Contract Administration Flashcards
What is nomination?
Under certain circumstances, the client may wish to select (nominate) a subcontractor themselves, rather than allowing the contractor to select them. This is referred to as a nominated subcontractor.
- Selection of a particular subcontractor to carry out works, manufacture or supply of materials.
- This provides the architect and client with greater control of material choice and therby quality.
- It is often used where there are long lead-in times with the employer placing orders prior to the Main Contract aware which reduces potential delays on site.
- The Main Contractor is relieved of liability of design and compliance with the performance spec in addition to subcontractor delays in respect of the works that have been nominated.
Do nominated subcontractors get paid separately?
Nominated Contractors are normally paid via the Main Contract with sums identified separately.
Can the contractor object to a nominated subcontractor?
Any objections must be made during the tender period.
There are specific exclusions and grounds for an objection for example if they have found out the subcontractor is having financial difficulties and may be going insolvent.
If there are problems with the design, after Novation or the architect, who would be responsible?
- At the point of novation, the client would agree the level of design was satisfactory and would be signed off by all parties.
- The contractor would then become responsible for the Architect and his design should any problems arise during constriction.
- Disputes may arise where it becomes unclear when problems have arisen, either prior to the transfer of services or afterwards.
What is the difference between Novation and Assignment?
- Novation is a mechanism whereby one party can transfer all its obligations under a contract and all benefits arising from that contract to a third party.
- Assignments is where contractual benefits are assigned however contractual burdens cannot be transferred under assignment.
What is a set-off?
Set off are any monies owed to the employer by the contractor which are deducted against any payments due to the contractor.
Describe differences between Statutory Provisions and Contract provisions?
- Statutory provisions are set out by law & must be compiled with.
- Contract provisions relate to the contract in question and therefore only apply to a specific project.
What are domestic subcontractors?
- This is a standard appointment of a Subcontractor by the Main Contractor
What are named subcontractors?
- Clients provide the Main Contractor with a choice of names Sub Contractors for a portion of the works.
- Once appointed they become a domestic subcontractor in terms of the conditions of contract.
- Additional names may be added if approved by all parties.
- This allows the client a level of control over the quality of the works packages and in some cases cost.
If an instruction was issued during the contract which involved the fabrication of a substantial amount of materials off site would you pay for them as off site materials within the valuation?
There is no obligation on the client to pay for materials off site if this is identified in the contract.
Under NEC the title for plant and material which are outside the Working Areas can pass to the client if the Supervisor has marked them as for the contract. This can then allow the material to be identified for payment.
How would you deal with the urgent verbal instructions?
I would communicate the instruction using the language of the contract of writing using a communication system if specified in the scope. This will be either issuing the instruction or notifying of rejecting the instruction using the reasons set out on the contract.
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 blinding the difficult lies in proving the specific terms and conditions.
Under the Construction Act: The act now applies to construction contracts including those that are not in writing. Adjudication clauses must still be in writing, otherwise the scheme for construction contracts applies.
What is Frustration?
Frustration occurs when any event or circumstances beyond control of both parties changes the contractual obligations or makes it impossible or illegal to fulfil their contractual obligations. The happening of such events automatically discharges a contract.
Under NEC ECC this is called ‘Prevention’ – it is notified as an early warning under clause 15 and the PM gives an instruction to the Contractor stating how the event is to be dealt with (clause 19)
Prevention - event occurs that stops the contractor completing the whole of the works or stops completing whole of the works by the date for planned completion shown on the Accepted Programme.
and which neither party could prevent or an experienced contractor would have judged at the contract date to have such a small change of occuring if would have been unreasonable to have allowed for it.
The PM gives an instruction to the contracto stating how the event is to be dealt with.
What is the difference between an information requirement schedule & an information release schedule?
The information required schedule asks the Contractor to provide dates when design information if required.
The information release schedule informs the contractor when the design information will be available.
