weather which had caused delay?
Inclement weather - EOT claim applicable
RFIs - If client did not provide key information required by client then EOT and L&E claim as client impediment.
69
Who deducts liquidated damages? Explain the process?
Non completion cert, maybe an extension of time cert, issue certificate for payment full value, client notifies intention to deduct LADs and issues pay less notice 5 days before final date for payment
70
For Burnham Road, why was the contractor responsible for a lifting worktop?
Leaking pipe and worktop was associated damage. Pipe not fit for purpose as leak occurred soon after installation. Contractor confirmed they would rectify but on EOD inspection noted still not complete.
71
For Burnham Road, should the contractor have been given the opportunity to rectify the lifting worktop?
They were however they confirmed there would be a significant lead in time and when I had an open conversation with the contractor they confirmed they would rather negotiate a cost and have the CMGD issued.
72
For Burnham Road, what cost was negotiated for the lifting worktop?
It was approximately £200 and was for the sealant and labour costs in rectifying the worktop.
73
How do you evaluate a loss and expense claim?
- Review the application for loss and expense
- Determine if the costs are accurate by requesting evidence
- If it is a relevant matter confirm to both client and contractor
- Include costs within next payment certificate or at end of project.
- It should represent actual loss.
74
What does a certificate of making good defects signify?
Completion of the rectification period and start of the latent defects period. Release of the final retention.
75
For Burnham Road, why were both parties satisfied in negotiating a cost?
The contractor didn't want to return to site, wanted the release of retention and to have the operative return would have take a couple weeks. The client knew someone that could undertake this quickly and also wanted the CMGD to be issued and to wrap up the project.
76
For Kelsey Street, did the contractor indicate that they were suspending works? Could this have lead to termination of the contract?
- The contractor indicated they would be reducing operatives on site because of a client impediment, as an instruction had not been received on how to proceed.
- The client did not confirm they wanted to terminate contract, but if they did they could have issued a notice stating the default and if it continues for 14 days they could terminate the contract within 21 days of this.
77
For Kelsey Street, why was the contractor's loss and expense claim approved for they delays associated with the asbestos discovery?
Contract instruction and impediment by contractor. The client didnt originally undertake an R&D survey prior to start on site as recommended. They then spent weeks deciding which option to proceed with even though I warned them of the implications this would have.
78
How did you analyse the contractor's claim for an extension of time and loss and expense?
- Consideration of the contract conditions under which the claim was made.
- Review of the programme and other evidence for the extension of time.
- Review of own records and on site photos when considering extension of time
- Review of costs and invoice evidence for loss and expense
79
What are the timescales associated with loss and expense?
- The contractor must give written notice of a claim as soon as it becomes reasonably apparent that the regular progress of the works is being materially affected.
- Claims are restricted to 'direct' loss and expense and so 'consequential losses' (such as lost production) are generally excluded. Direct losses are those that 'flow naturally' from the breach of contract.
- Once written notice has been obtained the contractor should look to quantify their actual loss and evidence of this to the CA / EA and agreement should take place as soon as it is possible.
80
How did the client reimburse the contractor for loss and expense for Kelsey Street?
This claim was agreed for Loss and Expense at project completion, the figure was added to the final account figure as agreed by both client and contractor.
81
For the external decorations, how did you know there were delays due to the contractors lack of coordination?
I visited site regularly and recorded the information to confirm there was adequate resource and works taking place. I produced site visit reports to demonstrate this and previously warned the contractor and referred to my reports. Communication with the contractor also confirmed they were not coordinating works on site particularly well.
82
What are actions which lead to a relevant event?
Client instructions, inaccurate approximate quantity, default by Employer, suspension due to non payment, inclement weather, stats, damage due to specified peril
83
What are actions which lead to a relevant matter?
Variations, client instructions, inaccurate approximate quantity, default by employer
84
What are liquidated damages? What can it include?
Pre determined damages based on a calculation of actual loss that will be incurred, considers rent on temporary accommodation, extra running costs, project team fees, storage costs, loss of income.
85
How do you undertake handover?
Undertake meter readings, exchange keys and de snag items
86
What is a Provisional Sum?
Prov sum – An allowance for work which is not yet defined enough to price accurately.
87
Describe to me the variation procedures set for a project you had involving a minor works contract?
Decorations project, I would have a request for a quote from the client or my observations. I would request a quote from the contractor and thereafter check it's reasonable. I would then issue this to the client for acceptance before confirming for the contractor to proceed and issuing a CI.
88
What is a concurrent delay?
circumstances where a period of delay to the completion of a project is caused by two or more factors, usually where one of which is the contractor's responsibility and one of which is the employer's responsibility.
89
What if a concurrent delay takes place where the client and contractor has caused a delay? Is the contractor entitled to additional time?
The contractor is entitled to an extension of time for the period of delay caused by a "relevant" event "notwithstanding the concurrent effect of the other event".
