ALP TUTOR PACK D39PZ, MAR 2012 1

D39PZ Procurement & Contracts

Course Consolidation- Revision and Mock Exam feedback
(From Tutors Pack)

Purpose of the Tutorial Session:
Provide feedback to the students on the mock exam and an overview of learning from the
course and opportunity to gain feedback from the students regarding their learning
experience overall and through each unit of the course.

Tutorial Session Plan:
Session will be run in two phases, 1- mock exam feedback. Phase 2, tutor facilitated group
discussion on he students learning experience.

Introduction and explanation of the session (10 minutes)
Explain to the students the purpose of the session and how the session will be run.

Phase 1 (60 minutes)
Provide individual and group feedback to the students discussing the mock exam suggested
solution and the key issues for learning.

Comfort Break- (10 minutes)

Phase 2 (30 minutes)
Tutor to facilitate group discussion with the students to gain feedback on their learning
experience from the course.

Tutorial Questions:
SCHOOL OF THE BUILT ENVIRONMENT
Procurement and Contracts
Course Code: D39PZ
MOCK EXAM PAPER
Semester 1 - 2011/12

Date: 22
nd
November 2011 Time: 2hrs

Answer THREE questions:
Answer at least ONE question from Section A
Answer at least ONE question from Section B
Answer a further question from either Section A or Section B

All questions carry equal marks

THIS PAPER IS INTENDED TO TEST STUDENTS UNDERSTANDING OF THE COURSE
AND PREPARE THEM FOR THE EXAM. THOUGH NOT MANDATORY, STUDENTS ARE
ENCOURAGED TO ATTEMPT THE PAPER TO THEIR BEST ABILITY. NOTE: THIS PAPER
DOES NOT GIVE INDICATION TO THE SUBJECT AREA OF THE EXAM QUESTIONS
WHICH WILL BE IN THE ACTUAL EXAM NEITHER DOES THE ACHIEVED MARKS
CONTRIBUTE TO THE FINAL (COURSE) GRADE.

ALP TUTOR PACK D39PZ, MAR 2012 2
SECTION A
Question 1
a) An experienced business client intends to construct a building to accommodate the
research and development activities of his organisation. The technically complex nature
of the project requires sophisticated features to be incorporated in to the design and
construction of the intended building.
Critically evaluate the suitability of the traditional procurement route to deliver this
building.
(17 marks)
b) A client wishes to undertake the construction project through the traditional
procurement route. Consider each stage of the RIBA Plan of Work and explain the role of
professional design team within each stage.
(16 marks)

Question 2
a) Describe the key features of the traditional procurement route and advise the client
about the situations in which a clients use of the traditional procurement route would
be appropriate.
(15 marks)
b) Compare and contrast the three payment methods that are often used with the
traditional procurement route. Recommend one of these methods for a client who
wishes to encourage the contractor to innovate and explain why this method is
appropriate.
(18 marks)
Question 3
You are a chartered construction professional currently working as the Contract
Administrator of an on-going construction project. You realise that the Employer
unnecessarily disrupts the interim payment certification process by asking you to delay the
certification.
Explain what you would do. Support your planned actions with reference to the relevant
RICS Core Values, CIOB Code of Conduct, or any other professional standards you consider
relevant.
(33 marks)

SECTION B
Question 4
a) Explain what is meant by damages. Differentiate between the liquidated and
unliquidated damages with typical examples from construction projects.
(20 marks)
b) Discuss the importance of using an executed contract instead of a letter of intent to
begin a construction project.
(13 marks)

Question 5
a) Explain the process to be adopted in carrying out a Gross Valuation under the JCT 2005
Standard Building Contract with Quantities (JCT05 SBC/Q).
(23 marks)

b) Describe what Employer can do if Contractor is not progressing the Works as agreed in
the contract. Describe the Employers course of action in accordance with the terms of
the JCT 2005 Standard Building Contract with Quantities (JCT05 SBC/Q).
(10 marks)



