Construction Law Principles

Sample Multiple Choice Questions. Below are a sample of six questions showing the
type of question you will encounter in the exam.

Students will be expected to answer ALL questions on the exam paper – there will be
a total of 40 questions and there will be no choice.

The exam will be completed in the module website so you will need access to the
internet and access to My Beckett.

Once you have accessed the exam in My Beckett you will have just 2 hours to
complete all 40 questions (i.e. an average of 3 minutes per question). You will
automatically be shut out of the exam at the end of 2 hours

1. ABC Chemicals have decided to have a new warehouse constructed measuring 40m
long by 20m wide. It is a basic structural steel framed building with frames at 5m
centres. Tenders have been received in the region of £800,000 based upon ABC
Chemical’s own site investigation report, and a contractor has been appointed, under
JCT05 Standard Building Contract with quantities, who will start work in 6 weeks time.
Upon receipt of the tenders ABC Chemicals realise they have surplus funds in their
budget and ask the advice of their Architect and Quantity Surveyor how much extra it is
likely to cost to add two further 5m bays to the length of the warehouse. They confirm
that this is likely to be a pro rata cost based on the price of the original warehouse – i.e.
adding a further £200,000 to the price. ABC Chemicals ask them to amend the drawings
and instruct the appointed contractor to proceed with the larger version when he starts
work.

At a pre-contract meeting the appointed contractor confirms that he should be able to

construct the larger warehouse at a pro rate price subject to similar ground conditions,
and he agrees to order the extra steelwork and cladding. He points out at this stage that
the site investigation only extends to one metre beyond the original planned limit of the
warehouse, but the Architect sees no reason why things should be any different beyond
this point.

Immediately upon site clearance it becomes apparent that the ground conditions are very
different under the proposed extension from those under the original. Due to a fault line
running through the site there is a sudden change in strata in the sub-soil with very
different load bearing capacity and a dramatic change in ground water content such that
part of the sub-soil is ‘running sand’. This requires the design of a piled foundation which
the structural engineer says is incompatible with the raft foundation proposed for the
original warehouse and means the inclusion of a piled foundation for the complete
building. The architect issues an instruction to proceed with this work.

The contractor submits a loss and expense claim for additional work in the foundations
with interim valuation 2 for a further £140,000. This is the first that ABC Chemicals have
heard about any extra cost and they say that this goes beyond their available budget and
that they would not have gone ahead with the work had they known how much extra it
was going to cost.

a. The contractor is liable for this sum because it is a lump sum contract;
 b. The structural engineer is responsible for this sum because he has changed
the design;
c. The Architect and/or QS are responsible for this sum because the client had
acted on their initial advice and they did not warn of a change in
circumstances;
d. The site investigation company are responsible for this sum because they did
not foresee the possibility of an extension.
e. ABC Chemicals are liable for this sum because they ordered the work without
getting a further site investigation report completed;

2. A small roofing sub-contractor in Leeds submits a price for roofing 12 new houses for a
house builder. He mistakenly prices for only 10 houses. The form of tender just refers to
the drawings that have been sent to the sub-contractor and make no reference to the
number of houses. The drawings correctly represent that there are 12 houses – the sub-
contractor has simply miscounted. The sub-contractor has never worked for this
contractor before. The contractor accepts the sub-contractor’s price because it is
considerably cheaper (25% cheaper) than other prices submitted by other sub-
contractors. The sub-contractor realises before starting work that he has made a
genuine mistake and wishes to be released from the contract.

a. This is a document mistake as the form of tender did not identify the number
of houses, and will void the contract;
b. This is a common mistake because the contractor assumes the sub-
contractor has priced for 12 houses when he hasn’t, and will not void the
contract;
c. This is a unilateral mistake and will not void the contract because the sub-
contractor has only himself to blame;
d. This is a unilateral mistake and will void the contract because the mistake
should have been obvious to the contractor;
e. This is a mutual mistake, the parties being at cross purposes and will void the
contract.

