Contract Administration

Question 1

What are the key differences between JCT & NEC contract? Please give 4.

Answer 1

1) NEC is written in plain English, whereas JCT is not. It is therefore easier to understand and less ambiguous.
2) NEC is more collaborative and permits both parties to act in mutual trust and coordination (clause 10.1), it also permit the use of early warnings to manage risk.
3) JCT use provisional sums for unknown scope whereas NEC does not.
4) NEC has stricter response periods with consequences if they are not followed, this makes the suite of contracts more administrative.
5) It is a contract requirement to issue a baseline and recurring programme each month in NEC, whereas it is not in JCT, there are also consequences if this is not followed.
6) NEC combines the valuation of time and money into one (compensation events) whereas JCT separates the two in to relevant events and relevant matters

Question 2

What is an extension of time?

Answer 2

When the Employer grants an extension to the contract completion date, this usually happens when the original completion date is no longer achievable due to reasons outside of the Contractors control. It protects the Contract from suffering LAD’s.

Question 3

What happens if the works goes beyond the completion date?

Answer 3

Time is at large, and the Contractor would be open to liquidated damages.

Question 4

Can you please take me through the process of claiming for an extension of time in the JCT suite of contracts?

Answer 4

A delay should be notified by the contractor when it is deemed a relevant event. If the contractor is delayed, the planned completion is likely to go beyond the contract completion leaving time at large and leaving the contractor exposed to liquidated damages. If this occurs, the Contractor is obliged to issue a notice of delay as soon as it becomes reasonably apparent in accordance with clause 2.17, which should include the following:

1) The materials circumstance of the delay
2) The relevant event associated.
3) Assessment of delay against each relevant event

Following this the Employer responds with his judgement of the EOT and notifies his assessment of time granted (if any). Should the Contractor not agree with his assessment, he may dispute using one of the ADR’s.

Question 5

Can you please take me through the process of claiming for an extension of time in the NEC suite of contracts?

Answer 5

The Contractor is obliged to issue a Programme each month in the NEC suite of contracts. If a compensation event has occurred which will delay the critical path of the Programme, an assessment between the latest impact Programme and the last accepted Programme should be carried out to determine the time lost. This will determine the amount of time added on to the existing completion date. It is important to note that only and implemented compensation event or acceleration can move the completion date.

Question 6

Can you please explain to me what happens on completion of a project?

Answer 6

1) Notice of practical completion is issued by the Employer
2) Rectification period commences
3) Half the retention is released
4) Employer must take over the insurance of the site
5) Temporary site

Question 7

Outside of your write ups, please can you provide another example of when you have demonstrated good contract administration skills?

Answer 7

1) Number of provisional sums within the contract
2) Tasked with finalising the overall price of provisional sums
3) Used subcontract quotations + fees to determine final price
4) Where works were not instructed, i priced in accordance with the CSA rates
5) This was then submitted to the client and is being reviewed now