Contract Administration

Question 1

How would you proceed when assessing a L&E claim?

Answer 1

Check contract conditions to ensure that contractor’s claim is valid contractually, i.e. reason stated for claim is an applicable relevant matter under JCT.

Compile documentation, including from contractor and compare against my own to establish facts of the claim.

Compile notices (if applicable) i.e. early warnings in NEC.

Quantify loss, i.e. unproductive working, loss of profit, inflation, increased or abortive material costs, prolongation costs etc.

Negotiate with the contractor and agree a satisfactory settlement with client’s agreement.

Question 2

List some certificates that a CA/EA/PM can issue on a project?

Answer 2

Interim Payment Certificates
Practical and Sectional Completion Certificates.
Defects/Making Good of Defects Certificate
Final / Completion Certificate
Non completion Certificate
Extension of time certificate.

Question 3

What is the difference between relevant events and relevant matters on a JCT contract?

Answer 3

Relevant Matters - Relevant matters are issues for which the client is responsible and that affect the progress of the works. They entitle the contractor to claim direct loss and/or expense incurred due to these issues. Example - failure to give the contractor possession of the site in time.

Relevant Events - Relevant events are events that cause a delay to the completion date, which can be caused by the client or be neutral events not caused by either party. They entitle the contractor to claim an extension of time. Example - Exceptionally adverse weather.

Question 4

Can you tell me the difference between an Employer’s Agent and Contract Administrator under JCT?

Answer 4

A contract administrator’s role is specifically to administrate the contract impartially and exists from the formation of the contract.

An employer’s agent acts for the employee in all matters, although they should be impartial when administering the contract. They are often employed before the contract signing. Usually used in design and build contracts.

Question 5

How do you carry out valuations?

Answer 5

• Visit site, walk the site with the contractor QS, assess works on site in accordance with the contract, i.e. on Sussex with an activity schedule.
• Ticking works off on site if activities were 100% complete, including off-site and on-site materials (making sure to check clauses 71.1 for titles/vesting agreements etc).