Contract Administration Flashcards
For the ECFRS decorations project, what was the type of contract and procurement?
Minor Works, should have been intermediate for sectional completion.
Traditional, client retains control over design, client can specify exact works required, single stage and design finalised so cost certainty achieved, straightforward to analyse tender returns, flexibility with variations post tender, contractor does not price design risk.
What were the relevant events for the ECFRS decorations project?
No relevant events, the contractor was not entitled to an extension of time
How do you assess the delays for the ECFRS decorations project?
Reviewed on site progress and revised dates against original programme and investigated reasons why.
How did you calculate the LAD amount for the ECFRS decorations project?
Loss of rent / income, fees, storage costs, financing costs, etc
for ext decs client had calculated amount due to the storage costs and project team fees
Referring to the ECFRS decorations project, what entitles the contractor to an EoT?
Inclement weather
Force majeure
Additional instructions
Impediment due to client
Suspending works due to client not paying
Contractor wasn’t entitled to any of these
How long after issuing a 7 day notice can you terminate contract?
If the contractor does not comply within those 7 days within 10 days
For Burnham Road what are the consequences of issuing a MGD certificate?
- Contractor’s obligations are complete.
- Release of final retention
- Start of latent defect period
What are latent and patent defects? Was the defect at Burnham Road latent or patent?
A patent defect is one that has been identified during the works or during the defect liability period, whereas a latent defect could be concealed and may not be apparent until many years later, for example a building cracking due to inadequate foundation design.
Worktop issue was a patent defect.
For Burnham Road, when was the worktop defect recorded?
During the rectification period.
What made you think the Burnham Road defect was the contractor’s responsibility?
Pipe leaking within a couple weeks of completion not fit for purpose.
Contractor agreed rectification is required.
Also responsible to rectify associated making good.
Contractor agreed to rectify worktop during EOD inspection.
For Kelsey Street, how do you chair a meeting? Explain the process?
- Arrange a suitable date between the parties
- Circulate invitation on site or teams
- Send agenda or previous meeting minutes before
- Run through items with the parties
- Make notes and issue minutes within a week thereafter
- Carry out site inspection or valuation accordingly
Who is responsible for the risk of additional asbestos for the Kelsey Street project? Was an R&D survey undertaken?
The client because they did not have up to date asbestos records and undertake an R&D survey prior to commencement.
An R&D survey was undertaken once the contractor was on site and then there was a significant delay due to client indecisiveness, therefore contractor entitled to additional time and money.
For Kelsey Street what information was submitted with the EoT claim?
- Explanation and contract conditions
- Delay impact on programme
- Photographs
- Likely costs in accordance with relevant matter claim
For Appleford Court, how do you determine the due date?
Interim valuation date where not stated is one month after date of possession. Due date 7 day after normally.
For Appleford Court, what was the consequence of late payment?
There was no consequence on this occasion, the client apologised and confirmed payment would be one or two days late. The contractor confirmed that this was okay provided it did not happen again and took no further action.
What would happen if you fail to issue a payment certificate within 5 days of the due date?
Contractor is to issue their payment notice and final date for payment extended by delayed days that a notice wasnt issued
What happens if the contractor does not make application by the due date?
Even if interim valuation not submitted works should be valued
For Appleford Court how did you undertake a valuation? Explain the process?
- Receive application for payment on interim valuation date
- Attend site on due date with application
- Review items with contractor and query any as necessary
- Reach agreement on valuation, return to office and issue payment certificates.
For Burnham Road, what information was required to achieve PC?
Final BC certificates, NHBC warranties, NICEIC certificates, snag lists, tv aerial certiciate, kitchen and bathroom guarantees, contractor reports, O&M manual, H&S file.
Regulation 38 certification not required because it wasnot multi storey and multi occupancy.
How did you undertake handover for Burnham Road?
- Visit properties with client and contractor
- Check the remaining snags
- Complete key and meter schedule
- Issue certificates
For Burnham Road, what triggered the EOD inspections?
The end of the rectification period as stated on the PC certificate.
For Burnham Road, how did you arrange the EOD inspections?
Contacted client, they arranged access. Then contacted the contractor to let them know the proposed date and we all attend the properties.
