ARC 7067 Individual Coursework 2 Brief 2024 : Procurement Contract Administration and Law

Expected learning outcomes are as follows:

• Demonstrate an understanding of the similarities and differences between the JCT and NECStandard forms of contract.
• Apply the NEC 4 and JCT 2016 contracts in a complex ‘real world’ scenario.
• Understand how to establish negligence in a complex factual scenario.
• Understand what vicarious liability is, and how to establish it.
• Understand the duty owed by occupiers of premises to all visitors.

1. Question 1 

This scenario is set for an NEC Option B contract. The contract is for a phased school project, to build a new school in the playground of the existing school (whilst the existing school is in operation), decant the school into the new facility, then demolish the old school and build new playgrounds and sports pitches on the old school site. The Design has been provided by the Client’s consultant team, so the contract is for build only. The contract duration is 18 months, with decant into the new school scheduled after 12 months. The client will appoint a specialist IT  contractor themselves to fit out the computer lab. The client also wants to install a synthetic 3G pitch as part of the MUGA (Multi Use Games Area).

a) 12 months into the contract, during the decant period and before demolition of the existing school, the Contractor has found evidence of Asbestos in the existing school that was not picked up in the pre-construction information. What should the contractor do?

b) How should the client’s Project Manager (the PM) react? 

c) A specialist asbestos removal specialist has investigated and confirmed that there is extensive asbestos throughout the school that is notifiable to the HSENI (https://www.hseni.gov.uk/asbestos) What should the PM do to manage the additional delay and expense using the contract clauses? 

d) How would your answer differ if this was a JCT 2016 SBC contract? 

e) The asbestos issue has been resolved but the completion date for the project is now 6 months later than originally intended. What can the PM do to try to bring the completion back to the original date, using the contract clauses? 

2. Question 2 

a) The Phased School contract scenario in Question 1 also applies to question 2, with the exception that the contract has been changed to a Design and Build contract. In this version of the scenario, you are advising the client at a very early stage in the project. The budget is tight and cannot be exceeded by more than 15%. Which NEC Option would you recommend that the client use and why?
b) What type of JCT contract would you recommend for the scenario set out in 2a) above? 
c) 6 months into this contract, the Project Manager notices a defect in the in situ cast concrete slab. What does she do? 
d) When does this defect have to be corrected? 
e) The Contractor thinks that the defect is going to be very expensive and disruptive to correct, but that is quite minor in nature – it does not affect the structural performance of the slab and is not very noticeable. What can the contractor suggest – what contract clause must they use?

3. Question 3

B&M Builds is the contractor on a new housing development project consisting of 30 units. B&M Builds have appointed Electric Electricians to complete the electrics in all the units before the fittings are installed. Steve is an experienced contractor who has worked for Electric Electricians for 20 years. Steve is completing the electrics across the development’s housing units. One afternoon, Steve forgets that he has a medical appointment and leaves the site in a rush. Steve asks
his colleague Max if he can make sure that the wire connections for that house are tightened before he leaves. Max says he will, however, he forgets to do so before he leaves for the day. After the appointment, Steve realises that he cannot find his keys and remembers that he left them on site in the unit he was working on earlier that afternoon, so he returns to site to get the keys. Once at site, Steve cannot locate any member of security at the site entrance to report to. It is common knowledge that the e-security system on the site entrance gate has been broken for a few weeks, which means that the site entrance gates are not locked outside site access hours. B&M Builds have mentioned to Electric Electricians that they need assistance with a repair to reconnect the entrance gates to the security system.
Steve notices the standard warning signs prohibiting out-of-hours site attendance before he accesses the site using the broken entrance gates. As Steve intends to quickly pop into the relevant unit to retrieve his keys, he does not change into his PPE work boots and safety gloves, which he would otherwise wear on site.

Once inside, Steve flicks on the light switch, however, the loose wires short-circuit and Steve is electrocuted on the spot with high voltage. After the shock, Steve grabs his keys and then tries to run off- site undiscovered. Steve falls down a step and lands on the arm that received the electric shock. Steve is unable to work for a period of 5 weeks whilst his arm recovers.

a) Advise B&M Builds if they are liable for Steve’s injuries. 

b) Advise Steve if he can bring a claim against Electric Electricians. 

4. Question 4 

All parts of this question carry equal marks. Reference should be made throughout this question to appropriate case law.
a) To bring a claim in negligence a number of elements must be proven by the claimant. State these elements and give a short summary of each.
b) Describe what vicarious liability is and how it can be established by a claimant.
c) Describe the three general defences that are available to a defendant in a negligence claim