Contracts Flashcards
(15 cards)
What is a schedule 2 quotation and what are the timelines?
- Contractor must price the variation - SBC within 21days
D&B contract it is within 14days
What happens a practical completion?
- Ensure the project is practically complete- assess that wIth the design team create a snag list
- PC means cannot deduct LADs
-Ensure building control has signed off
-Client needs to ensure the building
-BSA mandates client receives a certificate from the building safetyat regulator - Penultimate valuation release half of retention
What is retention? What alternative to retention?
serves as a security mechanism, allowing the employer to withhold a percentage of the payments due to the contractor until the defects liability period ends
Ensure the defect will be carried
Retention bond one party pays to take it our and its surety from a bank or insurer if the defect are not remedied
Have you acted as CA and QS what should be done?
Supporting as CA tasks, can be a conflict of interest so inform the client of this so they can make informed consent
What are some other forms of contract and what are the differences such as JCT and NEC
NEC- change control procedure, compensation events, monthly programmes,
Why do you think the QS is not named in the JCT
JCT names the broader roles such as CA, no the specific title qs can be a CA ultimately QS has no responsibility to certify payments etc
when might you use a measured terms contract
Maintenance work
When might you use a SOR and who takes the risk?
A Schedule of Rates (SOR) is typically used when the exact scope of work or the quantity of work required is not known or likely to change during a project. It provides a framework for pricing various tasks or components of work based on agreed-upon unit rates.
Part risk with contractor if priced the works define exactly incorrectly, however if the works change from what is described risk with client an element of shared risk
How is a SOW differ to a SOR
SOW is far more comprehensive of the exact works required, SOR may be more broad costing items as the works are not fully established.
Can you tell me something about market forces or what you are seeing?
Personally i have been seeing quite competitive and interest from lots of contractors and regular flow of business.
- I understand that the US has imposed 25% tarrifs on import and so i believe this will have an impact on the supply chain, whether it will drastically have a negative impact on the UK im not 100% i understand we export some steel to the US about 10%and so the UK will potentially lose this however they may find ways around that so exactly the impact are unclear. Steel companies may have to raise there prices to cover that loss
When might you use cost plus contracts? But you said long infrastructure projects… really?
Urgent works. More so urgent infrastructure repair, or where works aren’t fully defined but you would really deal with that on an open book negotiation basis but typically cos plus for urgent works.
What’s a target cost contract and when might you use one?
Target cost - target have a pain and gain mechanism, may use it to incentivise the contractor to reduce the cost
So looking at key issue nr.1 if you could do it again what would you think about procurement wise and in this market?
Maybe discussed traditional to reduce the risk for the contracotr in that market but client would have had to accept a longer programme.
Two stage would mean more contractor appetitie due to negotiating the second stage.
You were EA on EBR is this a conflict of interest?
Yes but the client gave informed consent after advising of this. EA does work for the client so differs to CA whereby you are impartially administrating the contract. Additonally, i was supporting my colleague on this so all certificate i drafted were checked and signed by a director.
