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CONTRACTS, CONTRACT LAW, TENDERING
AND CONTRACT ADMINISTRATION
What courses of action could be taken if an error was discovered in a tender? - ✔✔Discrepensies in the tender document: DEPENDENT ON THE TYPE OF CONTRACT
- JCT with Quantities
- Errors and omissions are required to be corrected and treated as if they were a variation requiring an instruction.
- Design and Build Contracts
- The client chooses which takes precedence and it is written into the contract documents
- JCLI - Correction of inconsistencies
- Any correction which results in revision to quantities/ rates will result in a variation.
- Discrepancies resolved by instruction/ variation.
- Contract Administrator decides precedence where there are no priced work schedules Discrepencies in Tender Pack noticed by Tenderer:
- Tenderer raises TQ (Tender Query) to QS
- QS asks Design Team for co-ordinated response
- Response to TQ issued to all Tenderers
- Tracker of TQ's kept by QS to assist Construction stage What is included in a tender package? - ✔✔Drawings Specifications Bill of Quantaties Invitation to Tender How would you obtain potential construction costs for a project? What if the project was a high level project worth over £4m? Where would you get potential costs from without tendering? - ✔✔ On a small landscape design scheme how would you go about preparing the bill of quantities and the specification and what would be included in the documents? - ✔✔Might use Schedule of Works instead:
- Document lists main sections - read with advanced drawings and specs
- Priced on a lump sum basis
- Tenderer must measure
- Small to medium sized projects From when and until when is a contractor responsible for site? And what do they require for this period of time? - ✔✔
How do you go about preparing a list of tenderers? a) In your area. b) In a different region. - ✔✔Ask: Colleagues/ other professionals/ Clients Search on location/ BALI Local Authority Framework shortlist Check for Quality Assurance/ H&S standards Check financial standing/ resources Request references Request capability statement/ test suitability with questions Request portfolio of recent similar projects Before recommending a tenderer would you check his financial standing? - ✔✔yes after your recommendation, the contractor does not perform, who is liable? - ✔✔ What are the functions of Bills of Quantities? - ✔✔•Link between design and construction • Assist the contractor in assessingmaterial, labour and plantrequirements • Basis for valuing alterations • Assist in the preparation ofinterim valuations. •Enable tenders to be submittedon the same basis. •Future estimates.
When would you not need to use Bills of Quantities? - ✔✔Bill of Approxiamate Quantities - prepared earlier Schedule of works - Document lists main sections - read with advanced drawings and specs Schedule of rates - Used where work required is not known at outset What is: a) A prime cost sum. b) A provisional sum. c) A contingency sum - ✔✔PRIME COST: An exact sum allowed for works where details are known at tender PROVISIONAL SUM: An approximate sum estimated by QS allowed in the BoQ for works which cannot be accurately quantified or detailed at tender CONTINGENCY SUM: Sum allowed for unforseen works What rules exist that govern measurement in Bills of Quantities? - ✔✔
What are the Preliminaries in a Bill of Quantities? - ✔✔• Backbone of Contractors working arrangements
- Affect the works as a whole
- Eg. site access, security, site meetings, warranties, bonds, site equipment What is contained in a tender report? - ✔✔• QS provides Tender Report outlining process and results
- Write to successful contractor accepting offer
- 'Standstill period' - any challenges made
- Offer acceptance initiates Contract
- Inform unsuccessful tenderers
- Contract documents signed.
- Successful Tenderer = Contractor What do you do about the unsuccessful tenderers? - ✔✔They will be informed they are unsuccessful? How many tenderers would you recommend to your client to be invited to tender? - ✔✔3? Who prepares the tender report? - ✔✔QS provides Tender Report outlining process and results
When would you use the two stage procedure for selective tendering? - ✔✔• A method of tendering used where time/ programme is key
- Allows early engagement with a contractor What are the two alternatives using Practice Note 6 Main Contract Tendering for correction of mathematical errors? - ✔✔ Where would you find these written down in the contract documents? - ✔✔ What are the advantages of a Bill of Quantities? - ✔✔ Bills of Quantities - what are they and how are they useful to the client and contractor in the running of a contract - ✔✔•Link between design and construction •Assist the contractor in assessing material, labour and plant requirements •Basis for valuing alterations •Assist in the preparation of interim valuations. •Enable tenders to be submitted on the same basis. •Future estimates.
Following submitting an invitation to tender, a tenderer requests additional information. What course of action would you take? - ✔✔ What do you think of the NBS specification? - ✔✔• Quality of Materials or Workmanship described
- Eg. materials, dimensions, weights, colour, finishes and construction methodology Can you check a contractor's bank account to see if they are financially sound? - ✔✔? no - only the audits on companies house / whatever the contractor provides. Can you list examples of preliminaries and how are they paid to the Contractor? - ✔✔ When would you employ a quantity surveyor and what advantages would this have? - ✔✔ When would you employ a clerk of works and what is his role and power? - ✔✔• Engaged by Client or Landscape Architect
- Notify of errors in contract documents.
