REUTERS | Alex Domanski

Christmas quiz 2009

How good is your knowledge of construction law? Fancy rounding-off the year in style? Why not test your mettle with our Christmas quiz, but beware our yuletide-themed trick questions? 

For answers to all the questions and to find out how you did, click here.

1. The LDEDC Act 2009

Which of these statements is true (there may be more than one)?

a. Third parties may give section 110A payment notices.

b. If the payer fails to give a timely section 110A payment notice the payee may give a payment notice at any time before the final date for payment.

c. The payer is not obliged to give a “withholding notice” if the payee goes insolvent before the date upon which the payer is required to give such withholding notice.

d. Third parties may give section 110A notices, but only on the third day of Christmas.

To see the answer to question 1, click here.

2. Retention of title

Which of these statements is true (there may be more than one)?

A well-drafted retention of title clause gives the seller:

a. A right to recover goods stored at the buyer’s premises which are identifiable as the seller’s.

b. A partridge in a pear tree.

c. A right to recover goods that have been incorporated into the land.

d. A right to assert ownership of any new product arising out of the manufacturing process.

e. A right to the proceeds of sale where goods are sold on to a third party.

f. A right to enter the buyer’s premises without trespassing.

To see the answer to question 2, click here.

3. Extensions of time

A construction contract provides that the employer can issue directions to the contractor under clause X and issue variations under clause Y.

The contractor is entitled to be granted an extension of time if it is delayed in carrying out the works due to:

a. variations issued by the employer pursuant to clause Y of the contract; and/or

b. an act of prevention by the employer.

The extension of time provision does not expressly entitle the contractor to an extension of time if the employer issues directions under clause X, compliance with which delays the contractor.

The employer issues directions to the contractor under clause X which vary the work and delay completion (which he is allowed to do). Does this constitute an “act of prevention” under the extension of time provision?

To see the answer to question 3, click here.

4. NEC3 Option C

Which one of the following statements about assessment of amounts due to the contractor under the NEC3 Option C Contract is true?

a. The project manager comes bob bob bobbin’ along.

b. The project manager carries out a valuation of the work carried out by the contractor at the assessment date.

c. The employer carries out a valuation of the work carried out by the contractor at the assessment date.

d. The project manager forecasts the cost which will have been paid by the contractor before the next assessment date.

e. The employer forecasts the cost which will have been paid by the contractor before the next assessment date.

To see the answer to question 4, click here.

5. Set-off, abatement and withholding

True or false:

a. The right of equitable set-off allows you to set-off debts which are both unliquidated and unconnected.

b. An employer can abate an amount invoiced by the contractor by an amount equal to delay damages payable by the contractor for late completion.

c. An interim certificate has been issued under the contract. Defects have become apparent in the work since the certificate was issued. The paying party has failed to serve a withholding notice within the agreed period. The paying party is entitled to abate the certified amount in respect of these defects.

d. In the bleak midwinter frosty wind made moan.

To see the answer to question 5, click here.

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