Contract Practice

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T017 & T016 Flashcards on Contract Practice, created by alison_patey0437 on 14/04/2013.
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Flashcards by alison_patey0437, updated more than 1 year ago
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Created by alison_patey0437 about 11 years ago
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Question Answer
what is a Contract Sum a sum accepted following tender negotiation and is entered into Article 2
what is an approximate quantity? where work can be described in accordance with SMM7 but the quantity is uncertain the CA doesn't need to issue an instruction for the contractor to carry out the works the work is valued as described in clause 5.6.1
do approximate quantities cause any contractual problems? Yes. difficulties arise if the quantity is not a reasonable accurate forecast of the work required. then a valuation to inc a fair allowance for the difference in quantity. can be claimed as a relevant event + L&E
Why do we use Provisional Sums? if there is insufficient information at time of tender to all the item to be described + measured in accordance with SMM7
What is the procedure for Provisional Sums? The CA must instruct the PS expenditure - the contractor cannot carry out the prov sum works until they receive an instruction
what are the two types of Provisional Sum? Defined and un-defined Provisional Sums
Tell me what you understand as defined work? SMM7 rule 10.3 the contractor must be able to price the preliminaries and allow the works into the programme.
what happens if the defined provisional sum is not as detailed as rule 10.3 requires? 1. if its erroneous an instruction is required to correct it (CA) - treated as a variation and could give rise to a notice of delay = reimbursement for direct loss and expense. 2. you can just change the PS from defined to undefined
what do you understand by undefined works? a P. Sum is given when its not possible to supply the amount of info required in rule 10.3 the contractor will not have allowed for programming/planing/pricing of prelims and the P.Sum should cover these costs + could attract additional cost to prelims Risk the contractor may put in for delay (relevant event)
what kinds of items do you typically include as a P. Sum? items that are not specifically work e.g. testing, site boards, facilities, works carried out by stat authorities
Name the two mechanisms for valuing variations? 1. acceptance of schedule 2 quotation 2. valuation by QS
Talk through the schedule two quotation for variations? 1. CA instructs for contractor to submit quotation in accordance with sch 2 2. contractor has 7 days to object 3. is CA instructs anyway its valued by QS 4. not objections - submit quote within 21 days of receipt of instruction
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