Contract Admin Flashcards
What is required to form a contract?
In a traditional standard form building contract it is formed from the
- RECITALS, which provides greater context.
- ARTICLES, which set what is agreed e.g contract sum
- CONTRACT PARTICULARS, which schedules all the variables in the agreement
- WITNESSED, in the attestation by deed or under hand
- Supporting documents e.g. drawings, schedules of works/specifications and insurance
What is the most recent guidance note on CA?
Contract Administration 1st Edition 2011
Also use Tendering Strategies 1st Edition 2014
What is the role of a Contract Administrator?
Responsible for administering the terms of the building contract between the employer and the contractor to ensure the CORRECT CONTRACTURAL PROCEDURES & ADMIN PRACTICES ARE FOLLOWED.
What are the two key functions of a CA noted in the RICS guidance?
- Agency function - acting as an employers agent
2. Decision making function - professional expertise to make impartial decisions based on the contract terms
What are some of the roles and responsibilities of a CA?
- compile contract correctly
- periodic inspections
- issuing interim payment certificates
- contract instructions
- practical completion
- extensions of time
- final payment certificates
What are the differences between under hand and deed?
- Deed is legally binding vs simple must have the promise supported by a consideration e.g. work for money
- Facts in a deed cannot be denied
- Lender limitation Act 1980 s5 - action for breach of contract under a simple contract cannot be commenced later than 6 years after breach
- Deed period is 12 years - periods start from date of breach
Practical completion is generally the agreed defined breach as it was last chance to correct.
What do you know about the payment procedure of a typical contract e.g. intermediate?
- I usually agree the interim payment/valuation date prior to start.
- I request an intern application (valuation) prior to the interim valuation date from the contractor.
- I then go to site with the interim application and produce my valuation 7 days before the due date.
- I then issue the interim certificate on the due date (I have 5 days from the due date but I try and issue as close to the due date as possible to give my client as long to pay as possible)
- The contractor then raises the invoice - employer has 14 days to pay from the due date to pay
What is the legislation that relates to the interim valuations and payment process?
- Housing Grants, construction and regeneration Act 1996
- dictates that if the contract period is over 45 days, the contract should include provision for interim payments with an adequate mechanism in place and will not be withheld unless effective notice has been given. - Local democracy, economic development and construction act 2009
- this made significant changes to the payment provision within contracts and made a number changes. Such as payment notices must be issued within 5 days of the due date.
What are the roles of an employer in a contract?
Perform EXPRESS duties within the contact such as
- appoint suitable professionals
- give possession
- to pay under payment terms of contract
- CDM duties carried out
IMPLIED duties
- generally to cooperate and do anything to prevent the other from performing there side of the contract
Common for employers role to be delegated to a project manager, CA or principle designer
What is the role of a contractor in a contract?
Primary role is to carry out and complete the works.
Obligated to serve notice for a range of matters e.g. errors or discrepancies in docs, delays, amend construction phase plan
- duty to warn employer of design defects
- duty to comply with architects instructions
- duty to indemnify employer e.g. building damage or personal injury
- IMPLIED to comply with building regulations and the like e.g. acts of parliament
If they fail to do this they are not entitled to payment possibly replay money
What is the role of architect in a contract?
Traditionally the leader of the design team - can be informal or formal definition is fixed in the RIBA standard form of agreement.
Duties: Grant extension of time, issue instructions, issue PC certificate, final certificate, variations to contract sim, provide drawings, carry out regular inspections.
Certification duties: practical completion, certificate of making good, interim and final certificates
Must issue to both employer and contractor.
