Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

APC 24 > Contract Administration - TO COMPLETE > Flashcards

Contract Administration - TO COMPLETE Flashcards

1
Q

Can you explain a few of the key differences between the JCT and NEC suite of contracts?

A
  • NEC uses 6 main options and secondary options / JCT uses separate contracts
  • NEC written in laymen terms
  • No QS mentioned in NEC only PM
  • NEC tries more collab approach
  • NEC = CEs / JCT = Variations, L&E and EoT
  • NEC had periods of reply
  • Programme is a contract doc in NEC
  • NEC uses EW (proactive) JCT is more reactive
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How is the Programme managed differently in NEC as opposed to JCT?

A

Programme is a contract document which the contractor has to submit or monies can be withheld.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Can you explain how you would implement a change control procedure in D&B?

A

Use the change control procedure set out in the contract
- D&B contractor would submit a CRF to myself and the EA
- EA agrees whether change
- I then agree cost and recommend to EA
- EA gets approval from Client and then issues an instruction for the change.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the dangers of working on a bespoke contract?

A

It’s bespoke so less understood to all parties. Great care must be taken when administering

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Role of Contract Administrator under JCT?

A
  • Administers the construction contract
  • Must act honestly and reasonable
  • Issues instructions & EOT
  • Certifies sums due
  • Assesses delay and grants time and cost relief
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How does the role of Employers agent differ from contract administrator?

A
  • EA is seen as clients advisor
  • Required to protect clients interest (CA must act impartially)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is Practical Completion?

A

The works are generally considered to be practically complete when there are no outstanding defects and the building can be put to its intended use.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What would you do if the contractor has not completed by the pc date?

A

If I were acting as either the CA or EA I would advise the client to issue a non-completion certificate.

If date fixed after the notice then date cancels out the notice. Issue another if necessary. Client must give notice of intention to the contractor to deduct LAD’s. 5 days before the date of final payment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Novation

A

When the rights and obligations of one party are transferred to another party.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Assignment

A
  • Transfer of a right from one party to another.
  • E.g. transferring a collateral warranty to a tenant on completion.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Novation vs Assignment

A

Assignment does not transfer burden, novation transfer both rights and obligations, creates a new contractual relationship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Items in a valuation

A
  • Measured works
  • Variations
  • Claims ascertained
  • On site materials
  • Off site materials (if included in the contract provisions)
  • Preliminaries
  • OH&P
  • Retention
  • Deductions for previous payments
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the main parts of JCT

A
  • Recitals
  • Articles
  • Contract Particulars
  • Attestation
  • Conditions
  • Schedules
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How can you accelerate

A

Change working method, double shifting, extended hours

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Difference between CA and employers agent

A

CA - Traditional
EA - Design and Build

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Payment provisions under JCT Standard 2016

A

Application for payment - No less than 7 days before due date
Due date - 7 days after the application for payment
Interim Certificate - Issue by CA 5 days after the due date
Pay Less Notice – 5 days before final payment
Final Payment - 14 days after due date

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Payment under JCT D&B 2016

A

Same as the standard but the valuation is up to the due date.

Due date - day of valuation and when the valuation it said to valid from
Interim Certificate - Issue by CA 5 days after the due date
Pay Less Notice – 5 days before final payment
Final Payment - 14 days after due date

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Payment provisions under JCT D&B 2016

A

Option A - Stage Payments
Option B - Periodic payment (valuation to date)

Same payment provisions regardless of option

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is included in a payment cert

A

Due date
Final date for payment
Gross valuation
New valuation
Retention statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

If the project wasn’t completed on PC date, as CA what would you issue?

A

Certificate of non-completion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What does cert. of non-completion mean to the contractor?

A

They are liable to pay LAD’s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What does cert. of non-completion mean to the employer?

A

They can claim for liquidated damages

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What must employer issue to claim liquidated damages

A

Pay less notice

24
Q

What is a pay less notice

A

They intend to pay less than the payment notice or contract value

25
Q

What happens if CA doesn’t issue certificate

A

MC can issue their own payment request

26
Q

What is retention?

A

Retention is a percentage of payment held back typically by a client or main contractor under a construction contract to act as security,

27
Q

How is retention dealt with under the JCT?

A

Conditions - Section 4 - Payment
- Retention Statements to be issued
- Held separate bank account, not to be invested by employer
- Typical 3% deduction or that which is defined in contract particulars
- 50% once PC has been reached.

28
Q

How is retention dealt with under the NEC?

A
  • Optional retention clause (Option X16)
29
Q

What are the terms for termination under JCT

A

Conditions - Section 8 - Termination
Use correct contractual notices, first notice notifies of default, second notice notifies of termination.

