Contract Administration Flashcards
Memorise
Can you tell me how working on traditional and design and build projects has enhanced your knowledge of contract administration?
I have learned about the role of the CA being name din the contract I have learned that on a traditional project the CA works in the benefit of the contract and is impartial to both parties. With design and build its not a CA its an EA and even know they are contractually bound to act impartially they are also an extension of the employer and act on behalf of the employer in all matters, effectively as if the employer’s agent was the employer. The EA can make decisions on behalf of the employer unless the employer explicitly specifies otherwise in the employer’s agent brief.
Duties include dealing with:
Variations and change.
Issuing certificates and instructions.
Chairing meetings.
Does the RICS provide any guidance to undertake the role of the EA?
Yes, practice information named: Employers agent; design and build.
Why do you think the role of an EA / CA is important?
You need someone impartial to deliver the contract because if you left it to the parties to run themselves everything, they did would be in favour of themselves. Someone is working in the benefit of the contract not either party to ensure fairness and impartiality is incorporated into the contract and if there were issues you would need someone who was able to digest that contract to see how the contract remedies those issues.
You mentioned that the EA and the CA are responsible for issuing things, can you give me an example of three types of notice or certificate that a CA / EA would issue?
Non completion notice.
Notice of completion.
Payment notice.
Payless notice.
Notice of completion of making good.
Termination notice.
Notice of refence to arbitration
EOT notice.
Practical completion statement.
You talked about practical completion, what needs to be in place for practical completion to take place.
As Built’ Drawings – Finalised drawings reflecting the actual construction.
Health and Safety File Information – Documents concerning the maintenance and operation of the works.
Operation and Maintenance (O&M) Manuals – Comprehensive guides on the operation and maintenance of the building or systems.
Training of Staff – Proof that relevant staff has been trained in the operation of systems.
Collateral Warranties – Legal agreements providing assurance from contractors or sub-contractors.
Product Guarantees – Documentation guaranteeing the performance of installed products.
Test Certificates – Any outstanding or final certificates for systems tested on the day of handover.
Practical Completion Inspection Report – Report from the employer’s agent inspecting the works.
Non-Completion Notice (if applicable) – Issued if practical completion is not achieved.
Partial Possession Agreement (if applicable) – Document allowing the employer to take beneficial access through partial possession.
These documents are essential to ensure that the employer’s agent can issue the practical completion statement, provided all works are completed with only minimal defects remaining.
How would you define practical completion?
Traditionally I have worked on JCT projects which doesn’t explicitly define what practical completion is.
On Caerphilly Ffos market the employer specified what was required for completion to be achieved. For example, all O&Ms needed to be in place along with the Health and Safety file and as built information.
Ultimately it is when the works have been completed in accordance with the contract with only minor defects that do not materially affect the use of the building or structure.
You talked about certifying interim payment can you talk me through the payment timeline?
Under JCT the Interim application date is typically 4 weeks from start on site.
7 days from the application date is the due date, this triggers the payment process.
14 days from the due date is the final date for payment.
Not later than 5 days of the due date the payment notice must be issued.
Not less than 5 days of the final date for payment the employer has an opportunity to issue a pay less notice.
You are a contracts QS; how can you be a CA or an EA.
I am responsible for administering the subcontracts downstream with my supply chain. I am also the point of contact for commercial matters relating to the main contract from the CA or EA.
On your Milliners project, you undertook a vesting procedure. Can you talk me through the vesting process?
Identify Off-Site Materials
Agree on Vesting with the Contractor
- Vesting Certificate
- Inspection of Materials
- Insurance Coverage – All risk insurance
- Verify Storage Conditions
- Monitor Delivery Schedule
- On-Demand Bond (if applicable)
- Delivery to Site
- Update Records
For material off site to be reimbursed what needs to happen under the contract?
Needs to be a listed item and also categorised as uniquely identifiable or not uniquely identifiable.
The items on the list must be divided into two categories: the first category is ‘uniquely identified items’ and the second category is ‘not uniquely identified items. Uniquely identified items are those materials or goods which are easy to recognise, such as heating boilers or sanitary fittings or the like. Items not uniquely identified cover such items as bricks, sand, tiles, timber and anything which it would be difficult to recognise as belonging to a particular site.
Talk me through what you would expect a vesting certificate to include?
- Ownership Transfer
- Location of Materials
- Insurance Provisions
- Payment Confirmation
- Access Rights
- Warranties and Liabilities
- Completion and Delivery Provisions
- Signature of Parties
You have talked about on the Milliners project as part of this off site vesting process you have to confirm that all the required insurances have to be in place, what insurances have to be in place?
Contractors all risk.
Contractors’ all risk insurance, also referred to as Contract Works Insurance or Construction Insurance, is a non-standard insurance policy that provides coverage for accidental physical loss or damage that occurs to a property insured during the construction period. It covers the contract works undertaken by the contractor and sub-contractors.
On your Marlborough House project you submitted a delay. What is the timeline for the extension of time?
- Clause 2.27 of the JCT contract requires the contractor to give notice if and whenever it becomes reasonably apparent that the progress of the works is being or is likely to be delayed.
- The architect must provide a written notice of the decision about the delay as soon as reasonably practicable, but in any event, within 12 weeks of receipt of ‘the required particulars.
What if you have raised the notice two weeks prior to practical completion. What would be the reasonable steps for that EA to have taken?
The CA would have 12 weeks to make the assessment. Damages would be levied against the contractor. Following the conclusion of the assessment if the contractor is entitling to the time, a reimbursement can be made through the interim payment process.
Talk me through an EOT process.
I notified the client under Clause 2.24 which required the contractor to give notice whenever it becomes reasonably apparent that the progress of the works is being or is likely to be delayed.
- Identify the cause(s) of the delay.
- Specify if any of the causes qualify as a Relevant Event.
- Provide details of how the delay will affect the completion date, either in the initial notice or as soon as possible afterwards.
I then followed up with the particulars of the expected effects of the delay upon the completion date.
