Contract Administration Flashcards
What is a Collateral Warranty?
Collateral warranties are agreements which are associated with another ‘primary’ contract. They provide for a duty of care to be extended by one of the contracting parties to a third party who is not party to the original contract.
What is the difference between JCT & NEC Contracts?
JCT – Contract Administrator
NEC – Project Manager
- Price – JCT fixed lump sum & NEC options C & D are target costs contracts
- Provisional Sums – JCT includes & NEC Excludes
NEC typically used for infrastructure projects
ASOS – Collateral Warranty – what could happen if there wasn’t a collateral warranty in place. Are there any other fallback positions?
Third Party Rights Act
What are the benefits of a Collateral Warranty from a client perspective?
Provides a contractual agreement with a third party, which otherwise would not have been there
What is the QS role in arranging a collateral warranty?
This is the solicitor/lawyer responsibility
JCT Standard Building Contract – What reason can a JCT be terminated?
i. failure to “proceed regularly and diligently with the performance of his obligations”, thereby entitling the employer to give notice of default and subsequently terminate
ii. Contractor goes into liquidation
ASOS P3 – Can you name me one of the CDP packages under these works?
Co-ordination of services
Why was co-ordination of services CDP?
The co-ordination of service wasn’t completed at point of tender, therefore this element of design was passed onto the contractor
What is the risk to the client of CDP items?
Client loses control of the design element
How does a verbal instruction process work under a JCT?
i. Contractor issues Confirmation of verbal instruction (CVI) within 7 days of receiving verbal instruction
ii. If the architect/contract administrator does not dissent from that confirmation within seven days from receipt of the written confirmation, the instruction then takes effect
What is the timeline for the CA to reply to a confirmation of verbal instruction?
Seven days
Collateral Warranty – can you give me an example of where a Collateral Warranty may be used?
i. Funders - banks and other lenders funding construction works who are taking a charge over the property, rather than purchasing it, will require collateral warranties
ii. Purchasers - a party that buys the development
iii. Employers to sub-contractors
Schedule of Amendments – Can you give me an example of some of the amendments?
i. Payment dates (example – change from 14 days to 28 days)
ii. May be amendments relating to Covid & Force majeure
What is a vesting certificate?
A vesting clause is a contractual term which deals with the transfer of ownership of goods and materials and a vesting certificate is a document evidencing that transfer of ownership of those goods or materials.
Off-site joinery at KN – tell me the tasks and actions you carried out in relation to this?
I visited site with the architect to ensure the MOS were there and clearly labelled
Did you go on your own to look at these or did you take anyone else with you?
No, I went with an architect and took a copy of the specification
What certificates and notices are issued under the JCT?
- Interim Certificate
- Certificate of Practical Completion
- Non-completion certificate
- Payment Notice
- Certificate of making good
What is the purpose of a valuation?
To provide a recommendation for payment for the CA to certify
How is the construction act relevant?
Statutory requirements relating to interval and procedure for contracts that have duration of over 45 days
Talk me through the schedule 2 quotation process under the JCT?
+ sufficient information must be provided to the contractor to enable preparation of a quotation
+ prescriptive time periods exist for the preparation and acceptance of a quotation
+ the quotation must include the value of the varied work and the effects on any other work
+ supporting calculations should be submitted, with appropriate reference to the Valuation Rules
+ any requirements for an Extension of Time
+ any amounts to be paid in lieu of ascertaining Loss & Expense
+ a fair and reasonable amount in respect of the cost of preparing the quotation should be included. This fair and reasonable amount is to be paid even if the quotation is not accepted
+ method statements and resource requirements should be included if asked for by the instruction to provide the quotation
What is the difference between Patent and Latent Defects?
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
What is a rectification period?
In JCT contracts, the period is typically between six to twelve months but can be as long as two years. A principal or employer who does not advise that the rectification of defects is needed and/or refuses the contractor access to the site may be in breach of contract
