Differences - 2 - 1999
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Questions and Answers

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?

  • Number of activities completed
  • Remaining duration (correct)
  • Percentage complete
  • Total cost incurred

    • 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?

    <p>For control of the present and future, and to assist in investigations of problems</p> Signup and view all the answers

    What is the first step in the management of change process?

    <p>Understanding baseline and parties' obligations in the contract</p> Signup and view all the answers

    What is part of good practice in the management of change process?

    <p>Pre-tender checklist and documentation storage for future reference</p> Signup and view all the answers

    Who can initiate changes affecting the employer and each other in contract management?

    <p>Contractors and sub-contractors</p> Signup and view all the answers

    What does compliance with the system help with in the management of change process?

    <p>Helps with anomalies</p> Signup and view all the answers

    When does the management of change process start?

    <p>At tender stage</p> Signup and view all the answers

    What is involved in the typical process for clarifying anomalies and variations?

    <p>Different documents showing time, sequence, and scope changes</p> Signup and view all the answers

    What do cost/value reconciliations compare in contract management?

    <p>Tender allowance with forecast and actual costs</p> Signup and view all the answers

    What does the management of change process involve?

    <p>5 steps</p> Signup and view all the answers

    What can compliance with the system not prevent in the management of change process?

    <p>All problems</p> Signup and view all the answers

    What is part of the management of change process at the tender stage?

    <p>Pre-tender checklist and documentation storage</p> Signup and view all the answers

    What do different documents show in contract management?

    <p>Different aspects such as time, sequence, and scope changes</p> Signup and view all the answers

    Who can sub-contractors address additional reimbursement requests to in contract management?

    <p>The contractor</p> Signup and view all the answers

    Who must pay the Contractor within 56 days of receiving the interim statement?

    <p>The Employer</p> Signup and view all the answers

    What are examples of changes or variations on construction and engineering projects?

    <p>Additional, omitted, varied, modified, or substituted work</p> Signup and view all the answers

    What can changes on construction and engineering projects affect?

    <p>The schedule, timing, or sequence of undertaking the works</p> Signup and view all the answers

    What are examples of conditions that changes on construction and engineering projects can be related to?

    <p>Physical, geological, marine conditions</p> Signup and view all the answers

    Who can initiate changes that affect the project?

    <p>Employers, contractors, and other parties involved</p> Signup and view all the answers

    What are employers interested in with regards to changes made by the contractor?

    <p>Changes that affect their responsibilities under the contract</p> Signup and view all the answers

    What factors are important in changes initiated by the contractor?

    <p>Quality of finished works and coordination of subcontractors</p> Signup and view all the answers

    What can changes or variations on construction and engineering projects be categorized as affecting?

    <p>Scope of work, schedule, and conditions</p> Signup and view all the answers

    What kind of payments are subject to insurance cover and bank guarantees under Yellow Book?

    <p>Interim payments for plant and materials</p> Signup and view all the answers

    What are examples of changes that can affect the project?

    <p>Prolonged approval periods and personnel involved</p> Signup and view all the answers

    What can changes or variations on construction and engineering projects arise from?

    <p>New or revised drawings and alterations to the standard of work</p> Signup and view all the answers

    What can employers and contractors make changes related to?

    <p>Spare parts, access to site, prolonged approval periods, and personnel involved</p> Signup and view all the answers

    Which type of contract in the UK includes a diagrammatic explanation of the sequence of payment events prescribed in Sub clause 14?

    <p>The Red Book</p> Signup and view all the answers

    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?

    <p>1999 FIDIC forms</p> Signup and view all the answers

    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?

    <p>The Red Book</p> Signup and view all the answers

    Which standard form of contract in the UK does not reference schedules and would require particular provision for payment on a measurement basis?

    <p>The Silver Book</p> Signup and view all the answers

    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?

    <p>56 days</p> Signup and view all the answers

    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?

    <p>84 days</p> Signup and view all the answers

    Under the Red Book, within how many days of receiving the Performance Certificate must the Contractor submit a draft final statement for agreement?

    <p>56 days</p> Signup and view all the answers

    What event entitles the Contractor to compound interest at prescribed rates under the Red Book?

    <p>Delayed payments</p> Signup and view all the answers

    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?

    <p>When there are no further claims provided for</p> Signup and view all the answers

    What are the minor differences in payment provisions between the Yellow Book and the Red Book?

    <p>All of the above</p> Signup and view all the answers

    Under which form of contract is the Contract Price subject to measurement, and the billed quantities are not taken as actual or correct?

    <p>The Red Book</p> Signup and view all the answers

    Which standard form of contract in the UK includes substantial interest charges for late payment?

    <p>All standard forms of contract</p> Signup and view all the answers

    What is a common cause of construction industry disputes in the UK?

    <p>Delayed payments</p> Signup and view all the answers

    Which standard forms of contract in the UK now include payment terms complying with legislation?

    <p>The Red Book</p> Signup and view all the answers

    What is required in the 1999 FIDIC forms to address prompt payment concerns?

    <p>Evidence of the Employer's ability to pay</p> Signup and view all the answers

    What does the Red Book provide a diagrammatic explanation of?

    <p>The sequence of payment events</p> Signup and view all the answers

    What is the Contract Price in the Red Book subject to?

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

    What is required for determining interim payments in the Red Book?

    <p>Approval of the Contractor's guarantee</p> Signup and view all the answers

    What does the Contractor submit within 84 days of receipt of the Taking Over Certificate in the Red Book?

    <p>A statement of completion</p> Signup and view all the answers

    What entitles the Contractor to compound interest in the Red Book?

    <p>Delayed payments</p> Signup and view all the answers

    In the Red Book, what would time-bar further claims not provided for in the Final Statement and the Statement of Completion?

    <p>The Employer's liability</p> Signup and view all the answers

    What are the differences in payment provisions between the Yellow Book and the Red Book?

    <p>Variations in the Contract Price</p> Signup and view all the answers

    What does the Silver Book not reference in terms of payment?

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

    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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    Related Documents

    Workshop for VSMC - Managing Contracts Under FIDIC Conditions PDF

    Description

    Explore the detailed payment provisions and timelines outlined in construction contracts in the UK, including requirements for prompt payment, interest charges for late payment, submission of statements, and differences between the Red Book, Yellow Book, and Silver Book.

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