A. CONTRACT FORMS & STRUCTURE (1–20)
1. What is the purpose of a construction contract?
To define rights, obligations, risk allocation, payment mechanisms, and procedures between employer and contractor.
2. What are the most common standard forms in the UK?
JCT suite, NEC suite, FIDIC (international), PPC2000, IChemE.
3. What are the main differences between JCT and NEC?
JCT is prescriptive and reactive; NEC is proactive, collaborative, and uses early warnings & compensation events.
4. When is JCT Design & Build appropriate?
When employer wants single-point responsibility for design and construction.
5. When use JCT Traditional?
When employer wants full design control before tender.
6. When use NEC ECC Option A?
For predictable scope with a need for cost certainty (priced contract with activity schedule).
7. When use NEC ECC Option C?
For projects needing shared risk and incentives (target cost).
8. What is a lump-sum contract?
Contractor provides a fixed price for defined scope.
9. What is a remeasurement contract?
Payment based on actual measured quantities at contract rates.
10. What is a cost-plus contract?
Contractor reimbursed actual costs plus a fee.
11. What is a target cost contract?
Client and contractor share savings or overruns.
12. What is single-point responsibility?
One party (usually D&B contractor) responsible for design + build.
13. What is a contract amendment?
A formal change to standard form clauses via schedule of amendments.
14. Why use a schedule of amendments?
To tailor contract to project risk, employer requirements, and procurement route.
15. What is novation?
Transfer of design responsibility from employer’s team to contractor.
16. Difference between assignment and novation?
Assignment transfers rights; novation transfers rights and obligations.
17. What is a collateral warranty?
Contractual link giving third parties rights against consultants/contractors.
18. What is a PI insurance requirement?
Ensures designers have coverage for negligent design.
19. Why define “design responsibility”?
To avoid disputes over defective design or fitness for purpose.
20. What is a specification hierarchy?
Defines which documents prevail when contradictions exist.
B. PROCUREMENT & TENDERING (21–35)
21. What factors influence choice of contract?
Risk, design stage, time, cost certainty, complexity, client experience.
22. What is tender addenda?
Clarifications or changes issued during tender stage.
23. What is a compliant tender?
Submitted exactly per instructions, without qualifications.
24. What is a qualified tender?
Bidder includes exclusions or alternative proposals.
25. What is tender evaluation?
Assessing tenders for compliance, quality, risk and value.
26. What is MEAT?
Most Economically Advantageous Tender—evaluated on cost + quality.
27. What is tender scoring moderation?
Ensuring fair and consistent evaluation across assessors.
28. Why use two-stage tendering?
Early contractor involvement, improved design coordination, fast-track start.
29. What is negotiation in tendering?
Discussing price and terms post-tender within allowed rules.
30. What is a letter of intent (LOI)?
Allows limited works before contract signed.
31. Risks of LOI?
Cost exposure, unclear scope, weak contractual protection.
32. What is an order of precedence clause?
States which documents override others in case of conflict.
33. What are named specialists?
Employer nominates subcontractors whose costs contractor includes.
34. What is a framework agreement?
Pre-agreed terms for call-off contracts.
35. What is soft market testing?
Assessing market capacity before tendering.
C. PAYMENT & VALUATION (36–50)
36. What is a payment mechanism?
Defines how interim payments are calculated.
37. JCT interim valuation basis?
Measured works, materials on/off site, variations.
38. NEC payment basis?
Defined Cost + Fee (Options C/E), Activity Schedule (A), or BOQ (B).
39. What is the Payment Notice?
States amount the payer intends to pay.
40. What is a Pay Less Notice?
Notification of intention to pay less than notified sum.
41. What is the final date for payment?
Last date by which payment must be made.
42. What is retention?
Percentage withheld to ensure defects are rectified.
43. Typical retention levels?
3–5% total; half released on PC, remainder at defects expiry.
44. What is a loss and expense claim?
Contractor’s claim for additional cost due to employer delays.
45. What is prolongation?
Cost of extending site duration due to delay.
46. What are preliminaries?
Site overheads, management costs, temporary works.
47. What is dayworks?
Labour, plant and materials paid at agreed rates.