As an example, the judge referred to a hypothetical scenario in which no work was possible on the site for a week because of "exceptionally inclement weather" (a "relevant event"), but also because the contractor had a labour shortage (not a "relevant event"). Assuming the failure to work during that week was likely to delay the works beyond the contractual completion date by one week, an extension of time should be granted regardless of the fact that the delay would have occurred in any event due to the labour shortage.
90
Why might variations take place?
Technological advancement.
Changes in the client's requirements.
Statutory changes or enforcement.
Change in conditions.
Geological anomalies.
Non-availability of specified materials.
Development of the design after the contract has been awarded.
91
For variations, if the quantity of works has changed but the nature of works remains similar, should the contractor use their original rate in their pricing document?
Valuations of variations are often based on rates and prices provided by the contractor in their tender, provided the work is of a similar nature and carried out in similar conditions. This is true, even if it becomes apparent that the rates provided by the contractor were higher or lower than otherwise available commercial rates.
92
What do you base a variation on if there are no rates to use in the original pricing document?
fair valuation of the contractor's direct costs and overheads and profit.
93
When can a client omit works?
A contractor should have the right to carry out and earn profit on the full scope of works that have been agreed.
The client can omit works when the parties agree to an omission clause included within the contract but this should not allow an employer to essentially remove all of the works from a contractor’s scope or omit such a large proportion of the works so as to effectively terminate the contract.
Any omission must be a genuine omission and there must be no intention to carry out the omitted work at a later date with another contractor.
94
How long after the end of the rectification period should a EOD schedule be issued?
14 days.
95
What are listed items?
Pre-agreed items to be included in interim payments for payment off-site.
96
What are the minor works insurance options? How does this compare to intermediate insurance options?
Minor Works:
- JCT 5.4A – this requires the Employer to be included as a “Joint Name” with the Contractor on the insurance policy for the new works.
- JCT 5.4B – this requires the Employer to provide “Joint Names” insurance policy for the new works and the existing structure.
- JCT 5.4C – this requires the works and existing structure to be insured by ‘other means’.
Intermediate:
- Insurance Option A - New Buildings All Risks Insurance by the Contractor
- Insurance Option B - New Buildings All Risks Insurance by the Employer
- Insurance Option C - The Employer to take out and maintain (a) insurance in respect of the existing structures and their contents and (b) all risks insurance of the works.
97
What must be in place before Liquidated Damages can be deducted?
A non completion certificate and a pay less notice (unless deducted in final account)
98
What happens if the client has not actually suffered any actual loss?
It doesn't matter, they can still deduct the LADs stated in the contract.
99
What needs to be in place for you to include payment for materials off site.
- Proof that ownership will transfer to the employer on payment (vesting certificate)
- Insurance until materials arrive at site
- Materials are clearly labelled as for the site and set apart from other materials
- A materials off site bond has been provided if required
100
What is the purpose of retention?
- It provides an incentive for the contractor to complete the works promptly
- It provides some financial cushion to the employer in the event of contractor
default
101
What are bonds? Name the different types of bond?
Bonds are a means of protection against the non-performance of the contractor.
- Performance bond
- Advance Payment bond
- Off site materials bond
- Retention bond
- Defects liability bond
102
When is the base date usually set?
A 'base date' is a reference date from which changes in conditions can be assessed.
Usually set 10 days prior to the return of tenders. If specified conditions change between the base date and before the contract is implemented, then the contract may be adjusted to reflect this.
103
If the client wanted to change LADs halfway through the project, what would you advise?
I would suggest that it would be in their best interests to remain with the value in the contract, as they should be a genuine pre-estimate of the loss incurred in the event of delay. If the client reduced them & the contract was delayed then the client would be financially exposed. If he increased them, they may be seen as a penalty and agreement would need to be sought from the contractor.
104
When it became clear the contractor was in delay, what did you do?
- Monitored progress.
- Noted operatives on site and weather conditions during inspections.
- Warned the contractor informally and notified the client.
- Reviewed revised programmes issued.
- Spoke to the contractor about their intention to issue a application to issue an extension of time.
- Issued a non completion certificate.
- The client notified the contractor of their intention to deduct LADs and issued pay less notices accordingly.
105
For the Kelsey Street L&E, how did you determine costs? How did you determine fair and reasonable costs?
- Reviewed the contractor's loss and expense claim.
- The contractor provided agency quotes for management costs.
- Weekly costs were submitted for welfare facilities which were in accordance with the preliminaries.
- Ensured that I had quotes where possible and costs were actual loss and not unreasonable, thus Spons and previous project rates were reviewed.
106
Who sets the due date?
Its set in the contract.
107
What certificate stops the insurance for the works?
Certificate of practical completion.
108
What entitles the contractor to an extension of time?
- A relevant event.
- An extension of time certificate.
109
What aspects of a project does a contract control?
Time / quality / costs.
110
What is the difference between a relevant event and a relevant matter?
