Level 1 Flashcards
Knowing (36 cards)
What is nomination?
Selection of a particular subcontractor to carry out works, manufacture or supply of materials.
Client greater control of material choice / quality.
Contractor is relieved of liability of design and compliance with performance spec and delays in respect of the works that have been nominated.
What are domestic subcontractors?
Standard appointment of subcontractor by the main contractor
What are named subcontractors?
Client provides the main contractor with choice of named subcontractors for portion of the works.
What are the different types of JCT Standard forms of Contract?
Design and Build
Minor Works
Standard Building Contract
JCT Intermediate Contract with Contractors Design Portion
How do you prepare contract documentation?
Collate the tender documentation and update the documents to include the Contractors details in the Contract and Preliminaries, create the Contract Sum Analysis ensuring it is the agreed contract sum, Ensure any tender addendums are included. Prepare the cover sheets and third recital for execution. Write a contract issue letter and print out the documents or use dousing for execution depending on the clients preference.
What are liquidated damages? How would you calculate it?
Liquidated damages are a genuine pre-estimate of loss from the Client. They are included within A20 of the preliminaries and JCT Contract documents. They are a sum of money which can be applied following a non completion notice in a contract. This could be calculated by the loss of rent from a landlord. School they could be the requirement for temporary classrooms. Continuing construction supervision costs and fees, accommodation costs, finance costs, etc
What do you required when you pay for materials offsite?
The materials or goods must be referenced as ‘listed items’ – either uniquely identified or not uniquely identified – in the contract particulars.
Vesting certificate,
clear identification of the materials under the employers name such as UHD or school.
Secure and protected materials. ‘Listed items’ are materials, goods and/or items pre- fabricated for inclusion in the works.
The contractor is responsible for storage costs while off- site; for loss or damage while off-site; and for handling costs at the storage premises and getting them to the works; and for insurance.Establish from the written sale contract on what conditions property passes normally be that it only passes on payment.
What contract doesn’t allow you to pay for materials off site ?
Note that there is no provision under the JCT Minor Building Works Contract 2011 for payment to be made for off-site materials and goods
When would you (CA) not certify a payment for materials off site?
When a retention of title clause is in the supply contract. The suppliers retain ownership until the materials have been paid for in full. Once materials are built into the works ownership passes to the employer despite the retention of title clause.
What is included in a vesting certificate and what is it?
A vesting certificate or agreement for construction goods, plant or materials, in letter form, used to confirm that ownership of the goods, plant or materials will transfer from one party to another on payment.
Contractor obtains vesting certificate from manufacturer in the clients favour creating a contractural relationship between the Manufacturer and you that is necessary to transfer ownership of the Listed Items in you. For example an AHU.
What are the roles of a Contract Administrator
To be an unbiased person in between the client and contractor to administer the contract. Roles include:
Attend and hold progress meetings including minutes.
Issue out interim certificates.
Issue instructions.
Review extension of time claims.
visit site regularly to review progress
What did you learn from reading defining completion of construction works?
The test of completion is subject to the limited test of reasonableness known as the deminimis principle. Meaning certification of completion of the works should not be refused if only minor defects in works.
If client and contractor disagree with the CA decision to certify completion they can investigate review and revised the decision through an adjudicator.
The contract administrator will follow the instructions of the client, who can revoke the CAs discretion to certify completion.
Conditions precedent - completion of specific activities are conditions president to completion being achieved.
What does practical completion trigger?
Liability on the Contractor for liquidated damages to apply.
12 month rectification period for defects
End of insurance of the works
End of the F10
Release of half of the retention held
Risk of loss or damage to the works passes to the client
Final account to be prepared.
What is the difference between partial possession and sectional completion
Partial possession is unknown at the time of contract. Sectional completion is implemented in the contract from tender stage.
Partial possession can only be taken at the consent of the contractor.
What do you need to be mindful of when certifying completion when there are third parties involved leasing or sale agreements?
If the client is calling completion before the works are complete which could lead to a claim under a collateral warranty.
What are patent defects?
Easily recognisable defects such as a crack or missing roof tiles usually resolved before PC.
What are latent defects? Who is liable?
Not apparent at the time of completion but which become apparent months or years later. For example failed piling settlement, rotting timber from inadequate treatment. The contractor is liable for the direct loss reasonable incurred by the client including cost of remedial work and loss of profit.
What are latent defects? Who is liable?
Not apparent at the time of completion but which become apparent months or years later. For example failed piling settlement, rotting timber from inadequate treatment. The contractor is liable for the direct loss reasonable incurred by the client including cost of remedial work and loss of profit.
Can the client move in furniture before PC is granted
Yes with the consent of the contractor
What are the updates to the JCT Design and Build Contract 2024 following the updated higher risk building regulation?
Gender neutral language
Use an email address to serve notices
The Building Safety Act 2022 introduced duty holder roles in relation to the Building Regulations.
New Article 7 requires Parties to identify the principal designer and principal contractor.
Clause 3.16 is amended and refers to Part 2A of the Building Regulations rather than the Construction (Design and Management) Regulations 2015, and requires the contractor to comply with its obligations in applicable dutyholder roles.
Epidemic clauses added, so when a disease outbreak causes delay by limiting the availability of labour or materials it can be claimed as a relevant event under clause 2.26.7 and the costs under relevant matter 4.21.6. It should be noted that the contract particulars must state that this relevant matter applies; if they do not, it could lead to a time extension being granted but no money.
Employer obligations on assessing delay added:
Clause 2.24.4 requires the employer to notify the contractor within 14 days of receiving the particulars or notification under clause 24.3 (material change in estimated delay period), that it requires further information to enable it to reach a decision.
Clause 2.25 has reduced the period that the employer has to notify the contractor of its decision to award an extension of time from 12 weeks to 8 weeks. However, this does run from whichever is the later of the date of receipt for particulars or notifications, or the date that further information required under clause 2.24.4 is received.
clause 3.15.
asbestos, contaminated material and unexploded ordnance that may be found on the site or during excavations. Now a relevant event, in clause 2.26.4, and relevant matter, clause 4.21.3.
Target cost contract.
Limitation period now 15 years for dwellings instead of 6 or 12.
What is the difference between relevant event and relevant matter?
The JCT suite has traditionally listed the grounds for the contractor to claim an extension of time under relevant events, with loss and expense to be claimed separately under relevant matters.
What did you learnt from reading interim valuations and payment?
What if a client tells you LDs are 100,000 per week?
Check that it is a genuine pre-estimate of loss and dangers that could be construed as a penalty and unenforceable.
What are the benefits of liquidated damages to the contractor?
Contractor can anticipate these costs if they are in a delay from the outset and can apply risk costs within tender. Can apply similar principles into the sub-contracts.
