Contract Administration Flashcards
Tendering Single Stage
DEFINED SIMPLE WORKS
Shortlisting followed by tendering
Two Stage Tendering
Shortlisting followed by tender process
select PREFERRED BIDDER to assist finalising design prior to finalising contract terms.
increased scope for value engineering + early engagement reduced scope for claims.
Tender docs limited to prelims, OH+P and finalised design
Error procedure
Alteration 1 - Correction of tender figure not permitted
Alteration 2 - Correction of GENUINE errors is permitted
INSURANCE JCT OPTION A
Works insured by contractor under a JOINT NAMES policy.
NEW BUILD WORKS where contractor is required to effect the contracts works insurance
INSURANCE JCT OPTION B
WORKS and EXISTING STRUCTURE is to be insured by the EMPLOYER in JOINT NAMES
NEW BUILD - if employer is required to affect the contractor works insurance (ONLY if joint names possibility)
INSURANCE JCT OPTION C
Existing structures insurance
Where EMPLOYER insures structure and works
BONDS
BONDS BROKER PROMISE to pay the employer a sum of money on pre agreed terms e.g. contractor goes bust. SUBJECT TO A PREMIUM.
Extension of time (EoT)
Without EoT contract is at LARGE.
Subject to RELEVANT EVENT - Events out of the contractors control.
JCT Standard Building Subcontract – Relevant Events are under Clause 2.19
JCT Design and Build Contract – Relevant Events are under Clause 2.26
RELEVANT EVENTS
Relevant events may be:
Variations.
Exceptionally adverse weather.
Civil commotion or terrorism.
Failure to provide information.
Delay on the part of a nominated sub-contractor.
Statutory undertaker’s work.
Delay in giving the contractor possession of the site.
Force majeure (events that are beyond the reasonable control of a party, such as a war or an epidemic).
Loss from a specified peril such as flood.
The supply of materials and goods by the client.
National strikes.
Changes in statutory requirements.
Delays in receiving permissions that the contractor has taken reasonable steps to avoid.
LOSS of Expense
Contract allows contractor to be reimbursed for actual loss and expense linked to Determent of possession Delay in possession Works affected by relevant maters Variations / CA instructions Any impediment, prevention or default Works suspension through non-payment
Partial/early possesion
Contractor consent required however can not be unreasonably withheld.
PC Certificate required for the area/s.
Damages proportionately reduced.
DIFFERENT FROM SECTIONAL COMPLETION AS NOT PRE ARRANGED
Rectification period
Provision for ‘making good’ MINOR DEFECTS or outstanding items.
RICS Recommends 3-6 months for small projects and 6-12 months for large projects.
Rectification end date specified on PC Certificate.
12 months full seasonal cycle.
End of rectification period CERTIFICATE OF MAKING GOOD is issued and release of retained retention monies.
Practical completion
No legal basis for when works are practically complete.
PC can not be reasonably withheld
Contract states minimum amount of works to be completed prior to PC being achieved.
Latent or hidden defects cannot affect PC.
PC means:
Start of rectification period
End of contractors liability under Liquidated damaged (LADs).
Release of half of retention monies.
Emplyer liable to insure the site.
Non Completion
Certificate of non completion due if works not completed by PC date and no Extension of time granted.
Employer can claim Liquidated damages.
Sum can be deducted from any monnies owed.
Payment procedure
Contractor submits INTERIM APPLICATION (upto 7 days prior to DUE DATE)
CA mus issue INTERIM CERTIFICATE no later than 5 DAYS after DUE DATE
final date for parment no later than 14 DAYS from DUE DATE.
CONTRACTOR CAN ISSUE INTERIM PAYMENT NOTICE IF A DOES NOT ISSUE INTERIM CERT WITHIN 5 DAYS.
INTEREST AT 5%
CONTRACTOR CAN SUSPEND WORKS.