ALP TUTOR PACK D39PZ, MAR 2012 3
Question 6
a) Differentiate between domestic sub-contractors and listed sub-contractors.
(6 marks)
b) Explain the process of selecting and appointing listed sub-contractors under the JCT
2005 Standard Building Contract with Quantities (JCT05 SBC/Q).
(16 marks)
c) Explain what is meant by an Acceleration Quotation under the JCT 2005 Standard
Building Contract with Quantities (JCT05 SBC/Q).
(11 marks)
Suggested Solutions
THIS PAPER IS INTENDED TO TEST STUDENTS UNDERSTANDING OF THE COURSE
AND PREPARE THEM FOR THE EXAM. THOUGH NOT MANDATORY, STUDENTS ARE
ENCOURAGED TO ATTEMPT THE PAPER TO THEIR BEST ABILITY. NOTE: THIS PAPER
DOES NOT GIVE INDICATION TO THE SUBJECT AREA OF THE EXAM QUESTIONS
WHICH WILL BE IN THE ACTUAL EXAM NEITHER DOES THE ACHIEVED MARKS
CONTRIBUTE TO THE FINAL (COURSE) GRADE.

PLEASE NOTE THAT THE FOLLOWING ANSWERS ARE NOT A FULL SET OF ANSWERS
FOR THE GIVEN QUESTIONS. THE ANSWERS ARE JUST GIVEN UNDER BULLET
POINTS. THESE BULLET POINTS ARE USEFUL INDICATIONS OF HOW YOU COULD
STRUCTURE THE ANSWERS.

IMPORTANT
DESPITE THE POINTS IDENTIFIED IN THIS DOCUMENT STUDENTS ARE ENCOURAGED
TO BRING OTHER RELEVANT IMPORTANT POINTS TO ENHANCE/JUSTIFY THEIR
ANSWERS. MARKS WOULD BE AWARDED DEPENDING ON THEIR RELEVANCE AND
ACCURACY.

SECTION A
Question 1
A) An experienced business client intends to construct a building to accommodate the
research and development activities of his organisation. The technically complex nature of
the project requires sophisticated features to be incorporated in to the design and
construction of the intended building.
Critically evaluate the suitability of the traditional procurement route to deliver this
building. (17 marks)

While the student is expected to provide a definition of the traditional procurement
route, an explanation of its features, advantages, disadvantages, etc. (6 marks).
The intent of the question is to elicit an analysis of the suitability of the route.
The core issue is the level of control that the client wants over the implementation of
the project. As the question states that the client is experienced, we can assume that
they have procured projects of this type. This will help them to take responsibility for
design development themselves (4 marks).
Students may identify the fact that this is a research and development facility and
therefore integral to the development of the companys future products it is
therefore essential that it functions correctly. The client may want the control that the
traditional route will provide to ensure that this will happen (2 marks).
Alternatively, they may want to shield themselves from this risk by passing design /
delivery risk to another organisation through the adoption of an alternative route.
E.g. management contracting (2 marks).
Students would be expected to mention that any project can be procured using the
traditional procurement. However it may take a long time due to its sequential nature
(2 marks).
ALP TUTOR PACK D39PZ, MAR 2012 4
All students should be able to suggest that other procurement routes may be better.
For this particular building, the traditional route will give the client the greatest
control over the design development. As the client is experience, this may make it
highly suitable (1 mark).

B ) A client wishes to undertake the construction project through the traditional
procurement route. Consider each stage of the RIBA Plan of Work and explain the role of
professional design team within each stage.
(16 marks)
Identify the different phases of the RIBA plan of work (3 marks)
Identifying three design team members (Architect, Engineer, QS) (1 marks)
Explain role of each professional design team within each stage (1 x 11 marks)
Students can prepare a table and explain the role or they can explain in paragraphs.
RIBA stages Architect Engineer QS
Appraisal Identification of Employers requirements
(needs, objectives and business case)
Identify any possible constraints on
development
Preparation of feasibility studies to
enable the Employer to decide whether
to proceed
N/A May be involved. If so he
prepares cost budgets

Design Brief Carry out studies of user requirements,
site conditions, planning, design etc, as
necessary to reach decisions
Develop initial statement of requirements
into the Developed Brief (Prepare Final
Detailed Brief)
Identification of procedures,
organisational structure and range of
consultants and others to be engaged in
the project (Assist Employer to
decide/select the Design Team)
Sketch design proposals
Assist Architect to carry
out studies of user
requirements, site
conditions, planning,
design etc, as
necessary to reach
decisions

