Contract Administration

Question 1

What is Assignment?

Answer 1

Where the rights of a contract are transferred. Unless stated within the contract, it doesn’t need the consent of both parties

Question 2

What is Novation?

Answer 2

Where, through the consent of all parties, rights and obligations are transferred from one party to another

Question 3

If the architect is novated, and there is an issue with the design, who is responsible?

Answer 3

When novated, the client will sign saying the design is satisfactory. Any design after this is the contractor’s responsibility.
It would need to be determined at what point the issue arose.

Question 4

What happens if a client is unable to pay a certified valuation?

Answer 4

I would arrange a meeting with the client and contractor as soon as possible, and discuss the possibility of a slightly later payment. If not, the client will need to find finance for the payment

Question 5

When vesting off-site materials, what must be in place?

Answer 5

• A vesting agreement within the contract
• The item being vested must be listed in said agreement
• Proof of purchase by the contractor
• A clear and visible marking stating the items are owned by the contractor
• Proof of an insurance policy to cover the materials

Question 6

What is the difference between an information Required and Release schedule?

Answer 6

An information release schedule is when the contractor will be provided certain information.
An information required schedule asks the contractor to input when information is needed

Question 7

What are the requirements to sign under deed

Answer 7

Sign by the parties and witnessed

Question 8

What can a CA do for items not in accordance with the contract?

Answer 8

• Instruct the remediation of said works at the contractor’s own cost
• Instruct the works remain and an appropriate adjustment be made to the contract sum