Contract Admin SoE Q's Flashcards
What are the key responsibilities of a contract administrator under a JCT contract?
Role of the CA is to administer the contract.
They are also required to review valuations and issues the necessary certificates, review EoT claims, issue completion, non completion, sectional completion certificates.
What are the key responsibilities of a contract administrator under a JCT contract?
Individual responsible for administering the construction contract
Contract administrator has to act honestly and reasonably and decisions are open to dispute under dispute resolution procedure
Issue instructions/variations
Certifies sums due
Assesses delays and grants time and cost relief
Issues extensions of time which it considers fair and reasonable
Issue payment certificates
What are the timescales under the NEC contract?
Notification of Compensation Event – within 8 weeks of becoming aware of the event
Quotation – within three weeks of request
Reply to quotation – within two weeks of receiving quotation
What are collateral warranties in Construction?
A formal contractual agreement which runs alongside another contractual agreement to create a contractual relationship between two parties where one would not otherwise exist
Can you provide an example of how a collateral warranty could be used?
An employer may wish to have a direct contractual relationship with a certain subcontractor so that it can enforce the obligations of the contract, as a security measure if the contractor becomes insolvent or the main contract is terminated
Typically seen on D&B contracts.
What is the Contracts (Rights of Third Parties) Act 1999?
Allows parties who are not a party to the contract to enforce certain terms as if they were a party to the contract
Must be named in the contract
How does the role of a CA differ to that of an EA?
The roles are very similar, main differences being they are used on differing forms of contract.
They both administer the contract, but the EA performs all duties an employer usually would.
A CA is impartial.
Can you name some of the different forms of JCT?
JCT D&B
JCT Intermediate
JCT Standard Building Contract
JCT Minor Works
JCT Major Works
JCT Management Contract
JCT Construction Management Contract
Are you able to name some of the different forms of NEC?
- Option A Priced Contract with Activity Schedule
- Option B Priced Contract with Bill of Quantities
- Option C Target Cost with Activity Schedule
- Option D Target Cost with Bill of Quantities
- Option E Cost Reimbursable Contract
- Option F Management Contract
Can you name any contract alternatives to JCT and NEC?
FIDIC (International Federation of Consulting Engineers)
ICE (Institution of Civil Engineers)
Can you name some contractual mechanisms under the JCT contracts?
- Loss and Expense (Relevant Matter)
- Extension of Time (Relevant Event)
- Payment
- Instructions
- Practical Completion
When is a contractor able to claim for loss and expense?
A contractor is able to claim loss and expense when there has been a material change on the project that is of fault of the employer. The aim is to put the contractor back in the same position had the material change not have occurred.
What are the time periods associated with a loss and expense claim?
28 days from initial assessment and information, CA/QS issue ascertainment of L&E incurred. 14 days thereafter for each update
What is a relevant matter?
A relevant matter gives rise to a loss and expense claim. This is due to a material change on a project.
Some examples may include lack of deferment of the site, instructions.
What is a relevant event?
A relevant event gives rise to an extension of time. This extends the completion date of the project and means that liquidated damages are levied for the period.
What are the time periods associated with an extension of time?
Typically 12 weeks.
Can you elaborate on the JCT timeline for payment?
Typical JCT Timeline is 21 days, but can be changed through contract amendments
The contractor makes his application by the interim val date.
7 days following the interim date is the due date
5 days after the due date is the date the payment certificate is due
14 days following the due date is the final date for payment
5 days before the final date for payment is when the pay less notice would be due
Do you understand how project variations are dealt with under NEC and how this differs to JCT?
Under NEC, time and cost are dealt with together, under a compensation event.
What is a performance bond?
A performance bond is a type of surety that the client requests from a contractor for default on their contractual obligations.
Typically 10% of the contract value.
May be seen more frequently in a poor economic climate.
What is a parent company guarantee and how does this differ to a performance bond?
A PCG is a form of surety that is provided by a parent company to one of their companies beneath them.
What are the heads of claim for loss and expense?
Disruption
Prolongation
Finance Charges
Loss of Profit
Increase cost of materials
What is ‘Sectional Completion’ and its impact in term of costs?
Sectional completion is stipulated within the contract particulars, with the dates for sectional completion highlighted. The parts of the works must be complete by the stated dates otherwise the client has the ability to claim LD’s.
In terms of cost, if the works are complete by the given date, then half retention for that area of the site will be released. Liquidated damages will also be reduced proportionally.
If the works are not complete by the stipulated dates, a non-completion certificate will be issued, and LD’s can be claimed.
What is ‘on-demand bond’ and ‘conditional bond’?
An on demand bond is one which the client can claim on automatically, without having to prove that the contractor has defaulted on their contractual obligations.
How did you assess if variations were valid under the Contract?
I reviewed the information provided by the contractor and determined if they were a relevant event or relevant matter under the contract.