Carry out studies of cost to
reach decisions
Cost check against budget

Concept Do studies on user requirements,
technical aspects, planning, design as
necessary to reach decisions
Develop the brief further if needed
(Develop the Developed Brief into a Full
Project Brief)
Provide the client with an appraisal and
recommendation in order that they may
determine the form in which the project is
to proceed
Preparation of concept design including
outline proposals for structural and
building services systems, outline
specifications
Ensure that project is
feasible functionally and
technically
Do studies on user
requirements, technical
aspects, planning,
design as necessary to
reach decisions

Prepare preliminary cost
plan
Ensure financial feasibility
of the project
Do studies on costs as
necessary to reach
decisions

Design
Development
Completion of Project Brief
Development of concept design to
include structural and building services
systems, updated outline specifications
Submit proposals for approval (seek
detailed planning permission)
Prepare preliminary
design

Preparation of cost plan and
full explanatory report

Technical Design Full design of every part and component
of the building by collaboration of all
concerned (technical design(s) and
specifications)
Develop technical
designs, complete
structural details of
designs
Complete cost checking of
designs

Production
information
Preparation of further/detailed
information for construction required
under the building contract (Prepare final
production information i.e. drawings,
schedules and specifications) - Final
decisions taken on every matter related
to design, specification and construction
Review of information provided by
specialists
Assist employer to compile necessary
documents for statutory approvals (eg:-
Building Regulations)
Preparation of
further/detailed
information for
construction required
under the building
contract (Prepare final
production information
i.e. drawings, schedules
and specifications) -
Final decisions taken on
every matter related to
design, specification
and construction
Final decisions taken on
every matter related to cost
Tender
documentation
Assist QS Assist QS Prepare Bills of Quantities
Preparation and/or collation
of tender documentation in
sufficient detail to enable a
tender or tenders to be
ALP TUTOR PACK D39PZ, MAR 2012 5
obtained for the project
Tender action Identify potential contractors and/or
specialists for the construction of the
project
Hold pre-tender briefing for potential
contractors to ensure they have a good
project understanding

Identify potential
contractors and/or
specialists for the
construction of the
project
Hold pre-tender briefing
for potential contractors
to ensure they have a
good project
understanding

Identify potential contractors
and/or specialists for the
construction of the project
Hold pre-tender briefing for
potential contractors to
ensure they have a good
project understanding
Identification and evaluation
of potential contractors
and/or specialists for the
project.
Submission of
recommendations to the
client
Mobilisation Assist Employer in letting the building
contract and appoint contractor
Arranging site hand over to the contractor
Issuing of information to the contractor
Assist Employer in
letting the building
contract and appointing
contractor

Assist Employer in letting
the building contract and
appointing contractor
Construction to
practical
completion
Administer the building contract up to and
including practical completion
Further information supplied to the
contractor as and when reasonably
required
Regular site inspections of work to
ensure it meets specification
Review of information provided by
contractors and specialists
Regular site inspections
of work to ensure it
meets specification
Further information
supplied to the
contractor as and when
reasonably required
Review of information
provided by contractors
and specialists
Regular site inspections of
work to ensure it meets
specification and cost
targets
Asses interim valuations
submitted by contractor
After practical
completion
Administration of the building contract
after Practical Completion and making
final inspections to ensure specifications
have been met
Review of project performance in use
Assisting building user during initial
occupation period
Making final inspections
to ensure specifications
have been met
Conduct studies of the
building in use. These
are particularly
important to focus on
energy in use against
the design specification
Prepare final accounts for
the project


