Contract Administration

Question 1

What are the roles of a contract administrator?

Answer 1

• Acting as an impartial third party that ensures Employer and Contractor fulfills its obligations in accordance with the contract.
• Contract supervision and administration
• Issuing instructions and variations
• Approval of contractor’s documents
• Monitoring progress and quality
• Certifying payments
• Time and delay management
• Dispute resolution
• Issuing taking over certificate
• Managing defects liability period
• Risk and claim management
• Communication and reporting

Question 2

Did this adhered to the change control process on your project, if not what is the standard process?

Answer 2

Yes, a client instruction has been issued. A change must be instructed by the client/contract admin in this regard.

Question 3

What is the payment timeline in this project?

Answer 3

The contractor’s payment application has to be submitted on a monthly basis. The client reviews the application and agrees the valuation with contractor. The payment need to done after 21 days from receipt of contractor’s application.

Question 4

How did you apply contract administration in an office development project in Germany?

Answer 4

An invoice for additional works has been fully invoiced to the client without prior review. Together with the legal technical advisor, I acted impartialy by advising the client to release on account payment of 80% of the claim in accordance with BGB Clause 650c, while the value of the works is being agreed and any excess payment will be deducted in the next interim payment.

Question 5

In fitout project, how do you treat contractor’s payment application?

Answer 5

I review the contractual terms with regards to payments.
I review the contractor’s payment application and ensure that all supporting documents are in place
I inspect the works on site to verify the actual works completed in the interim.
After assessment, I would discuss clarification with contractor if required.
I would issue the payment certificate within 28 days of the contractor’s application
I keep track and ensure that payments are released to the contractor 28 days after the payment certificate.

Question 6

How did you treat retention and advance payment recovery in this project?

Answer 6

Depending on the type contract, typically 10% of the contract sum is released after receipt of performance guarantee, and is recovered depending on particular conditions stated in the contract, typically 5-10% of the value of the works done.
Retention is also recovered at % stated in the contract for every interim payment typically 5%. Once taking over certificate is issued after completion of works, half of the retention will be released and the other half once DLP is lapsed.