48. What is a QS role in payments?
Value works, manage notices, maintain audit trail.
49. What causes payment disputes?
Poor records, unclear scope, missing notices.
50. What is final account?
Agreed total contract sum after adjustments.
D. VARIATIONS & CHANGE CONTROL (51–65)
51. What is a variation?
Change to design, quality, quantities, or sequencing.
52. Who issues variations in JCT?
Contract administrator via instruction.
53. Who issues compensation events in NEC?
Project Manager.
54. How is change valued under JCT?
Contract rates, pro-rata rates, or fair valuation.
55. How is change valued under NEC?
Forecast Defined Cost + Fee.
56. What is a change control procedure?
Formal process for assessing, approving and recording changes.
57. What is omission?
Removing work from contract—cannot use to give work to another contractor.
58. What is re-sequencing?
Changing order of works—may impact prelims or productivity.
59. What is a provisional sum?
Allowance for undefined work at tender stage.
60. What are prime cost items?
Allowances for materials or fixtures to be selected later.
61. What is a contract instruction?
Written direction to carry out work.
62. Can oral instructions be binding?
Only if confirmed in writing per contract.
63. What is a variation dispute?
Disagreement over validity or valuation of change.
64. What records support change claims?
Diaries, progress photos, labour sheets, correspondence.
65. What is constructive change?
Change implied by employer actions even without written instruction.
E. TIME, DELAYS & EXTENSION OF TIME (EOT) (66–80)
66. What is completion date?
Contractual date for finishing works.
67. What is Practical Completion?
Building complete for its intended use with minor defects accepted.
68. What is an Extension of Time?
Adjustment to completion date due to employer-risk events.
69. EOT events under JCT?
Variations, late info, force majeure, exceptionally adverse weather, statutory undertakers.
70. EOT events under NEC?
Compensation events.
71. What is float?
Time available without delaying overall project.
72. What is concurrent delay?
Two delays from employer and contractor running at same time.
73. What is critical path?
Activities determining project completion—no float.
74. What is liquidated damages (LDs)?
Pre-agreed damages for late completion.
75. Purpose of LDs?
Ensure predictable recovery of delay losses.
76. What is time at large?
Occurs when contract date is invalid; employer loses right to LDs.
77. What is early warning (NEC)?
Notice identifying potential issues; promotes proactive mitigation.
78. What is a delay notice?
Contractor informing CA of potential delay.
79. What is acceleration?
Shortening programme—usually paid via agreement.
80. What is disruption?
Loss of productivity without actual delay.
F. DISPUTE RESOLUTION & CONTRACT ADMIN (81–100)
81. What is adjudication?
28-day statutory process for resolving construction disputes.
82. Why adjudication?
Quick, cost-effective, keeps cash flowing.
83. What is arbitration?
Private dispute resolution; binding award; slower but expert-led.
84. What is litigation?
Court process—expensive and lengthy.
85. What is mediation?
Voluntary facilitation to reach settlement.
86. What is a dispute board (NEC)?
Panel resolving disputes before formal proceedings.
87. What is the role of the Contract Administrator?
Administer contract fairly, issue instructions, assess time/cost, certify payments.
88. What is the Project Manager role (NEC)?
Administer ECC, notify CE events, certify payments, manage programme.
89. What is impartiality in certification?
CA/PM must act fairly and independently—not in employer’s interest alone.
90. What is a notice requirement?
Formal written communication needed for claims under contract.
91. Why are notices critical?
Failure to notify can invalidate claims.
92. What is a dispute notice?
Formal communication initiating dispute procedure.
93. What is contract termination?
Ending contract due to breach, insolvency, or employer decision.
94. What is insolvency?
Contractor unable to pay debts—triggers contract rights.
95. What is a default notice?
Warning giving contractor opportunity to remedy breach.
96. What is force majeure?
Unforeseeable event beyond control (depending on contract definition).
97. What is insurance reinstatement?
Repairing works after insured events (fire, flood).
98. What is a bond?
Financial guarantee (performance, advance payment).
99. What is a parent company guarantee?
Parent company ensures performance of subsidiary.
100. What is a contract risk register?
Document tracking risks, owners, mitigation, and status.
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