Contract Administration Flashcards
What is the difference between a contract administrator and employer’s agent?
CA is the role in traditional forms of contract
EA is the role in Design and Build
EA’s normally start their appointment earlier and work on behalf of the client
What is the legal basis for this difference?
EA’s the contract administration role within design and build contracts whereas the Contract Administrator performs the same contract administration role in traditional forms of contract
What are the key duties of the contract administrator under the form of contract?
- Administering the contract
- Chair Meeting
- Issuing relevant certificates
- Administrating change control procedures
- Issuing certificates interim certificates for payment.
- Issuing practical completion certificates.
- Collating and issuing schedules of defects.
- Issuing the certificate of making good defects.
- Issuing the final certificate.
- Consider EOT claims
Can anyone else undertake any of these duties?
Yes the QS under the contract can undertake some of these duties
What duties does the contract administrator usually have, which are additional to those set out in the contract?
Preparing and issuing construction progress reports.
How is an extension of time calculated?
- Review facts and relevant event
- Compare as planned versus as built
- Critical path analysis
What is the process for determining whether completion has been achieved?
Are works substantially complete, employer can use the building excluding snags and minor defects.
What is the role of the contract administrator following completion?
Following completion the CA must record a list of snags, issue a final completion certificate and agree final account. 12 months later it must review the snagging works and issue a making good certificate.
What current challenges is Covid and/or Brexit bringing to Contract Administration?
What is a bond?
A bond is a promise (usually by deed) whereby the person giving the promise (the bondsman) promises to pay another person (the employer) a sum of money.
What are the different types of bond in the industry?
Advance Payment Bond
Retention Bond
Performance Bond
What is a performance bond?
Requested by the employer, and required from the contractor, who in turn obtains it from a bank or insurance company. The bond is usually 10% of the contract sum payable to the employer if the contract fails to complete the work in accordance with the building contract.
What are the two different types of bonds?
- On-demand bond
- Default bond
What is the difference between the two types of bonds?
The essential difference is an employer does not have to prove a default has occurred under a ‘on demand’ bond. Where as with a default bond the employer must prove the conditions necessary.
What must the employer prove with a default bond?
- That a breach under the primary contract has occurred
- The level of damage suffered by him/her as a result of that breach
What is an on-demand bond?
Employer can call on the money even if a breach has not occurred.
If the contractor is wise they would factor this into their contract price, but contractors should resist this type of bond.
How can an on-demand bond be prevented?
- Fraud
- Bad faith
What is a collateral warranty?
A collateral warranty is a contract which is ancillary to the principal contract and creates a contractual relationship that would not otherwise exist.