Contract Administration Flashcards
What forms of contract are you aware of?
I am aware of the JCT suite of contracts including:
- JCT Standard Building Contract - for large or complex budling contracts that follow the traditional procurement route.
- JCT Intermediate Building Contract - for simple construction projects that require all trades but not specialist work or complex building services.
- JCT Minor Works with Contractors Design - for small relatively straightforward projects.
- JCT Design and Build - For design and build procurement route
At what value would you use each of the JCT Contracts?
No values formally set by JCT, however a rough guide is:
JCT Standard Building Contract - in excess of £1,000,000
JCT Intermediate Building Contract - in excess of £500,000
JCT Minor Works - up to £500,000
JCT Design and Build - For design and build procurement
What is the JCT?
Joint Contracts Tribunal, formed in 1931 to produce standardise contracts for the construction industry.
Are you aware of any other suite of contracts?
Yes, the New Engineering Contracts (NEC) however I have no experience of using these.
What is the SBCC?
The Scottish Building Contracts Committee.
What is the purpose of the SBCC?
To amend contracts to make them suitable for use under Scots Law. This is a process known as “kilting”.
Can you explain come of the differences between Scots and rUK contracts?
1.Third Party Rights - Contract (Third Party Rights) (Scotland) Act 2017 provides provision for this.
2. Ownership of Materials - Only when employer / client has paid for materials dp they own them.
3. Enforceability - English contracts unlikely to be enforceable in Scotland.
4. Latent Defects - liabilities for latent defects are longer.
5. Execution - Not executed under hand or as a deed.
Under your role as a contract administrator what tasks do you undertake?
- Managing the day to day running of a project
- Monitoring works to ensure good workmanship and compliance with the spec.
- Carry out regular progress inspections and associated reporting.
- Manage payment certification, review of valuations submitted by contractors.
- Awarding practical completion
- Managing rectification period.
How would you manage a contract variation?
- Ask for the variation in writing
- Assess how it may affect cost or programme
- Check whether other items in the schedule of works could cover some or all of the cost of the variation.
- Approve variation after carrying out checks and issue contract instruction.
How would you manage an Extension of Time request?
- If EOT is anticipated ask for notice of this in writing as soon as it becomes reasonably foreseeable an EOT event will occur
- Assess whether the request is reasonable and the time requested is sufficient
- Assess how this will affect the programme and costs e.g. extended contract could increase welfare costs.
- Not unreasonably withhold approval of request should the reasons for it be appropriate.
What is a defects liability period?
The period in which a client can report defects relating to a construction contract and for which the contractor will be liable to attend and make good.
How long does the defects liability period last?
Typically 6 to 12 months depending on the nature of the works.
What is discussed at a Pre-Start meeting?
I use a company template to chair pre-start meetings with headings that include key personnel, health and safety, critical items (e.g. lead in times), payment provision etc.
What are a contractors obligations under the JCT Minor Works contract?
The contractor must carry out their works in a “proper and workmanlike manner” and in compliance with the contract document.
What are liquidated damages?
Liquidated damages are rates charged for loss should the Contractor fail to complete on time. The damages are charged on a weekly basis and are determined pre-contract.
If liquidated damages are to be pursued what must happen?
The employer must give notice of their intent to the Contractor.
When are liquidated damages charged?
For the period between the Date for Completion and the date by which Practical Completion is achieved.
When can Practical Completion be issued?
- Contractor must have supplied all documents required of them under CDM (Clause 3.9)
- Contractor must have passed on all relevant information under Clause 2.1.3 - drawings, spec, materials etc.
What must be attended to under the rectification period?
Any “defects, shrinkages or faults” that are due to materials, goods or workmanship that are NOT in accordance with the Contract or from a failure of a Contractor to comply with their obligations.
How are defects paid for under the rectification period?
The Contractor must undertake these at their own cost.
The Rectification Period has expired, can you still notify the contractor to make good any defects?
Yes, if within 14 days of expiry the Contract Administrator notifies the Contractor in writing.
Your client instructs you not to allow the Contractor to make good defects, what do you do?
Under Clause 2.11 I would deduct a sum from the contract sum in lieu of the works being carried out. However, depending on the scale of the issue I would advise that this is carried out under the Rectification Period.
When would you issue a “Certificate of Making Good”?
When in my opinion as the CA that a Contractors Duties under the defects clause
(2.11) have been discharged.
What should you do when issuing contract instructions?
I would make sure these are in writing as they are only given effect when done so i.e. cannot issue verbal instructions.
