Contract Practice Flashcards
(20 cards)
What are the Main Procurement Routes?
- Traditional
- Design and Build
- Construction Management
What are the Payment provisions under JCT?
IVD + 7 days = Due date + 14 days = Final Date for payment.
Payment certificate to be issued within 5 days of due date
What are the options under NEC contract?
A - Priced Contract with Activity Schedule
B - Priced Contract with Bill of Quants
C - Target Contract with Activity Schedule
D - Target Contract with Bill of Quants
E - Cost Reimbursable Contract
F - Management Contract
Standard Form of Contract vs Bespoke Contracts
Standard form contracts are pre-written agreements, while bespoke contracts are specifically drafted to meet unique needs.
Standard forms are often more cost-effective and time-efficient.
Bespoke contracts offer greater flexibility and customization but can be more expensive and time-consuming to create
What is a contract?
An agreement which is binding on the parties.
How is a contract formed?
- Offer and Acceptance (Communication by both Parties
- Certainty (certain over price etc.)
- Consideration (Price each party pays to enforce the other persons promise)
- Intention
How is LEDS calculated?
Based on estimated loss as a result of the contractor not reaching completion at PC date. Take into consideration loss of rent etc.
Difference between nominated and named subcontractors
Nominated client chosen
Named - client provides a list in order forr the MC to appoint
JCT Forms of contract
D&B
iNTERMEDIATE
Minor Works
How is the HGRA relevant to the valuation?
Implications of payment lasting longer than 45 days:
- Interim stage payments
Main elements of a valuation
- Prelims
- Measured Work
- Variations
- Materials on/off site
- Retention
What is assignment
When a party within contract assigns their rights to a third party
What is Novation
When a party within a contract transfers their rights and obligations to a third party
3 Ways contract benefits can be transferred?
- Collateral Warranties
- Third Party Rights
- Assignment
What is a Letter of Intent?
Documents used to enable works to commence before a primary building contract has been executed
What is Partial Possession
Mechanism where the contractor can give possession to parts of the works - requires contractor consent
Difference between partial possession and early use
Early use remains in possession of contractor wheras PC relevant parts and obligations are transfered.
Section Completion
Sections of the works are handed over at agreed stages
Can materials on site be included in contractors valuation
Yes it is important for the contractors cash flow
Requirements for materials on site to be included in contract
- Materials to be delivered to site
- Adequate reason for their usage
- protected
