Contract Admin Flashcards
Warley Hill, Office refurb
What was the risk of the work proceeding before you had agreed the price to your client?
By proceeding without a cost, it presented a risk of the client being a higher rate. The client would have been able to reject the works if the contractor had provided a price for them beofer hand that was unreasonable. By instructing the works without a price, the contractor has more control over the negotiation.
Warley Hill, Office refurb
How did you quantify the risk of proceeding wihtout costs?
The main risk was the client was going to be overcharged for the works, this needed to be compared against the benefit of completing the works while the scaffold was up, potential prolongation costs and complaints from residents. To quantify I explained that the risk of being over charged was relatively low as some similar items had already been included in the tender by the contractor. Meaning they could be used as a SoR. The cost of potential prolongation costs was greater than the potential for being over charged.
Warley Hill, Office refurb
What advice did you give to your client about the risk of completing works without confirming the costs?
I advised the client that completing the works while scaffold was erected for the roof and windows presented a greater economy of scale than the risk of being over charged presented. I also removed any mainteance works identfied that did not require a scaffold to be completed. Further reducing the risk of being overcharged.
Warley Hill, Office refurb
Why could the works not be priced beofre the works were started?
The works could have been priced before they were started, but this could have caused for the scaffold to be erected for longer than originally programmed. Presenting a risk of an extension of time claim to the client. The client also wanted to avoid complaints from residents. I explained the risk of proceeding without prices, but the client wished to proceed to avoid the EOT and resident complaints.
Warley Hill, Office refurb?
What records did you or the contractor keep of the variations?
The initial variations were instructed and quantified from a condition report carried out from the scaffold. The areas and quantities were recorded on drawings. I was able to check the quantities of works completed during my site inspections, I then recorded them in my site inspection reports. This allowed me to be sure my client was paying the correct amount for works received.
Wigston Close, Structural works
Were the instructions from the client relevant events or relevant matters?
The client requested that the works were instructed 1 week from the completion of the programme. The works were not of a similar nature as those already included within the programme. As this was a late instruction that the contractor could not have accounted for the works in their programme. This a relevant event of a late instruction from the contractor.
Wigston Close, Structural works
How long did the contract extension need to be to contractually require an additional interim payment?
The Housing Grant, Construction and Regenergation act entitles contractors for interim payments if a project exceeds 45 days. The interim agreement in the contract was montly. The extension of time took the works past the original completion date and the next interim certificate date.
Wigston Close, Structual works
Why if the contractor would have had to price for the additional works would he had been able to claim loss and expense?
The late instruction fo the worsk were a relevant event under the contract. This entitles the contractor to additional loss and expense that they may have encountered. In this case the prolongation costs of the contract included primarily of site management and security.
Wigston Close, Structural works
Did you discuss the possibility of the additional work with the contractor?
I had discussed the additional works with the contractor at the beginning of the programme. Including suggesting the cotnractor should price them to the client. However, the additional work items nto caused by the car impact and therefore were not part of the insurance claim. The client was adamanet they did not want the works to be completed in conjunction wtih other worsk until very late in the programme.
Talk me through your experience of assessing and recommending entitlement for extension of time?
I recently assessed a contractors extension of time claim for a delay of over 2 months. The contractor claimed that all of the instructions/variations issued over the contract had caused delay. I reviewed the instructions he referred to against the programmes he issued and the records of works he provided. I categorised the instructions into ones that I would provide EOT’s and those that I would not. I then asked for the extension/delay to be quantified against each of the varitations.
How have you advised a contractor on their contractual obligations?
During my case study project, the contractor installed doors that were not FD30S door sets. I advised that under the contract and the M&W documentation that they were required to install FD30S door sets.
How have you advised a client on their contractural obligations?
On SBHG, the client had been witholding payment of certificates as they did did not have proof of 100% completion of properties. I advised, that the contractor is entitled to monthly payments under the contract and if the client witheld payment they would be obliged to pay interest on the payments and the contractor could suspend works.
How have you outlined and recommended to a client the proposed contract preliminaries?
I have developed and proposed contract preliminaries using the NBS software. I will then present them to the client for review. I have specifically adivsed on a rate of liquidated damages for a door replacement programme in a peoples home. I advised that the rate should be equivalent to the weekly rent of a room not being occupied.
How have you assessed the quantum of a contractors claim?
I have assessed a contractors claim for additional preliminaries on a window programme by asking them to break down the cost. They provided time spent. From my review it determined that they had been allocated more time to management roles than that had been spent. I asked them to provide time sheets to prove their time or I woudl reduce their claim.
What are the contractual provisions in the JCT MW for extension of time?
