What are the advantages & disadvantages of using a target cost? Can the contractor object to a nomination? What are the NEC3 ECC Payment Provisions? ; contractor-designed works, for instance employers requirements, contractors proposals etc. Proof that ownership will transfer to the employer on payment (vesting certificate), Contracts do not refer to 'variations' or 'loss and expense'. Contract Practice - CPD - 10-08-2018 - Notes.pdf - RICS/AIQS 2018 ; insurance, for instance public, professional indemnity, employers, all risks etc. Describes the result required from particular items and leaves to Contractor to satisfy that requirement. The Project Manager has to be reasonably sure that the CE assessment is reasonably accurate. Items such as lifts or baggage handling systems designed to performance requirements. Tim Jones is a director of TJMC Ltd, an APC trainer, coach and assessor and a member of the RICS Project Management Professional Group Board, APC guidance for candidates: contract practice competency, Download a complete APC guidance for candidates: contract practice competency PDF. Acceleration is referred to in Core Clause 36. If Option C is incorporated, how does this amend the core clauses? 4. 3. Again, you need to cover at least 2 of the above areas when writing your Level 3 Summary of Experience statement, and it is sensible to choose different projects rather than just one. - Condition that ownership of the goods does not pass to the contractor until they have been paid for. contract-administration-1st-edition-rics.pdf - GN 69/2011 1. What is the difference between partial possession and sectional completion? Employer may complete the works and may use any plant and material to which he has title. 1. Contract Admin - 3 Part Series - RICS 5. - Case law not entirely clear, but assumed yes. 281 0 obj <>stream (Choose two.) What should a PM consider when assessing a CE? Standard Forms of Main and Sub Contracts 4. NEC3 - Compensation Events - Cost of work estimated & agreed up front before work carried out (If actual costs known then included). RICS APC Final Assessment Mock Interview focussed on the Contract Practice competency. - Any breach of a contract whether serious or minor, - To put the innocent party back in the position they would have been in had the breach not occurred. Browse over 1 million classes created by top students, professors, publishers, and experts. Employer if no defect found, Contractor if defect found. What section deals with insolvency in NEC3 ECC? Under 42.1 can instruct Contractor to search for a Defect. - They would want the ability to take action against the consultants for breaches before novation. You can download the paper by clicking the button above. In the event that the contractor failed to rectify any defects the employer may employ another contractor to carry out the works & recover the cost of doing so as a debt by the contractor. Contract Practice | RICS Online Academy hbbd```b`` Xd+p l`RDE8 bK}"Zfk{"$ 0 K2 Rics Contract Practice Flashcards & Quizzes | Brainscape - Ensure contractors, S/Cs are financially stable. 5. 11. Give a common example of assignment and novation, - Assignment of the rights under a collateral warranty to a different tenant / purchaser. 9. ; conflict avoidance and dispute resolution, for example mediation, adjudication, arbitration etc. 7. Contract Practice - 10-08-2018.pdf - RICS(APC(Guidelines 13. What are the ECC Secondary Option Clauses (X Clauses)? The beneficiary of the guarantee (i.e. NEC3 via Z clauses, NEC4 contains an assignment core clause. Contract Practice for Surveyors Fourth Edition - Academia.edu Principles of Contract Law 2. - It has significantly changed the traditional principle of privity of contract, whereby obligations can only be enforced by the parties to a contract. What are the key elements of the 2011 Construction Act Amendment? Rics Apc Flashcards & Quizzes | Brainscape Change control and management, 1st edition - RICS - They lose all contractual relations with the novated party and therefore the right to take action for a breach, - Clauses that limit a partys liability for loss, - Clause that limits a partys liability to the proportion of loss that they are responsible for. What three types of termination does NEC3 ECC deal with? What 6 conditions need to be met for a contract to be in place? - If a lot of warranties are required it involves a lot of administration and cost easier for third party rights, - Where the rights and benefits of one contractual party are transferred to a third party. Performance Security * Bonds, Parent Company Guarantee 7. Carry out monthly audits on the valuations which would be submitted based on actual cost - Check 10% of value. the Employer) must always deal with primarily with the contract, and only when the contractor does not perform/pay can the beneficiary bring a claim against the guarantor. Often, candidates are only involved in 1 large project; if so, discuss your involvement in a number of the above areas in relation to it to show assessors you have a wide range of experience. 1.3 terms used/definitions in this guidance note, the following terms and expressions shall have the following meanings: ca contract administrator, appointed by an employer to administer the contract between the employer and the contractor. RICS APC - Contract Practice - Contract Law (Basics of a Contract Otherwise, a claim may be brought in Tort for negligence providing there has been actual damage & not economic loss. - It is standard to allow assignment of rights twice without consent. For Level 3, you should have given advice on the selection or implementation of at least some of the above areas. 12. Insurance of the works - covers the cost of any damage to the works during construction (110% of full value). What are the options if a defect is found? What do you do? The assessors will also target those areas when they ask their questions they are trained to enquire according to your experience. Quickly memorize the terms, phrases and much more. May lead to complacency and dis-incentivise them to sign the main contract. The employer can deduct retention from interim payments. It requires that professionals: demonstrate knowledge and understanding of the various forms of contract used in the construction industry and the change control procedures they contain, along with the digital portals available for some contracts that can be used to . - Contract for completing the works with a new contractor: - Basis of contract and documentation will be affected by: 1. It is undeniable that the Quantity Surveyors had been facing several issues and challenges when conducting re-measurement works and valuation of works for various types of construction contracts. Difference between Parent Company Guarantee & Performance Bond? Project Management, Design team management, constructor management. The wider you make your range of reading and training then the better your understanding of Contract practice will become. Covers those excepted risks stated in the contract. A majority of respondents had suggested that as-built drawings should be complete and records especially important data should be kept as soon as possible. 17. 