Level 1

Question 1

What standard forms of contract are you aware of?

Answer 1

JCT (Joint Contracts Tribunal)
Minor Works – for simple, low-risk projects.

Intermediate Building Contract – for medium-sized projects with more complexity.

Standard Building Contract – for large, complex jobs with detailed design.

Design and Build Contract – where the contractor takes on design responsibility.

Question 2

What are the timescales involved with an extension of time request on a standard JCT contract?

Answer 2

1. Notification by the Contractor
   - The contractor must notify the contract administrator (CA) of any Relevant Event that may delay completion “as soon as it becomes reasonably apparent”.
   - There’s no fixed number of days stated, but prompt notice is expected to help mitigate delays.
2. Submission of EOT Request
   -The contractor must provide supporting details for the delay, including:
   -The cause (Relevant Event)
   -The effect on the completion date
   -Any extension they believe is due
   -This should be submitted without delay once the impact is clear.
3. CA’s Assessment and Response
   -The contract administrator must assess the EOT request fairly and reasonably.
   -There’s no strict deadline for the CA’s decision in the standard JCT, but they are expected to respond within a reasonable time.
4. Non-Completion and Liquidated Damages
   -If no extension is granted and the contractor overruns, liquidated damages may apply unless a new completion date is formally agreed.
   Ongoing Evaluation
   The CA can review or revise an EOT decision later if more information becomes available or further Relevant Events occur.

Question 3

Does an instruction need to have an agreed value contained within it?

Answer 3

A Contract Administrator (CA) can issue an instruction to vary the works (e.g. design changes, materials, sequence) without an agreed price upfront. This allows work to proceed promptly, especially if there’s a risk of delay.

Question 4

The contractor fails to complete the project by the completion date what measures do the CA/EA take and what are the consequences of this?

Answer 4

*Check for valid Extensions of Time (EOT) due to Relevant Events.
*Issue a Non-Completion Notice to formally acknowledge the delay.
*Deduct Liquidated Damages (LDs), if specified in the contract, as compensation for the delay.
*Monitor progress and ensure work quality.
*Issue Practical Completion Certificate once the works are substantially complete to stop further LDs.
*Consequences for the contractor include financial penalties, reputation damage, potential contract *termination, and delays in final payment or retention release.

Question 5

The CA/EA fails to issue a non-completion certificate on an over running project what are the consequences of this?

Answer 5

🔑 Key Consequences:
-Loss of Liquidated Damages: The employer cannot enforce penalties for delay.
-Delayed Payment: Final account and retention release could be delayed.
-Breach of Contract: There could be legal implications for the CA/EA.
-Disputes Over Extensions of Time: Lack of clear status could create confusion in EOT assessments.

Question 6

What is your understanding of bespoke contract?

Question 7

What do you understand as the difference between a bespoke contract and standard form of contract?

Answer 7

ChatGPT said:
A standard form contract is a pre-written, widely used agreement (like JCT or NEC) designed for general use, offering legal certainty and faster setup. A bespoke contract is fully customised for a specific project, offering flexibility but requiring more time, cost, and legal input, with potentially less clarity if not well drafted.

✅ Standard = familiar, efficient, legally tested
🛠️ Bespoke = tailored, flexible, more complex to manage

Question 8

When was the JCT contract suite last updated? Tell me about some of the key changes that were made.

Answer 8

2024
Modernisation and Streamlining: Adoption of gender-neutral language and increased flexibility around the use of electronic notices. ​ Can be served via email
New Contract Family: Introduction of the JCT Target Cost Contract (TCC), comprising a main contract, sub-contract, and guide. ​
Legislative Changes: Updates to reflect the Building Safety Act 2022, Corporate Insolvency and Governance Act 2020, and provisions related to the Construction Act. ​
Future-Proofing: Incorporation of previously optional supplemental provisions relating to Collaborative Working, Sustainable Development, and Environmental Considerations into the main document.

Question 9

How does the JCT work alongside the Construction Playbook?

Answer 9

Sets out principles and expectations that should be embedded into standard or bespoke contracts (like JCT, NEC, etc.) used in public projects.

Question 10

What is the JCT Fluctuations Hub used for?

Answer 10

Developed by the Joint Contracts Tribunal (JCT) to assist construction professionals in managing the impact of economic volatility—such as inflation, material shortages, and supply chain disruptions—on construction projects. It provides comprehensive guidance on the application of fluctuation provisions within JCT contracts

Question 11

Explain the JCT Target Cost Contract to me.

Answer 11

It is designed to promote collaborative working, shared risk, and cost transparency between the client and contractor—making it suitable for complex or cost-sensitive projects where teamwork and budget certainty are key.

Question 12

What form of NEC contract might the Target Cost Contract be a good alternative for?

Answer 12

NEC4 Option C: Target Contract with Activity Schedule and NEC4 Option D: Target Contract with Bill of Quantities.

Question 13

What are the qualities of the NEC form of contract?

Answer 13

Proactive management of time, cost, and quality.
Risk allocation designed to be fair and transparent.
Collaboration encouraged through open communication and early warnings.
Clear terms for dispute resolution.
Flexibility to adapt to various types of projects.

