Podcast
Questions and Answers
What must the Contractor provide after the end of the effects from an event or circumstance?
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?
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?
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?
Which clause governs the determination of additional payment to the Contractor?
What is the primary requirement for the amounts included in each Payment Certificate?
What is the primary requirement for the amounts included in each Payment Certificate?
What should the Engineer do if more particulars are needed for a claim?
What should the Engineer do if more particulars are needed for a claim?
Which of the following actions does the Engineer NOT take regarding a claim?
Which of the following actions does the Engineer NOT take regarding a claim?
What timing interval is established for sending further interim claims?
What timing interval is established for sending further interim claims?
What is the consequence if the Contractor fails to comply with a Sub-Clause regarding any claim?
What is the consequence if the Contractor fails to comply with a Sub-Clause regarding any claim?
What is the minimum number of members required for a Dispute Adjudication Board (DAB) if not stated otherwise?
What is the minimum number of members required for a Dispute Adjudication Board (DAB) if not stated otherwise?
How are members of the DAB appointed if a list of potential members is provided in the Contract?
How are members of the DAB appointed if a list of potential members is provided in the Contract?
What role does the third member of the DAB typically serve?
What role does the third member of the DAB typically serve?
What should the agreement between the Parties and the DAB encompass?
What should the agreement between the Parties and the DAB encompass?
In the event that parties do not agree on the members of the DAB, what will be the composition of the DAB?
In the event that parties do not agree on the members of the DAB, what will be the composition of the DAB?
What may be included in the remuneration terms of the DAB members?
What may be included in the remuneration terms of the DAB members?
When is a claim excluded from consideration under the Sub-Clause mentioned?
When is a claim excluded from consideration under the Sub-Clause mentioned?
What is the purpose of the Contractor sending additional interim claims?
What is the purpose of the Contractor sending additional interim claims?
What is required by the Engineer within 42 days of receiving a claim from the Contractor?
What is required by the Engineer within 42 days of receiving a claim from the Contractor?
If the particulars supplied by the Contractor are not sufficient for substantiating a claim, what is the Contractor entitled to?
If the particulars supplied by the Contractor are not sufficient for substantiating a claim, what is the Contractor entitled to?
What must the Engineer determine in accordance with Sub-clause 3.5?
What must the Engineer determine in accordance with Sub-clause 3.5?
What happens if the Contractor fails to send a final claim within 28 days after an event?
What happens if the Contractor fails to send a final claim within 28 days after an event?
What should the Payment Certificate include?
What should the Payment Certificate include?
What role does the Engineer have regarding further particulars requested for claims?
What role does the Engineer have regarding further particulars requested for claims?
In what situation can the Engineer propose an alternative period for claims beyond the standard 28 days?
In what situation can the Engineer propose an alternative period for claims beyond the standard 28 days?
What principle guides the Engineer's response to claims?
What principle guides the Engineer's response to claims?
What happens if the Contractor fails to comply with a Sub-Clause concerning a claim?
What happens if the Contractor fails to comply with a Sub-Clause concerning a claim?
How is the composition of a Dispute Adjudication Board (DAB) determined if no number is stipulated?
How is the composition of a Dispute Adjudication Board (DAB) determined if no number is stipulated?
If potential members for the DAB are included in the Contract, how are the members selected?
If potential members for the DAB are included in the Contract, how are the members selected?
What is required for the agreement between the Parties and the DAB members?
What is required for the agreement between the Parties and the DAB members?
Who typically appoints the chairman of the DAB?
Who typically appoints the chairman of the DAB?
What is the implication of a claim being excluded under the second paragraph of the Sub-Clause?
What is the implication of a claim being excluded under the second paragraph of the Sub-Clause?
What role do the Parties have in the appointment of DAB members?
What role do the Parties have in the appointment of DAB members?
What happens if the DAB is required to have three members but one member is unable to serve?
What happens if the DAB is required to have three members but one member is unable to serve?
What must be included in the terms of remuneration for DAB members?
What must be included in the terms of remuneration for DAB members?
What is the initial action the Parties must take regarding the DAB?
What is the initial action the Parties must take regarding the DAB?
The Contractor must send a final claim within 35 days after the end of the effects of an event.
The Contractor must send a final claim within 35 days after the end of the effects of an event.
The Engineer is required to respond to a claim within 42 days of receiving the particulars.
The Engineer is required to respond to a claim within 42 days of receiving the particulars.
If the particulars supplied are inadequate, the Contractor is entitled to full payment for the claim.
If the particulars supplied are inadequate, the Contractor is entitled to full payment for the claim.
Payment Certificates must include amounts for claims that have not been substantiated.
Payment Certificates must include amounts for claims that have not been substantiated.
The Engineer is responsible for determining any extension of the Time for Completion based on Sub-clause 7.4.
The Engineer is responsible for determining any extension of the Time for Completion based on Sub-clause 7.4.
The Contractor must provide further particulars upon the Engineer's request, but is not obligated to respond to the Engineer's comments.
The Contractor must provide further particulars upon the Engineer's request, but is not obligated to respond to the Engineer's comments.
Claims must be submitted on a weekly basis, according to the contractual requirements.
Claims must be submitted on a weekly basis, according to the contractual requirements.
The Engineer can propose an alternative period for claims, extending beyond the standard 28 days if approved.
The Engineer can propose an alternative period for claims, extending beyond the standard 28 days if approved.
The Engineer can delay responding to claims indefinitely if he requires further particulars.
The Engineer can delay responding to claims indefinitely if he requires further particulars.
The extension of time and additional payments are determined independently, without reference to the events causing the claims.
The extension of time and additional payments are determined independently, without reference to the events causing the claims.
The Dispute Adjudication Board must always consist of one person regardless of the agreement between the Parties.
The Dispute Adjudication Board must always consist of one person regardless of the agreement between the Parties.
The Parties are required to agree on two members of the Dispute Adjudication Board if it comprises three members.
The Parties are required to agree on two members of the Dispute Adjudication Board if it comprises three members.
A failure to comply with any Sub-Clause related to a claim will always lead to the rejection of the claim.
A failure to comply with any Sub-Clause related to a claim will always lead to the rejection of the claim.
If a list of potential members for the DAB is provided in the Contract, members must be chosen from that list.
If a list of potential members for the DAB is provided in the Contract, members must be chosen from that list.
The remuneration of DAB members must be determined independently by each Party without any mutual agreement.
The remuneration of DAB members must be determined independently by each Party without any mutual agreement.
If the Parties do not designate a specific number of DAB members, the default is to have two members.
If the Parties do not designate a specific number of DAB members, the default is to have two members.
The Chairman of the DAB can be chosen unilaterally by one of the Parties.
The Chairman of the DAB can be chosen unilaterally by one of the Parties.
Claims will automatically be taken into account even if the Contractor fails to present sufficient particulars.
Claims will automatically be taken into account even if the Contractor fails to present sufficient particulars.
Disputes must be adjudicated according to a fixed procedure defined within the Contract's General Conditions.
Disputes must be adjudicated according to a fixed procedure defined within the Contract's General Conditions.
A DAB can only rule on disputes arising from the Contractor's claims for additional payments.
A DAB can only rule on disputes arising from the Contractor's claims for additional payments.
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.
