Contract Administration Flashcards
What is the difference between an Employer’s Agent and a Contract Adminstrator?
- Contract Administrator = responsible for administering the contract on behalf of both parties, impartially. CA usually introduces after contract is signed
- Employers Agent = Same as CA, but Employer’s Agent acts as if they were the Employer, albeit, they should remain impartial.
What are the key responsibilities of the contract administrator under a JCT contract?
- Responsible for administering the construction contract
- Acts honestly and reasonable, and understands their actions are open to challenge via ADR / DR
- Must be fair and reasonable in assessments, where the contract states
- Issues timely information, instructions and variations
- Assesses delay and grants time and cost relief
- Certifies sums due
- Issues EOT
What status does the programme have under a JCT and NEC contract?
- Contractor provides master programme at Tender, but programme has no contractual status under JCT
- NEC includes a programme as a contractual document, and this should be updated in accordance with intervals stated in the contract data (usually 4 weeks unamended)
What is Practical Completion?
- Used under JCT form of contract
- Used to describe the building it fit for purpose, and meets all requirements for safety and convenience
Do the works have to be totally completed before practical / sectional completion is achieved?
- It is common for PC to be granted when the works are substantially completed; there may be minor defects but nothing that could prevent the employer taking occupation
Can you rescind a PC certificate once its been issued?
No
What is a non-completion certificate?
Issued by the CA to certify that works / section of works have not been completed by contractual completion date
What are the consequences of a non-completion certificate?
- Employer can withhold LD’s
Process would be:
- Certificate of non-completion to be issued
- Employer must write to contractor to notify them they will be levying LD’s
- Employer would issue pay less notice to levy damages
What happens after PC is issued?
- 50% of retention is usually released (usually, or follow contract provisions if states otherwise)
- The defects period starts
- The employer required to start insuring and securing the building
- The ability to impose LD’s is ceased
Under JCT, if the contract administrator believes completed works are not in accordance with the contract, what can they do to check / clarify?
- They can issue an instruction for opening-up and inspection to test the works, materials and goods to determine they are in accordance with the contract specifications / design
Who bears the cost of opening up under JCT?
- The cost is added to the contract sum, unless the works are not in accordance with the contract specifications / design
What is opening up called under NEC?
- Tests and inspections
What is the definition of Extension of Time under JCT?
- Extending the programme to fix a new completion date
- Used to prevent time becoming at large
- Only used to relieve the contractor of paying LD’s
What is “time at large” under JCT?
- Time at large is when the completion date is passed and no non-completion certificate has been issued
- Postpones the employers right to recover LD’s for late completion
- Contractors must finish the works in a fair and adequate timeframe should time become at large
What is the process for claiming an EOT?
- Contractor should notify CA as soon as it becomes apparent that an EOT is required
- Contractor shall make efforts to mitigate the effects of the delay
- CA would assess the EOT #(within a 12 week period), and could request further information from the Contractor to do this
-CA would notify the contractor, in writing, of their decision