Contract Administration Flashcards
What are the key responsibilities of the contract administrator under a JCT contract?
The contract administrator is responsible for administering the construction contract.
When certifying or giving an assessment or decision, the administrator has to act honestly and reasonably
In certain instances, contractual provisions can be subject to ‘fair and reasonable’ assessment.
Issues timely information relating to set out and any other pre-agreed information.
Issues instructions/variations to overcome discrepancies and/or changes in scope of works.
Certifies sums due.
Assesses delay and grants time and cost relief according to prescribed provisions.
Issues extensions of time which it considers fair and reasonable.
Considers with the QS, if employed, all interim valuations, claims for variations and loss/expense resulting and issue payment certificates as appropriate.
Do you know how the employer’s agent role differs from the contract administrator role?
Contract administrator - specifically identified within the contract and is solely responsible for administering the contract for the employer. It is an impartial role and only exists at the point the contract is entered into
Employers agents - identified within the contract and who acts on behalf of the employer . In carrying out its certification and decision-making functions under the contracts, however, the employers agent should act impartially.
What is practical completion?
C is a term under the JCT form of contract. This is the point at which the contractor has completed the project and hands over to the client.
Do the works have to be totally completed before practical / sectional completion is achieved?
It is common practice for PC to be granted when the works are substantially complete, i.e. there may be minor defects or missions, but nothing that would prevent the employer taking occupation
What is the definition of an extension of time?
The “extension of time” allows for the contract administrator to extend time/fix a new completion date
The benefit to the contractor of EOT is only to relieve the contractor of liability for damages for delay (adjusting the completion data).
The benefit to the employer is that it establishes a new contract completion date and prevent time for completion of the works becoming ‘at large’.
What is the procedure for claiming an extension of time?
As soon as it is reasonable apparent that a delay is or is likely to occur, they should write to the contract administrator to notify them.
This should identify the cause of the delay and if any of the causes are a relevant event and give an indication of the extent of the likely delay.
They should give any other further information requested by the CA.
The CA must notify the contractor in writing of their decision.
Contractor must make all efforts to mitigate the effects of delay.
What are examples of JCT Contracts?
JCT Standard building contract
Design and build
Intermediate Contract
Minor Works
Major works
Sub contract
What are the contract administrators responsibilities?
Issuing instructions
Certifying interim certificates
Certifying practical completion
Issuing certificate of making good
Assessing EOT and L&E
What is a Quantity Surveyor?
Values variations
Carry out interim valuations
Values final adjustments
CA undertakes routine inspections for quality, conformity and compliance with contract documents.
Difference NEC vs JCT
Under the JCT, the employer will appoint a ‘Contract Administrator’ to oversee the contract - must act impartially
NEC contract - ‘Project Manager’ deals with the administration of the contract.
Programme - The JCT focuses on the submission of a master programme that often does not get reviewed during the project.
The NEC places a greater reliance on the parties to regularly update the programme with the approval of the Project Manager.
NEC = Compensation events = time and money
JCT = Relevant matters and events
What can a contractor claim an extension of time for?
What if completion is less than 12 weeks away and the contractor applies for an extension of time?
What are the payment timescales under the construction act?
What are the types of pricing documents and what is the difference?
What is retention and why is it used?
