4. Contract admin and construction process Flashcards
What are the stages involved in the construction phase?
- Pre-start meeting.
- mobilisation period
- Date of possession
- Construction phase including regular site inspections and progress reports, meetings and variations.
- handover i.e. practical completion, start of rectification and maintenance period, practical completion certificate or partial non-completion
- rectification period and maintenance period
- Final completion.
What are some typical contents of a pre-start meeting?
Introductions
Contract formalities
CDM and health and safety
General procedures and site information
Communication procedure
Future meetings
If more trees were delivered to site site, than is in the specification what would you do?
Firstly, work out who was at fault whether it was the supplier, contractor, quantity surveyor or landscape architect. They will be liable to pick up any additional cost and the bill of quantities takes precedence.
what are the advantages of having a program of works?
Keeps the project on schedule and has better financial control (the client knows what they need to do and in which order, sourcing materials on time, appointing specialists and resources in time, better efficiency, and improves worker safety)
Crucial as landscape architect as you can plan works around the planting seasons
What are acceptable reasons for an extension of time?
Unforeseen adverse weather, exceptional circumstances such as Covid or terrorism
What is construction?
Construction work means carrying out of any building or engineering work, including the demolition, dismantling or decommissioning of work
On a construction team who makes up the client team?
Client
Landscape architect unless they have been novated
Contract administrator
Quantity surveyor
Clerk of works
On a construction project, what is the client role?
The client makes decisions relating to the scheme in its construction or appoint others to do so
They decide on the budget and timescales
They appoint the design team
They sign the legal documents such as contracts
Appoint a CDM coordinator
And pay invoices from both client team and contractor
In a construction project, what is the landscape architect role?
They advise the client on appointing a contractor and appropriate subcontractors.
Prepare any relevant contract documents and carry out contracted administration if there is no contract administrator.
They provide technical information as agreed in the contract.
Visit the site to inspect the quality and progress
In construction projects, what is the contract administrators role?
Issue change control procedures such as instructions, variations.
The issue progress certificates such a certificate of final completion, practical completion, making good, non-completion, payments certificates.
They chair progress meetings and issue progress report
Agree procedures for testing and reporting defects.
Advise the client on appointing a contractor.
Contracted administration, during site operations and visits to inspect the quality and progress
Periodic finance and progress reports.
Issue payment certificates, including partial or final completion
In construction project, what is the project managers role?
They represent an act on behalf of the client.
Manage and coordinate different disciplines and contractors involved in the project.
Provide an independent service
In construction project, what is the quantity surveyor role?
Prepare bill of quantities
Prepare pre tender estimates
Check tenders and produce the tender report
Advise on general financial aspect of the project
Involved in any change in design (variation) during the construction phase
Measuring works carried out on site and periodically valuing material on site
Produce monthly cost report
Agree the final account
In construction projects, what is the clerk of works role?
Inspect materials and workmanship
Issue verbal instructions on site to be confirmed by a relevant designer example landscape architecture within two days
Daily diary example weather report
Provide weekly progress report
Attend site progress meetings
The eyes and ears of the wider client design team , monitoring progress, quality, ecological compliance et cetera
In construction projects, what are the main contractors roles?
Carrying out work in accordance with the contract
Proving goods, materials and workmanship
Complying with all statutory and Health and Safety requirements
Prepare and manage the programme
Coordinate work of all subcontractors and suppliers
Giving notice of delays
Provide relevant insurance and other certificates
Making good any defects
Paying wages of workers
What is the concept of Agency?
When a client appoints a landscape architect to act as their agent, for example, setting up a contract between a client and a contractor.
Extent of authority and the degree of liability is controlled by the type of agency
Every act the agent performs within their scope of authority is legally binding for the client.
What is the contract admins role under JCLI?
Same as normal - they manage the contract, issue certificates, grant extensions of time. In the JCLI contract, the landscape architect may act as the contract administrator.
What is novation?
Novation is a process whereby the contractural responsibilities of the client get transferred to a third party, usually the main contractor. Essentially, you stop working directly for the client and start working for the contractor. It can be beneficial in cost saving, but can reduce overall quality of the project due to value engineering.
What is a pay less notice?
A pay less notice can follow an interim certificate to allow the client to pay the contractor less than the amount stated on the certificate. This would generally happen due to things like less work being done, loss of materials or a lack of quality.
Is the retention fee always 5%?
It is usually 5%, with 2.5% released at practical completion and 2.5% at final completion. It can be other amounts but will always be specified in the contract.
When would you appoint a quantity surveyor and what would the advantages be?
You would appoint them on larger projects when the costings are more complex. They are trained specifically for this, whereas the more complex and larger schemes might be beyond our competency as landscape architects i.e. it goes against the Code of Practice. The advantages would be that there would be more certainty and control of the cost.
What is the difference between a variation and an instruction?
A variation is the only type of instruction that a contract admin has the power to request. Variations include things like variations to the design, quantities, the works sequence or the quality.
Other instructions include work to be postponed, the carrying out of tests and completed work to be opened up for inspection.
What is a force majeure?
This is an ‘act of god’, a freak weather event, chance occurrence like war or an act of terrorism.
This kind of event frees both parties from liability for any damage caused, or from being unable to carry out works as per the contract. It covers anything out of unreasonable control of either party.
What are valid reasons for an extension of time?
