CONTRACT ADMIN

Question 1

Contingency sum

Answer 1

A sum of money included in a construction contract sum for expenditure on matters unforeseen at the time of calculating the contract sum

Question 2

Client’s responsibilities

Answer 2

• Make the site available
• Pay the contractor
• abide by the decisions of the superintendent or the administrator

Question 3

Certificates - timing

Answer 3

• Don’t issue a certificate before its due

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Question 4

Security

Answer 4

Security that the works will be properly completed and that work can be completed if the builder refuses to do so.

• Bank guarantee (preferred) or cash retention
• Do not have expiry dates on unconditional bank guarantees
• Released

Question 5

Time in contracts

Answer 5

• Time Bar Clauses
• The float
• Delays and Damages
• quantifying losses due to delay

Question 6

Liquidated damages

Answer 6

A pre-estimate of loss genuinely made before the cause of damages arises.

Question 7

Completion

Answer 7

Practical completion is when the works become reasonably fit for occupation and/or use
Final completion when the works have been completed in accordance with the contract. Final certificate issued at this point.

Question 8

Defects

Answer 8

Defects liability period _ architect must act during this period to ensure builder is notified to make good defects.

Question 9

Retention sum/fund

Answer 9

A form of security- The owner retains part of each progress payment until it reaches a maximum.
Half released at practical completion and the other at final.

Question 10

Insurances (builder)

Answer 10

• General Insurance of the works
• Public liability
• workers compensation

Always ask for evidence and note dates of currency.