Contract Administration 3 Flashcards
Kingsway Phase 1: How did you establish the defect had occurred prior to the works?
Assessed when the works had occurred and the severity of the rot.
Longitudinal cracking.
Brown
Shredded wheat.
I concluded from experience that rot that severe doesn’t occur within a couple of weeks.
Kingsway Phase 1: What time and cost implications did the defective valley have on the project?
Relevant Matter:
Time - Investigation and repair works 1 day therefore the works did not have that much of an impact on the project; but the contractor was entitled to a 1 day extension of time.
Cost - £700.00.
Kingsway Phase 1: What happened to the internal damage following the defective valley?
Contractor resolved.
Churchill House: How did you calculate your interim valuation at Churchill House?
I reviewed their application for payment against their priced schedule of works and actual progress on site.
Churchill House: How did you communicate with the contractor when you identified their application was excessive?
Telephone call in the first instance was to ensure a dispute or conflict didn’t arise.
Following the discussion I reiterated the outcomes in an email and issued the payment certificate which was properly owed to the contractor.
Churchill House: Tell me about due dates and application for payments?
HGCR Act 1996 (AKA Construction Act). If a construction project is longer than 45 days the contractor is entitled to interim payments.
Due date: set within the contract.
Interim Valuation date: 7 days before due date
Contractors application for payment: Between valuation date and due date.
Certificate issued: 5 days after due date
Final date of interim payment: 14days after the due date
If no notice is served by the CA/Payer (i.e. 5 days after the due date), the contractor (Payee) may serve their own Payment Notice, provided its before the final date of payment and this will need to be paid, though this can be countered with a Pay Less Notice.
Pay Less Notice: No later than 5 days before the final payment date.
Final payment (following PC): 28 days after receiving all relevant documentation. (Should receive documentation within 3 months of PC usually, though this can be changed when filling in JCT contract)
Churchill House: Why did you liaise with the contractor before issuing a certificate?
What would you have done if they didnt agree with your valuation?
Best way to approach conflicting opinions is to have an open and transparent conversation to discuss where the differences lay.
Avoid dispute or conflict arising.
Verbal better than written in these circumstances.
Failing an agreement I would have valued the works fairly and issued what was properly owed.
Churchill House: How did you know off-site materials could not be paid for?
Section 4 of the JCT MW Contract states it.
- Properly executed works.
- Materials which are reasonably brought to site and reasonably protected.
Churchill House: Do you know if any other contracts allows you to pay for off-site materials?
Advance payment provision and there’s an off site materials payment clause within the Intermediate contract.
- Asses contractors financial status.
- Ensure materials are protected and insured.
- May ask for a bond from the contractor.
- Parent company guarantee.
- List materials in ‘Listed Items’ provision.
Kingsway House: What was the contract mechanism after discovering the defect and what happened?
I initially issued a notice (7 day) to the contractor to open up works. Not there fault so I issued a variation/extension of time for the additional time and costs they incurred as this was a Relevant Matter.
I also obtained cost and timescales for the repair works which were implemented as a variation.
