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Flashcards in Contract Administration Deck (116)
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1

What are the certificates in the Intermediate contract? (5)

1 - Interim Certificate
2-Certificate of making good defects
3-Certificate of practical completion
4 - Final Certificate
5-Certificate of non-completion

2

What is the process for making good defects? (3)

1-These should be notified by the CA/Archi to the Contractor
2-The CA should issue a schedule within 14 days of PC.
3- When CA is satisfied all defects are made good only then can 'Certificate of making food defects' be made.

3

What is the criteria for Practical Complete? (2)

1-Practical Completion of the works is achieved
2-contractor has sufficiently complied with clause 3.18 (supply of information required for Health and Safety File'.

4

What is the procedure for PC in the Intermediate contract?

There is no procedure it is however for the CA to issue the certificate i the criteria for PC is met.

5

What is the procedure if practical completion is not met?

The CA must issue certificate, this is a prerequisite for deduction of Liquidated Damages.

Once certificate is issued the contractor is in 'Culpable Delay'.

6

When are Liquidated Damages claimed and how?

Subsequent interim valuation or reclaim sum as debt.

7

What are the preconditions for claiming Liquidated Damages? (4)

1-Contractor failed to complete works by date of completion

2- CA must have issued cert for non completion

3-CA must have fulfilled all duties with respect to the award of an extension of time

4-Employer must give contractor written notice of its intention prior date of final cert

8

Why would a CA issue CAI?

1 - Discrepancies in contract docs
2- Variations

9

What are the five underpinning requirements to create a contract?

1-Offer
2-Acceptance
3-Consideration
4-Mutual Obligation
5-Competency and Capacity

10

What is traditional Procurement?

Design and construction is separate

Full documentation provided to contractor at RIBA stage 4.

Competitive tender process

Independant CA

Valuation/Payment obligated by employer

11

What are the advantages of traditional procurement?

Certainty of design

Clarity on project requirements

flexibility through variations

12

What are the disadvantages of traditional procurement?

Slow commencement

No contractor involvement for complex build issues

13

What is design and build?

Contractor is responsible for both design and construction of work in return for a lump sum

14

What are the advantages of Design and Build?

Speed as design and construction overlaps

Early start on site

Increased cost control

Increased time control

15

What are the disadvantages of Design and Build?

Contractor may exploit quality

Design variations have significant cost and time implications

16

When is the Intermediate Contract Suitable?

When works are simple

When works are designed on behalf of the employer

Where CA/Archi is required to monitor the works

Where partial possession/sectional completion required

Where collateral Warranties are required

17

What are the clients key drives?

cost
time
quality

18

What was the clients key driver for Liberation House remediation?

Quality

19

In relation to a JCT contract, what mechanisms impact on time?

relevant events

20

What is a relevant event?

Incidents which can create a delay for a contractor who can then be entitled to an extension of time. (e.g impediment by the client / late information from consultant).

21

Why is it important that a contractor gets an extension of time?

Mitigate LADs
Additional costs to the contractor (prelims, labour)

22

Name some relevant events?

Variations
CAI
Impediment by employer
Exceptionally Adverse weather

23

In relation to relevant events, what is 'Deferment of Possession'?

This is when the client does not handover site on contracted date.

24

L1 - You note that the contractor was not paid on time, what is this called and what is process the contractor can apply in this situation?

Suspension by contractor (if contractor has not been paid by employer)

Contractor must notify CA/Archi

Not paid within 7 days he can suspend the works.

If that causes a delay he is entitled to an extension

25

For LW4 you note that the deflection caused the works to stop? What contractual mechanism deals with this?

Relevant events - Variation / impediment by employer

26

What is the process if the contractor is in delay?

Notice in writing (recorded delivery)
Sent when it becomes 'reasonable apparent'
Identify relevant event

27

Is there a time bar on relevant event claims?

No only when it becomes reasonably apparent - they can be late but it is good practice to have these done early

28

What should the CA do if it receives notice of contractors extension of time request?

Give if reasonable
notify contractor
give reasons within 12 weeks
State extension of time relating to each relevant event
Fix new completion date

29

What are liquidated Damages and are these penalties?

pre determined loss a client would incur as a result of project completing late - this is not a penalty

30

Are liquidated damages a penalty?

No