5) Section E Flashcards
What are the key aspects of Contract Administration?
Progress reporting
Programme
Budget/Cost
Quality
Compliance
Issue resolution
Variations
Document Management
Occupation & Handover
Health & Safety
What should you be wary of when inspecting shop drawings?
Do not use terms “check”,”approve”, verify correctness etc. GREATER LIABILITY. Use Review as per NZIA recommendation.
From an architectural perspective only - do not indicate approval other than in conforming with design concept and in principle with the specification + drawings.
What might be a valid reason for an Extension of Time under 3910?
Effect of any variation
Weather
Strike, lockout or industrial action
Loss or damage to the Construction Works or Materials
Flood, volcanic or seismic events
Circumstances not reasonably foreseeable at the time of tendering and not due to contractors fault
Default by the Principal, or Persons who Principal responsible, which is not a Variation.
What is the timing for a Payment Claim under the SCC?
5 + 10
Architect issues provisional schedule: 5 working days
Principal review: 3 working days (8 working days)
Replacement schedule: 2 working days (10 working days)
Payment: 17 working days from receiving of claim
What is the timing for a Payment Claim under 3910?
7 + 12
Engineer 7 working days
Principal review: 3 working days (10 working days)
Replacement schedule: (12 working days)
Payment: 17 working days from receiving claim
What is the percentage for retentions released at practical completion under the SCC and 3910?
SCC: 40% at PC
3910: 50% at PC
What is the timing for the final payment claim under SCC?
Act and SCC no stated period for submission of final claim.
Arch issue final payment schedule: 20 working days
Principal review: +10 working days (30 working days)
Replacement Schedule: +5 working days (35 working days)
Principal pay: +10 working days (45 working days)
What must payment claims include for them to be valid under the CCA?
dentify the construction contract, construction work and period the payment relates to,
Clearly state a claimed amount and date payment is due,
Explain how the claimed amount was calculated,
State that request for payment is made under CCA,
Includes Form 1 Notice (explains process for responding to the claim, and the consequences of not responding to the claim or paying the claimed or scheduled amount in full)
How would you assess off site goods?
Inspect the materials to verify they are:
- Separated
- Identified
- Labelled
- Secure
- Of quantity claimed
What is a Provisional Sum?
A work or item monetary allowance, for carrying out specific part of the Contract Work, includes contractors expenses & margins.
Examples: Joinery supply + install
Telecommunications, data and audio visual cabling
Security system
What is a Prime Cost sum?
A material related monetary allowance, provides for purchase and supply. Does not include install. Sum includes net purchase price and allowance for contractors expenses & margin.
What is one effect of Extensions of Time?
Insurance - ensure all insurances cover the period to the new date
How long does the contractor have to claim an EoT?
SCC - 5 working days, or as soon as practicable, after the delay begins.
3910 - As soon as practicable or 20 working days after circumstances arise
Must be in writing
What might be a valid reason for an Extension of Time under SCC?
Consent or approval not obtained
Unforeseeable physical conditions
Contract Works are suspended in a way allowed under the Contract
Loss or damage to any part of the Contract Works
Variations
Weather that interferes with progress
Strike, lockout or industrial action
Arch does not give a Direction within a reasonable time after being asked by the Contractor in writing to do so,
Principal does not supply, work or services on time,
A seperate contractors act or omission,
Something else of significance beyond the Contractors control
What is the dispute resolution steps & timing under NZIA SCC (general condition 17)?
1- Refer Contract
2- Arch 10 WD from date of receipt of dispute formal written decision
3- 30 WD after arch formal decision - notice to mediation
4- 30 WD after mediation, appoint arbitrator within 15 WD
5- Arbitrators award is final and binding. Entitled to court proceedings for some items - refer contract.
What is the defects notification period under the SCC? State purpose, date, timing (general conditions section 13)
Defects and minor omissions must be fixed.
Starts date of PC
Normally 3 months.
