SCHOOL OF THE BUILT ENVIRONMENT

D13PN2 Procurement and Contracts

(D13XN Dubai)

Term 2 - 2007/08
Date: Wednesday 12 March 2008 Time: 09:30-11:30
Time: 13:30-15:30 (Dubai)

Course(s)

Answer THREE questions

ONE from Section A
ONE from Section B
plus ONE other

All questions carry equal marks

Attached:

Supplied:
Heriot-Watt University D13PN2 Procurement and Contracts - Term 2 - 2007/08

Section A

Q1 A client has approached you seeking advice regarding the suitability of

Construction Management for the procurement of a new research laboratory
building. The client is inexperienced and the project is technically complex.
Write a short report to the client advising why this procurement route may be
inappropriate. Recommend a suitable alternative and justify its use.
(33 marks)

Q2 (a) Review the situations in which partnering may be an appropriate

procurement strategy and identify the essential elements of this collaborative
working arrangement.
(22 marks)

(b) Evaluate any problems that may be encountered when partnering and
suggest how they can be overcome.
(11 marks)

Q3 Discuss the factors that influence the selection of a suitable procurement path.
(33 marks)

Page 2 of 3
Heriot-Watt University D13PN2 Procurement and Contracts - Term 2 - 2007/08

Section B

Q4 In the Particulars of a JCT05 SBC/Q contract, an Employer and Contractor have

agreed that the Contractor will be paid once a month as the Works progress.
The Contract Administrator has followed the Contract and has issued monthly
Interim Certificates. However, the Employer has not paid the most recent
certificate within the time available to do so.

Advise the Contractor on its contractual rights in this situation. Describe the
actions it must take to ensure it complies with the Contract when exercising
these rights.
(33 marks)

Q5 (a) Summarise how arbitration is accommodated by JCT05 SBC/Q. Identify

the advantages of arbitration in comparison to litigation and highlight any
particular problems that may be encountered with an arbitrator’s decision.
(23 marks)

(b) A contractor and employer forming a new contract using JCT05 SBC/Q
require the right to refer disputes to arbitration to be available. Describe how
the standard JCT05 SBC/Q contract form must be edited to achieve this and
where any additional information should be inserted.
(10 marks)

Q6 (a) Explain what a Collateral Warranty is and provide two examples of

situations in which one may be required.
(13 marks)

(b) Describe how JCT05 SBC/Q can be used to grant rights to a third party in
accordance with The Contracts (Rights of Third Parties) Act 1999 or by using
Collateral Warranties. Identify the specific parts of the JCT05 SBC/Q contract
that are used to do this.
(20 marks)

End of Paper

Page 3 of 3