Contract Administration

Question 1

What is a Notice of Non-Completion Certificate?

Answer 1

A Notice of Non-Completion (clause 2.28, JCT 2016 Design and Build): If the Contractor fails to complete the Works or a Section by the relevant Completion Date, the Employer is required to issue a notice to that effect. If an extension of time is awarded subsequently, a fresh Notice of Non-Completion must be issued by the Employer.
It is a pre-requisite to deduct LAD’s.

Question 2

Requirements to get into contract?

Answer 2

• Consideration
• Offer and acceptance
• Legal purpose
• Capable parties
• Mutual assent

Question 3

Difference between a Loss and Expense and an Extension of Time

Answer 3

Extension of Time - as a result of a Relevant Event, enabling the Contractor to Time.

Loss and Expense - as a result of a Relevant Matter, enabling the Contractor to Time and Costs.

Question 4

What needs to be in place to deduct L&D’s?

Answer 4

In order to claim liquidated damages, the Contract requires the employer to issue a notice of non-completion if the contractor has not completed the works (or a section) by the completion date stated in the contract (subject to any extension of time awarded).
This is to be deducted in a Pay Less Notice

Question 5

What is included and excluded on a Final Account statement?

Answer 5

Inclusions
* provisional sums (which can only be expended by
issue of a contact instruction)
* agreeing prime cost sums (where applicable)
* any loss and expense associated with extensions of
time
* adjustment of provisional/approximate quantities
* fluctuations
* any set-off/contra charges (typically a subcontractor
issue) or
* any other items affecting total cost.

Exclusions
- Liquidated and Ascertained Damages

Question 6

Is Retention to be deducted from everything on a Contractor application?

Answer 6

Not to be deducted against the following;
- Staff and Management costs
- Bonds & Insurance costs

Question 7

What is a Final Account?

Answer 7

The final account is the conclusion of the contract sum
(including all necessary adjustments) and signifies the
agreed amount that the employer will pay the contractor.

Question 8

What does ‘Time at Large’ mean?

Answer 8

a PC date has not been fully confirmed by the contractor

Question 9

What is the difference between a Divergence and a Discrepancy?

Answer 9

Divergence - A divergence is when the documents do not comply with the Statutory Requirements.

Discrepancy - discrepancy is referred to as an inconsistency between the contract documents. (Something refers to something else in the contract docs which isn’t there or in agreement)