Contract Practice

Question 1

What are the Main Procurement Routes?

Answer 1

• Traditional
• Design and Build
• Construction Management

Question 2

What are the Payment provisions under JCT?

Answer 2

IVD + 7 days = Due date + 14 days = Final Date for payment.
Payment certificate to be issued within 5 days of due date

Question 3

What are the options under NEC contract?

Answer 3

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

Question 4

Standard Form of Contract vs Bespoke Contracts

Answer 4

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

Question 5

What is a contract?

Answer 5

An agreement which is binding on the parties.

Question 6

How is a contract formed?

Answer 6

• Offer and Acceptance (Communication by both Parties
• Certainty (certain over price etc.)
• Consideration (Price each party pays to enforce the other persons promise)
• Intention

Question 7

How is LEDS calculated?

Answer 7

Based on estimated loss as a result of the contractor not reaching completion at PC date. Take into consideration loss of rent etc.