Contract Administration Flashcards
What is the JCT?
Joint Contracts Tribunal. UK organization that creates standard construction contracts and guidance notes.
What contracts are offered by the JCT?
Minor Works, Intermediate, Standard and Design and Build Building Contracts are the main ones. Can include with Contractor’s/Sub-Contractor’s Design too.
There is also Management building and Construction Management.
When would you use a JCT Minor Works Contract?
If works are small and relatively straightforward.
When would you use a JCT Intermediate Contract?
If Quantity Surveyor/Clerk of Works are involved.
Sectional Completion
Named Sub-contractors (useful if specialist sub-contractors involved)
Who are the duty holders under the CDM Regulations 2015?
Client
Designer
Principal Designer
Principle Contractor
Contractor
Workers
Under the Building Safety Act, a Principal Designer and Principal Contractor are required too
What are the duties of the Client under the CDM Regulations?
Ensure other duty holders are appointed
Ensure sufficient time and resources are allocated
Welfare facilities are provided
Relevant information is prepared and provided to other dutyholders
For domestic clients, their duties are normally transferred to the contractor/principal contractor
What are the duties of the Designer under the CDM Regulations?
When preparing designs, eliminate/reduce risks that may arise during construction and the maintenance/use of the building once finished
Provide information to other members of the project team to help them fulfil their duties
What are the duties of the Principal Designer under the CDM Regulations?
Plan and manage H&S in the pre-construction phase of a project.
Help produce Pre-construction information
Prepare and provide relevant information to other duty holders
Liaise with the principal contractor to help with the construction phase.
What are the duties of the Principal Contractor under the CDM Regulations?
Plan and manage H&S in the construction phase of a project.
Prepare the construction phase plan
Ensure suitable site inductions are provided, steps are taken to prevent unauthorised access, welfare facilities are provided.
What are the duties of the Contractor under the CDM Regulations?
Plan and manage construction work so it is carried out without H&S risks.
Comply with directions given to them by the PD or PC
What is the difference between Sectional Completion and Partial Possession?
Sectional Completion is programmed into the contract.
Partial Possession is agreed during the works.
What happens following Partial Possession/Sectional Completion/Practical Completion?
Half of the retention is released
Rectification period begins
Contractor not liable for liquidated damages/ reduce proportionally
Client is responsible and should insure it.
Which insurance provisions are provide within JCT Contracts?
Option A: Contractor required to take out a Joint Names Policy for all risks insurance for the works
Option B: Employer required to take out a Joint Names Policy for all risks insurance for the works
Option C: Employer required to take out a Joint Names Policy in respect of the existing structures and contents AND a Joint Names Policy for all risks insurance for the works
What is the interim payment process for JCT Contracts?
Contractor will normally issue an application for payment prior to the Interim Payment Date, although this is not obligatory.
Due date is 7 days after this
Contract Administrator must issue a Payment Certificate within 5 days of the Interim Payment Date
Money is due 14 days from the Interim Payment Date
What is the difference between a relevant event and a relevant matter?
A relevent event entitles a contractor to claim an extension of time but not necessarily a loss and expense claim.
A relevent matter entitles the contractor to a loss and expense claim but not necessarily an extension of time.
What is a Pay Less Notice?
Tells the contractor/employer that less money will be paid/demanded than agreed. Must be issued at least 5 days before the final date of payment.
What is a Final Certificate?
Issued at the end of the Rectification Period.
Certification by the CA that the construction contract has been fully completed, patent defects have been rectified and final accounts have been agreed.
It releases the remaining retention.
What is a Certificate of Making Good?
Certificate to confirm that defects identified have been rectified within the Rectification Period.
What is a Certificate of Non-Completion?
If works aren’t completed by the contractual date, it is issued and is required to trigger liquidated damages.
What is the difference between latent and patent defects?
Latent - cannot be discovered by reasonable inspection
Once they are discovered they become patent defects
What is a collateral warranty?
A contractual document that provides a contractual link between one party to a third party.
E.g, a purchaser or tenant
What is novation?
Process by which contractual rights and obligations are transferred from one party to another.
What is assignment?
Transfer of benefits arising under a conract but not the burdens.
What are liquidated damages?
An estimation of actual loss within the contract, should the contractor not meet the stipulated completion date
What are bonds?
Means of protection against the non-performance of a contractor.
Name types of bonds
Performance Bond
Advance Payment Bond
Retention Bond
Defects Liability Bond
What is the role of a Contract Administrator?
Advising clients on methods of procurement and contract selection
Preparing contract documentation for execution
Chairing meetings
Inspecting works progress
Giving instructions such as variations
Authorising interim payments
Certifying Practical Completion
Confirming end of Rectification Period
What is procurement?
Overall act of obtaining goods and services
What is traditional procurement?
Involves separating design from construction. The client first appoints consultants to design the project in detail and a contractor is then appointed for the construction of the project on a single-stage competitive basis.
What is single-stage tendering?
Where a client invites contractors to submit a single bid for a project.
What is a lump sum contract?
A single ‘lump sum’ price for all the works is agreed before the works begin.
What is Design and Build Procurement?
Single contractor assumes the risk and responsibilites for designing and constructing the project.
What are Preambles?
Explanation of a document to help with interpretation
Do not form part of the cost
Includes description of the parties to the contract, background, tendering proceduce, objectives.
What are preliminaries?
Description of the project that allows a contractor to assess costs whichdo not form part of any package of works but are required by the method and circumstances of the works.
Includes, the site, the works, contract conditions, site welfare
