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Administration of Contracts & Claims Morning 1.1 THE LEGAL RELATIONSHIP Creating the Contract - Construction Practice - Formailty - Contract Formation - Best Practice Incorporation of Terms - Published Contract Forms - Subcontract Conditions - Main Contract and Subcontract Terms - Implied Terms Incomplete Express Agreement - Essential Terms - Contractual Machinery - Identification of Terms Interpretation of Contract Terms - Legal Principles - Pre-Contract Discussions - Post Contract Conduct - Entire Agreement Clauses - Exhaustive Remedy Clauses 1.2 PAYMENT RIGHTS and OBLIGATIONSM Price & Payment - Payment under Contract - No Express Price - Contractual Quantum Meruit - Measurement of Price Restitution - Letters of Intent - Work Outside Letter of Intent/Contract - Measure Afternoon 2.3 COMPLETION OF THE WORKS Time at Large Completion 2.4 ACCELERATION & MITIGATION When to Accelerate Failure to Grant EOT Mitigation 2.5 EXTENSION OF TIME Standard Forms Concurrent Events Events After Completion Float Notice Timing of EOT 2.6 FINANCIAL COMPENSATION Prolongation Costs Head Office Overheads Disruption Costs Global Method Comparison of Norms Assessment Liquidated Damages Types of LDs Penalty Rules Loss of Right to LDs Notices and LDs 2. The Right to and Measure of EOT, LDs, Prolongation and Disruption Costs Morning 2.1 OBLIGATIONS AS TO TIME Employers Obligations Express Implied Obligation not to Hinder Implied Obligation to Cooperate Contractors Obligations General To Complete the Works To Progress the Works Programme Obligations General Programme a Contract Document Subcontractors and Main Contract programme 2.2 CAUSATION Causation in Law Logical Analysis Common Sense Dominant Cause But-For Test Intervening Event The Principled Approach Concurrency Global Claims Programme Analysis Potential Inaccuracies Impacted as-Planned Method Time Slice/Windows Method As-Built Method Afternoon 2.3 COMPLETION OF THE WORKS Time at Large Completion 2.4 ACCELERATION & MITIGATION When to Accelerate Failure to Grant EOT Mitigation 2.5 EXTENSION OF TIME Standard Forms Concurrent Events Events After Completion Float Notice Timing of EOT 2.6 FINANCIAL COMPENSATION Prolongation Costs Head Office Overheads Disruption Costs Global Method Comparison of Norms Assessment Liquidated Damages Types of LDs Penalty Rules Loss of Right to LDs Notices and LDs 3. The Right to Payment, Variations and Cost Claims Morning 3.1 The Right to Payment What are the Purchaser's Obligations as to Payment? Can a Letter of Intent or a Bare Agreement with No Agreed Price Create a Contract? If No Price is Stated in the Contract What Payment is Due? Will a Claim for Quantum Meruit Succeed if a Contract Deals with the Situation? What is the Measure of Payment for Work Under Contract Where No Price is Stated? If the Contract Does Not mention VAT, Does the Price Include VAT? Is Payment Required to be Made if Work is Not Completed? How is the Price Valued? Is there an Entitlement to Payment for Work Carried Out Beyond the Financial Limit of the Letter of Intent? Is There an Entitlement to Payment for Work ""Outside the Contract""? When Will the Law Imply an Entitlement to Payment for Requested Work Carried Out Without a Contract? Are There Any Situations Where Speculative Work Can Be Reimbursed? What is the Measure of Payment When the Work is Not Part of a Contract? If Work is not Part of a Contract Can Delays and Defects be taken into Account in the Measure of Any Payment? What is the Measure of Reduction in Any Payment for Defects if There Is No Contract? 3.2 Administration of Payment Is There a Right to Interim Payment? If a Section 110 Notice is Not Given in Accordance with the Contract, is Payment Required to be Made in Full on Application? Can a Pay When Paid Clause Prevent Payment? Can the Failure of A/E to Issue a Payment Certificate Prevent Payment? Must the Employer Pay the Amount Stated in an Interim Certificate? What is the Effect of a Final Certificate on the Right to Payment? When is a Final Certificate Not Valid? If a Final Certificate is Issued Late, Is it Still Valid? What is the Effect of the Final Certificate of an Adjudicator’s Decision on an Interim Certificate? Has the Contractor a Right to Payment for Material on Site but not Fixed? If the Employer Becomes Insolvent Must the Contractor Still Pay the Sub-Contractor? When is Payment Made? Afternoon 3.3 The Right to Withhold Payment Can an Amount Paid in a Past Certificate, be Deducted from a Later Certificate? Is the Employer Required to Place Retention in a Separate Bank Account? Can Payment be Reduced Due to Defective Performance? What is the Measure of Reduction of Payment Due to Defects? What is Set-Off? What Must a Withholding Notice State? Is a Withholding Notice Required to Reduce the Price for Defects? Can a Purchaser Set-Off from Payments Due on One Contract Sums Recoverable on Another? 3.4 Payment for Variations When is the Purchaser Entitled to Vary the Works? How Are Variations Valued? How is Omitted Work to be Valued? Is a Contractor Quotation for Extra Work Binding if Accepted? 3.5 Claims for Additional Payment What is The Measure of Damages for Breach of Contract? What is The Third Party Rule? What Are Collateral Warranties? What Exceptions are There to the Third Party Rule? What is the Effect of the Contracts (Rights of Third Parties) ACT 1999? Is a Settled Final Account Binding? What is The Relevance of Settlement of SubContractor Claims in the Measure of Contractor’s Damages for Breach of Contract? Can a Contractor Recover the Cost of Preparing a Claim? If the Contractor Fails to give Notice of a Qualifying Event at the Right Time, Does He Have a Right to Payment? Can the Contractor Recover Damages From the Architect/Engineer for Failure to Administer the Contract Properly? 3.6 Remedies for Non-Payment Can the Contractor Recover Finance Charges and Interest for Late Payment? What is the Effect of the Late Payment of Commercial Debts (Interest) Act 1998? Where an A/E Under Certifies, is the Contractor entitled to Interest? Can the Contractor Suspend Performance for Failure to Pay? Does the Contractor Lose the SubContract Discount on Late Payment?