Three Rules
Notices can not be unreasonable
Termination takes effect on receipt of second notice
Notices 1 and 2 must meet the specific requirements of the contract

30
Q

Three types of termination

A

Termination By Employer
Not carrying out instructions
Not complying with CDM

Termination By Contractor
Failure to pay

Termination By Either
Force Majeure

31
Q

How is possession dealt with under the JCT?

A

Conditions - Section 2 - Carrying Out The Works

32
Q

How are fluctuations dealt with under the JCT?

A

Schedules - Schedule 4 – Fluctuations
Option A - Contribution, levy and tax
Option B - Labour, materials and tax
Option C - Formula adjustment

33
Q

How is insurance dealt with under the JCT?

A

Schedules - Schedule 1 – Insurance Options
Option A - New Buildings - All Risk Insurance with Contractor
Option B - New Buildings - All Risk Insurance with Employer
Option C - Existing Buildings - Joint names insurance by the employer. Employer must insure the existing structure.

34
Q

What must a contractor issue at PC

A

Operation and Maintenance Guides (O&M)
Health and Safety File

35
Q

Effect of Issuing PC cert

A

Defects Starts
Cant claim LAD’s
Retention 1/2
Bonds and guarantees expire
Must insure the works (client)

36
Q

What is the rectification period?

A
  • Rectification period begins at PC and typically lasts 12 months (or as per the contract particulars)
  • During this period, client reports defects that arise to the CA or EA who decides if they are defect or maintenance issues.
  • The contractor may be instructed to make good the defects within a reasonable time.
    -At the end of the rectification period the CA or EA prepares a schedule of defects listing all of the defects that have not yet been rectified and agrees a date with the contractor for rectification (within a reasonable time).
37
Q

What happens at end of rectification period

A

Issue certificate of making good
Retention release
Final Payment Release

38
Q

What would you do if some defects aren’t completed at end of defects period

A
  • CA to issue defect schedule and give instruction to contractor to complete within 7 days.
  • Do not issue certificate of making good at this point.
  • If still not complete then cost the remaining and subtract from retention.
39
Q

What is Partial Possession

A

When employer decides to take ownership of part of the works prior to PC, not defined in the contract.

40
Q

What is the effect of partial possession

A

Defects Starts
Cant claim LAD’s (for that portion of the works)
Retention 1/2 (for that portion of the works)
Bonds and guarantees expire
Must insure the works (client)

41
Q

Partial Possession challenges

A

LAD’s to be reduced accordingly
1/2 retention released for that part (could be hard)
Contractor has not programmed for it.

42
Q

What does CA do at partial possession

A

CA issued notification of partial possession

43
Q

What is Sectional Completion

A

Sectional completion refers to a provision within construction contracts allowing different completion dates for different sections of the works.

This is common on large projects that are completed in sections/phases, allowing the client to take possession of the completed parts whilst construction continues on others. NOT APPLICABLE IN MINOR WORKS

44
Q

What is the effect of sectional completion

A

Defects Starts
Cant claim LAD’s
Retention 1/2
Bonds and guarantees expire
Must insure the works (client)

45
Q

Difference between Partial Possession and Sectional Completion

A

Partial Possession is un planned and not part of the contract

46
Q

What does CA do at Sectional Completion

A

Certificate of sectional completion

47
Q

Can you explain what is good practice with regards to latent defects as a CA?

A

If a latent defect are discovered after PC and during the rectification period the contractor will be liable for direct costs reasonably incurred by the client as a result. This will include the cost of any appropriate remedial works and also any loss of profit or such like reasonably suffered by the client.

48
Q

What is the defects rectification period?

A

usually 6 or 12 months (contract particulars)

49
Q

What is a defect?

A

Works that have been completed but not to an acceptable standard

50
Q

What is a patent defect?

A

Patent defects are those which can be discovered by reasonable inspection during the liability period

51
Q

Example of a patent defect

A

Cracking in plaster

52
Q

What is a latent defect?

A

Latent defects are those which cannot be discovered by reasonable inspection and occur after the liability period ends

53
Q

Example of a latent defect

A

Issue with foundations

54
Q

How can an employer deal with a Latent Defect

A

Latent defects are outside of terms of the contract and not enforceable by the contract, however the employer can seek redress through breach of contract. 6 years for underhand and 12 as deed..

Defective Premises Act 1972 - Seek redress for damages through breach of contract, or for negligence

The Latent Damage Act 1986 - provides the claimant with three years, from the date when they knew or should have known or a problem, to issue proceedings.

55
Q

Process for dealing with latent defect

A
  • Client notify of latent defect and ask to rectify.
  • If they don’t agree then pursue through legal access.

APC 24 (24 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions