Level 3 Flashcards
(39 cards)
Why did you use a IC for HWS?
As the works had a named subcontractor and it was important that relevent events were defined.
What is a Nominated Subcontractor
Nominated subcontractors are stated within a contract are the principal contractor has no option but to use them. It is usual that the Employer will take responsibility for nominated subcontractors and a collateral warranty will be put into place.
What is a Named Subcontractor?
Named subcontractors are domestic, which means the principal contractor has freedom of choice to employ which subcontractor they wish and the terms on which they are employed.
Do JCT contracts no longer have provisions for nominated sub contractors?
SBC form no longer makes provision for nomination of subcontractors or suppliers, the Intermediate forms retain a method for appointing a ‘Named Sub-Contractor’. Responsibility for the named subcontractor remains with the contractor. The Minor Works forms do not provide for naming specialists or nomination of subcontractors.
What is a critical path?
A sequence of stages determining the minimum time needed from start to finish of a project.
What is Critical Path Analysis?
The primary purpose of critical path analysis is to show which activities on a programme of works are critical to completion and which are non-critical.
What is a critical path item?
The items on the critical path are important to achieve completion. Any delay in the critical path delays the project finish date.
What is the critical path method?
Calculates the minimum time needed to complete a construction project alongside the possible start and end times for the different activities.
What is an extension of time?
An additional period added on to the duration of the works.
What is an extension of time procedure needed in a construction contract?
1) Contractor must give notice to the CA.
2) Inform about the relevant event and the time predicted to be extended.
3) CA review and provide cert.
What are relevant events?
Events that are listed within the contract that allow the contractor to claim an extension of time. Reasons that are not the contractors fault.
What’s the difference between a relevant event and a relevant matter?
Relevant events allow an extension of time and is beyond the contractors control,
Relevant matter is the employers fault= will allow a claim for loss and expense
Event : justifies additional time
Matter : Justifies additional payment
List some relevant events (13)
Variations. Any impediment by the employer Force majure Exceptionally adverse weather conditions works by statutory undertakers
List relevant matter (11)
1) Failure to give the contractor possession of the site.
2) Delays in providing instructions.
3) Discrepancies in the contract documents.
4) Disruption caused by works being carried out by the client.
5) Instructions relating to variations and expenditure of provisional sums
6) Opening Up Works
What can a contractor claim with regards to the above.
Either:
Extension of Time
Loss & Expense
Dependent on relevant event/matter.
What is loss and expense?
- Loss the contractor has incurred due to delay that was the fault of the client
To claim loss and expense the contractor must show that a Relevant Matter has occurred.
- Contractor has to prove loss and expense
What is the process of claiming loss and expense?
- The contractor must give written notice of a claim as soon as it becomes reasonably apparent that the regular progress of the works is being materially affected.
- Detail relevant matter and estimated costs
- CA to review and approve
What is direct loss and consequential loss?
Direct loss = fairly and reasonably arise naturally from the breach of contract. Most foreseeable kinds of loss are direct, including the cost of repairs, loss of rent.
Consequential loss = arises from a special circumstance of the case, not in the usual course of things. It is recoverable only if the paying party knew or should have known of that circumstance when it made the contract. This would include loss of profit (envisaged profit).
How did you determine that and extension of time request was fair and reasonable?
I compared works undertaken against works left within the programme.
*I analysed the critical path
What is a prolongation cost?
Prolongation costs are the additional costs that a contractor has incurred as a result of the completion of the works being delayed by the employer
How would this have differed if you had been using a minor works contract?
- No listed relevent events
- Up to CA
- I would still refer to the IC
What is Deferment of site.
Some contracts (IC) will entitle the client to defer giving the contractor possession of the site period of up to six weeks unless a shorter period was stipulated in the contract particulars (it is probably unwise to reduce the period).
This provision enables the client to defer possession without being in breach of contract. Deferment of possession can be considered a relevant matter, the deferment must have a material effect on the regular progress of the works.
What happens if the contractor is not given possession on the correct date.
- Time is said to be at large.
- No completion date and LADs cannot be applied.
- Contractor only required to proceed regularly and diligently which is open to interpretation.
How does NEC deal with relevant events?
Compensation events
