JCT Contract Mechanisms Flashcards

Question

When would you use a Minor Works Contract? Traditional Lump Sum

Answer 1

'-Where full design is available or CDP is needed - Where work is simple in character - Where employer is required to provide drawings / spec / work schedules -Circa £500k, straightforward works lasting less than a year - Architect / CA / QS to administer - Private and local authority employers - No phases or sectional compltetion - Not where BoQ are required - Not where detailed control procedures are needed - Lump sum, monthly interim paymnets - Includes options for fluctuation provisions

Answer 2

'- Larger works design and detail by employer with either work schedule or specification - Can use with a CDP - Where sectional works are required - Private and local authority employers - Where provisions are required to cover named specialists - Based on lump sum and monthly interim payments - Lump sum is a CSA or Schedule or rates - Architect / CA / QS administer contract - Provisions for advanced payment, retention and offsite material bonds - Includes options for fluctuation provisions - Provisions for PB / PCG, CW

Answer 3

'- For larger works designed where detailed contract provisions are needed - Approx BoQ, subject to remeasurement - Architect, CA and QS to administer - Can use CDP - Where works are in sections - Private and Local authorities - Provisions required to cover named specialists - Ascertained final Sum on remeasurement and valuation of work - Traditional Measurement - Provisions for PB / PCG, CW

Answer 4

'- Employers who have a regular flow of maintenance and minor works over a specified period of time - Where work is instructed from time to time and measured and valued on the basis of an agreed schedule of rates - CA administers - Priced based on Schedule of Rates followed by series of Orders for each separate item of work - Traditional Measurement

Answer 5

- Used when needed early start on site - Design by Employer but not a full design before works commence - Where detailed contract provisions are necessary - CA and QS administer conditions - Can use sections - Private and local authority employers - Costs bases on breif spec, drawings and estimate cost - Often for alteration work and urget repair work where early start is necessary and exact nature is not known - High risk for client - Contractor paid prime cost of works certified by Architect / CA. Employer also pays COntract Fee relating to non-site overheads and profit (fee may be lump sum and adjusted as Prime Cost varies from estimate) - Contract fee can be adjusted as scope varies - Traditional cost reimbursement / cost plus - Provisions for PB / PCG, third party rights / CW

Answer 6

- For major works where employer regularly procures large scale construction work - Contractor required to take on greater risk than under other JCT contracts - Parties have their own detailed procedures - only limited set out in contract conditions - Contractor carries out works and complete design - Employer employs a representative to exercise powers and functions as Employer under contract (EA) - Used for sections - Monthly lump sum - Design and build procurement - JCT Practice note gives no details on fluctuations etc

Answer 7

- ER's prepared for Contractor - Construction and design - Employers Agent - Where sections required - Private and Local Authority - Lump sum interim or stage payments - Makes no provision for independent CA. Employer is directly responsible. May employ an EA - Uses a CSA - Provisions for advance payment, retention and off-site materials bonds - Includes provisions for fluctuations - Provisions for PB / PCG, third party rights / CW

Answer 8

- Large scale projects with early start on site - Works designed by Employer but not possible for full design information before works commence - Management Contractor administers the conditions - Contractual link between MC and works contractors - Used with Sectional completions - Private and LA - Prime Cost of project + Management Fee, Interim payments usually - Employer appoints Architect / CA / QS - Uses a Contract Cost Plan - MC sets out, manages, organises, supervises and secures the carrying out and completion of a project - Consequences of Works Contractor do not fall on MC if they comply with their terms - Provisions for PB / PCG, third party rights / CW - Management Procurement

Answer 9

- Where CM is to manage the project on behalf of the Employer - Employer enters into direct separate trade contracts using the CM Trade Contract - Can use with sections - Can be used as a suite of documentation for separate contractual responsibilities of the management, design and construction - CM acts for Employer issuing instructions, making decisions and preparing certifications - Lump sum or complete remeasurement Interim monthly or pre-determined stages - Provisions for advanced payment, retention and off-site bonds - PB / PCG, Third party rights / CW

Answer 10

- For supply of pre-construction services by a contractor selected under a 2 stage tendering - Where main contract is SBC, D&B, Major, Intermediate - Whether or not contractor is responsible for design - Where there is to be novation to the Contractor - Private and LA - Can be used with CM with adaptations for the provision of pre-construction services with prospective trade contracts - Unless otherwise stated in the provision of services, liability for design work will only arise once contract for construction work is executed

Answer 11

- Constructing Excellence Contract used with - Constructing Excellence Contract Project Team Agreement

Answer 12

- Framework agreement - used where public procurement rule compliance is needed, can be a single project - Consultancy agreement - public sector services

Answer 13

- Contractor makes application - 7 days until due date** - 5 days after due date is the Payment notice - 5 days before final date for payment is the Pay Less notice** - Gap between due date and final date for payment is 14 days ** - After the date of final payment, the contractor has right to suspend works 7 days after a notice of non- payment ** = dates are prescribed and can be adapted

Answer 14

- Application for payment - If application is made late, the due date moves respectively - 7 days until due date** -- 5 days before final date for payment is the Pay Less notice** - Gap between due date and final date for payment is 14 days ** - After the date of final payment, the contractor has right to suspend works 7 days after a notice of non- payment

Answer 15

The Supply of Goods and Services Act 1982 / Consumer Rights Act 2015 prpvides that work completed within reasonable time It is known as "time at large" if no mechanism to change the date and the Contractor is delayed

Answer 16

' It is treated the same under all JCT contracts - Failure to give possession entitles the Contractor to EoT and L&E. Extended breach entitles Contractor to terminate the Contract - Clear site possession must be given to enable Contractor to work in whatever way they wish - Where there are restrictions on possession by Employer, this must have been included in tender and contract documents - Once possession is given, Employer can issue instructions regarding the postponement of work, which would give EoT and L&E