4. - Interim valuations carefully prepared to ensure work is not over valued. Design / specification insufficient to allow robust target to be set. What happens if the contractor does not maintain the retention bond? Advance Payments 8. 16. What should PM do if antiquities are discovered? Page 1 of 14. 16. 1. APC guidance for candidates: contract practice competency - isurv So, let us start with the basics. o May reduce the incentive of the contractor. If Contractor is insolvent would you use assignment or novation to complete the works? 6. Who gets the interest accruing on retention money? - Whether the new party has the right to take action against the novated party for breaches that occurred before novation. Fixed date stated in the Contract Data Part 1. Scope and amount of work required 3. Is there a higher level than reasonable duty and care expected for professionals? Why was the Housing Grants Construction and Regeneration Act introduced? Can benefits be assigned under NEC contracts? 11. Letter of Intent 6. Where does the client fall in relation to receiving monies after liquidation? . Advice can be in written or verbal forms and must be addressed to someone in particular, such as a client, your manager or director, a board or committee, the contractor, a subcontractor or the project team. What are the advantages of nominated sub contractors? What is the NEC definition of Completion? Prepare the Tender Documentation & appropriate pricing document (AS or BQ) for issue to the Tenderers, who would return as part of the submission. 3. PDF Subcontracting - RICS 11. 2. - Termination at common law due to neutral events that have made the performance of the contract impossible, illegal or radically different from that which was envisaged, due to the fault of neither party. A Quantity Surveyor is basically the cost consultant on a project. What are the three ways that benefits can be transferred? roles of parties under the contract, such as client, contractor, contract administrator, employers agent, project manager etc. - Unsecured creditor, little if any money left. The pain / gain mechanism is used on a target cost form of contract, and is included within the tender documents by the client upon issue. Study Flashcards On T017 Contract Practice - Loss & Expense RICS APC at Cram.com. Application Study on JCT Contract for Construction Market of Real Estate in China, Re-Measurement and Valuation of Works: Issues and Challenges faced by Quantity Surveyors. 4. Retention can either be deducted from interim payments on the additional amount or the value of the retention bond can be increased, - May be used in difficult market conditions to aid the contractors cashflow. The program board Requirements Portfolio Vision Pre-PI Planning What is considered taking an economic view in architecture? - The employer has the right to withhold liquidated damages, as long as a withholding notice has been given. To browse Academia.edu and the wider internet faster and more securely, please take a few seconds toupgrade your browser. There is a wide range of pathways available to qualify as an RICS member covering 19 different areas of practice, at APC (Chartered) level. What problems may arise when setting a target cost? During your interim valuation, a subcontractor told you that the Contractor is in financial difficulties. What are the consequences of repudiation? The competency requires you to have an understanding of all aspects of construction contracts and how they are administered. T017 Contract Practice & T016 Contract Admin Rics Apc Discussion No 10 - RICS 2014, Session 1 APC Candidates Friday 21 st February 2014 8.00am to 12.00pm Topic: Contract Practice (T017) General 1. This will ensure that variation orders can be avoided as much as possible and discrepancies are kept at minimal. pre-contract the period of the project before the building contract has been entered into by the employer. Describe the CE process for a PM notified CE? Parties may through an informal private or facilitated negotiation process agree to settle the dispute either at a high level or in detail and agree to be bound by this settlement. 9. 8. The assessors are likely to ask questions across a wide range of subjects, but you should have gained direct experience and provided advice in most of these. Novation - If the contractor took full responsibility for the design what would they want? How is the contractor reimbursed under a target cost? 18. %%EOF For example, you might not have given advice on the use of collateral warranties as opposed to using relevant legislation. What are the key elements of the Local Democracy, Economic Development and Construction Act? The materials should be for the works, adequately protected, delivered to programme and in a reasonable quantity. 12. It also helps to ensure that clients receive objective advice in a professional manner with a consistent approach. They may also gain relevant experience acting for a contractor, or managing subcontractor contracts. 1. - Sectional completion is a contractual obligation to hand over the section at the stated date, partial possession relies on the contractors consent, Part of the works which is not in accordance with the Works Information. If HGCRA applies then use W2, if not use W1 which contains far greater detail regarding adjudication. - Minimum amount of capital needed to start a contracting business, fragile arrangements created, also boom bust cycle of construction industry. Agreement for the contractor to design specific parts of the works. Why might third party rights be used instead of collateral warranties? What are the disadvantages of Advanced Payments? If the supervisor thinks work is not in accordance what can they do? At Level 1 Demonstrate knowledge and understanding of the various forms of contract used in the construction industry and/or your area of business. A good place to start, if you have not already done so, is to consult the Black Book. If can't be done in Joint Names then include a Subrogation Waiver (except for Fraud). Half retention retained & may be used to cover cost. - In the absence of a separate bank account, case law suggests that the contractor may lose this right. We often see candidates falling down in the crucial area of Contract practice, in both their written documentation and at interview. 4. - Winding up of a company because it cannot pay its debts. 0 9. 6. Time available to prepare docs and agree terms 2. How has the contract (rights of third parties) act changed the situations regarding rights under contracts? 1. ; common standard forms of contract and subcontract that are in use, for instance JCT, NEC3, International Federation of Consulting Engineers (FIDIC) etc. - Contract for completing the works with a new contractor: What happens to domestic Sub Contractors when contract is terminated due to insolvency? RICS APC MOCK INTERVIEW - CONTRACT PRACTICE QUESTIONS - YouTube What act is relevant to a net contribution clause? Contract of Guarantee whereby one party (the Guarantor) undertakes to pay damages to a second party (the Employer) arising from breach of contract by a third party (the Contractor). 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