- Discuss and critically analysis the role of the contract administrator in avoiding and setting dispute between the parties under the NEC3, ECC and the JCT
- Is a disagreement a dispute?
- What is the CA’s role in preventing dispute?
- Example from the standard forms
- Softer aspects of dispute avoidance
- CA’s role in settling dispute
- A three part question about the advance payment provision in ECC (Clause x 14)
- A project with 18 monthly payments. Draw a table and follow the rules in Clause X14
- Advantages and disadvantages of advanced payments
- Cash flow for contractor – therefore, reduced financing costs
- Lower tender prices
- Encourages supply chain
- Disadvantage is the risk in paying money upfront – Bond or PCG required as security
- Study the JCT contract particular (ref: to intermediate contract is from a paper I set at a previous institution)
- Explain the entries you would make to allow for £750,000.00 advanced payment in a £4,000.000.00 JCT contract and what you would add recover the payment in a similar fashion to that in part a)
- A four part question based on the termination table in ECC
Under an ECC contract the Employer wishes to termination the contract because of a major reorganisation and policy change by the employer’s parent company. The contract price is £10m and the contractor has been paid £2.5m for the work done at the time of the termination. Advise the contractor about
- The contractual grounds for termination
- The process that will be followed
- The elements of compensation that he can expect
- What redress he has if he is not happy with the compensation
- Under a JCT intermediate building contract calculate the amount due in the contractor’s march application given
- The value work done on site is £95,00.00
- The value of goods and materials on site is £36,250.00
- There are not listed items
- Planning fees for detailed planning consent are £750
- The contractor has claimed for loss and expense for errors and inconsistences amounting to £10,250
- The insurance premiums paid by the contractor are £2,350.00
- The employer has spent £11,00.00 in getting another contractor to defective work that you were instructed to carry out – but failed to do
- There are no entries in the contract particulars regarding the clause and the previous total of amount certified is £105,400.00.
- Describe the contractual process and programme for making this payment.