On the successful completion of this coursework assignment, students will be able to:-
– In relation to typical civil engineering practice, demonstrate and critically evaluate important implications associated with the Law of Contract.
– Apply the requirements of the UK’s Public Contract Regulations to contractor selection and appointment.
– Appraise the pre-contract contractual duties of the Project Manager/Contract Administrator/Engineer relative to managing/administering a civil engineering contract.
Unihall Ltd who are the University Accommodation Commercial Arm of Camford University, invited tenders for a new Halls of Residence building for Camford University. However, despite the Construction Leadership Council’s current advice that the contractual risks should be fairly distributed between the contracting parties, Unihall Ltd invited formal fixed price single stage competitive tenders for the construction of this new Halls of Residence Building, from a selected list of building contractors who they had pre-qualified via PAS91 ‘expressions of interest’ procedures. The tenders were invited on the NEC4 Standard Conditions of Contract (2017), option A with an activity schedule, together with, the contractor’s submitting a priced breakdown of their proposals against the activity schedule with their tenders. The two tenders under final consideration with the highest “most economically advantageous tender” (MEAT) evaluation scores, were received from:
Alpha Construction £18M
Beta Contractors £18.3M
As required by the terms of the invitation to tender, both firms undertook to keep their tenders open for acceptance for 50 calendar days from the date of tender, namely to Monday 20th September 2021.
However, both firms have qualified their tenders as regards to Unihall’s proposed conditions of contract included in their invitation to tender.
Alpha Construction have quoted on the basis of the NEC4 Conditions of Contract, option A, but have qualified their tender regarding the contract conditions proposed by Unihall. In particular, on terms of payment Alpha Construction want a 15% payment on the signing of the contract to pay for the initial outline design work undertaken and to also enable them to firm up and place orders and to secure deliveries of key materials and components in the current economic uncertainty in the prices
Module name Construction Management, Administration and Law for construction materials and their availability, because such key materials and components was the
basis of their design and build tender. The balance of 85% of the value of work is to be paid monthly on this basis of payment on-account applications. They also require a substantial reduction in the proposed clause X7 delay damages, which at this moment in time they deem to be a penalty. The payment terms proposed by Unihall were 95% of the value of work done monthly, 2 ½ % on practical completion of the work and a final 2 ½ months after completion at the end of the Rectification (making good defects) Period.
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