- Inspect materials/ workmanship
- Verbal instructions
- Daily diary/ Weekly reports
- Attend site progress meetings
- Observe health and safety requirements
- Measure/ inspect buried works What is a nominated sub-contractor? - ✔✔• Specialist technique eg. Landscape
- Used for early ordering or for particular quality of work
- Either a single firm OR list of subcontractors provided
- Main Contractor can claim EOT if Nominated Sub-contractor causes delay
- Client cannot claim for Liquidated and Ascertained Damages if delay caused (Client's choice)
- Client can step in and pay
- NOT COMMONLY USED DUE TO CONDITIONS OF CONTRACT What is a domestic sub-contractor? - ✔✔• Main Contractor completely responsible
- Working relationship with main Contractor
- Sub-contractor listed in Tender
- Landscape Architect has limited
What is the Defects Rectification Period? - ✔✔ What is the Date of Practical Completion and why is it significant? - ✔✔ How and when is a contractor paid? - ✔✔ What is retention money and how is it released? - ✔✔ What happens when the sub-contractor is not paid by the main contractor? - ✔✔ What happens when the client goes bankrupt? - ✔✔ What happens when the contractor goes bankrupt? - ✔✔ How can a contract be extended? - ✔✔ What are liquidated damages? - ✔✔damages specified as a term of the contract, before a breach of contract occurs What is the period of final measurement? - ✔✔
How can a contractor determine the contract? - ✔✔ The client has just received an Interim Certificate and has also visited the site to discover the trees are smaller than specified. a) What can he do? b) If the trees are still unchanged at Practical Completion, what can he do? - ✔✔ What would you recommend to your client at Practical Completion in respect of Maintenance? - ✔✔ If the client carries out the maintenance who is responsible for the plants? - ✔✔ What types of contract are there? - ✔✔Traditional Contracts - Easier to control quality Design and Build Contracts (with/ without Novation) - Most common for large Public Sector projects Management Contracts - Less common Framework Agreements - Popular for Local Authorities What forms of agreement exist that could be used for landscape work?
What penalties can you put on the contractor for not completing the contract on time? - ✔✔ Have you been involved in preparing a Final Certificate? Describe what you would do and the procedure involved? - ✔✔ In the case of disputes - where would you find a mediator? - ✔✔ What is the difference between the Defects Rectification Period and the Maintenance Period? - ✔✔ How do you pay for maintenance? - ✔✔Maintenance Works: Term Service Contract (TSC) (or TSSC short) Stand-alone contract for 'Aftercare' (maintenance) of existing landscape or new landscape (3-5 years required) Under JCLI. The drawings say 10 trees, the bill says 20 trees, delivered to site. What do you do? - ✔✔ How often should the landscape architect visit the site? - ✔✔
Who would be responsible if someone fell down a trench which was uncovered on site? - ✔✔ What is a letter of intent? - ✔✔A letter of intent (LOI) is a document declaring the preliminary commitment of one party to do business with another. Why would you use a JCLI form of contract and not a JCT? How does the scale of the project affect your choice? - ✔✔• Appropriate for hard and soft Landscape projects
- Suite of contracts includes JCLI Maintenance Contract
- Similar to JCT Minor Works
- Contractor only responsible for making good defects post Practical Completion if responsible for maintenance of Softworks JCT - Typically for building contracts What are the implications if the client adds considerably to the works? - ✔✔ Your client wishes to maintain the contract after Practical Completion, what would you advise them? - ✔✔
Who is responsible for vandalism? - ✔✔ Explain the procedures, significance and relationships between Practical Completion, Defects Rectification, Maintenance Period and Final Completion? - ✔✔ What types of contract exist? - ✔✔ If you were undertaking a valuation on site, a) What would you include? b) Would you include the value of materials on site? - ✔✔ A contractor told you he had used up the specified amount of topsoil and there are still large areas to be top soiled. The client is adamant that he is not going to spend more money on topsoil, what options have you got? - ✔✔ When might there be a legitimate claim for an extension of time by the contractor? - ✔✔ Is retention always 5%? - ✔✔
What would you do if a client changed his mind about the project during the contract? - ✔✔ What are the contents of the agreement between client and contractor? - ✔✔ How do you assess liquidated damages? - ✔✔ How do you calculate progress payments? - ✔✔ What are the advantages of using a Form of Agreement? - ✔✔ Who would you invite to a Pre-start Meeting and what would you discuss? - ✔✔ How would you pay for vandalised or stolen plants? - ✔✔ How would you avoid disputes over payment? - ✔✔ Does the QS write the specification? - ✔✔ Does the QS visit the site? - ✔✔