Work can be deferred to this period.
MBIE has guidance on what constitutes a defects
Contractor pays for costs to correct defects.
How does the defects liability period end?
Contractor notifies Arch period has ended.
Arch inspects work within 5 working days after receiving notice.
Arch issue Defects Liability Certficate to Principal and copy to Contractor when:
- period ended
- deferred work and omissions complete
- defects corrected
What is considered Practical Completion under SCC?
When the Contract Works are
- able to be used for the intended purpose WITHOUT MATERIAL INCONVENIENCE
- Built generally in accordance with the contract documents
- Complete except for minor defect, omissions or deferred work
and warranties and information listed in specific conditions have been provided
What are alternative to standard retentions and rates?
Bonds
Lower rates
Flat rate
Retentions on last payments
Increase practical completion release %
When is final completion achieved?
At the end of the defect notification period once the architect has issued a Defects Liability Certificate.
What is arbitration?
Contractually agreed formal dispute resolution. Arbitrators decision is binding and enforceable by a legal court.
Normally try mediation first.
How would you assess an EOT?
Check if claim submitted in allowable timeframe
Is the basis of the claim allowable under the contract
Is sufficient evidence provided to substantiate the claim?
Is the claim fair & reasonable?
Can ask to mitigate effects after claim granted by agreement ie. more resources
What happens at the end of the defects notification period? SCC
Final completion, remaining monies released.
Contractor should submit the final payment claim.
How would you assess fluctuations under the SCC?
Check Contractor submitted basic costs and items qualify under the Contract. Statement includes:
- Materials affected
- Date of purchase
- Dare fluctuations occurred
- When materials were used in the contract works
- % of overheads as per C1
Verify by independent QS unless otherwise agreed, paid by contractor by adding 10% to the claimed amount.
5% to subcontractor for admin.
What are disadvantages of principal supply items?
Principal may order incorrectly
Additional time and input required by architect and principal
Product may not be available or may be defective
Principal has responsibility for items at all times
What are you assessing at Practical Completion?
Built generally in accordance with the contract documents
Can the Architect issue a payment claim as a Tax Invoice?
Yes, can issue Buyer Created Tax Invoices but only if both parties are GST registered
What is a Romalpa clause?
A terms of trade clause - ownership doesn’t pass into possession of the buyer until paid in full
What is the Architects role under the SCC?
Appointed by the Principal
- Represents the Principal
- Issues Directions to the Contractor
- Administers the Contract impartially
- Has no authority to relieve the Contractor obligations under the Contract
Can a contractor suspend work under the SCC Contract?
Only with relation to payment claims as per the CCA.
Who has copyright for the contract documentation under SCC?
Principal
What are the categories for shop drawing stamps?
Reviewed - work may proceed
Reviewed - work may proceed subject to comments
Reviewed - work may proceed subject to comments but revise and resubmit for record purposed
Reviewed - work may NOT proceed. Revise and resubmit.
Do drawings or spec take precedenece?
SCC = Drawings
What is the timing for an architect to respond to a contractor RFI?
3910: Within a reasonable time
SCC: The architect must not improperly withhold or delay giving any direction
Do you need an EOT request to change the end date/programme?
No, this can be changed with agreement between the client and contractor. Ensure parties are compensated if there are impacts of this that unfairly affects them.
Can the Principal do early occupation?
Yes, but suggest sectional completion or CCC with deferred works to ensure suitable for occupation.
At minimum need to do a defects inspection to ensure liability for damage is clear.
How long should you keep your records?
Min 10 years under longstop, recommend 15 years
Do architects offer “fitness for purpose”?
No, contractor does. I.e leaking room must be fixed
Architect offers reasonable duty of care.
What should you check before issuing final payment?
Client isn’t aware of any outstanding matters that require attention
All known defects have rectified
No new defects have emerged since you carried out your last inspection
the contractors have met all their obligations under the contract
