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Mastering Construction & Engineering Contracts (FIDIC 2017 Red Book)
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Mastering Construction and Engineering Contracts (NEC4) – Assessment & Evaluation
Mastering Construction and Engineering Contracts (NEC4) - Assessment & Evaluation
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Please tick the correct answer for each of the below questions or statements:
1. Which of these are required elements of a valid contract in South African law Answer: (Select six)
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1. Offer and acceptance
2. Formalities
3. The price must be reasonable
4. Terms and conditions must not be unlawful
5. The agreed performances must be possible
6. The contract must not have been caused by misrepresentation
7. The parties must intend the agreement to be enforceable in law
8. There must be valuable consideration
9. The parties must have a legal status to enter into a contract
Question 2: Name five that are NEC4 ‘construction’ contract types
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1. Design by the client and construct by contractor
2. A Purchase and sale contract
3. Design-build by contractor
4. Relational contracts
5. Target contract with activity schedule
6. Management contract
7. An employment contract
8. EPCM
9. Cost reimbursable contract
10. PPP (Public Private Partnership)
11. Priced contract with activities schedule
Question 3: Does the common law supersede the specific terms contained in a contract?
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1. Yes
2. No
4. Which the following may form part of the NEC4 conditions of contract?
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1. Main Option
2. Contract Data
3. Documents identified in the Contract Data
4. Option X7: Delay damages
5. Option Z: Additional terms and conditions
6. All of the above
5. Which two are risks when making amendment to standard clauses found in form contracts?
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1. It may result in ambiguities
2. It renders the contract void
3. It may create unintended consequences
4. Amendments are not allowed
6. What specific qualification must a person in South Africa have to act as Project Manager in an NEC4 ECC contract?
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1. He must be qualified as a project manager
2. There are none specified
3. He must be a professional engineer
4. Over 18 years old and not insane
7. Can a Project Manager be a company in an NEC4 ECC contract?
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1. Yes if it has the right to delegate to an actual person
2. No
3. Yes - but it must appoint an actual person to act on its behalf
8. Which of the following are correct? The Project Manager or Contractor must give an early warning when either become aware of an event that;
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1. Impacts on the Completion Date
2. Impacts on key dates
3. Impacts on the prices
4. Impacts on the performance of the works
5. Impacts on the Contractor’s Costs
9. What must an Project Manager do when something is submitted to him for acceptance,
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1. The PM must respond within the period stated in the conditions of contract or the period for reply
2. If the PMs response it not acceptance the PM must give a reason provided in the contract
3. A Notice of No-objection
10. What is the role of the Supervisor?
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1. The Supervisor acts on behalf of the Project Manager
2. The contractor must resubmit his program
3. The Supervisor is a separate role from the Project Manager
4. The Supervisor is responsible for quality control and issuing the Defects Certificate
11. Who must give an early warning in an NEC4 ECC contract?
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1. The Client
2. The Project Manager
3. When the event is an Employers risk
4. The Contractor
5. Others
12. What compensation can the contractor get for a compensation event?
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1. Only an extension of time
2. P&G’s and an extension of time
3. Quote for a change to the prices and to the completion date
4. It depends on the terms of the specific contract
13. What are claims called in NEC contracts?
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1. There is no specific term since claims are not defined
2. Compensation events
3. Extension of time claims
4. Prolongation claims
5. Disruption claims
14. Which compensation events entitle a contractor to claim an extension of time only without any monetary compensation?
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1. None
2. Weather conditions
3. Unknown subsurface conditions
4. Force majeure
15. : In an NEC4 contract, how is a change to the Completion Date assessed?
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1. Weather conditions claim
2. As the amount of time impacting on the Completion Date
3. Variations
4. As the time effect of the event on the Contractor’s planned completion date
5. Failure to issue drawings timeously
Dispute Forms:
16. What does the acronym ADR stand for?
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1. Arbitration Dispute Resolution
2. Adjudication Dispute Resolution
3. Alternative Dispute Resolution
4. Alternative Dispute Resource
17. In an NEC4 Contract can you refer a dispute to the Adjudicator before two weeks or after for weeks from the date the dispute arose?
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1. No
2. Yes
3. Yes if the parties agree
4. Only if the court agrees to hear the matter
18. In an NEC4 contract can you refer a dispute directly to court?
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1. Yes, when the matter is urgent
2. No you must first refer the dispute to the Adjudicator and must within four weeks of the adjudicators decision you must notify your disagreement with that decision and your intention to refer the matter to the tribunal.
3. Only if the tribunal is ‘litigation’
4. When the claim is based on a liquid document such as a payment certificate
5. When the matter is unopposed
19. Which of the following are NOT of ADR methods?
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1. Litigation
2. Mediation
3. Business rescue proceedings
4. Adjudication
5. Out of court settlement
6. Arbitration
20. What happens in NEC4 if the Contractor warns the Project Manager that he has not accepted a programme, notified a compensation event he must notify, or responded to a compensation event within the contractual or agreed time?
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1. The programme is taken as accepted
2. Adjudication
3. The Contractor is not time barred
4. DAAB (Dispute Avoidance and Adjudication Board)
5. The Contractor’s quotation is taken as accepted
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