Question 2
A ) Describe the key features of the traditional procurement route and advise the client
about the situations in which a clients use of the traditional procurement route would be
appropriate. (15 marks)
The student is expected to provide a standard description of the traditional
procurement route, identifying its main features (including the contractual
relationships of the parties involved) and its advantages and disadvantages (5
marks).
The remaining marks are to be made from the students relation of these
procurement route features to specific situations.
With regard to the advice, students would be expected to comment that the route
could be used by all types of clients. Students should be able to provide any number
of relevant views on the situations in which traditional procurement is appropriate
including but not limited to:
inexperienced clients requiring specialised advice up front to avoid problems on
site. The fact that the route is the simplest to manage and understand is a major
reason - attention can be focused on design and construction in isolation (2 marks).
experienced clients wanting to make sure the design is fully developed and will
provide a high-quality project that exactly meets their requirements. Its simplicity
should not preclude its use in any given situations. Students could argue that an
experienced client may prefer this route if they want close control over quality of
the design solution and of workmanship on site. Students should be able to relate
the need of client control with this procurement route be it control over design
development or cost (2 marks). You should clarify the absence of control over
construction and programming issues once the construction phase has started (1
mark). The student should associate control with the adoption of risk. They should
be able to associate decision making power with the adoption of risk. They should
determine that the client must manage design and cost risk under this procurement
ALP TUTOR PACK D39PZ, MAR 2012 6
route. You may clarify the employment of the design team as the defining feature of
the procurement route that gives rise to this risk (1 mark)
clients with a highly technical requirement (i.e. petrochemical facility), technically
challenging problems that have never been solved before (e.g. innovative bridges,
tunnels) which requires the coordination of many different disciplines and
development of a full solution is essential before site work starts this is to reduce
construction risks and is only feasible where time is available (1 marks).
any situation in which the client has the time to fully resolve the design solution
before starting on site. You may question: (a) the commercial luxury / reality of
being able to do this; and (b) the practical reality that design will usually have
mistakes in it and problems on site will always occur (1 mark).
They should suggest that the traditional route can be used for all building types,
although there may be more appropriate routes available when certain building
characteristics are present. For example, when the building design is simple or
repetitive (i.e. design and build) or if the building is technically complicated (i.e.
management routes) (1 mark).
Students will comment that traditional procurement is not suited to situations
where site conditions are not fully understood and design will be required on an
emergent, ad hoc basis (1 mark).
Any other relevant discussion is acceptable. Students should be rewarded for
explaining why their situations are appropriate to the use of traditional
procurement. Students must be able to show understanding by explaining the
relation of underlying principles of the route to the situations they have imagined.
They should be less well rewarded for merely providing a list of possible situations
without this supporting discussion of why.

b) Compare and contrast the three payment methods that are often used with the
traditional procurement route. Recommend one of these methods for a client who wishes
to encourage the contractor to innovate and explain why this method is appropriate. (18
marks)
The student should identify the three main options as: lump sum contracts;
measurement contracts; and cost reimbursement contracts, providing supporting
explanation in accordance with Unit 3 (6 marks).
Some variation in the terminology is acceptable so long as the underlying principles
are the same.
Studies should draw a clear relationship between each payment method options
and the assignment of cost risk within the employer-contractor relationship (4
marks).
Students may relate these payment methods to the JCT05 variations of SBC
available to implement them SBC/Q, SBC/AQ, SBC/XQ (1 marks)
Students can suggest cost reimbursement contracts as the method of payment
which allows contractor to innovate. Students should relate the reasons for this by
referring to key features of the cost reimbursement contracts (6 marks).

Question 3
You are a chartered construction professional currently working as the Contract
Administrator of an on-going construction project. You realises that the Employer
unnecessarily disrupts the interim payment certification process by asking you to delay the
certification.
Explain what you would do. Support your planned actions with reference to the relevant
RICS Core Values, CIOB Code of Conduct, or any other professional standards you consider
relevant. (33 marks)




