JL Submission - Case Study Flashcards
What is the contractual process for implementing deferment of possession?
- Clause 2.4
- Employer may defer giving contractor possession of site for up to 6 weeks, calculated from relevant date of possession
- Classes as relevant event
- Value of changes not subject to retention
- If Contractor foresees loss and expense, must provide appropriate notifications within contractual timescales (28 / 14 days to get reimbursement
- Could class as relevant matter as Employer preventing the contractor’s access (4.21.5)
What are the financial implications of deferring possession of the site?
- Can class as a relevant matter
- Could incur loss and expense, loss of profit, works for labour put on hold
- Delivery dates - cancellation costs
- Potential increased costs and interest charges
What is Clause 8.9.2?
Termination by Contractor if Employer impedes / prevents access to site
Who can suspend the works?
- CA can under instruction referring to Clause 8.11
- Contractor can spend under Clause 8.11 for failure of Employer’s payment
What is the JCT default period for suspension?
2 months
In the event the contract was terminated, what is the process?
Consequences of termination under Clause 8.12
- Contractor removes all their temp buildings, plant, tools and equipment
- Contractor provides Employer copies of as built drawings
- Contractor submits final account or provides Employer necessary documents to do so (up to 2 months)
- Contractor’s final accounts sets out value of work properly executed, direct loss and expense, reasonable costs for removal, costs of materials and goods, and loss and/or damage caused by termination
- Employer pays contractor monies due within 28 days of submission, no retention deducted
What happens to site compounds and machinery upon termination?
Contract says contractor removes their items- their responsibility, but they provide costs for removal to employer in final account
Would you deduct any retention monies owed to a contractor if a contract was terminated?
No, as per contract clause 8.12.5
Upon termination and site possession being the employer’s, what advice would you give your client?
Various options:
- Employ existing subcontractors to complete project
- Go out to tender again, utilising existing documentation / new documentation
- Replace the contractor with one of the other competing tenderers
- Negotiate a new contractor and novate contract to them
Is the addition of Plots 4-7 considered too high a value to be treated as a change?
No - Contractor has right to object to works instructed under the Contract if they require additional conditions to meet instruction. As long as the Employer and Contractor agree this is fine.
What is the implication of having a date of possession later than the commencement of services by a Contractor? (i.e. D&B contracts awarded at Stage 2 & 3)
Contractor can be paid under main contract for works to date including drawings, surveys etc.
What are some time related costs?
- Time related
- Plant hire
- Welfare / temporary accommodation hire
- Project specific management and staff (PM, Construction manager, supervisors)
- Transport
Why / how would having a detailed preliminaries breakdown assist you in the event of a delay?
Ascertain which time-related charges are applicable (not all time-related charges are applicable to whole project)
What was included in the instruction when suspending piling works to plot 3?
Instruction to delay commencement on site. [Clauses not specifically referred to, however this could have been interpreted for a claim either under postponement or suspension]
What happened at the end of the suspension of plots 1 & 2? How did the Contractor restart?
- Secured plot 3 to ensure works would not continue there
- Booked piling date as per instruction
