Podcast
Questions and Answers
What is the suggested approach for progress reporting?
What is the suggested approach for progress reporting?
- Electronic progress reporting without retaining previous versions
- Irregular progress reporting without specific guidelines
- Occasional progress reporting, overwriting previous versions for clarity
- Regular progress reporting, retaining previous versions without overwriting (correct)
How should progress be measured according to the text?
How should progress be measured according to the text?
- Number of activities completed
- Remaining duration (correct)
- Percentage complete
- Total cost incurred
What is the suggested approach for treating variations?
What is the suggested approach for treating variations?
- By adding in new activities (correct)
- By adjusting the percentage complete
- By removing completed activities
- By ignoring variations in progress reports
What is the value of reporting progress according to the text?
What is the value of reporting progress according to the text?
What is the first step in the management of change process?
What is the first step in the management of change process?
What is part of good practice in the management of change process?
What is part of good practice in the management of change process?
Who can initiate changes affecting the employer and each other in contract management?
Who can initiate changes affecting the employer and each other in contract management?
What does compliance with the system help with in the management of change process?
What does compliance with the system help with in the management of change process?
When does the management of change process start?
When does the management of change process start?
What is involved in the typical process for clarifying anomalies and variations?
What is involved in the typical process for clarifying anomalies and variations?
What do cost/value reconciliations compare in contract management?
What do cost/value reconciliations compare in contract management?
What does the management of change process involve?
What does the management of change process involve?
What can compliance with the system not prevent in the management of change process?
What can compliance with the system not prevent in the management of change process?
What is part of the management of change process at the tender stage?
What is part of the management of change process at the tender stage?
What do different documents show in contract management?
What do different documents show in contract management?
Who can sub-contractors address additional reimbursement requests to in contract management?
Who can sub-contractors address additional reimbursement requests to in contract management?
Who must pay the Contractor within 56 days of receiving the interim statement?
Who must pay the Contractor within 56 days of receiving the interim statement?
What are examples of changes or variations on construction and engineering projects?
What are examples of changes or variations on construction and engineering projects?
What can changes on construction and engineering projects affect?
What can changes on construction and engineering projects affect?
What are examples of conditions that changes on construction and engineering projects can be related to?
What are examples of conditions that changes on construction and engineering projects can be related to?
Who can initiate changes that affect the project?
Who can initiate changes that affect the project?
What are employers interested in with regards to changes made by the contractor?
What are employers interested in with regards to changes made by the contractor?
What factors are important in changes initiated by the contractor?
What factors are important in changes initiated by the contractor?
What can changes or variations on construction and engineering projects be categorized as affecting?
What can changes or variations on construction and engineering projects be categorized as affecting?
What kind of payments are subject to insurance cover and bank guarantees under Yellow Book?
What kind of payments are subject to insurance cover and bank guarantees under Yellow Book?
What are examples of changes that can affect the project?
What are examples of changes that can affect the project?
What can changes or variations on construction and engineering projects arise from?
What can changes or variations on construction and engineering projects arise from?
What can employers and contractors make changes related to?
What can employers and contractors make changes related to?
Which type of contract in the UK includes a diagrammatic explanation of the sequence of payment events prescribed in Sub clause 14?
Which type of contract in the UK includes a diagrammatic explanation of the sequence of payment events prescribed in Sub clause 14?
In the UK, which standard form of contract requires evidence of the Employer's ability to pay and imposes high finance charges for late payment?
In the UK, which standard form of contract requires evidence of the Employer's ability to pay and imposes high finance charges for late payment?
Under which form of contract does the Contractor provide a breakdown of any lump sum price for determining interim payments, subject to an approved guarantee from the Contractor in the amount of the payment?
Under which form of contract does the Contractor provide a breakdown of any lump sum price for determining interim payments, subject to an approved guarantee from the Contractor in the amount of the payment?
Which standard form of contract in the UK does not reference schedules and would require particular provision for payment on a measurement basis?
Which standard form of contract in the UK does not reference schedules and would require particular provision for payment on a measurement basis?
Under the Red Book, what is the time frame within which the Engineer issues an Interim Payment Certificate after the submission of the Contractor's statement?
Under the Red Book, what is the time frame within which the Engineer issues an Interim Payment Certificate after the submission of the Contractor's statement?
