Contract Administration

Question 1

What are the contractual mechanisms under JCT?

Answer 1

EOT
Loss and Expense
Payment Certificate
Section completion
Partial possession
Practical Completion
Non completion

Question 2

What are the for issuing a payment certificate under JCT?

Answer 2

Due date - 7 day from the valuation date
Timescales for issuing certificate – 5 days.
Payment terms – 14 day as standard.

Question 3

What is the definition of completion?

Answer 3

When all the work required by the ‘works information’ is completed by the specified completion date, and all notified defects that would prevent the client from using the works are corrected.

End of contractor liability (termination of any liquidated damages)
Insurance handover
Handover of the premises
Beginning of the defects liability period
Retention releases (generally from 5% to 2.5%)

Question 4

What is the difference between section completion and partial possession.

Answer 4

Sectional Completion -Defined date in the contract. Liquidated damages can apply

Partial possession LD cannot apply.

Question 5

What are the various forms of JCT contract?

Answer 5

JCT SBC, IC, MW, D&B

Question 6

What is the role of a contract administrator?

Answer 6

Management or administration of the building contract between the employer and the contractor.

Question 7

What is the difference between a contract instruction and a variation?

Answer 7

All variation are contract instructions but not all contract instructions are variations.

Question 8

On Jodrell – What is the importance of a vesting certificate?

Answer 8

A vesting certificate or agreement for construction goods, plant or materials, in letter form, used to confirm that ownership of the goods, plant or materials will transfer from one party to another on payment.

This is particularly important if the contractor become insolvent

Question 9

What details must be including in a vesting certificate?

Answer 9

The certificate will have to detail the location where the material is being stored, the client and contractors’ details, and photographic evidence of the material with clear, marked identification of the item being in the client’s entity

Question 10

What is the type of certificates issued in a project?

Answer 10

Practical completion
Section Completion
Non completion
Certificate of making good