Construction Delay Claims and Dispute Adjudication
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Construction Delay Claims and Dispute Adjudication

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Questions and Answers

What must the Contractor provide after the end of the effects from an event or circumstance?

  • A rejection letter
  • An interim claim
  • A final claim within 28 days (correct)
  • A monthly report

    • How long does the Engineer have to respond to a claim or its supporting particulars?

  • 42 days (correct)
  • 30 days
  • 28 days
  • 14 days

    • What happens if the particulars supplied by the Contractor are insufficient for substantiating the claim?

  • The claim must be resubmitted immediately
  • Only the substantiated part of the claim can be paid (correct)
  • The claim is automatically approved
  • The Contractor is entitled to full payment

    • Which clause governs the determination of additional payment to the Contractor?

    <p>Sub-clause 3.5</p> Signup and view all the answers

    What is the primary requirement for the amounts included in each Payment Certificate?

    <p>They must be substantiated as due under the Contract</p> Signup and view all the answers

    What should the Engineer do if more particulars are needed for a claim?

    <p>Request additional details</p> Signup and view all the answers

    Which of the following actions does the Engineer NOT take regarding a claim?

    <p>Negotiate directly with subcontractors</p> Signup and view all the answers

    What timing interval is established for sending further interim claims?

    <p>Monthly</p> Signup and view all the answers

    What is the consequence if the Contractor fails to comply with a Sub-Clause regarding any claim?

    <p>Extensions of time and/or additional payment will consider the failure's impact.</p> Signup and view all the answers

    What is the minimum number of members required for a Dispute Adjudication Board (DAB) if not stated otherwise?

    <p>Three members.</p> Signup and view all the answers

    How are members of the DAB appointed if a list of potential members is provided in the Contract?

    <p>Members must be selected from the list, excluding unwilling participants.</p> Signup and view all the answers

    What role does the third member of the DAB typically serve?

    <p>The chairman of the board.</p> Signup and view all the answers

    What should the agreement between the Parties and the DAB encompass?

    <p>The General Conditions of Dispute Adjudication Agreement.</p> Signup and view all the answers

    In the event that parties do not agree on the members of the DAB, what will be the composition of the DAB?

    <p>Three members will be appointed by default.</p> Signup and view all the answers

    What may be included in the remuneration terms of the DAB members?

    <p>Remuneration for expert consultation if needed.</p> Signup and view all the answers

    When is a claim excluded from consideration under the Sub-Clause mentioned?

    <p>If it falls under the second paragraph of the Sub-Clause.</p> Signup and view all the answers

    What is the purpose of the Contractor sending additional interim claims?

    <p>To provide the Engineer with accumulated delay and claims</p> Signup and view all the answers

    What is required by the Engineer within 42 days of receiving a claim from the Contractor?

    <p>To provide a response regarding approval or disapproval</p> Signup and view all the answers

    If the particulars supplied by the Contractor are not sufficient for substantiating a claim, what is the Contractor entitled to?

    <p>Partial payment for substantiated parts of the claim</p> Signup and view all the answers

    What must the Engineer determine in accordance with Sub-clause 3.5?

    <p>The extension of time and/or additional payment the Contractor is entitled to</p> Signup and view all the answers

    What happens if the Contractor fails to send a final claim within 28 days after an event?

    <p>The Contractor loses the right to that claim</p> Signup and view all the answers

    What should the Payment Certificate include?

    <p>Only claimed amounts deemed reasonable under the contract</p> Signup and view all the answers

    What role does the Engineer have regarding further particulars requested for claims?

    <p>The Engineer may ask for necessary further particulars while responding</p> Signup and view all the answers

    In what situation can the Engineer propose an alternative period for claims beyond the standard 28 days?

    <p>If agreed upon by both Contractor and Engineer</p> Signup and view all the answers

    What principle guides the Engineer's response to claims?