- A relevant event may be caused by the client, or may be a neutral event such as exceptionally adverse weather.
- A relevant matter is a matter for which the client is responsible that materially affects the progress of the works.
111
For the contractors application for payment, when should works be valued? How does this differ to the certificate for payment?
The contractor should value works on the interim valuation date. The contract administrator should value works on the due date.
112
What should happen if the contractor does not issue an application for payment on the interim valuation date?
- The due date should be extended by the amount of days that the certificate was late.
113
What are Articles of Agreement?
A section within the JCT contract to set out what is agreed between the parties and includes the following:
- Contractor's Obligations
- Contract Sum
- CA
- QS
- PD
- PC
- Adjudication
- Arbitration
- Court Proceedings
114
What are recitals?
Recitals contextualise the agreement, giving factual explanations for the basis of the contract. They describe what is required and the events that have taken place. Includes:
- Work comprise...
- Location
- Drawings
- Priced schedule provided to employer
- Contractor's proposals
- CIS scheme
- CDM Regulations
- Sections for works
- Framework agreement
- Supplemental provisions
115
What are the sections of a JCT contract?
- Recitals
- Articles
- Contract Particulars
- Attestation
- Conditions
116
What is attestation under the JCT contract?
Where the contract is executed under hand or as a deed.
117
How do you evaluate an EoT claim?
- Review programme to determine if critical path is affected
- Check records, e.g.- minutes / reports / weather / operatives
- Check the relevant events section within the contract
118
Once you have received all relevant information from the contractor post PC how long do you have to agree a final account?
3 months.
119
When agreeing the final account if a contractor was claiming for works not instructed, what would you do?
- Determine if an instruction was provided by the client.
- Determine if the item was necessary for the works execution and if there was a reason why it wasn't instructed.
- Depending on investigation confirm whether it should be paid for by the client.
120
How do you determine the duration of the rectification period?
Scale and size of project, contract sum, likelihood of patent defects and how long it would take for these to become visible.
121
Why might you select Intermediate contract over minor works contract?
- Sectional Completion
- Named Sub-contractor
- Variations and collateral warranties sections
- More detail
122
What do you need to consider when choosing the appropriate contract?
- Procurement
- Scale and type of work
- Costs
- Time
- Quality requirements
- Contractor input need
123
Where is retention set out in the contract?
The contract particulars
124
You discussed insurances at your floor refurbishment pre start meeting, can you talk me through this?
I requested the contractors insurance including PII, ELI, PLI
I requested the employer proceed with option c which is the employer to take out insurance for the existing structures and all risks insurance for the new works.
125
After Practical Completion, can an Employer deduct LADs?
A notice should be provided between the certificate of non completion being issued and PC that the client requires the contractor to pay LADs.
126
When do contractors need PII?
For anything involving design work.
127
Why is a Building Surveyor a good fit as a Contract Administrator?
- Understands contractual processes
- Good gage of reviewing progress against programme
- Understands and can resolve defects and issues on site
128
When would a material become under an Employer's ownership?
As soon as an Employer pays and an invoice is issued.
129
What would you need to consider before valuing a listed item?
- It is the Contractor's property
- The item will remain insured
- Identification it is the Client's and where it will be delivered
130
How would you value materials stored on site?
Consider factors such as whether the material is for the site, if is it to be installed shortly, what is the cost of the material, is it defective then come to a judgement on the price due excluding installation.
131
What are the timescales associated with loss and expense?
- The contractor should submit their initial assessment of the likely effect of the relevant matter as soon as reasonably practicable and then provide a monthly updated assessment. The employer then has 28 days in respect of the contractor’s initial assessment and 14 days in respect of subsequent assessments to ascertain the loss and expense claim.
- For the final adjustment, the contractor should apply for L&E within 6 months of PC. If this is not provided the Contractor will be given 1 month's notice to provide the documents.
- Not less than 3 months after receipt of these documents should the CA issue adjustments to be made to the Contract Sum after reviewing the evidence they have.
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When should an extension of time be issued?
At any time up to 12 weeks after the date of practical completion, an extension of time may be issued by the Contract Administrator.
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What is retention?
Retention is a sum of money (the retention fund) held by the employer as safeguard against defective or nonconforming work or materials provided by the contractor.
134
How do you deal with payment once Practical Completion is achieved?
The contractor should provide all information to determine the final account within 3 months. The due date will be 28 days after the receipt of all information.
135
When should you issue the CMGD and the Final Certificate?
CMGD - Once the contractor has rectified all defects.
Final Certificate - At most 28 days after the end of the rectification period / CMGD. Should confirm the adjusted contract sum and the day of issue of the final certificate will be the final due date.
136
What is the difference between a defined and undefined provisional sum? What should the contractor have made allowance for?
Defined prov sum – described in sufficient detail that the contractor is expected to have made allowance in them for their programming and planning.
Undefined prov sum – less well described as they refer to work which is not completely designed, so can’t have made allowance for programming and planning.
