Contract Administration Flashcards
1
Q
At Nursteed Rd, Devizes, was the CCTV survey included in the tendered works? Would this have changed your assessment of loss and expense?
A
- CCTV survey was included but repairs to the collapsed drain were not as this was unforeseen.
- Prelims would need to be pro-rata’ed based on additional time, or assessed for which prelim costs were time based vs fixed cost.
- If repairs were in tender doc this would have changed assessment - contractor would have allowed for this.
2
Q
Nursteed Rd - how did you asertain the delay and calculate the cost? How did you present this to the client?
A
- C serves notice that a delay to completion is expected (MW)
- CA makes ‘fair and reasonable’ assessment of delay - requesting info if possible. In this instance, based on time to get specialist subbie to site. CA can issue further EoT if necessary.’
- Cost of variation reviewed with C - based on subbie cost plus OH&P.
- Associated L and E Claim from C based on ACTUAL loss, not based on an estimate - therefore enquiries made to contractor and evidence needed.
- L and E claim based on pro-rata prelims of time-based costs, and contractor OH&P.
- Presented to client as a breadown, including impact on professional percentage based fee, VAT etc.
3
Q
At Atlantic Works, Southampton, How often did you issue financial reports to the client?
A
- In accordance with the Term’s of Appointment which set out that reporting to client would happen after each site inspection.
4
Q
At Southampton, What process did you follow to agree the final account with the contractor?
A
- Records held by the CA e.g. prov sums, contingency sums, additions, omissions, variations, loss and expense.
- Evidence provided by the Contractor that was requested by the CA - these are time limited. e.g. quotations.
5
Q
At Southampton, what is required as CA to release retention at expiry of rectification period?
A
- Contractor has made good ‘defects, shrinkages andother faults’ that have been notified to it in time.
- Certificate of Making Good Defects.
6
Q
What happens at Practical Completion?
A
- Concept Not Defined
- Interpretation of CA
- Only ‘De Minimus’ works outstanding - nothing to prevent beneficial occupation
- Emplyer Takes Possession
- Employer Obliged to Insure
- 50% Retention released
- Right to Claim LADs ends
- Rectification Period begins
7
Q
What is the purpose of the Non-Completion Certificate?
A
- Preserves Employer’s Ability to Claim LADs
8
Q
How should an Interim Valuation be evaluated?
A
- The value of works properly executed.
- Value of materials on or off site - check for receipts/physical existence of materials if necessary. (MW does not include provision for materials off-site).
- % of any agreed variations or instructions.
- Adjustments due to instruction of PC Sums.
- % of time related and fixed prelim costs - including delay and prolongation costs appropriately.
- Retention deducted. For valuations after PC this figure is normally halved.
- Presented Gross, Less previous payments, Less Retention.
- It is possible to accept defective work - adjustments to contract sum should be agreed in writing by both parties.
9
Q
What is a Relevant Event and can you give some examples?
A
- Event entitling contractor to an E.O.T. and potentially Loss and Expense Claim as well.
- Examples:
- Variations
- Exceptionally Adverse Weather
- Terrorism or Civil Commotion
- Delay in giving possession of site.
- Delay by nominated sub-contractor.
10
Q
What is a typical length of a Rectification Period?
A
- Between 6 and 12 month with JCT contracts.
- 12 months is typical as it allows the building to be assessed through a full 4 season cycle.
11
Q
Explain a NEC, ICC and IChem E Contract.
A
- NEC - New Engineering Contract. Created to foster more collaboration in the industry. Latham report recommended more widespread use.
- ICC FIDIC - International Federation of Consulting Engineers, ICC is typically used for infrastructure projects.
- IChemE - performance based contracts for construction of process plants
12
Q
Why was the RICS CA Guidance Note Withdrawn?
A
It was ‘out of date’
13
Q
Talk me through the process of instructing a variation.
A
- Is it a ‘material change’ from the specification - something new or different?
- Has the contractor missed something in the spec?
- CA reviews cost of variation (with C and E). If cannot agree on price of variation with contractor, then CA values it (MW).
- If it gives rise to additional costs, the CA will need to seek permission from Employer.
- CA to consider impact on programme and sequence.
- Issued in writing by the design team to the contractor.
- EOT and Loss and Expense Claim from contractor assessed alongside.
- CA should instruct expediently
- CA should update projected final account.
14
Q
At Nursteed Rd, Devizes, How could the variations / delays been avoided?
A
- It would have been possible to carry out the cctv survey prior to works starting and to include necessary works within the contracted works. However, this would have led to 2 periods of disruption for the trading store.
- The protective barrier in the car-park was added by the client. This didnt add much time, but perhaps could have been avoided with more knowledge of client’s intentions for the site.
15
Q
Apart from RICS Guidance note, what governs payment in construction?
A
- The Housing Grants, Construction and Regeneration Act (The Construction Act) 1996, establishes contractors right to be paid in interim payments
- The provisions of the Contract itself:
- Contractor makes application for payment anytime before Interim Valuation Date
- The Due date is 7 days after the IVD, and the Final Date for Payment is 14 days from this e.g. 21 day cycle.
16
Q
Why was the Rectification Period 12 months? Explain your decision making.
A
- This allows the work to be subject to a full 4 seasons of weather, so any expansion/contraction will become apparent.
- Protects the employer and contractor.