ALP TUTOR PACK D39PZ, MAR 2012 7
This is a question about professional ethics.
Any appropriate response would be acceptable, providing that it is supported by
reference to relevant RICS core values, CIOB Code of Conduct (or other values). The
student is expected to identify those values that justify a course of action rather than to
work through them all explaining whether or not each is relevant. In short, the student
is expected to be able to demonstrate understanding of the values and their relevance
of a given situation. This requires confidence in their application to provide a rationale
for a course of action.
While any morally sound course of action is acceptable, students are expected to
suggest that the Employers stance is inappropriate. The CA will be a complice if he
enacts the Employers stance, the CA a member of a professional body must come
under the students scrutiny (3 marks).
While there is no suggestion that the Employer is bound by the standards of a
professional body, the student may want to suggest that they would highlight the
morally dubious position of the Employer to them (3 marks).
Students may establish a tension between commercial, contractual and moral issues
within a project, as raising such an issue with the Employer would not be grounds for CA
to terminate its duties and any attempt by the Employer to do so would breach that
agreement. Employer has an obligation to make regular payments to the Contractor as
agreed in the Contract. CA has a duty to advise the Employer regarding his obligations to
Contractor and potential for breaching the Contract due to unnecessary disruption.
Students can use their contract knowledge to advise the Employer (e.g:- possibility to
suspend the work by the contractor, termination by Contractor, Claims, time extensions
etc.) (7 marks).
The student would be expected to suggest that the CA should not act unprofessionally
by contravening the values of acting with integrity and being honest (2 marks). Act with
integrity involves never putting your own gain above the welfare of your clients or
others to whom you have a professional responsibility. Within a construction Contract
CA has a professional responsibility to his Employer and the Contractor as well.
Therefore, the CA has an obligation to consider the wider interests of society in his
judgements including the Contractor (3 marks). Being honest means being trustworthy
in all that you do. As CA you should explain how you could establish your honesty under
these circumstances (3 marks).

Further to that you should explain (not just list out) the relevance of following RICS and CIOB
core values as well.
Be objective at all times - Give clear and appropriate advice. Never let sentiment or your
own interests cloud your judgement (2 marks)
Set a good example - Remember both your public and private behaviour could affect
your own, RICS and other members reputations (2 marks)
Have the courage to make a stand - Be prepared to act if you suspect a risk to safety or
malpractice of any sort (2 marks)
Ensure, when providing an advisory service, that the advice given is fair and unbiased (2
marks)
Ensure, when undertaking any other construction related activity that all such work is in
accordance with good practice and current standards and complies with all statutory
and contractual requirements (1 mark).

Students may bring their personal standards to justify the course of action (3 marks).
However, students are not able to score good marks if they just limit their arguments to
their own personal standards without citing relevant professional standards. They will
receive fewer marks than one making use of accepted professional standards.




ALP TUTOR PACK D39PZ, MAR 2012 8
SECTION B
Question 4
a) Explain what is meant by damages. Differentiate between the liquidated and
unliquidated damages with typical examples from construction projects. (20 marks)

Damages are used to return a party who has incurred loss or expense as a consequence
of the other partys breach of obligations under the contract to the position it would
have been in had the other partys breach not occurred. In other words damages ensure
that a party that has incurred loss or expense through no fault of its own has those
expenses paid by the party whose breach causes them to be incurred (3 marks).
Explain that the damages are only a viable means of presentation of agreement
between contractor and employer remains in place. If the actions of either party
suggested that agreement has been lost, their material breach occurred and damages
become inappropriate. In this situation contract has been determined using the
mechanisms available in it (2 marks).
The magnitude of liquidated damages is known before any situation that requires them
to be paid arises. The magnitude is agreed as a rate in the Contract Particulars (3 marks).
The magnitude of unliquidated damages is not known beforehand. Because of this,
while liability for paying them if specific circumstances arise can be clearly established in
the contract, their magnitude cannot not be (3 marks).
Students should clarify that the magnitude (quantum) of unliquidated damages can only
be a true reflection of the loss and/or expense incurred by the affected party. It is not
possible to inflate these damages or otherwise include a penalty/compensation element
to them as penalty clauses are prohibited by the Unfair Contract Terms Act. Therefore,
the affected party will have to keep clear records of the magnitude of their loss as the
amount on these records is what will be paid i.e. actual loss (2 marks).
Examples:
Liquidated damages = liquidated damages / delay damages / etc. damages paid in
the event of non-completion on the agreed date (3 marks).
Unliquidated damages = any other form of damages i.e. where the magnitude of the
damages, if they were to arise, is not known beforehand. Most common form would be
the contractors claims for loss and expenses (3 marks).
Ideally, students should clarify whether Employer or Contractor is paying these types of
damages (1 mark). However, a student should not be assuming that damages paid by
Employer to Contractor (i.e. addition to Contract Sum) are always unliquidated and
those paid by Contractor to Employer (i.e. deduction from Contract Sum) are always
liquidated. This is not the case.

