Contract Admin Flashcards
What are the duties of a contract administrator?
Role under JCT - traditional contracts - responsible for administering the contract & offering advice to client on instructions, claims, design, progress etc.
Who undertakes a Contract administration role under NEC forms?
Project Manager.
What current challenges is Covid and/or Brexit bringing to Contract Administration?
Forecasting risks & progress during Covid.
Brexit material impacts.
How covid is dealt with in contract - for delay and monetary claims.
Force majeure & fluctuations consideration.
Labour resources
What is nomination?
Selection of a particular subcontractor to carry out works, manufacture or supply of materials.
This provides the client with greater control of material choice and thereby quality.
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.
What is the difference between Novation and Assignment?
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.
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.
I would clarify with the client whether they wanted to pay for them or not.
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 the difference between NEC and JCT?
NEC can be used within the building & civil engineering projects whereas JCT is specifically for building projects.
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?
The limitation period of under hand is 6 years whereas a deed is 12 years.
A Deed is signed by a witness & traditionally authenticated by a seal.
What is the defects liability period?
The defects liability period is the duration at the end of the contract, usually 52 weeks, whereby the contractor undertakes to rectify any defects.
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.
If the works or materials are not in accordance with the Contract what options does the Architect have available to them?
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.
What if the actual work does not closely resemble the provisional
sum?
If the description is not accurate it has to be amended.
This will be treated as a variation.
This will entitle the contractor to an extension of time and extra preliminaries if appropriate.
What are the main suites of construction contracts?
JCT.
NEC 3 & 4.
ECC.
ICE.
FIDIC.
What does ‘JCT’ stand for?
Joint Contracts Tribunal.
What does NEC stand for?
New Engineering Contract.
What does ECC stand for?
Engineering and Construction Contract.
What does FIDIC stand for?
International Federation of Consulting Engineers.
What does ICE stand for?
Institution of Civil Engineers.