Question 14

What changes were last made to the NEC form of contract?

Answer 14

NEC3 to NEC4 in 2017

Question 15

What is the difference between a Relevant Event and Relevant Matter?

Answer 15

Relevant Event
-A Relevant Event refers to specific events or circumstances that are beyond the contractor’s control, which might delay the completion of the works. When a Relevant Event occurs, it may entitle the contractor to an extension of time for the completion of the project.
Relevant Matter
A Relevant Matter refers to circumstances or issues that impact the contractor’s entitlement to an extension of time but are more specific to the contractor’s performance and may require the contractor to carry out corrective actions.

Question 16

What guidance is there on contract administration?

Answer 16

Contract administration is a critical function in the successful execution of construction projects. The guidance provided by contract-specific documents like JCT, NEC, FIDIC, and RICS, as well as regulations like CDM 2015

Question 17

What are the duties of a CA under JCT contracts?

Answer 17

Issuing instructions to the contractor.
Assessing and issuing certificates for payment and completion.
Managing and agreeing upon variations.
Assessing and granting extensions of time.
Monitoring progress and ensuring timely completion.
Identifying and rectifying defects.
Ensuring compliance with quality and standards.
Managing payments and financial control.
Assisting with dispute resolution.
Administering the contract documentation and ensuring legal compliance.
Providing advice to the client.
Managing project risks.

Question 18

When authorising payment for goods or materials stored off site what must you obtain to protect your client in the event of the contractor going bankrupt?

Answer 18

1. Proof of Ownership
2. Proof of Payment
3. Material Insurance:

Question 19

If you are concerned that a contractor is in financial difficulties name 3 things as CA you should do?

Answer 19

1. Review the Contractor’s Financial Status
2. Ensure Compliance with Payment Terms
3. Consider Contractual Remedies or Mitigation Actions

Question 20

What insurance provisions are in the JCT and NEC standard forms of contract?

Answer 20

Both JCT and NEC contracts set out clear insurance requirements, including coverage for works, liability, and employees, although the specific provisions may vary depending on the type of contract and the needs of the project.

Question 21

Where is the minimum financial cover for the contractor’s liability for injury death and damages to property other than the works contained?

Answer 21

minimum cover of £10 million for public liability insurance

Question 22

What is your understanding of what a letter of intent is?

Answer 22

non-binding document that expresses one party’s intention to enter into a contract with another party. It is often used in construction to authorize preliminary work or to establish initial terms before a full contract is signed

Question 23

What would you say if the client asked you to draft a letter of intent?

Answer 23

I would first clarify the purpose, scope, and any specific terms they want to include. I would emphasize that an LOI is typically non-binding, with potential legal obligations for certain actions. I’d also ensure that it includes limitations, particularly around liability and commitments, and recommend seeking legal advice for clarity

Question 24

What is the final account (FA)?

Answer 24

The final account (FA) is the final statement that reflects the total cost of a construction project at its completion. It includes the final assessment of all costs, adjustments, and variations that have occurred during the course of the project. The final account is typically agreed upon by the contractor and the client (or their representatives) and represents the final amount that the client owes the contractor for the completed works.

Question 25

Who prepares the final account in a JCT form of contract?

Answer 25

Contractor’s responsibility: The contractor typically prepares the final account. Employer’s review: The employer (or their representative) reviews and checks the contractor’s final account. Agreement: Both parties must agree to the final account, and once agreed, a Final Account Certificate is issued.

Question 26

On the issue of the final account JCT form of contract? what are the relevant time periods in a When must the final certificate be issued?

Answer 26

Contractor’s submission of final account: Within 3 months of practical completion. Contract Administrator’s issuance of final certificate: Within 1 month of receiving the final account. Defects liability period: Typically lasts 12 months after practical completion. Final payment: Made after the final certificate is issued, and any defects have been addressed or the retention is released.

Question 27

Tell me two of the information or statements that must be contained in the final certificate.

Answer 27

The Total Amount Due Confirmation of Completion:

Question 28

What are the four elements of a valid contract?

Answer 28

These four elements—offer, acceptance, consideration, and intention to create legal relations—must all be present for a contract to be legally valid and enforceable

Question 29

How is the JCT form of contract structured?

Answer 29

Preliminary Provisions: Introduces the contract and defines terms. Main Body: Contains the core obligations, roles, and responsibilities of the parties. Schedules and Appendices: Includes project-specific details, payment terms, and additional documentation. Specialist Terms: Depending on the type of project, the contract may contain tailored provisions.

Question 30

What are liquidated damages?

Answer 30

Liquidated damages are a predetermined amount of money that a contractor agrees to pay to the client (or employer) if they fail to complete the project on time or according to the terms of the contract

Question 31

What is your understanding of retention bonds

Answer 31

contractor's payment that is temporarily withheld by the client (employer) to ensure that the contractor completes the project satisfactorily, including rectifying any defects or deficiencies that arise after the completion of the works

Question 32

What is your understanding of early possession?