The contractor will be subject to an EoT if there have been any unforeseen circumstances out of the contractors control, such as crime, natural disaster or pandemic (force majeure). If there are significant variations which means the work will take longer to complete, valid reasons for an EoT will be set out in the contract. JCLI and JCT minor works state specific reasons for delay e.g. variations
If you are a contract admin and the clerk of works issues an instruction, what do you do?
Certain instructions can be made by the clerk of works such as testing and excluding certain people from site, but variations can only be made through the contract admin, so you should politely remind of that if they try to issue a variation. Also remind the contractor that they cannot take instructions in the form of a variation from a clerk of works.
What are some reasons for a contract to be terminated or completed?
Explain novation agreements and their relevance to landscape architects.
Novation is the transfer of the rights of one party under a contract to another. This can happen when a landscape architect initially enters into a contract within the project client and then is transferred to the contractor. This often happens in design & build contracts.
What happens if the main contractor goes bankrupt?
Legally speaking, the contractor will stop work and stop paying all sub contractors - breach of contract. The contract becomes void. The site must be made safe and secure, maintain site responsibility and health & safety and ensure that all work stops.
What are sub contractors?
An individual or organisation appointed by the main contractor, usually because they are specialised to carry out a certain job, such as someone installing green roofs, water features, or play areas.
What is a domestic subcontractor?
A subcontractor directly appointed by the main contractor. The main contractor is liable for them and responsible for paying them.
What is a nominated subcontractor?
This is a sub contractor directly appointed by the client - the main contractor has less control over their selection, but they are not liable if they cause delay to the project. The client is responsible for them and their payment.
What measures can be taken to avoid disputes?
Several measures such as:
Thorough detailed in all construction information
Regular and thorough site inspections
Following conditions of contract
What is the process of dispute resolution?
Several measures such as:
Thorough detailed in all construction information
Regular and thorough site inspections
Following conditions of contract first, amicable negotiations, then formal mediation and conciliation, escalating to arbitration and finally litigation (which is legally binding in court).
What would happen if the client failed to pay the contractor?
Legally, this is a breach of contract.
Typically the contractor would issue written notice after 7 days and suspend all works after a further 7 days.
What are some grounds for terminating a contract?
Failure to comply with CDM Regs
Failure to carry out works regularly or diligently
Corruption
Insolvency
Works suspended for 1 month or more
What are patent defects?
Defects visible during the rectification period.
What are latent defects?
Defects not detectable during rectification period - these become visible afterwards.
For example: underground car park roof starts leaking - collateral warranty means the 3rd party tried to sue, it’s not our error but that of the engineers.
If the client employs a clear of works who works with building projects regularly but wasn’t too familiar with landscape works, what would you do?
Take time to go through the drawings, specification and bill of quantities to ensure they fully understand. If appropriate show them samples of things like topsoil, plant species and perhaps some good examples of workmanship on previous projects.
What is an instruction?
A written instruction to proceed with, omit or change any aspect of works. There is a standard form that will be issued by the contract administrator within two days of them issuing a verbal instruction. Contractors then have 7 days to carry out the instruction.
What are certificates of payment that a contract admin may issue throughout a project?
Interim payment certification
Penultimate certificate
Pay less notice
Final account and final payment
What is an interim payment certificate?
Contract conditions require contract admins to certify progress payments and intervals of specified stages of the work, often around 4 weeks (this will be specified in the contract).
What is a penultimate certificate?
It is a certificate issued by the contract admin within 14 days of issuing the certificate of practical completion. It is generally priced at 97.5% of the contract sum, with half the retention money released.
What is a pay less notice?
A pay less notice can follow an interim certificate to allow the client to pay the contractor less than the amount stated on the certificate. The client needs to state the amount he intends to pay and the basis for its calculation.
What are the typical progress certificates that the contract admin may issue throughout a project?
Cert of:
Practical completion
Non completion
Making good
Partial completion
Final completion
How often should you visit the site?
As needed and as often as stated in the fee proposal / contract.
Why should you visit the site?
To control the works and agree variations
Inspect workmanship and materials
Attend valuations and progress meetings
Example: visit a site and the wrong plants have been put in - contractor asked to redo it.
What would you be looking for when undertaking a site inspection?
Quality of workmanship
Health & safety procedures followed
Everything reflects drawings and specification
Tree and ecological protection measures
Plant stock condition
What are dayworks?
When a contractor is paid for instructed work based on the cost of labour, materials and plant (plus a markup for overheads and profit). It is generally used when work cannot be valued in a normal way. For example, when there are no comparative rates in a bill of quantities and a pro rata method of pricing cannot be used, such as for unforeseen works. This method can be open to exploitation so advisable to put monitoring and control methods in place.
What factors would you consider when selecting and appointing subcontractors?
Check they are fit for the role - examine portfolio
Check QA procedures, insurance, finances
Ensure you have a written contract in place - this should mirror the one you have with your client in terms of Ts & Cs
What is the difference between a nominated and domestic sub contractor?
Domestic are selected and appointed by the main contractor included in tender. Contract admin and client have nothing to do with them. The contractor is responsible for their work and pay and the can’t claim an extension for delays caused by them.
Nominated are selected by the client or consultant, I.e. the landscape architect and appointed by the client. The client is therefore responsible for their work and pay. The main contractor can claim an extension of time for a delay caused by a nominated sub contractor.
How are progress payments calculated?
They are paid at intervals set out in the contract, often based on performance and completion of certain stages.
Value of work completed (to standard set out in contract docs)
Materials on site
Deduction of retention money