Talk me through the process of carrying out an EOD inspection?
- Arrange date with client and contractor
- Send letters to notify residents
- Inspect the property and identify any defects. Check the snag lists.
- Note down any defects of EOD schedule
- Request client obtains resident sign off forms
- Issue CMGD and release retention once rectification is complete of all defects.
What are the implications of issuing a PC certificate?
Releasing Retention Money.
Ending Contractor Liability for Liquidated Damages.
Starting the Defects Liability Period.
Triggering the Final Account Stage.
For the appliance bay floor project, what do you record in minutes?
The discussions from the meeting, it includes:
Apologies, introductions, previous minutes, contract, site, programme, client and contractor requirements, post contract administration, H&S, environment, other business, next meeting.
Within the Appliance Bay Floor Project meetings, what items were discussed?
Items included on the previous minutes. Contract, site, H&S, programme, client and contractor requirements, environmental issues were all discussed
What projects are more suitable for minor works rather than intermediate?
Minor Works Building Contract - Low complexity, minor structural works up to £250,000
Intermediate Building Contract - Medium complexity, structural works up to £1 million
Can you provide the payment timescales from receipt of an interim valuation in 2016 JCT contracts?
They place responsibility on the Contractor Administrator (CA) to issue a payment notice no later that five days (calendar) from the due date for payment. The due date for payment is generally seven days from the interim valuation date. The final date for payment is typically 14 days from its due date.
What is typically contained within the preliminaries?
Preliminaries provide a description of a project that allows the contractor to assess costs which, whilst they do not form a part of any of the packages of works required by the contract, are required by the method and circumstances of the works.
- A general summary.
- A description of any planning conditions or other conditions that may affect the works.
- A description of any outstanding statutory approvals that may fall to the supplier to satisfy.
- Party wall requirements or other agreements with, or rights of, neighbours (such as rights to light).
- A description of the reporting information that the contractor will be required to submit (often on a monthly basis)
- A description of the commissioning strategy
- Relevant reports (such as soil reports).
- Quality management procedures.
- Requirements for insurance, performance bonds, warranties and product guarantees.
- Requirements for the operating and maintenance manual.
- Requirement for progress photos to be taken.
- Contract Particulars
- Building information modelling (BIM) requirements
- Site waste management plan.
- Contractor’s site preliminaries, such as; staff, welfare provisions, site offices, plant, site waste clearance, water, electricity, furniture, ICT and consumables, rates, protection of work, protective clothing, site transport, setting out, building control fees, and so on.
For Appleford Court you mention that contractor confirmed payment wasn’t received, how was this resolved?
- Contacted client who apologised and confirmed that it would be paid in next two days.
- Asked them to put it in writing and let the contractor know.
- Contractor confirmed that only on this occasion it would be acceptable.
For Appleford Court explain the procedure that you had in place with the contractor with regards to valuations?
- Due date undertaken on date of meetings.
- Valuation with contractor and any queries communicated.
- Application 7 days before, valuation on due date and I issue certificates within 5 days of due date.
- Contractor issues there invoice and client advised to pay within 14 days of due date.
For Burnham Road what were the implications of PC under the terms of the contract?
- Properties handed back to client
- Start of rectification period
- Release of moiety retention
For Burnham Road, after checking whether all items were complete when the rectification period was due to expire, what did you then do under the contract?
Produced an EOD schedule identifying any items not complete and issued within 14 days of end of rectification period. I then checked once the contractor had confirmed these items were complete and then issued a certificate of making good defects.
For the floor refurbishment project, what typical insurances should be in place as part of the contract?
- Joint names insurance
- PII
- Employers Liability Insurance
- Public Liability Insurance
- Building Insurance
How did you determine that the contractor was in delay for the external decorations project?
Reviewed on site progress through my inspections and noted that the original programme was not being adhered to, the contractor failed to issue a revised programme or a programme with a dropline.
For the external decorations was the PPE incident reportable? How did you ensure that this would not happen again? Did works stop?
The PPE incident was not applicable to be reportable to RIDDOR. I immediately ensured that PPE was put on by that operative and informed the PD and site manager. The site manager said they would remind operatives of the need for PPE, works did not need to stop.