    <p>Principles of the claim as provided in the contract</p> Signup and view all the answers

    What happens if the Contractor fails to comply with a Sub-Clause concerning a claim?

    <p>Extensions and payments will be reduced by the extent of failure.</p> Signup and view all the answers

    How is the composition of a Dispute Adjudication Board (DAB) determined if no number is stipulated?

    <p>It shall automatically consist of three members.</p> Signup and view all the answers

    If potential members for the DAB are included in the Contract, how are the members selected?

    <p>Members are selected from the list unless they refuse the appointment.</p> Signup and view all the answers

    What is required for the agreement between the Parties and the DAB members?

    <p>It should reference the General Conditions of Dispute Adjudication Agreement.</p> Signup and view all the answers

    Who typically appoints the chairman of the DAB?

    <p>The third member is agreed upon by the Parties as the chairman.</p> Signup and view all the answers

    What is the implication of a claim being excluded under the second paragraph of the Sub-Clause?

    <p>The claim is not open for adjudication under any circumstances.</p> Signup and view all the answers

    What role do the Parties have in the appointment of DAB members?

    <p>Each Party nominates one member, and both Parties agree on the third.</p> Signup and view all the answers

    What happens if the DAB is required to have three members but one member is unable to serve?

    <p>The Parties must agree on a replacement from the original list.</p> Signup and view all the answers

    What must be included in the terms of remuneration for DAB members?

    <p>Terms must encompass all members and any consulted experts.</p> Signup and view all the answers

    What is the initial action the Parties must take regarding the DAB?

    <p>Jointly appoint the DAB by a specified date.</p> Signup and view all the answers

    The Contractor must send a final claim within 35 days after the end of the effects of an event.

    <p>False</p> Signup and view all the answers

    The Engineer is required to respond to a claim within 42 days of receiving the particulars.

    <p>True</p> Signup and view all the answers

    If the particulars supplied are inadequate, the Contractor is entitled to full payment for the claim.

    <p>False</p> Signup and view all the answers

    Payment Certificates must include amounts for claims that have not been substantiated.

    <p>False</p> Signup and view all the answers

    The Engineer is responsible for determining any extension of the Time for Completion based on Sub-clause 7.4.

    <p>False</p> Signup and view all the answers

    The Contractor must provide further particulars upon the Engineer's request, but is not obligated to respond to the Engineer's comments.

    <p>False</p> Signup and view all the answers

    Claims must be submitted on a weekly basis, according to the contractual requirements.

    <p>False</p> Signup and view all the answers

    The Engineer can propose an alternative period for claims, extending beyond the standard 28 days if approved.

    <p>True</p> Signup and view all the answers

    The Engineer can delay responding to claims indefinitely if he requires further particulars.

    <p>False</p> Signup and view all the answers

    The extension of time and additional payments are determined independently, without reference to the events causing the claims.

    <p>False</p> Signup and view all the answers

    The Dispute Adjudication Board must always consist of one person regardless of the agreement between the Parties.

    <p>False</p> Signup and view all the answers

    The Parties are required to agree on two members of the Dispute Adjudication Board if it comprises three members.

    <p>True</p> Signup and view all the answers

    A failure to comply with any Sub-Clause related to a claim will always lead to the rejection of the claim.

    <p>False</p> Signup and view all the answers

    If a list of potential members for the DAB is provided in the Contract, members must be chosen from that list.

    <p>True</p> Signup and view all the answers

    The remuneration of DAB members must be determined independently by each Party without any mutual agreement.

    <p>False</p> Signup and view all the answers

    If the Parties do not designate a specific number of DAB members, the default is to have two members.

    <p>False</p> Signup and view all the answers

    The Chairman of the DAB can be chosen unilaterally by one of the Parties.

    <p>False</p> Signup and view all the answers

    Claims will automatically be taken into account even if the Contractor fails to present sufficient particulars.

    <p>False</p> Signup and view all the answers

    Disputes must be adjudicated according to a fixed procedure defined within the Contract's General Conditions.