What is the time frame within which the Contractor must submit a statement of completion after receiving the Taking Over Certificate under the Red Book?
What is the time frame within which the Contractor must submit a statement of completion after receiving the Taking Over Certificate under the Red Book?
Under the Red Book, within how many days of receiving the Performance Certificate must the Contractor submit a draft final statement for agreement?
Under the Red Book, within how many days of receiving the Performance Certificate must the Contractor submit a draft final statement for agreement?
What event entitles the Contractor to compound interest at prescribed rates under the Red Book?
What event entitles the Contractor to compound interest at prescribed rates under the Red Book?
Under the Red Book, when does the Employer have no liability to the Contractor unless provided for in the Final Statement and the Statement of Completion?
Under the Red Book, when does the Employer have no liability to the Contractor unless provided for in the Final Statement and the Statement of Completion?
What are the minor differences in payment provisions between the Yellow Book and the Red Book?
What are the minor differences in payment provisions between the Yellow Book and the Red Book?
Under which form of contract is the Contract Price subject to measurement, and the billed quantities are not taken as actual or correct?
Under which form of contract is the Contract Price subject to measurement, and the billed quantities are not taken as actual or correct?
Which standard form of contract in the UK includes substantial interest charges for late payment?
Which standard form of contract in the UK includes substantial interest charges for late payment?
What is a common cause of construction industry disputes in the UK?
What is a common cause of construction industry disputes in the UK?
Which standard forms of contract in the UK now include payment terms complying with legislation?
Which standard forms of contract in the UK now include payment terms complying with legislation?
What is required in the 1999 FIDIC forms to address prompt payment concerns?
What is required in the 1999 FIDIC forms to address prompt payment concerns?
What does the Red Book provide a diagrammatic explanation of?
What does the Red Book provide a diagrammatic explanation of?
What is the Contract Price in the Red Book subject to?
What is the Contract Price in the Red Book subject to?
What is required for determining interim payments in the Red Book?
What is required for determining interim payments in the Red Book?
What does the Contractor submit within 84 days of receipt of the Taking Over Certificate in the Red Book?
What does the Contractor submit within 84 days of receipt of the Taking Over Certificate in the Red Book?
What entitles the Contractor to compound interest in the Red Book?
What entitles the Contractor to compound interest in the Red Book?
In the Red Book, what would time-bar further claims not provided for in the Final Statement and the Statement of Completion?
In the Red Book, what would time-bar further claims not provided for in the Final Statement and the Statement of Completion?
What are the differences in payment provisions between the Yellow Book and the Red Book?
What are the differences in payment provisions between the Yellow Book and the Red Book?
What does the Silver Book not reference in terms of payment?
What does the Silver Book not reference in terms of payment?
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Study Notes
Construction Contract Payment Provisions
- Construction industry disputes in the UK are often due to delayed payments, prompting legislation in the 1990s to ensure prompt payment under construction contracts.
- All standard forms of contract in the UK now include payment terms complying with legislation, providing for substantial interest charges for late payment.
- The 1999 FIDIC forms address prompt payment concerns by requiring evidence of the Employer's ability to pay and imposing high finance charges for late payment.
- The Red Book includes a diagrammatic explanation of the sequence of payment events prescribed in Sub clause 14.
- The Contract Price in the Red Book is subject to measurement, and the billed quantities are not taken as actual or correct.
- The Contractor provides a breakdown of any lump sum price for determining interim payments, subject to an approved guarantee from the Contractor in the amount of the payment.
- The Contractor submits a monthly Statement showing his considered entitlement, taking into account retention, advance payments, work done, previous payments, acquired plant and materials.
- The Engineer issues an Interim Payment Certificate within 56 days of the submission of the Contractor's statement, and delayed payments entitle the Contractor to compound interest at prescribed rates.
- The Contractor submits a statement of completion within 84 days of receipt of the Taking Over Certificate, and within 56 days of receipt of the Performance Certificate, a draft final statement is submitted for agreement.
- The Employer has no liability to the Contractor unless provided for in the Final Statement and the Statement of Completion, and any further claims not provided for in that statement would be time-barred.
- The Yellow Book and Silver Book have minor differences in payment provisions compared to the Red Book, including variations in the Contract Price, application for Interim Payment Certificates, and release of retention money.
- The Silver Book does not reference schedules, and any requirement to pay on a measurement basis would require particular provision.
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