For Burnham Road, was the approach to deduct money from the contractor fair?
- Long lead in time
- Contractor did not particularly want to reattend as in isolated location
- Client knew a trade that could undertake the work
- Both seemed to want to reach an agreement so CMGD could be issued and project completed.
For Burnham Road, did the leak and worktop get rectified? How did this take place and who by?
The leak was rectified by the contractor. A cost was negotiated to be omitted from the retention for the worktop, both parties were happy to agree a cost and the client subsequently had their point of contact rectify the worktop.
For Kelsey Street, was there no survey or report that identified the asbestos?
Was not included in the asbestos management survey.
For Kelsey Street, what information did you request to review as part of the L&E claim?
- Original programme and revised programmes
- Records of labour and welfare on site
- Contract conditions under which requesting an EOT and L&E claim
- Quotes for weekly costs for their site set up
- Quotes for any management staff that were paid on day rates
- Essentially how they calculated the costs that they were claiming for.
- The costs were the same as their original preliminary costs.
For your Burnham Road project, how was the cost negotiated for the defect which had to be rectified by others?
- I discussed with the contractor
- I sought advice from a QS and also referred to SPONS so I knew a reasonable figure for the lifting worktop
- I suggested the cost which was agreed with the contractor
On the Kelsey Street project, please tell me how you went about analysing the delay claim from the contractor?
- I checked the original programme and revised programme and analysed the delay.
- I compared this to on site progress I had reviewed and recorded in my reports.
- I then analysed the contractor’s loss and expense claim and checked the weeks duration that the contractor had applied their rates to.
- I checked whether the rates were in accordance with their original prelim costs.
Name the different sections of JCT minor works and intermediate building contracts?
- Section 1 Definitions and Interpretations
- Section 2 Carrying Out the Works
- Section 3 Control of the Works
- Section 4 Payment
- (Section 5 Variations)
- Section 5 (6) Injury, Damage and Insurance
- (Section 7 Assignment, Performance Bonds and Guarantees and Collateral Warranties)
- Section 6 (8) Termination
- Section 7 (9) Settlement of Disputes
What are the main differences between minor works and intermediate building contracts?
- Intermediate is more detailed.
- It includes sections for variations and collateral warranties and guarantees.
- Intermediate includes sectional completion.
- It details relevant events and relevant matters.
When should you use the different types of contract you have implemented. Please provide examples.
Minor Works - Simple nature works, value of under £250,000, minor structural works and client responsible for design.
Intermediate - Medium complexity, structural works, value up to £1,000,000 and client responsible for design.
Identify different contract suites other than JCT. What projects are these different types suitable for?
New Engineering Contract
Association of Consultant Architects
FIDIC
Institution of Civil Engineers
Name the main forms of the JCT contract.
Standard Building Contract
Intermediate Building Contract
Minor Works Building Contract
Major Project Construction Contract
Design and Build Contract
Management Building Contract
Construction Management Contract
JCT-CE Contract
Measured Term Contract
Prime Cost Building Contract
Repair & Maintenance Contract
What are the main elements required to form a contract.
Offer
Acceptance
Intention
Consideration
Awareness
Capacity
Legality
What are the main roles included in JCT contracts?
Contract Administrator / Architect
Employer’s Agent
Quantity Surveyor
Principal Designer
Client
Principal Contractor
What contractual processes do you have to apply as Contract Administrator. Please provide some examples.
- Variations and contract instructions
- Certificates for payment
- Practical completion
- End of defects
What certificates might you issue as Contract Administrator?
- Certificate for payment
- Practical Completion certificate
- CMGD
- Seven Day Notice
- Contract Instruction
When do you issue certificates for payment? When do you issue contract instructions?
Issue certificates for payment monthly.
Issue CIs as and when variations arise.
What is the difference between preliminaries and preambles?
Preliminaries provide a description of a project that allows the contractor to assess costs which, whilst they do not form a part of any of the packages of works, are required by the method and circumstances of the works.
Preambles are an explanation of a document, commonly found in contracts. It can help with the interpretation of the document.
What are the different items which need to be included in a Schedule of Works?
Prelims
Preambles
The Works
Prov Sums
Summary
Appendices
