Question:
It is possible to have a target price contract under the main options in the NEC ECC, but target price contracts are not possible under the JCT SBC or the FIDIC Red Book contracts.
Critically evaluate why this is the case and discuss the main effects that a target price contract will have on the role of the parties and the contract administrator when compared with a contract based on a lump sum price or a bill of quantities.
Hints:
In writing your answer for this exercise, you might like to pose the following questions to yourself:
Is it the risk sharing nature of target contracts that employers who use traditional forms of contract avoid?
JCT does have the provision for target contracting in its constructing excellence (CE) contract
Will target arrangements help the parties to work together more collaboratively?
True target contracting requires the contractor’s site accounts to be open for inspection
Can the use of a target contract allow for earlier contractor involvement in the project?
How do the share arrangements in the contract work and can different share arrangements promote different behaviours?
Consider various sources in your answer.
Week 7
Question:
Critically analyse the ways in which the Employer and the contract administrator, under the standard forms of contract, can engage with and influence the supply chain on a large construction project, which has been awarded to a single main contractor.
Hints:
Points to consider
In writing your answer for this exercise, you might like to pose the following questions to yourself:
Can there be any direct contractual link from the employer to a subcontractor?
The contract administrator’s role in approval/acceptance of subcontractors
Named lists and nomination
Framework agreements
Consider various sources in your answer.
2
Week 9
Question:
The assessment of extensions of time is an important aspect of the role of the contract administrator.
Critically discuss this statement, paying attention to the causes of extensions of time and how these would be assessed by the contract administrator under the NEC ECC and, either the, JCT SBC or the FIDIC Red Book form of contract.
Hints:
Points to consider
In writing your answer for this exercise, you might like to pose the following questions to yourself:
What is the main benefit to the Contractor of an extension of time?
What is the significance of the contract programme in assessing extensions of time?
Can the Society of Construction Law Delay and Disruption Protocol be used to assist the assessment?
Do the different forms of contract treat extensions of time differently?
Consider various sources in your answer.
Week 10
Question:
Critically discuss the significance of change in a construction contract and explain the distinction between voluntary change and involuntary change.
Hints:
Points to consider
In writing your answer for this exercise, you might like to ask yourself some questions which could include:
Is change in a construction contract inevitable?
Why are construction contracts more prone to change than contracts for factory-produced products?
Which party is more likely to benefit from change to a construction contract?
Is there a connection or correlation between the amount of change during the contract administration and the type of contract chosen through the procurement stage?
Do forms of contract that actively promote a partnering relationship increase or decrease the amount of change that takes place in a construction contract?
Consider various sources in your answer.
Week 11
Question:
Discuss how standard forms of contract provide for the management of any changes that take place during the construction phase of contracts. Critically analyse the responsibilities of the parties and the contract administrator in managing contract change and describe any significant differences in the provisions of the different forms of contract.
Hints:
Points to consider
In writing your answer for this exercise, you might like to ask yourself some questions which include:
Change in construction contracts is almost inevitable
What sorts of change might take place?
Some change is forced on the contract by events outside the control of the parties
Other change might be imposed on the contract by a party or by mutual agreement of the parties
What are the possible effects of different types of change?
Who finally decides on the effects of a change?
Do the different standard forms of contract produce different outcomes for change?
Considering various sources in your answer.
Week 12
Question:
Critically discuss the role of insurance in construction contracts. Use scenarios or examples to illustrate and support your essay.
Hints:
Points to consider
In writing your answer for this exercise, you might like to ask yourself some questions which could include:
What insurances are commonly bought for construction contracts?
Who provides the cover?
What activities are uninsurable?
What are the essential aspects of an insurance contract, and how do these apply to insurance for construction?
Week 13
Question:
The regular and timely payment of instalments of the contract price is a key element of the administration of a construction contract; providing funding for the Contractor’s work. However, the payment of money before the contract is completed is also a possible risk from the Employer’s point of view.
Critically assess the various administrative provisions in the standard forms of contract, which provide for timely payments to the Contractor, together with the ways in which the Employer can cover the financial risk of paying out money before the project is completed.
Hints:
Points to consider
In writing your answer for this exercise you might like ask yourself some questions, which could include:
The importance of timely payments for cash flow and in reducing financing charges for the contractor
In the UK, the provisions of the Construction Acts. Are there similar statutory provisions elsewhere?
Can advance payments be made?
What security does the employer have on the money paid before completion of the works?
How do bonds work and do they provide extra security?
Week 14
Question:
Critically analyse how the contract administrator can anticipate and manage potential disputes between the parties under the standard forms of contract.
Hints:
Points to consider
In writing your answer for this exercise, you might like to ask yourself some questions which could include:
The distinction in contract law between a disagreement and a dispute.
Who are the potential disputes between?
What is the contract administrator’s role in settling disputes?
Are these different under the different standard forms of contract?
What other skills are necessary in the contract administrator’s role?
What happens if a dispute is not avoided?