Answer 17

- They are required to process regularly and diligently once possession has been granted - Contractor is free to organise own sequence of works regardless of the impact on the Employer - Good practice to have an agreed programme prior to Employer giving possession, this must be in the ER's - Programme isn't a contractual document but can be used to alert Employer when final decisions should be made and when changes can be made without delaying progress

Answer 18

Under JCT, the Employer is obliged to issue a PC statement and take possession even if not convenient. Under an NEC, the Employer can state within the contract they do not want the works completed early

Answer 19

o Date for completion – date stated in the CP’s o Completion date – above date or any other date fixed by the EoT provisions of the contract

Answer 20

- Supplemental Provision Schedule 2 - Enables Contractor to provide an estimate of the valuation of change which includes assessment of delay to completion date - Employer can investigate the acceleration of progress of works where Contractor quote includes for change to completion date - Where agreement is reached, this becomes the new Completion Date - Where agreement cannot be reached or Supplemental Provisions do not apply, the Completion Date is adjusted by EoT provisions in clauses 2.23 - 2.26

Answer 21

A Practical Completion Statement is issued when works are practically complete and Contractor has completed Clauses as built and following CDM regulations. In a SBC, this would be known as a Practical Completion Certificate as CA / A could certify

Answer 22

Clause 2.26 -Variations • Exceptionally adverse weather • Statutory undertaker's work • Specified perils • Deferment of possession of the site • Force majeure - Statutory powers enforced by Government after the base date - Strike affecting trade on works or engaged in manufacture or transportation of goods or design work for the CDP (Stevenage) • Civil commotion or terrorism • Impediment, prevention or default by the Employer

Answer 23

In clause 2.26 Categories of events that if they cause a delay to the Contractor, they are entitled to an EOT. May be neutral events or the fault of the employer

Answer 24

-As soon as the contractor becomes aware that the works are in delay, or are likely to be delayed, they submit notification to Employer (Clause 2.27) -The contractor must then submit further particulars in order to allow for an assessment of the delay - From this, the architect / CA has 12 weeks in which to make a decision. (Clause 2.27) - Employer must state the amount of time awarded and the Relevant Event against which it has been awarded. Must be fair and reasonable - Where completion is within 12 weeks, Employer is to notify new completion date prior to existing completion - Where EoT is granted, time awarded for extension must be reviewed within 12 weeks of PC (cannot take back time)

Answer 25

- 1. Definitions and Interpretation - 2. Carrying out the works - 3. Control of the works - 4. Payment - 5. Changes - 6. Injury, Damage and Insurance - 7. Assignment, 3rd Party Rights, Collateral Warranties - 8. Termination - 9. Settlements of Disputes

Answer 26

'Option A - New buildings - all risk insurance by Contractor Option B - New buildings - all risk insurance by Employer Option C - Joint names insurance by Employer of existing structures

Answer 27

-1.1 sets out the definitions -1.3 states the contract is to be read as a whole and nothing contained in any other contract documents shall override or modify the conditions (e.g changes to ER's require add) - 1.4 aids with the interpretation e.g. gender inclusive of any gender -1.5 how days are counted e.g. day one refers to the day following the specified date - 1.7 notices required in writing -1.11 contract shall be governed by law of England

Answer 28

To issue - Applications - Consents - Instructions - Notices - requests or - Statements Depending on appointment EA may also be responsible for agreements to change instructions with financial or specification changes, agreeing of fees to other consultants

Answer 29

- Providing possession of the site - Making the payments in accordance with the paynt notices - issuing notice to the contractor of withholding of payment or deduction of LD's following non-completion notice

Answer 30

No - even if the price has not yet been agreed the contractor must comply within 7 days. If no action within 7 days, others may be employed at the contractors expense Only exception is when instruction is not in writing There are mechanisms in the contract for the valuation of the change

Answer 31

- Reference to the contract and the date of execution - Reference the parties - Contract clause of issue i.e. a change, extension of time, due to non compliant work etc

Answer 32

- Issue instruction for removal from site the work, materials or goods - Issue change instructions necessary to accept the defect, with no additional time or cost - Issue instruction reasonable for open up for inspection with no addition to the contract price, whatever the results of the opening up

Answer 33

Alternative A - Stage. Made at the completion of each stage as set out in the CP's Alternative B - Periodic. Made on the dates provided in the CP's

Answer 34

- Non-completion notice must be issued - Employer to provide written notice of the deduction of LD's, prior to issuing the Pay Less Notice (Employer, not EA! - Withheld from the money due - The Payment notice value should not be reduced by the amount of LD's. The value of the work is still valid

Answer 35

Duty of care to not let them fail in their contractual obligations, not cause damage or loss to the employer and to act in the employers best interests

Answer 36

- Details of site, boundaries - Purpose for the building - Project description and any drawings prepared - Specific requirements for any elements - Payment method (a or b) - Details of any provisional sums - Access restrictions - Statement of planning constraints

Answer 37

ITT ER's Draft CSA Tender return form Tender return label Timescales

Answer 38

When main contract is: -SBC -D&B -Major Project -Intermediate Regardless of design responsibility Where novation to contractor of specialist sub / supply / consultancy contracts Minor adaptations to use with CM Not for between employer or main contractor and specialist sub contractors

Answer 39

Any works that contitute construction works - Insurances - no all risk cover - No valuation rules - No detailed provision for CDM regulations / F10 forms

Answer 40

- PCSA looking for contractor input on design and buildability, division of works into sub-contract packages - LOI still concluding terms of contract

Answer 41

- Value of adjustment - EoT required - Direct loss from preparing - Additional resources for instruction

JCT Contract Mechanisms Flashcards

(65 cards)