Claims Disputes Insurance

Claims, Disputes & Insurance
Past Questions
Up to November 1999
Do you need both a bond and a parent company guarantee?
If you have to accelerate the works for Employer or Contractor delay, what are the
costs to be considered?
Why would the contractor accelerate the works?
What Clause governs determination by the contractor and what actions warrant a
determination?
What Clause governs determination by the employer and what actions warrant a
determination?
What Clause governs joint determination and what actions warrant a determination?
What does Extension of Time mean?

Past Questions
Up to November 1999
How is an Extension of Time a benefit to the Employer?
Do you get an Extension of Time for specified peril damage?
If yes, what does this mean?
Are there any time restrictions on the Architect to issue an Extension of Time?
Can this decision be reviewed?
What is the process for the contractor to claim an Extension of Time?
What matters result in a Loss and Expense claim?
What are Heads of Claims?

Past Questions
Up to November 1999
Do you know any formulae for calculating head office overheads and profit?
You mentioned immediate costs, are there any restrictions imposed on the
contractor?
What action would you take if the contractor becomes insolvent?
If Ive got a bond, is that any use to me?
Explain the basic insurance provisions under JCT80.
What benefit is the insurance of liquidated damages clause?
Why cant I get any Liquidated and Ascertained Damages if I give an Extension of
Time?

Past Questions
Up to November 1999
Why might the Employer wish to insure against loss of LADs?
Could the Employer choose not to insure the Works?
If by the nature of the Works the Employer requires third party insurance to be taken
out, how is that incorporated into the contract?
How is the risk valued?
What job would you take out 21.2.1 under?
Claims. When they make clams they label various Heads of Claims. Are
overheads a fair head of claim?
Any legal precedents that are case law?

Past Questions
Up to November 1999
Are you familiar with formulae?
How do they work and what are they based on?
Are finance charges a permissible Head of Claim?
Is loss of profit a Head of Claim?
How are disruption and prolongation valued?
How do you question the build up process (eg. Plant for so many number of hours)?
An AI to carry out work has disrupted another activity. Is this a Head of Claim?
How would the contractor be able to prove it?

Past Questions
Up to November 1999
What does prolongation mean and how would you value it?
What is an Extension of Time and how would you value it?
We hear that the Works have been suspended. Why would the works be
suspended?
If the Architect instructed a suspension, what would the contractor be entitled to?
If the contractor was negligent and damages an adjoining building, where would the
employer be covered?
What about insurance of the building/works?
Explain what clause 21.1 is with JCT 80

Past Questions
Up to November 1999
Explain what clause 21.2 will cover the client for in JCT 80
What is a parent company guarantee
Is it different from a performance bond
Which is best? Can you have both
What is a demand bond
What effect does a bond have on a contractors financial creditablity
What are insurances provisions under IFC 84
Is all risk really all risk, give examples of what it covers

Past Questions
Up to November 1999
What is clause 26 in JCT 80
What does clause 27, 28 and 28A deal with
On what grounds can each party determine the contract
What is adjudication
How long does the adjudicator have to make a decision
What effect does the adjudication have on the arbitration act
When did the arbitration act come into force
What does it aim to do

Past Questions
Up to November 1999
Can arbitrators cap costs
What are the differences in arbitration before and after the act
What is prolongation
What is extension of time
What is disruption
How would you value a claim
What if loss of productivity is down to contractor
What events may result in an agreement to discharge the contract

Past Questions
Up to November 1999
What happens to sub-contractors if main contract is determined
What happens in MW 80
What if it is a repudiatory breach
What is the procedure for claiming and EOT?
Under clause 26 of the JCT the contractor is required to prove what 2 issues?
Name relevant events?
If you were a contractor what is the order for making a claim under the JCT?
After receipt of a delay notice how soon must a decision be made?
10

Past Questions
Up to November 1999
Name some examples of each head of claim?
What should the insurance level of liability cover?
How is the protection of nominated subcontractors covered, in respect of insurance?
What is the limit of liability you would advise?
Describe some excepted risks?
What does clause 22 Insurance cover?
Why is clause 22a Insurance taken out in a joint names policy?
When do the 21.1/21.2/22A insurance expire?
11

Past Questions
Up to November 1999
What is excluded from clause 21.2 insurance?
What is excluded from clause 21.1 Insurance?
If damage is caused to a project through a design fault, how does the employer
recover losses?
A fire-damaged building that you worked on was only six years old. Assume that the
cause of the fire was through an original design fault. Does the client have any
recourse against the original design team for the fault?
How do you prepare an estimate for the reinstatement of the building without any
design information?
How did the trade contractors get paid by the client?
You have a client who is a Local Authority for which you have an appointment but
have not yet carried out the service. The client asks you if he can pay you in
advance for that service before the end of the financial year because otherwise he
will lose that money. What is your response to the client?
12

