Download Construction Law Principles (Latest Update 2026 / 2027) Questions & Answers {Grade A} 100% and more Exams Law in PDF only on Docsity!
Construction Law Principles (Latest Update
2026 / 2027) Questions & Answers {Grade
A} 100% Correct
Breach of Contract - correct answer A violation of any of the agreed-upon terms and conditions of a contract. Standard Form Contracts - correct answer Pre-drafted contracts commonly used in the construction industry, providing a framework for agreements and reducing negotiation time. Dispute Resolution Clause - correct answer A provision in a contract that outlines the process for resolving disputes between parties. Offer - correct answer A proposal made by one party to another indicating a willingness to enter into a contract on specific terms.
Acceptance - correct answer An agreement by the offeree to the terms of the offer, resulting in a binding contract. Consideration - correct answer Something of value exchanged between parties in a contract, which is necessary for the contract to be enforceable. Legality - correct answer The requirement that the subject matter of the contract must be lawful for the contract to be valid. Implied Contracts - correct answer Contracts formed by the actions or conduct of the parties rather than written or spoken words. Contractual Terms - correct answer The specific provisions and conditions outlined in a contract that govern the parties' obligations.
Quality Assurance - correct answer A systematic process to ensure that construction activities meet specified requirements and standards. Contractual Obligation - correct answer A legal duty established by a contract that requires parties to adhere to the agreed terms. Claims Management - correct answer The process of identifying, documenting, and resolving disputes related to changes in the contract. Scope Creep - correct answer The uncontrolled expansion of project scope without adjustments to time, cost, and resources.
Risk Management - correct answer The identification, assessment, and prioritization of risks followed by coordinated efforts to minimize, monitor, and control the probability of unfortunate events. Performance Standards - correct answer Criteria established to measure the quality and effectiveness of construction work. Defects Liability Period - correct answer A specified time after project completion during which the contractor is responsible for fixing defects. Project Deliverables - correct answer The tangible or intangible outcomes produced as a result of project execution.
Indemnity Clause - correct answer A provision in a contract that requires one party to compensate the other for certain damages or losses. Arbitration Clause - correct answer A provision that requires disputes arising from the contract to be resolved through arbitration rather than litigation. Supply of Goods and Services Act 1982 - correct answer Goods must be satisfactory quality and fit for purpose. Services must be carried out with reasonable care and skill Ways that change can be brought in - correct answer Contract having specific clauses, amending existing contract to add in variation, enter into a new contract Construction Contract - correct answer A legally binding agreement between parties outlining the terms, conditions, and obligations for a construction project.
Liquidated Damages - correct answer Pre-determined monetary compensation specified in a contract for delays or failures to meet contractual obligations. Notice of Delay - correct answer A formal communication required to inform relevant parties of delays in the project timeline, typically as per contract terms. Contractor's Liability - correct answer The legal responsibility of a contractor for any damages or losses incurred during the execution of a construction project. Variation Order - correct answer A formal request to change the scope of work in a construction contract, which may affect time and cost. Adjudication - correct answer A method of resolving disputes in construction contracts, where an independent third party makes a binding decision.
Builder completes 60% of a lump sum project then abandons it. No interim payment clause in the contract - correct answer The contractor can not recover under the contract Refurbishment completed with minor £3k defects on a £500k contract. Employer takes possession but refuses payment. - correct answer The contractor recovers the contract sum minus the cost of defects Heating system fails to heat half the house. Employer takes possession. Has the contractor substantially performed? - correct answer No, because the defects go to the root of the contract Contract includes a completion date, LADs and EOT clauses. Is time likely of the essence? - correct answer No, because EOT and LAD clauses suggest not
On a JCT contract, the contractor attends site irregularly with insufficient labour but works efficiently when present - correct answer Breach of 'regularly' only Will delay caused by inability to recruit enough bricklayers in a competitive market likely extend 'reasonable time'? - correct answer No, this is a normal commercial risk Employer issues late design info causing delay. No EOT clause covers employer caused delay. Whats the consequence? - correct answer Time becomes at large If the time becomes at large, the employer... - correct answer Must prove unliquidated damages if contractor fails to complete in reasonable time An architect who certifies defective work for payment may be liable to the employer - correct answer True
In a D&B contract, there is an implied term that the contractors standard care is 'fitness for purpose' - correct answer Yes, unless expressly excluded The court may imply a term into a contract where necessary to enable a party to comply with its legal obligations - correct answer True Interim certificate - correct answer Values works completed to date, not usually binding, adjustments can be made later Final certificate - correct answer Confirms that work is satisfactory, may certify amount due under the contract, must be accurate Privity of contract - correct answer Only parties to a contract have rights and obligations under the contract
Employers Agent - correct answer CA acting in best interest of employer, inspecting works, representing employer etc Certifier - correct answer CA acting fairly and impartially, granting completion and EOT etc What are the three things needed to form a contract? - correct answer Offer, acceptance and consideration
