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APC Spring '25 - NM > Contract Practice > Flashcards

Contract Practice Flashcards

1
Q

What are the issues surrounding collateral warrantees?

A
  • Increased financial exposure
  • Potentially uninsured claims
  • Complexities in negotiations
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2
Q

What is a Collateral Warrantee?

A
  • Allows a third party to become a beinficiary of a warrantee
  • Under the Third Party Rights Act 1999
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3
Q

What are the different type of bonds?

A
  • Perfomace bond
  • Parental bond
  • Advance bond
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4
Q

What are some of the updates in JCT 2024 suite of contracts?

A

1 - Gender neutral language

2 - Electronic Comms and E signature

3 - Reduced number of supplementary provisions

4 - Pandemic added to relevant event

5 - New BSA PD / PC roles added

6 - Delays

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5
Q

What is the standard rectifcaiton period for ICD & MW contracts?

A
  • MW = 3 Months
  • IC = 6 Months
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6
Q

Why are joint names insurnace policies used?

A
  • Parties can’t cliaim against each other.
  • Don’t duplicate insurnace for the works.
  • Both parties will be notified if one party cancells policy.
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7
Q

What happens if liquidated damages are paid to the employer and the non completion cert is cancelled?

A
  • They are paid back to the contractor.
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8
Q

What happens if CA does not issue Certificate of Payment in 5 days?

A
  • Contractor can issue driect to employer as a payment notice.
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9
Q

What is the new oayement date for payement noticies?

A
  • Postponed by te same number of days after expiry of the 5 days period that the contracts payement notice is given.
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10
Q

How long after the date of Practical Completion can the CA give an Extension of Time (EoT)?

A
  • 12 weeks
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11
Q

What are the insurnace options for JCT IC contracts?

A

A - New Buildings - All works insrunace by the contractor

B - New Buildings - All works insurance by the employer

C - Joint names insurance by the employer including exisiting structures and extensions

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12
Q

What are the different types of JCT Contracts?

A
  • Repair and Maintenance - No CA
  • Minor Works - simple works at relatively low complexity
  • Intermediate - More complex than MW projects, Sectional completion
  • Design & Build - Contractor design, for speed and in complex works.
  • Standard - Large scale works
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13
Q

Within an intermediate contract, what happens in the period to supply adjusted contract sum / final account / loss & expense documention?

A

CA gives notice and if still not supplied after 1 month then CA produces Statement of Final account with information they have to hand and sends to contractor.

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14
Q

If the employer does not make payment to the contractor by the final payment date and fails to do so after the 7 days after the contractor has given notice, what can the contactor do?

A

Suspend all obligations under the contract

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15
Q

What are the parts of a JCT contract?

A

A - Agreement
R - Rectials
A - Articles
C - Contract Particulars
A - Attesstation

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16
Q

What is the agreement in the JCT Contract?

A

Details the two parties in which the Contract is between.

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17
Q

What is included in the recticals in a JCT Contract?

A
  • 13nr recticals
  • Description of works to be carried out
  • Contractors design portion
  • Drawings included
  • What the employer has supplied the contractor
18
Q

What is included in the articles in a JCT contract?

A
  • Article 1 - Contractors obligations - The Contractor shall carry out and complete the Works in accordance with the Contract Documents.
  • Contract sum
  • Details of CA / architect
  • Details of PD
  • Details of QS (Excl MW)
  • B Regs PD / PC
  • Adjustdication / arbritration
  • Artcile 10 for schedule of amendments inclusion
19
Q

What is included in the contract particulars in a JCT Contract?

A
  • Base date
  • CDM regs. Is it notifable?
  • Supplemental provisions
  • Work commencement / completion date
  • Liquidated and ascertained damages
  • Rectifcation period
  • Interim valution dates
  • 95% / 97.5% payements. Before / post PC
  • Nominated adjudicator
  • Supply of documentation to be certfied post PC (MW Only)
20
Q

When does a notice of the employer claiming LD’s need to be served?

A

5 days before the final payment date

21
Q

What are the inrunace options in MW contract?

A

A - Works insurnace by the contractor in joint names
B - Works and exsiting structures insurnace by Employer in Joint Names
C - Works and exsiting structures insurnace by other means

22
Q

What is the base date within contract?

A
  • Generally 7 days before tender return
  • Used for fluctuation provisions
23
Q

If the employer wants to take partial possession of an area of the works, what is that part called?

A
  • The relevant part
24
Q

How long does a contractor have to respond / comply a contract instruction?

25
What happens if a contractor does not respond after 7 days?
- Client can employ somebody else to do the works and the contractor is liable for the costs.
26
Is there is a CDP portion of the contract, what insurnace does the contractor need?
- PI
27
What is the standrad period of CPD insurnace in a IC contract?
- 6 years
28
What are the different supplementtal provisions in MW in 2O16?
1 - Collaborative working 2 - Health and Safety 3 - Cost savings and value improvements 4 - Sustainable development and enviromental considerations 5 - Performance indicators and monitoring 6 - Notifcation of disputes
29
What are the different supplementtal provisions in MW in 2O24?
1 - Health and Safety 2 - Cost savings and value improvements 3 - Performance indicators and monitoring
30
What are the different supplemental provisions in IC contracts in 2O16?
1 - Collaborative working 2 - Health and Safety 3 - Cost savings and value improvements 4 - Sustainable development and enviromental considerations 5 - Performance indicatiors and monitoring 6 - Notifcation of disputes
31
What are the different supplemental provisions in IC contracts in 2O24?
1 - Health & Safety 2 - cost savings and value improvements 3 - performance indicators and monitoring
32
When should you use an IC over MW contract?
- Client wants more protection and procedure within contract - Sectional completion is required - When named subcontractor is required - Complexity of works
33
What is the relevant legilation for collateral warranties?
Third Parties Rights Act 1999
34
Why would you use a negotiated Tender?
- To reduce procurement programme
35
What insurances are required from the contractor?
- PI insurnace - Contractors All risk - Public / Products Liability - Employers Liability
36
What were the key considerations for agreeing and preparing the collateral warranty?
- Level of liability (PI) - What works were included - Descriptions were correct
37
What were the general contents of the collateral warrnaty?
- Parties involved - Project details - Definitions - Consultants warranty - Limitation of libaility - Expiry of warranty (6 years) - PI insurnace (£1,000,000) or more) - Notices / Governing Law / Jurisdiction - Sinagtures (Deed)
38
What are the advantages of collateral warrantees?
- They are familiar to construction professionals and to their insurers - More regularly tested in the Court and therefore, more certainty of their meaning - More likely to be subjected to adjudication and payment provisions under the Housing Grants, Construction and Regeneration Act (1996) - Can provide step-in rights e.g. where the employer steps in when a contractor becomes insolvent and has the job finished.
39
What are the disadvantages of collateral warrantees?
- Time consuming – a warranty is required for each separate party - Expensive – the administrative costs required are significant and expensive suing to enforce - Often needed after work has started and therefore, not signed - Could be unenforceable in the absence of consideration if not properly executed e.g. signed; insolvency of a contractor
40

APC Spring '25 - NM (17 decks)

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