3. An architect was commissioned to design an extension to a private dwelling house. The

expressed purpose of the extension was to provide a snooker/billiard room for a full
sized snooker table. There was plenty of garden space and boundary distance easily to
accommodate this within the parameters required by the local planning authority. Having
obtained planning permission only (Building Regulations approval still being required) the
employer let the project to a contactor as a design and build contract novating the
architect to the contractor. The ‘planning’ drawings were the basis of the employer’s
requirements. After completion of the works it was discovered that although the
contractor had built the extension to the dimensions shown on the original ‘planning’
drawings the snooker room was in fact too small to accommodate the snooker table and
provide sufficient playing area around the table to afford the high standard play required
by the employer. No standard form contract was used, the contract was based simply
upon an exchange of letters referring to the drawings, the price and the design and build
requirement.

a) A suitable sum will have to be deducted

 b) The contractor is liable to the employer as he has not met the employer’s
requirements;
c) The architect is liable to the employer as the original planning drawings are not fit
for purpose;
d) The architect is not liable to the employer as he has used due skill and care in the
original design work;
e) The employer will just have to put up with the sub-standard snooker room.

4. Under a JCT11 Standard Building Contract, an architect makes fortnightly visits to the
construction of a new £4M office block. He does not notice that the internal partition
walls on the third floor have been incorrectly set out resulting in four rooms having
incorrect dimensions. These dimensions are critical for the planned occupancy of the
rooms. The error does not become apparent until 6 weeks later when the electrician is
proceeding with the second fix electrics. The employer is adamant that he wants the
planned dimensions in the rooms because his organisational structure will simply not
work as provided. The contractor accepts that he has made an error but argues that the
architect should have picked this up 6 weeks ago during an earlier progress visit. If he
had done this the ensuing delay would probably have been absorbed in the programme,
but as it is at this stage it will probably result in a two week delay to completion. The
contractor has indicated that he will be applying for both an extension of time to avoid the
liquidated damages and for the recovery of loss and expense to pay for replacing the
walls and for recovery of his extended overheads. The architect has said he is entitled to
nothing.

a) The contractor can sue the architect under the Hedley Byrne principle for his loss
of profits;
b) The contractor will succeed in his loss and expense claim but not the extension of
time;
c) The contractor will be granted an extension of time but not his loss and expense;
d) The contractor should both recover his loss and expense and be granted his
extension of time;
e) The contractor will neither recover his loss and expense nor be granted his
extension of time.

5. What is required to be done to ensure that the Employer can rely on Sectional
Completion in a JCT contract?
a. Nothing, the terms of the contract allow the Employer to take possession of any
parts of the works as they are completed
b. The Employer must obtain the consent of the Contractor when a part or parts of
the works are complete
c. The Architect/Contract Administrator/Engineer issues a Contract Instruction and
the Contractor is obliged to comply as directed
d. The works required to be completed in stages must be identified in the contract
particulars before the contract is agreed between the Employer and Contractor
e. A deed must be executed by the Employer’s lawyers in order to arrange
Sectional Completion
6. Build It & Co Ltd is building a large extension to a local factory owned by Green Onions
Canning Ltd. They have done work for Green Onions before on a number of occasions
but have never been asked to sign a standard form building contract. Instead, as with
previous jobs, they have been asked to price the work, as described by Green Onions
Architect, on one or two drawings and a schedule of works with a specification describing
the goods and materials required to be used. The agreement to complete the works, the
price and the time in which the work is required to be done have been set out in a letter
that also incorporates the drawings, schedules and specification. This has usually been
signed by both parties and there has never been a problem before now. Build It & Co
have sub–let the carpentry and joinery work to a local firm who are perfectly capable of
achieving the desired quality and performing to the programme of Build It & Co have had
a major payment dispute in the past with Green Onions. When Green Onions’ managing
Director finds out about this he contacts Build It & Co Ltd and tells them to get someone
else as he is not having ‘this subby’ on his job. Build It & Co Ltd do not want to upset
their Employer but getting another sub-contractor at this stage will cause them problems.
Can Build It & Co sub-let the works without the approval of Green Onions?

a. Yes, in these circumstances this is a common law right and does not need the
approval of Green Onions or their Architect.
b. No, under no circumstances can any part of the works be sub-let
c. No, sub-letting without the Employer’s approval is prohibited by the Housing
Grants, Construction and Regeneration Act 1996
d. No, unless Build It & Co can demonstrate that they selected the sub-
contractor from at least two other firms then they cannot sub-let the works
e. No, this was an oversight by Build It and they should have checked with
Green Onions or their Architect before getting the carpentry sub-contractor
involved.