Contract Administration Flashcards
What would you include in a valuation?
- Preliminaries
- Measured works
- Materials on and off site
- Variations
- Claims
- Retention
- Previous payments
What are domestic subcontractors?
the standard appointment of a subcontractor by the main contractor (they choose who to appoint)
What are named subcontractors?
Clients provide the main Co with a choice od named subco for a portion of the works
Once appointed they become domestic subcontractors in terms of conditions of the contract
Additional names may be added to the list if approved by all parties
This allows the client a level of control over the quality of works packages and in some cases, cost
If a client tells you they do not have sufficient funds to make payment AFTER a valuation and certificate are issued, what would you do?
Client contractually obliged to pay by FDP following certificate issue, cannot withhold money without a valid reason
Contact client and Co asap and try to arrange some form of payment, if the client has insufficient funds at FDP they may reach agreement to defer payment for 1-2 days
If Co unwilling to delay payment, client owuld need to find funds through other means to make the payment, such as financing to honour the certificate
If an instruction issued during the course of the contract required a substantial amount of offsite fabrication of materials, would you pay for them as offsite materials in the valuation?
Client not obliged to pay for materials offsite if this is not identified in the contract
However if client wishes to pay for them I would check with the client before paying or rejecting them
How would you deal with urgent verbal instructions?
If instructions affects critical path or programme I would I would review the instruction with the CA, client and contractor
If the instruction is valid under the contract, I would advise this is converted into a formal written instruction as soon as possible
What documents would be required in incorporating CDP supplement into a project?
With a D&B the documentation to be included would be ERs inc: scope, Specifications, Drawings. And Contractors Proposals, alond with any insurances.
Could an email 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 your opinion of oral contracts?
Whilst they are legally binding there is difficulty in proving the terms and conditions of the agreement
It is for this reason the HGCRA applies only to written contracts, although the LDEDCA now applies the construction act to oral/ verbal contracts too.
What is the purpose of an interim valuation?
To advise the certifier the value of work assumed to be properly executed in
accordance with the contract