    <p>True</p> Signup and view all the answers

    A DAB can only rule on disputes arising from the Contractor's claims for additional payments.

    <p>False</p> Signup and view all the answers

    Study Notes

    Delay Claims

    • Contractor shall send interim claims at monthly intervals including accumulated delay and amount claimed.
    • Contractor shall send a final claim within 28 days after the end of the effects resulting from the event.
    • Engineer shall respond to the claim within 42 days with approval or disapproval and detailed comments.
    • Payment Certificates shall include amounts which have been reasonably substantiated as due under the contract, unless the particulars provided substantate he whole claim.
    • The engineer shall determine the extension of time for completion and/or the additional payment.
    • The requirements of this sub-clause are in addition to other sub-clauses which may apply to a claim.

    Dispute Adjudication Board

    • Disputes must be adjudicated by a DAB in accordance with sub-clause 20.4 [Obtaining Dispute Adjudication Boards Decision]
    • The DAB shall comprise one or three suitably qualified persons, as stated in the Appendix to Tender.
    • If the DAB comprises three persons, each party shall nominate one member for approval of the other party.
    • The parties shall consult both these members and agree upon the third member who will act as chairman.
    • If a list of potential members is included in the contract, the members shall be selected from that list unless they are unable or unwilling to accept appointment to the DAB.
    • The agreement between the parties will incorporate by reference the General Conditions of Dispute Adjudication Agreement contained in the Appendix to the General Conditions.
    • The terms of the remuneration of either the sole member or each of the three members, including the remuneration of any expert whom the DAB consults, shall be agreed between them.

    Contractor Claims

    • Contractor can claim for delay and/or extra costs caused by specified events
    • Interim claims should be submitted monthly with accumulated delay and cost details
    • Final claim should be submitted within 28 days of the event's effects ending or within a period agreed with the Engineer
    • Engineer has 42 days to respond to claims, providing either approval or disapproval with detailed comments
    • Payment certificates will include substantiated claims
    • Contractor can only receive payment for substantiated parts of a claim
    • The Engineer will determine the extension of time for completion and/or additional payment as required by the contract
    • This sub-clause applies in addition to any other relevant sub-clauses
    • Failure to comply can limit the extension of time and/or additional payment

    Dispute Adjudication

    • Disputes are adjudicated by a Dispute Adjudication Board (DAB)
    • Parties should jointly appoint a DAB by the date stated in the Appendix to Tender
    • DAB can comprise one or three suitably qualified persons
    • If not specified, the DAB comprises three persons, each party nominating one member, and the parties agreeing on a third member as chairman
    • If a list of potential members exists, members must be selected from that list.
    • Both the sole member ("adjudicator") and the three members agree to the General Conditions of Dispute Adjudication Agreement with agreed amendments
    • Remuneration for the members and any expert they consult is specified in the agreement

    Dispute Adjudication Board (DAB)

    • The DAB is established to adjudicate disputes arising between the parties.
    • The DAB is appointed jointly by the parties according to the stated date in the Appendix to Tender.
    • The DAB consists of one or three suitably qualified members depending on the Appendix to Tender specifications.
    • If the Appendix doesn’t specify the number of members, the DAB defaults to comprised of three persons.
    • Each party nominates one member for the approval of the other party, who are, in turn, consulted for the appointment of the third member who will act as chairman.
    • The terms of the remuneration of the members, including the remuneration of any expert consulted by the DAB, needs to be agreed upon.
    • The General Conditions of Dispute Adjudication Agreement, contained in the Appendix, are incorporated into each member’s responsibilities.
    • Unless specified by the Appendix, the members shall be selected from a list of potential members within the contract.

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    Description

    This quiz covers the essential regulations and procedures surrounding delay claims and the role of a Dispute Adjudication Board (DAB) in construction contracts. It includes important timelines for claim submissions and responses, as well as the qualifications required for DAB members. Test your understanding of these critical contractual elements.

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