Past Questions
Up to November 1999
On a project with a contract duration of 8 weeks the contractor has been on site for
6 weeks of which he has done 2 weeks worth of productive work, but he is in delay
by 4 weeks, due 2 weeks of Contractor delay and 2 weeks Employer delay. In a
valuation how would you value the prelims?
What do you think of conflict in the construction industry?
How is conflict dealt with?
What steps are taken if the contractor becomes insolvent?
What do you do if someone phones you up and says the contractor is in

receivership?
What are the common types of insurance for a building project?
What happens if construction work causes damage to adjacent buildings, who is

responsible and what sort of insurance do you need?
13

Past Questions
Up to November 1999
Have you heard of the Woolf Report?
What are the common disputes resolution methods?
What can you do if I dont comply with the adjudicators decision?
Is the adjudicators decision final?
What are warranties?
Why would you put them in place?
Can you explain the circumstances under which you would request a Parent
Company Guarantee?
Does the contractor have to give notice of halting the works?
14

Past Questions
Up to November 1999
If a variation incurs cost and programme implications, what would you expect to
receive in the Contractors Notice of Delay?
When a delay occurs what actions are required to be taken by the Contractor?
A client asks your advice on L.A.D.s, what questions would you ask and how would
you determine the figure?
The contract refers to ascertained damages, what does ascertained mean?
The client says he wants some teeth in the damages figure as an incentive to make
the Contractor perform and suggests that a penalty figure of 20,000 per week
should do the trick, if this is stated in the documents and the contractor signs on that
basis, is it valid?
Please advise us of the basic insurance provisions of the JCT `98 contracts if it is
easier
What is a relevant event under JCT contracts?
15

Past Questions
Up to November 1999
How do you assess exceptionally adverse weather conditions when deciding

whether an extension of time is granted?
How do you value loss and or expense due to a delay?
Are head office overheads a legitimate expense in valuing a delay claim?
What if the delay falls over a statutory holiday period like Christmas where a couple
of days delay before the break for Christmas effectively means that the contractor
loses a further two weeks overheads which he says where not covered by this
contract?
In determining claims for loss and expense can you employ formulas?
Can you give any examples?
Under what circumstances can an employer determine a contract?
16

Past Questions
Up to November 1999
Ditto a contractor?
What is the difference between assignment and novation?
What is the difference between adjudication and arbitration?
Can you under JCT contracts go to law to settle disputes (ie. Opt out of adjudication,
arbitration?
A contract is running considerably over the date for completion and no extensions of
time are justified. Damages are very small and the contractor is still working but
nothing is being completed. The employer requests you advice on what to do.
What is a quantum claim?
What are the types of costs involved?
17

Past Questions
Up to November 1999
Is this normal QS practice? Is it a common area of work for you?
What insurances were used?
What do you mean by risk of delays?
If it does not complete on time?
Where does the trade contractor fit in with the deals?
Is the risk of delays with the M/C or the T/C?
If I wanted to start a project I needed to pre- order long lead in time of materials,
how would you suggest I prove it?
How can I pre-order without nominating S/C?
How long after PC has been given does the Architect have to confirm Extensions of
Time?
18

Past Questions
Up to November 1999
What does the Extension of Time do?
An Extension of Time has bee given, does this entitle the contractor to loss and
expense?
What can a contractor claim for if the delay means plant stands idle?
What is quantum meruit?
What is decennial insurance?
Why is it required?
19

Past Questions
Up to November 1999
If the project is in the city, would you need terrorism cover?
What is the standard cover for terrorism?
What does Clause 22C cover?
Whats the alternative?
Can the owner take out all insurance?
Contractors third party insurance, can employer take it out also?
What bond would you take out?
What is a reasonable level?
20

Past Questions
Up to November 1999
When would you recommend to increase the percentage?
What is a parent company guarantee?
How do they guarantee it?
Would a parent company guarantee be capped - would you recommend it?
What is the difference between a bond and a parent company guarantee?
What are LADs?
Who says when they are deducted?
Does it affect your valuation?
21

Past Questions
Up to November 1999
If the project, say a school with a critical end date, what LADs would you require?
How do you value acceleration?
Would you allow any loss of productivity as a result of the acceleration?
22

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Claims, Disputes & Insurance

Do you need both a bond and a parent company guarantee?

Why would the contractor accelerate the works?

What does Extension of Time mean?