Contract Admin Flashcards
What is the role of the Employer’s Agent?
To act on behalf of the employer on all matters, unless the employer expressly states otherwise. It is important the employer allows the EA to do their role and does not interfere.
What are the Employer’s Agent’s responsibilities under the JCT D&B contract?
To receive and issue:
1. Applications
2. Consents
3. Instructions
4. Notices
5. Requests or
6. Statements
What contract would you typically see an EA?
JCT Design & Build
What are the various notices an EA would issue?
- Payment Notice.
- Pay Less Notice.
- Non-Completion Notice
- Notice of Completion of Making Good
- 2.29 Notice (withholding)
What is the Contract Administrator?
Same as the Employer’s Agent but on JCT traditional contracts (minor works, intermediate etc).
What roles does the Contract Administrator have?
Same as the Employer’s Agent.
What contracts would you typically see a Contract Administrator?
JCT Minor Works, Intermediate, Traditional etc.
What happens at Practical Completion?
- When the works are substantially complete with minor defects only.
- Employer is able to gain beneficial occupancy of the development.
- Half retention is released.
- Practical Completion Statement is issued.
- Employer surrenders the right to apply LADs.
- Employer takes back possession of the works and insurance responsibilities.
What is the Notice of Completion of Making Good?
- Design & Build Contract (Certificate of Making Good in JCT Standard).
- When the defects, shrinkages or other faults in the works the employer has required to be made good have been made good.
- Final retention is released.
What is the Notice of Completion of Making Good? Does this alter depending on which contract is used?
- JCT D&B = Notice of Completion of Making Good.
- JCT Traditional = Certificate of Making Good.
What are the payment timescales within JCT suite of contracts?
- IVD = 1 month after DoP.
- Due Date = 7 days after IVD.
- Payment Notice = 5 days after Due Date.
- FDFP = 14 days after Due Date.
- Pay Less = 5 days before the final payment is due.
What are the final account timescales in Design & Build?
- Following PC statement issue, the contractor is to submit the final statement to the employer within 3 months.
- If not, the employer gives notice of another 2 months to provide the final statement.
- If still not received, the employer will issue their final statement ‘the relevant statement’.
- Due Date for final payment will be the later of 1) rectification period 2) Notice of Completion of MG or 3) date of submission of final statement. 1 month after the relevant item.
What are the final account timescales in JCT Intermediate contracts?
- Following PC statement issue, the contractor is to submit the final statement to the employer within 6 months.
- If not, the employer gives notice of another 1 months to provide the final statement.
- Contract Administrator has 3 months to complete final account.
- If still not received, the employer will issue their final statement ‘the relevant statement’.
- Due Date for final payment will be the later of 1) rectification period 2) Notice of Completion of MG or 3) date of submission of final statement. 28 days after the relevant item.
What are the final account timescales in JCT Minor Works?
- Following PC statement issue, the contractor is to submit the final statement to the employer within 3 months (stated in the Contract Particulars so can be amended).
- Due Date for final payment will be the later of 1) Notice of Completion of MG or 2) date of submission of final statement. 28 days after the relevant item.
What are liquidated damages?
A genuine pre-estimate of likely loss incurred by the employer should the completion date not be met.
If a client asked you to recommend a suitable LAD value, how would you respond?
I would request the client checks the LADs value are based on a genuine pre-estimate of likely loss and advise that this value is specific to the business and therefore I can not advise.
What needs to be in place before LADs can be deducted?
- A non-completion certificate / notice.
- A withholding notice (2.29 notice).
What are the JCT unamended rectification periods?
- JCT D&B = 6 months.
- JCT Minor Works = 3 months.
- JCT Intermediate = 6 months.
- JCT Standard = 6 months.
What must a construction contract include?
- Offer – a promise to enter into a contract on specific terms.
- Acceptance – offeree must accept the offer.
- Consideration – something of value must be exchanged.
What is the difference between JCT and NEC suite of contracts?
JCT
‘Lawyer language’
Contract Amendments
Contract Administrator/EA
Final Account
Construction and Building Works
Variations / Loss & Expense
No programme included
NEC
Concise and written in plain English
Optional clauses
Project Manager
Rolling Final Account
Engineering, Construction & Building Works
Compensation Events
Programme included
What is the difference between JCT and FIDIC?
FIDIC is primarily an engineering contract, with the engineer taking the role of the CA/EA.
What are FIDIC contracts?
Stands for ‘International Federation of Engineers’. A standard form of international construction contract that are used in many jurisdictions and on all types of projects, mainly engineering and building works of relatively small value or small programme period.
What certificates could you issue under D&B?
No certificates issued under D&B. That is for JCT Traditional contracts.
Under D&B, the following would be issued as notices:
1. Payment notice.
2. Non completion notice.
3. Pay less notice.
4. Notice of completion of making good.
What is the process of issuing an EAI on D&B projects?
- Contractor or EA notifies the party of the change.
- The EA issues a Change Request Form.
- Contractor responds within 14 days.
- EA issues an instruction within 7 days.
- Contractor can respond within 7 days if not complying with instruction.
