Contract Practice Flashcards
What are the various forms of JCT contracts
JCT D&B
JCT SBC
JCT IC
JCT MW
What are the contractual mechanism of JCT D&B are you aware of
- An Employer may issue an instruction for a Variation/Change under Clause 3.5 (D&B). Should the Contractor not implement the instruction, the Employer has the right to issue a notice to the Contractor which after 7 days allows the Employer to employ others to complete the instruction and the additional costs can be deducted from the Contractor.
- Retention is by the employers
- Payment provisions
- Extension of time
- Issues in instruction for works not in accordance with the contract
- Issuing practical completion and no completion certificate
What s a collateral warranties
It is a contractual document created between two parties who is are not otherwise party to the contract.
On Linwood Crescent can you run me through the the proceed of assessing a contractors valuation
- Assess the valuation as soon it it’s been submitted by the contractor
- Organised a site meeting with the contractor to review the valuation/works on site.
- Reconciled against previous moth’s valuation to track movement
- Prepare notes or queries
- Once one site I will run through any queries with the contractor.
- Check the works, prelims and materials on site
- Make any adjustment to the valuation following site visit and seek agreement with the contractor before issuing certificate.
On Linwood Crescent How would you asses the contractors prelims on site
I would ensure a draw down provided by the contractor and review the fixed prelims to see if the items are on site. For the time prelims I will compared that against how far the contraction is against programme
Queens Road - What has handover information did you expected on the project
Electrical commissioning cert
Building control cert
Building warranty cert
As built drawings
Building Manuals
On HRA Phase 4 what was the procedure for terminating the contract
I advised the client a notice must be serve a notice to the contractor specifying the default as stated on clause 8.4.1
Clause 8.4.2 - If the contractor continues a specified default for 14 day form the receipt of the notice, the employer may within 21 day from the expiry of the 14 day period by a notice to the contractor terminate the contractors employment under the contract.
If further notice has not been served referring to in clause 8.4.2 (whether as a result of the ending of a specified default or otherwise) but the contractor repeats a specified default ( whether previously repeated or not), the upon or within reasonable time after such repetition, the employer may by notice to the contractor terminate that employment
On the Lovelace primary school project - What contractor options did you you discuss with the clients
JCT intermediate and JCT Minor works
Lovelace Primary School- why did you recommend the a JCT intermediate contract with contractors design.
The minor works contract did not have provision for a collateral warranty
The project also had elements of work which required contractor design input
What is a pay less notice?
A formal declaration issued by the employer, indicating their intention to pay less than the amount certified
What is the cut-off date for issuing a pay less notice?
The final day of issuing a lay less notice is 5 days from the final date of payment
What is a letter of intent and what are the pros and cons
Is a general term for a document that expresses an intention on the part of a party to enter into a formal contract at a later date and in the meantime requests the other party to carry out works before the finalisation of that contract.
Advantages
- Allows parties to establish the agreement’s critical terms before finalising the contract
- Defines the expectations of both parties
- Allow construction works to start earlier
Disadvantages
-They can become legally binding under certain circumstances when this was not the intention of the organizations.
- By agreeing to a letter of intent at an early stage in the process you may hinder your ability to negotiate a better deal late in the process
- If a long time is taken to agree a letter of intent, then this may effectively result in the deal being negotiated twice
Can you tell me what novation? And under what contract is it used?
The transfer on of the obligations and responsibilities of one party to another. Usually used under a design and build contract.
What is the main form of insurance in the construction industry under a construction contract.
Contractor all risk insurance
PI insurance
Product liability insurance
Public liability insurance
Employer liability insurance
Briefly explain the purpose of a collateral warranty.
A way of forming a contractual link between two parties which otherwise would not have a link, such as between a sub-contractor and a client. Can be for funder, Employer, Purchaser/Tenant. Warrantor often seeks to reduce the number of assignments.
With reference to WECA – What process did you adopt to advise the client on an appropriate procurement route?
Should consider client appetite for risk and what the key project drivers are.
Brighton Branch Repair – what Relevant Event was this attributable to and were the circumstances such that prolongation costs could be claimed under the contract?
The Event was classed as a force majeure event which gave rise to a relevant event not a relevant matter in the contract
