Week 4 CA in week 5, 2025

Who benefits from security clauses in contracts

• Client

• Contractor

• Both

• Neither

Which of the following is not a form of security

• Bank guarantee

• Retention

• Contractor debt

• None of these

Who should ensure that securities are current

• Subcontractor

• Site management

• Contract administrator

• Security company

Why would a client not want to provide security in a contract

• They don't want the contractor to access their money

• They would prefer to use their money for other things

• It does not benefit them financially

• All of these

• None of these

When would a contractor access the clients' security

• When the need to pay for the staff end of year bonus

• To provide onsite leisure activities

• When the client does not pay them without cause

• None of these

What issues could a contractor face if they were not paid in time by the client

• Financial prosperity

• Cash flow issues

• Financial hardship

• None of these

• All of these

What is security for performance for the principal

• Ensure building is completed

• Ensure quality is as expected

• Ensure project progress

• None of these

• All of these

What is not defined as a form of security in the AS4000 contract

• Bonds

• Unconditional undertaking

• Interest bearing deposit

• Dowry

• All of these

Is the principal entitled to remove the clause allowing contractors recourse to security

• Yes

• No

• Only in contracts with subcontractors

• None of these

When is security reduced in a contract

• Practical completion

• Final certificate

• Pre-contract mediation

• All of these