B ) Discuss the importance of using an executed contract instead of a letter of intent to
begin a construction project. (13 marks)

Students should explain what an executed contract is (2 marks)
They show demonstrate their understanding about letters of intents by explaining
what a letter of intent is and its purpose (2 marks)
Discuss the advantages of using an executed contract (4 marks)
Discuss the consequences/risks of starting a construction project with a letter of
intent (possible negative effects) (4 marks)
To conclude the discussion, highlight the significance of having an executed contract
over a letter of intent (1 mark)






ALP TUTOR PACK D39PZ, MAR 2012 9
Question 5
A ) Explain the process to be adopted in carrying out a Gross Valuation under the JCT 2005
Standard Building Contract with Quantities (JCT05 SBC/Q). (23 marks)

This question should be answered with an explanation of what is largely the
standard gross valuation procedure. You should note that this question is mainly
about the Gross Valuation procedure, but also about the roles of the entities
involved. All students should explain the process defined by cl. 4.16 ascertain of
the Gross Valuation.
Usually the Contractor makes an application for an interim payment because the
Contractor has the option of submitting an application in accordance with the
contract but they do not have to do so (cl.4.12). You should be able to suggest that
it would be the Contractors commercial interest to use the provision of the contract
to suggest what the magnitude of payment due in any given valuation period should
be. It would be commercially sensible to make this application. Despite the fact that
the Contractor has not made an application for payment or not, Contractor
Administrator has an obligation to carry out a Gross Valuation to make sure that the
Contractor is being at agreed intervals (3 marks).
All students are expected to show their understanding of the standard Gross
Valuation process which leads up to the issue of each Interim Certificate.
Students should state that prior to the date of issue of each Interim Certificate CA
informs the QS to ascertain the Gross Valuation of the partially completed Works (2
marks).
However, they all should note that the amount to be paid is not the Gross valuation,
but the Gross Valuation minus retention, previous interim payments, advanced
payments all per 4.10 (2 marks).
If the Contractor has made no application made, then the QS has to ascertain the
value of the partially completed works from the scratch/measuring from first
principles (or the previous valuations measurements) (1 marks).
If the Contractor has submitted an application QS will work with the Contractors
application, visit the site and other relevant locations to value materials on site and
listed items. All of this is done to accurately ascertain the value of the partially
completed works (i.e. the Gross Valuation) (2 marks).
Students are expected to spend some time explaining cl. 4.16.1 namely the
payment of properly executed; Site Materials/materials on site (cl. 4.16.1.2); and
Listed Items (cl.4.16.1.3). Each of these three categories should be explained. A clear
definition of Listed Items is expected, ideally with an example. Clause 4.16.2 and
4.16.3 can be explained very briefly; detailed explanations are not needed (9
marks).
All students should note that, cl. 4.3 provides the mechanism to make deductions
and additions to the contract sum to keep its current definition alive (1 mark).
This valuation is passed to the CA for issue of the corresponding Interim Certificate
and Statement of Retention. All students should clearly identify the QSs role in the
valuation procedure. They should differentiate this from the CAs role in the issue of
the certificate (3 marks).

c) Describe what Employer can do if Contractor is not progressing the Works as agreed
in the contract. Describe the Employers course of action in accordance with the
terms of the JCT 2005 Standard Building Contract with Quantities (JCT05 SBC/Q).
(10 marks)

This question regards the Employers right to Terminate the contract in the event of the
Default of the contractor. The Specified Default considered is the failure to proceed
regularly and diligently with the works governed by cl. 8.4.1.2 (2 marks).
The underlined terms should be stated by the student. The actions that must be taken by
the employer are:
ALP TUTOR PACK D39PZ, MAR 2012 10
provide written notice to the contractor of its intent to terminate the contract (cl.
8.4.1) (2 marks).
allow 14 days from receipt of this notice for the contractor to rectify the situation
(cl. 8.4.2) - (2 marks).
if this is not done, the employer can determine the contractors employment on, or
within 21 days from the end of that 14 day notice period (cl. 8.4.2) (2 marks).
Upon doing so, the employer must issue a further notice to the contractor stating
that the contract has been terminated (cl. 8.4.2) (2 marks).

