Contract Admin Flashcards
What is the role of CA?
The role of a CA is to impartially administer the contract between the employer and the contractor.
What are the key tasks of a CA
Documentation
*Ensuring that project documentation is issued to the client.
Tender
*Inviting and processing tenders.
Contract Documents
*Preparing contract documents for execution.
Meetings & Report
Chairing construction progress meetings &Preparing and issuing construction progress reports (Meeting Minutes)
Instructions
*Issuing instructions such as variations, or relating to prime cost sums or making good defects.
Certificates
*Issuing certificates of practical completion, interim certificates, certificate of making good
Defects
defects and Final certificate.
What types of procurement route are you aware of?
- Single stage tendering
- Two stage tendering
- Design and build
- Framework agreements
What is the difference between a CA and an EA?
Employers agent is the role undertaken under design & Building contract .CA is traditionally procured contract.
CA = identified within the contract and is solely responsible for administering the contract for the employer. Role technically starts when the contact is signed.
EA = identified within the contract however acts on behalf of the employer in all matters.
What is required to have a contract?
- Offer
- Acceptance
- Consideration
- Intention
- Time
- capability
What are the parts of the contract?
*Agreement
The ‘articles of agreement’ setting out the core obligations/details of the parties involved
*Recitals
Recitals contextualize the agreement,
giving factual explanations for the basis of the contract.
recitals describe what is required and the events that have taken place.
*Articles
These set out what is agreed between the parties.
*Contract Particulars
This section sets out the aspects of the contract that are particular to the project to which the contract relates.
*Attestation
Act of signing &/or witnessing a legal document (Contract agreement / Execution) to formally execute the document
Under hand - disputes must proceed to court within 6 years
As a deed - disputes must proceed to court within 12 years
What are the difference between Minor Works and Intermediate contracts?
- More detailed procedures
- Relevant Events defined
- Collateral warranties
- Named sub-contractors
- Early possession
- Sectional completion
- Advance payment
- Bill of quantities
What can you tell me about Professional Indemnity insurance and JCT Minor Works?
As regards contractor’s professional indemnity insurance under MWD it has not been felt necessary to include such insurance in the published form because of the relatively low risks anticipated in respect of design under such a contract.
what if the contractor did not complete on time? What could you issue?
I could issue a Certificate of Non-Completion
Explain your process in completing the valuations?
I time the progress inspection with the interim valuation date. Therefore, the contractor provides me with their valuation in advance of the meeting.
Whilst on site I review the progress through visual inspection against the contractors valuation.
Where necessary I discuss costs with the contractor and request that they correct any inaccuracies.
What are the timescales for payment and what is it governed by?
The Housing Grants, Construction and Regeneration Act 1996 intended to ensure payments are made promptly throughout the supply chain and disputes are resolved swiftly.
Sets minimum requirements relating to adjudication and payment.
- The amount of each payment is based on the value of the work and other costs to which the contractor is entitled during the payment interval.
- 28 day payment cycles
- payment is due 7 days after each 28 day period (or 7 days after the contractor’s claim for payment if later).
- The paying party must give notice within 5 days of the due date, specifying the amount proposed to be paid and the basis on which it is calculated.
what do you do if the contractor doesn’t issue a interim valuation?
Irrespective of whether an interim application is submitted, I must carry out the valuation myself and issue a payment certificate no later that 5 days after the due date.
what is the due date on a payment certificate?
the due date falls 7 days after the interim valuation date or as per the contract
What do you need to issue if you don’t agree with the valuation?
A pay less notice.
what information is on a payment cert?
- Employer and Contract details,
- Site Address,
- description of the work,
- contract date
- contract sum
- valuation date
- issue date
- instalment no.
- gross valuation
- less amount previously certified
- less retention
- payment sum not due
how do you review contractor valuation?
I assess the application against the works carried out on site to date.
What happens once practical completion is served?
- Issued Penultimate Payment Certificate
- Release half the retention
- Contractor’s insurance period ceases and liability falls on employer.
- Employer can no longer claim liquidated damages.
- Rectification period commences.
What is the purpose of retention?
Protect both the employer and contractor..
The purpose of retention is to ensure that the contractor properly completes the activities required of them under the contract.
And ensures they return at the end of the defects period to repair any Latent defects.
how long is the rectification period? Why choose that length?
12 months this allows for any settlement due to seasonal changes.
difference between patent and latent defects?
Patent defects - visible or apparent defects.
Latent defects - defects caused by failure of design, workmanship or materials, which may not become apparent until many years after completion.
A defect which is not immediately apparent. Can be rectified under negligence claim under Defective Premises Act 1972. The time bar for which is set under the Limitations Act 1980.
whose responsibility is it to identify all defects?
The CA should identify defects following a final inspection. however, the contractor is ultimately responsible for ensuring all defects are identified and rectified.
What is a relevant event?
A relevant event is an event that is beyond the contractors control and cause either:
by the employer or their representatives (such as variations, deferment of site possession or inaccurate contract docs) or
a neutral even (such as civil commotion, terrorism, fire, storm, explosion etc.).
What is a relevant matter?
A relevant matter is a matter for which the client is responsible for that materially affects the progress of the works e.g.:
• Variations
• Failure to give the contractor possession of the site
• Failure to give the contractor access and egress from the site
• Delays in receiving instructions
• Discrepancies in the contract documents
• Disruption cause by works being carried out by client
• Instructions relating to variations and expenditure of provisional sums
• Issues relating to CDM
What’s the difference between a relevant event and a relevant matter?
A relevant event is an event that is beyond the contractors control and cause either by the employer or their representatives (such as variations, deferment of site possession or inaccurate contract docs) or a neutral event (such as civil commotion, terrorism). Relevant events entitle a contractor to claim an extension of time.
A relevant matter is a matter for which the client is responsible that materially effects the progress of the works (such as variations, failure to give possession or access, delay in instructions). This enables the contractor to claim loss and or expense that has been incurred.