Level 1 Flashcards
(27 cards)
Is there any guidance you can refer to when undertaking Contract Administrative service
RICS Guidance note: Contract Administration
What edition is the CA Guidance Note?
1st Edition- although aware this has been withdrawn (out of date).
What are the key tasks of a CA
- Inviting and processing tenders.
- Preparing contract documents for execution.
- Chairing construction progress meetings &*Preparing and issuing construction progress reports (Meeting Minutes)
- Issuing instructions such as variations, or relating to prime cost sums or making good defects.
- Issuing certificates of practical completion, interim certificates, certificate of making good
Defects
Defects and Final certificate
What JCT Contracts are you aware of
Minor Works Building Contract Intermediate Building Contract Standard Building Contract Design & Build Management contract
When would you use JCT MW
Works simple in nature Simple (No Bills of Quantity)
No need for provisions set out in different contract types
When would you use JCT IM
More complex works (complex and detailed procedures)
Sectional completion is needed
Named sub contractors.
Not suitable for D&B Contracts.
What can be used to assist with selecting contracts.
*JCT Decision Tree.
What are the difference between Minor Works and Intermediate contracts?
- More detailed procedures
- Relevant Events defined
- Early possession
- Sectional completion
- When named sub-contractors are required
- Collateral warranties for Sub contractor with design responsibility
- Bill of quantities
- Advance payment
Who is responsible for valuations under the intermediate contract used?
- QS in the case of IC standard terms
* Can be undertaken by the CA
Other types of Contract
New Engineering Contract
Recommended in the Latham Report (constructing the team)
Intended/designed to accommodate both engineering and construction & promote cooperative working.
The NEC contracts are used for:
- Stimulate good management.
- Used internationally
- Easy to understand
Interlocking
Produce an interlocking suite of contracts written
Clear and Simple
Be clear and simple, written in plain English, in the present tense and without legal terminology.
Variety
Be useable in a wide variety of situations from minor works to major projects.
Options
There are a number of options from A-G such as Priced Contract with activities schedule or Target Contract with Bill of Quantities
Issues
Key issues surround payments, compensation events, Dispute resolution.
What’s the difference between NEC and JCT?
JCT - No programme
NEC - Programme is the heart of the contract
JCT - lump sum contract with Provisional Sums
NEC - Based on target for D and C
JCT - 4 weekly interim payments
NEC - Can be set period related to programme
What is FIDIC?
International Federation of Consulting Engineers
How did you decide whether PC had been achieved?/ When can you certify practical completion?
1) works substantially completed
2) free of patent defects (other than those that are minor or trivial).
3) Complete health and safety file has been issued in draft.
4) The client ability to take possession and make beneficial use of the building.
What are the consequences of issuing the PC certificate?
1) Rectification period begins,
2) Retention reduces
3) Insurance (passes back to the client).
4) Final account is then prepared.
What are the timescales for final account?
- contractor has 6 months after PC to prepare
* 3 months after that date CA to issue final account
What is required to have a contract?
- Offer
- Acceptance
- Consideration
- Time
- capacity
What are the parts of the contract?
*Agreement
The ‘articles of agreement’ setting out the core obligations/details of the parties involved
*Recitals
Recitals contextualise the agreement, giving factual explanations for the basis of the contract. recitals describe what is required and the events that have taken place.
*Articles
Set out what is agreed between the parties.
*Contract Particulars
Sets out the aspects of the contract that are particular to the project to which the contract relates.
*Attestation
Act of signing &/or witnessing a legal document (Contract agreement / Execution) to formally execute the document
*Execution
Under hand - disputes must proceed to court within 6 years
As a deed - disputes must proceed to court within 12 years
What makes up a building contract
a. The building contract - This is a legal document, usually in standard form. It sets out the roles, rights and responsibilities of the employer and the contractor.
b. The specification:
i. Prelims - Preliminaries are activities or costs that are not necessarily linked to the building work. They are costs associated with administration, setting up and Statutory Authorities regulations and fees.
ii. Preambles – Quality of materials and workmanship.
iii. Works - The technical requirement to complete, execute and/or perform every little task or material being incorporated in the construction project. It specifies common standards, deviations accepted, materials accepted and the required testing for all materials. Specific referencing to construction standards and codes.
iv. The drawings/plans – Drawings detailing the works to be undertaken referring to and to be read in conjunction with the specification to gain a full understanding of the works.
c. Priced schedule of work/bill of quants - Breakdown of all items being incorporated in the construction project. This is usually the base of the application for payment.
d. Pre Construction Information Pack – Details of all the health and safety, security, welfare, access considerations that need to be taken into account. The response to which should be the contractors construction phase health and safety plan.
Difference between Preambles and prelims?
Prelims detail non construction related works that the contractor needs to cost
Preambles detail the quality requirements for materials and workmanship.
What should you include in the premlins and M&W
- Prelims - Does not form part of the main works package - Welfare, access, emergency services, statutory requirements, party wall.
- M&W - provides details of the material and workmanship requirements for the project to ensure a high standard of workmanship.
what happens when the rectification period ends?
1) Joint snagging inspection should be undertaken by the CA and Contractor. The contractor should rectify any defects
2) Second inspection should be undertaken to check.
3) Certificate of making good defects and a final payment certificate should be issued for the remaining retention.
4) The contractor will then issue this to the client with his final invoice.
Can you give me some examples of how a construction contract could be terminated.
Actions by the contractor - Solvency, Corruption.
Actions by the employer - Solvency, Corruption.
Breach of contract.
Contractor - abandoning site.
Employer - failure to make payment etc
Both - force majure, specified peril.
How should H&S issues be report on site.
RIDDOR - Reporting of Injuries, disease and dangerous occurrences regs.
What is the base date?
Reference date
The conditions under which the tender was prepared are considered to have been known by the contractor (so are properly reflected in their price).