Question 6
A ) Differentiate between domestic sub-contractors and listed sub-contractors. (6 marks)
Students should mention the basis of sub-contracting in construction projects by
referring to the principle called vicarious performance. In construction contracts, the
principal of vicarious performance is more commonly known as sub-letting (1 marks).
SBC/Q uses two methods of sub-contracting:
o Domestic sub-contractors (although the SBC/Q 2005 version does not define
domestic sub-contractors). This method involves the Contractor selecting and
appoint subcontractors to complete all or part of the Works (2 marks).
o Listed subcontractors are chosen by the Contractor to carry out certain part/s of
Work from a list of at least three subcontractors provided by the Employer.
Contractor has the freedom the select any subcontractor from the list provided by
the Employer and the Contractor or Employer can add to the list (2 marks).
Once appointed both domestic and listed subcontractors become subcontractors and
they have the same contractual standing. In other (1 marks)

B ) Explain the process of selecting and appointing listed sub-contractors under the JCT
2005 Standard Building Contract with Quantities (JCT05 SBC/Q). (16 marks)
All students should site clause 3.8, its sub clauses and clause 3.9
Students are expected to explain the process in detail.
If the contract bill provides that certain work to be carried out by other people
who are to be selected from a list provided by the Employer, opportunity arises to
select a sub-contractor under the method called listed subcontractors (clause
3.8.1). - (2 marks)
List should contain at least 3 names and both parties (Employer and Contractor)
have the right to add/expand the list with others permission before execute the
sub-contract (cl. 3.8.2) - (3 marks)
Following that the Contractor can select a sub-contractor who is willing to enter
sub-contract on prescribed terms (cl.3.8.1 and 3.9) - (2 marks)
Unwilling persons should be removed from the list - (1 marks)
After such removal if there are less than 3 persons in the list that are able and
willing to carry out the relevant work, then, either Employer or Contractor can add
further names to the list by agreement with other party (cl. 3.8.3.1) Students
need to explain this further as depicted in the diagram (3 marks)
If both parties cannot add further names to list to make it 3, the main contractor
will have to carry out the work (cl. 3.8.3.2) - (2 marks)
They can use the following diagram to graphically represent the process (3 marks)
ALP TUTOR PACK D39PZ, MAR 2012 11


































ALP TUTOR PACK D39PZ, MAR 2012 12








C ) Explain what is meant by an Acceleration Quotation under the JCT 2005 Standard
Building Contract with Quantities (JCT05 SBC/Q).
(11 marks)
All students should know that Acceleration Quotation is described in paragraph 2 in
Schedule 2 of SBC/Q (2 marks).
Acceleration quotations are used when Employer wants to accelerate the Work, may be
to achieve the practical completion of Work or a section on a date before than it was
agreed (2 marks).
The CA invites the Contractor to submit a quotation/proposal to carry out Work in an
accelerated manner (2 marks).
Upon receiving such invitation Contractor can either submit an Acceleration Quotation
to the CA. It should contain the details about time that can be saved, additional cost
involved for acceleration, and any other relevant conditions relevant to accelerate the
work (2 marks).
Contractor can reject providing a quotation by stating the reasons why acceleration is
impractical (2 marks).
Contractor should not take any measures to accelerate work until a further Confirmed
Acceptance is issued by the CA (1 mark).

Feedback:
Tutors are asked to complete the following Unit Feedback Report at the end of each
teaching semester to the ALP Teaching Fellow so that the teaching and learning for the
course can be continually enhanced.

Course:D39PZ- Procurement and Contracts Unit Feedback Report
Course Consolidation- Revision
Tutor Name:
General
comments on the
Unit course
material

Most liked part
of the Unit
course material
and why

Most disliked
part of the Unit
course material
and why

Suggestions for
future
improvements of
the Unit course
material



END OF TUTOR PACK