Contract Administration Flashcards
What happens at PC (Practical Completion)?
Practical completion signifies the date the project is handed over to the client, and has the effect of:
• Releasing half the retention.
• Ending contractors liability for LD (liquidated damages).
• Signifies beginning of DLP (defects liability period) now knows as rectification period in JCT.
What are liquidated damages?
Damages which become payable to the client in the event that their is a breach in Contract by the Contractor (generally failing to complete works on time).
What is the difference between Minor works and Intermediate Contract?
The JCT Minor Works Building Contract is designed for smaller, basic construction projects where the work is of a simple nature. The intermediate building contract is used when the need for detailed contract provisions are needed, such as:
- Provisions to cover named specialists
- Sectional completion
- Advanced payment bonds
- Bill of quantities
- Collaborative working
What is a relevant matter?
A relevant matter is a matter for which the client is responsible for, that materially affects the progress of the works. This may enable the contractor to claim direct loss and / or expense that has been incurred.
What is a relevant event?
A relevant event may be caused by the client, or may be a neutral event such as exceptionally adverse weather. OR:
• Contract Variations
• Failure to provide information
• Delay on the part of a nominated sub-contractor.
• Delay in giving the contractor possession of the site.
• Force majeure (events that are beyond the reasonable control of a party, such as a war or an epidemic).
• Loss from a specified peril such as flood.
• The supply of materials and goods by the client.
What is an extension of time?
When it becomes reasonably apparent that there is, or that there is likely to be, a delay that could merit an extension of time, the contractor gives written notice to the contract administrator identifying the relevant event that has caused the delay.
If the contract administrator accepts that the delay was caused by a relevant event, then they may grant an extension of time and the completion date is adjusted.
What different types of insurance are required by a building contract?
The 3 main types of insurance required include:
- Employer liability insurance ( Legal requirement. EL insurance will help pay compensation if an employee is injured or becomes ill because of the work they do for the employer.
- Professional Indemnity (to cover professional negligence)
- Public liability (to provide cover against personal injury or death, or loss or damage to property of third parties)
- All risks (All risks insurance covers physical damage to the works and site materials) - contract often requires it to be maintained in the joint names of the employer.
What is a bill of qunatities?
A document prepared by the cost consultant (often a quantity surveyor) that provides project specific measured quantities of the items of work identified by the drawings and specifications in the tender documentation.
What is difference between the 2011 & 2016 JCT?
JCT 2016 Includes:
• Incorporation of the provisions of the JCT Public Sector Supplement 2011.
• Adjustments to reflect the CDM Regulations 2015 and the Public Contracts Regulations 2015.
• Amendments to the works and existing structures insurance provisions.
• Revision and simplification of the Section 4 Payment provisions.
• Provisions for the grant of Performance Bonds and Parent Company guarantees.
• Revisions to the way the requirements for Collateral Warranties are set out.
What follows non-completion certificates?
The certificate of non-completion gives formal written notice to the contractor that they have failed to complete the works described in the contract by the completion date that was last agreed.
The Employer must notify the C before the date of final cert that he may require payment of, or deduct liquidated damages.
if an extension of time is made after the issuance of a non-completion, the extension shall cancel the certificate. The CA may issue a further certificate if necessary.