Answer 32

Early possession refers to a situation where the contractor is granted access to the construction site or a portion of the project site before the agreed contractual start date, or the employer (client) is allowed to take possession of a completed section of the project earlier than originally planned

Question 33

What contractual weight does a practical completion certificate carry in a JCT contract?

Answer 33

marks the formal end of construction responsibilities, transfers certain risks, triggers key financial processes like the release of retention, ends exposure to delay damages, and begins the defects period. It is a crucial legal and contractual document in the project lifecycle.

Question 34

Define sectional completion partial completion and beneficial use.

Answer 34

Term Meaning Formal under JCT? Sectional Completion Pre-agreed handover of separate project sections ✔️ Yes Partial Completion Informal early handover of part of the works ❌ No (informal) Beneficial Use Client uses part/all of the works before full completion ❌ No (but has legal implications

Question 35

What is your understanding of the difference between delay and disruption?

Answer 35

A delay is when the progress or completion of construction works is slowed or halted, resulting in a project running behind programme. Disruption refers to an interference with the contractor’s method of working, reducing efficiency or productivity, even if the completion date is unaffected.

Question 36

Why is good housekeeping essential for CA?

Answer 36

Good housekeeping helps a CA manage the contract efficiently, uphold their duties, minimise disputes, and provide a clear audit trail for decisions. It’s a key part of professional and compliant contract administration

Question 37

What is PC?

Answer 37

A Provisional Cost is a budget allowance within the contract for work that cannot be fully detailed or priced at the time of tender.

Question 38

How does a PCSA differ to a LOI?

Answer 38

PCSA is a formal and binding contract for pre-construction services with detailed terms, while an LOI is generally a less formal, non-binding document expressing an intention to proceed with negotiations or work on certain aspects of a project

Question 39

What is the role of an Employer's Agent? What contract might include this role? How do the roles of CA and EA differ?

Answer 39

Role Contract Used Key Difference Contract Administrator (CA) JCT Traditional Contract Neutral role, administers contract between employer and contractor. May issue instructions independently. Employer’s Agent (EA) JCT Design & Build Contract Acts on behalf of the employer only. Monitors contractor’s performance and manages contract duties.

Question 40

What typical documents make up a Building Contract?

Answer 40

A typical building contract consists of the agreement, legal conditions, drawings, specification or ERs, pricing documents, and any additional terms—all working together to define the project clearly and legally

Question 41

Take me through your methodology of tendering a project?

Answer 41

*Define the Client Brief & Scope: Understand the client's objectives, budget, and project needs. *Prepare Tender Documentation: Create a clear and complete tender pack, including specifications, drawings, and pricing documents. *Select Tendering Procedure: Choose the right procurement route (e.g., open, selective, negotiated). *Issue Tender & Manage Queries: Distribute documents to contractors, allowing time for clarification. *Evaluate Tenders: Assess tenders based on price, compliance, and contractor capability. *Post-Tender Negotiation: Clarify anomalies and negotiate if needed. *Client Recommendation & Acceptance: Present the best option to the client for approval. *Formalise Contract: Execute the contract and prepare for the project to begin.

Question 42

Give examples of other JCT Contracts and when they are appropriate to use.

Answer 42

Minor Works: Simple, low-value, straightforward works. Intermediate & Standard: Medium to large-scale, more detailed work with clear specifications. Design and Build: When the contractor assumes responsibility for both design and construction. Homeowner Contracts: Domestic, smaller-scale projects. Framework & Measured Term: Ongoing or recurring works. PFI & Construction Management: Larger, complex projects with specific contractual needs

Question 43

List some methods of ADR you may find in a JCT contract.

Answer 43

Negotiation - Negotiation is typically encouraged as an initial approach before formal ADR procedures are pursued. Mediation - A neutral third party (mediator) helps facilitate a discussion between the parties to help them reach a mutually agreeable solution. The mediator does not impose a decision, but helps guide the parties toward a resolution. It’s a non-binding process that encourages settlement. Adjudication - faster, more formal dispute resolution process in which an adjudicator is appointed to make a binding decision. The adjudicator’s decision is usually binding, but can be challenged in court if necessary. Arbitration - In arbitration, a neutral third party (the arbitrator) makes a final and binding decision on the dispute after reviewing evidence and hearing both sides. Arbitration is a more formal process than mediation or adjudication. Litigation - Litigation is the formal legal process of resolving disputes through the courts. It involves one party taking legal action against another to settle a claim or disagreement.

Question 44

What insurance provisions are you aware of in JCT contracts?

Answer 44

Option A: The Contractor takes out and maintains the joint names all risks insurance of the works. Option B: The Employer takes out and maintains the joint names all risks insurance of the works. Option C: The Employer arranges insurance on behalf of the Contractor for specified perils.

Question 45

Other Key Insurance Provisions:

Answer 45

Employers' Liability Insurance: Protects against the Employer's liability for injuries or illness to their employees. Public Liability Insurance: Covers liability for death or personal injury to, or damage to property belonging to, third parties. Professional Indemnity Insurance: Protects against liability arising from professional negligence, often required for architects, engineers, and other design professional