Clause 2.8 is related to EOT
If works going to be delayed Contractor shall notify CA
If beyond contractors control i.e. variations, or not a deafult of contractor CA shall award appropriate EOT
If EOT gratned EOT cert shall be issued and all parties should be notified accordingly.
If deafult of contractor, suppliers or materials for works the contractor will not be granted EOT.
What are liquidated damages?
This is the calculated loss that the employer will incur if the project is delayed beyond the contract completed date. This may be things such as rent or lack of occupation costs.
Why are liquidated damages determined during the procurement stage of a project?
This allows the contractor to determine the risk of the project overunning to their projects and determine the duration of the project appropriately.
Why are a contractors loss and expense rates not determined at procurement stage?
They are more wide ranging, depends at the stage of the project delay and harder to determine
What are the methods can be used to analyse delays to a project?
Overview of the facts
Comparing actual and planned progress
Critical path analysis
Focused method analysis
Wigston Close, Structrural works
What method of EOT assessment did you use?
Overview of the facts
The delay was related to a late submission of variations from the client
Simple and straightforward analysis of time required to complete decorations.
Where could you find guidance on EOT in constructino projects?
RICS Professional Guidance Note
Extension of time Nov 2014
What is the role of the contract administrator?
A professional appointed by the employer to admiister the contract between the employer and the contractor.
What are the responsibilities of the contract administrtor?
Chairing meeting, Inspecting works, giving instructions, variations or change orders, determining applications for extension of time, authorising payment to the contractor, certifying the date of completion, settling the adjusted contract sum
What were building regulations relevant to the change of use at Caulfield Court?
A-Lintel to new bathroom door - structural engineer
B-Front door and filled entrance doorway - fd30s
E-Installation of suspended ceiling - 42db airbourne 60 db impact
F- Extractor Fans - 60l/s
G- All water fittings
J-Boiler self certfied
L-Insulation
M-Width of doorways 900mm clear opening
P-Electrical safety self certified
Caulfield Court
Why were the provisions within the contract not suitable for sealing up the doorway?
Removal of ceiling revealed raised ceiling level
Blockwork quantities did not account for the raised ceiling
Plasterboard partition above ceiling level needed to be blocked up to maintain 60min fire resistance
Caulfield Court,
How did you instruct the additional works required to seal up the door way at Caulfield Court?
Omitted existing works
Add in costs and works related to the more comprehensive sealing required
What are the provsions within the JCT MW for interim payments and certifactes?
Clause 4.3
Due date is 7 days after interim valuation date
Certificate within 5 days of the due date
Final date for payment is 14 days from its due date
Wigston Close, Structural works
Why did you not identify the decoration works as part of your original scope of works?
The works of the project were related to the rebuilding of the structure of the building after car impact. Before works began, the client instructed a demolition asbestos survey to be completed, which damaged the entire property. The decoration works identified were not able to be claimed for from the insurance policy and the client made the decision late in the project to include them.
What is a relevant event?
Reasons why a completion date of a project may be adjusted under JCT forms of contract.
Can you please give examples of relevant events.
Varitaions
Instructions
Suspension
Deferment of possion of the site
Suspension
Works by staturoty undertakers
Exceptionally adverse weather
Terrorism
Civil Commotion
What is the difference bteween a JCT Intermediate and Minor works contract?
MW - up to £250,000 , IM - up to £1mil
MW used for simple works, IM more complicated and potential named subcontractor/ specialist works
Both require client specification and drawings, IM will often include a bill of quantities as well
IM includes provisions for collabortive working, advanced payment, bonds and collateral warranties
Warley Hill, Office refurb
Why did the variation works not have prices before they began?
Client requested a reduction in works due to budget and to complete external works while scaffold was erected
Prices could not be agreed before works were completed as project had already begun and there was a risk of going past the completion date.
There were no relevant items in the orignial schedule to develop costs
Where can you find guidance on negotating a final account?
RICS Professional Guidance Note
Final Account procedures 2015
Which type of contracts are you aware of and have you worked with?
JCT Intermediate with or without CDP
JCT MW with or without CDP
JCT Dseign and build
JCT MTC
Which JCT contracts are you most familiar with?
JCT Minor works with CDP
JCT MTC
What are the limitations of the JCT MW?
No relevant matters or events listed
Clauses are wooly and collaborative which is fine if nothing goes wrong
The project should last no more than 12 months
Work is designed by or on behalf of employer
NO CNC, contract left wanting
What alternative form of contract would you consider and what factors would make the alternative more suitable?
The JCT, intermediate form of contract.
This contrac type is more detailed and has more extensive control procedures than the Minor Works Building Contract, but it is less detailed than the Standard Building Contract. It can be appropraite for projects that are procured via both the traditional or procurment route and can be used by both private and public employees.
