13 Contract Administration Flashcards
What does Selected and Nominated Subcontractors mean?
“Selected” is identified in contractors tender from a list of subcontractors provided by the principal in the tender docs
“Nominated” is a subcontractor selected by the principal and either in contract with the principal, novated from the principal to the contractor, or the contractor is directed to subcontract work to this subcontractor (contractor is not liable for work of a nominated subcontractor)
What does the contractor carry out/provide prior to commencement of works?
Bill of quantities (if applicable)
Schedule of rates (if applicable)
Dilapidation Survey/Report (ex structures on site/neighbouring sites)
Demolition Permit (if required)
Bank guarantee (if applicable - otherwise Cash Retention taken from progress payments)
Program (provided by contractor in tender)
What does the builder have to have before he takes possession of site?
Builder must have in place requisite insurances before taking possession of site (public liability - joint with principal, contract works insurance, workers compensation - and ensure subbies are also insured)
Insurance policy documents must have been received by client
Insurance must run for entire project period
Ask client to have insurance broker review documents to ensure in accordance with contract
What are some of the elements involved in administering a Contract?
RFIs Superintendents Instructions Contract Variations Extension of time claims Programme Progress Claims Progress Certificates Contract Sum Adjustments Monthly Reports Shop drawing/samples reviews Defects
What are Contract Variations? What is the process?
Architect to assess, approve and keep record of
Contractor is only bound to execute a variation which is within the general scope of the contract
Not bound to execute a variation after practical completion (unless rectification work)
Assessing variations - superintendent may direct contractor to provide detailed quotation for the work of a variation
Adjustments of Provisional/Prime Sums - do not have GST, net values
When can the contractor claim for Extensions of Time?
Time limit stated in contract (eg ABIC = 14 days) - cannot claim after
Contractor generally entitled to EoT with costs for latent conditions
What is involved in the programme of works?
Contractor provides in tender - is obliged to comply with
Critical path items
What are Progress Claims and what do you have to do?
Assess based on progress (architect must be objective and independent assessor of costs)
Can only claim for items which are on site
If a big item, and builder wants owners to pay for it up front, can give them the option of providing a security for the item until it arrives on site
Check insurance validity
Check all subcontractors and staff have been paid (usually via statutory declaration)
What are Progress Certificates and what do you have to do?
Must be issued to the contractor and principal within 14 days from receipt of progress claim
Superintendent must set out reasons for any difference in amount
Principal has 14 days to pay the contractor
Security of Payment Act can be enacted by contractor if he has not been paid
What is the Security of Payment Act?
“Construction Contracts Act” in Western Australia
Terms of contract apply until legislation enacted
Rapid adjudication - claim lodged within 28 days of dispute. Respondent has 14 days to respond. Adjudicator has further 14 days to make decision. (So finalised within. 28 days of lodgement)
Adjudicators decision is binding, cannot be appealed
What are Contract Sum Adjustments?
Issued by Architect to reflect approved variations
What obligation does the architect have in regards to monthly reports?
The client, reporting on progress of works (programme), current contract sum amount and outstanding issues
What is involved in site meetings? What about site inspections?
Typically fortnightly
Includes client, consultants, contractor and others as required
Minuted by architect or builder (refer contract)
Regular inspections of site to determine progress of works
What are Contractors Reports?
Can form part of the contract
Contractor to provide superintendent with fortnightly progress reports and updated construction progress
