Contract Admin Flashcards
What is nomination?
Selection of a particular subcontractor to carry out works, manufacture or supply of materials.
This provides the architect and client with greater control of material choice and thereby quality.
It is often used when there are long lead-in times with the employer placing orders prior to the Main Contract award which reduces potential delays on site.
The Main Contractor is relieved of liability of design and compliance with the performance spec in addition to subcontractor delays in respect of the works that have been nominated.
Do nominated subcontractors get paid separately?
Nominated Contractors are normally paid via the Main Contract with sums identified separately.
Can the contractor object to a nominated subcontractor?
Any objections must be made during the tender period.
There are specific exclusions and grounds for an objection for example if they have found out the subcontractor is having financial difficulties and may be going insolvent.
If there are problems with the design, after Novation of the architect, who would be responsible?
At the point of novation, the client would agree the level of design was satisfactory & would be signed off by all parties.
The contractor would then become responsible for the Architect & his design should any problems arise during construction.
Disputes may arise where it becomes unclear when problems have arisen, either prior to the transfer of services or afterwards.
What is the difference between Novation and Assignment?
Novation is a mechanism whereby one party can transfer all its obligations under a contract and all benefits arising from that contract to a third party.
Assignment is where contractual benefits are assigned however contractual burdens cannot be transferred under assignment.
What is set-off?
Set off are any monies owed to the employer by the contractor which are deducted against any payments due to the contractor.
Describe differences between Statutory Provisions and Contract Provisions?
Statutory provisions are set out by law & must be complied with.
Contract provisions relate to the contract in question & therefore only apply to a specific project.
What are domestic subcontractors?
This is a standard appointment of a Subcontractor by the Main Contractor.
What are named subcontractors?
Clients provide the Main Contractor with a choice of named Sub Contractors for a portion of the works.
Once appointed they become a domestic subcontractor in terms of the conditions of contract.
Additional names may be added if approved by all parties.
This allows the client a level of control over the quality of the works packages and in some cases cost.
After valuation and certificate are issued, the client advised that they don’t have sufficient funding to make the payment. What would you do?
Once the certificate has been issued to the contractor, the client is contractually obliged to honour payment of the certificate and cannot withhold money without a valid reason.
If this were the case, I would contact the client and contractor ASAP to arrange some form of payment. It may be the case that the client has insufficient funds available in time for the final date for payment and it may be possible to defer payment by 1-2 days.
Failing this or if the contractor is unwilling to delay the payment, the client would need to find finance the payment through other funds to honour the certificate.
What items do you include for on a valuation?
Items would include:
1) Prelims.
2) Measured Works.
3) Materials on / off site.
4) Variations.
5) Claims.
6) Retention.
7) Previous payments.
If an instruction was issued during the contract which involved the fabrication of a substantial amount of materials off site would you pay for them as off site materials within the valuation?
There is no obligation on the client to pay for materials off site if this is not identified in the contract.
However in the scenario where the client wishes to pay for them, I would ultimately check with the client before paying or rejecting them.
How would you deal with the urgent Verbal Instructions?
If the instruction affects the critical path or programme in general I would review the instruction with the contractor administrator, client & contractor.
If the instruction is valid under the contract I would ensure this is converted into a formal written instruction as soon as possible.
What documents would be required in incorporating a Contractor Design Portion Supplement into a project?
Within a Design & Build project, the documentation to be included would be the Employers Requirements including the Scope, Specification, Drawings, Contractors Proposals along with any insurances.
Could an e-mail constitute a contract document?
Yes providing there is offer, acceptance, intention to create legal relations and the responding email does not vary the conditions, a contract will be created.
What is your opinion of Oral Contracts?
Whilst they are legally binding the difficulty lies in proving the specific terms and conditions of the agreement.
It is for this reason why the HGCRA only applies to written contracts.
What is the difference between NEC and JCT?
The main difference between the 2 forms is its usage.
NEC can be used within the building & civil engineering projects whereas JCT is specifically for building projects.
NEC can be adopted to a number of bespoke contract strategies due to the various options available whereas JCT has a standard set of clauses.
What is the difference between an information requirement schedule & an information release schedule?
The information required schedule asks the Contractor to provide dates when design information is required.
The information release schedule informs the Contractor when the design information will be available.
What is Frustration?
Frustration occurs when any event or circumstances beyond control of both parties changes the contractual obligations or makes it impossible or illegal to fulfil their contractual obligations. The happening of such events automatically discharges contract.
How is a contract under hand different from a deed?
A Deed is signed by a witness & traditionally authenticated by a seal.
The limitation period of under hand is 6 years whereas a deed is 12 years.
What is the defects liability period?
The defects liability period is the duration at the end of the contract, usually 52 weeks after the Substantial Completion Certificate has been issued whereby the contractor undertakes to rectify any defects that arise within the structure at the contractors expense, providing they were due to materials & workmanship not being in accordance with the contract.
In the event that the contractor failed to rectify any defects the employer may employ another contractor to carry out the works & recover the cost of doing so from the Main Contractor.
The retention money retained may be used to cover the costs of making good.
What is your understanding of latent defects and what contractual issues are associated with them?
Latent defects are defects which are not readily identifiable upon inspection & only come to fruition some time after building completion and may take many years to become identifiable.
A claim in contract can only be brought about within the limitation period of the contract, 6 or 12 years depending on whether the contract was executed as a deed or underhand.
What should the architect do if they are discovered?
The Architect should issue an instruction as necessary to instruct the contractor what to do if they are identified.
This can include telling them to comply with a third party who is examining or opening up the works to identify the defect.
If the works or materials are not in accordance with the Contract what options does the Architect have available to them?
The architect may:-
Instruct the contractor to remove all defective work, materials and goods at their own expense and time.
They can notify in writing that they can remain with an appropriate deduction being made from the contract sum.
Issue instructions for variations that are necessary as a result of the work. If they are necessary there should be no additional costs or extension of time given.
Instruct the contractor to open up and test further work to determine the extent of any non- compliance.
When issuing instructions for further opening up and testing to determine the extent of non-compliance what sort of things should the architect consider?
The significance of the non-compliance.
Consequences of further non-compliance on building owners and users.
Consequences of further non-compliance on adjoining properties and the public.
Reason for the non-compliance.
Level of supervision and control employed by the contractor.
Currently recognised testing methods.
Time and consequential costs of further opening up.
What is a provisional sum?
A sum of money included in the contract for work that cannot be fully designed and costed at the time of tender or contract sum agreement.
What types of provisional sum are there?
Defined and undefined
What is a defined provisional sum?
A sum included in the contract for work that has not been completely designed at the time of contract sum agreement but for which certain specified information can be given about the extent of works, its quantity, duration of installation and how it is to be fixed to the building.
