Contract Administration Level 1

Question 1

Are there currently any projects underway?

Answer 1

To review and update the Black Book content to produce a comprehensive new edition, with new presentation and navigation.

Question 2

Are there any Guidance Notes for CA?

Answer 2

The Guidance Note is currently out of date, so it cannot be relied on for guidance, but contains relevant principles for information only.

Question 3

Can you name the six roles of acting as a CA?

Answer 3

1.) Role begins when contract is in place - Responsible beforehand.
2.) Implied requirement for pre-contract services.
3.) Will act as an agent of the employer, but make impartial decisions.
4.) perform various tasks - e.g chairing meetings, inspecting works, issuing instructions, interim payemnts, completion and final accounts.
5.) CA does not design - cannot give advice to the contractor and can’t be responsible for assembly or choice of materials.
6.) Appointment includes periodic inspection of works.

Question 4

Name examples of pre-contract services you would undergo as a CA?

Answer 4

1.) Procurement.
2.) Liquidated Damages.
3.) Advise on Contract Type.

Question 5

Name examples of the Roles and Responsibilities of being a CA?

Answer 5

1.) Administer the Contract and record.
2.) Certify intermin payments / review valuations.
3.) Issue instructions.
4.) Meetings.
5.) Report information to the Client.
6.) Produce final accounts.
7.) Issue certificates - E.g. Practical Completion, Making good defects.

Question 6

What are the four key elements required to make a binding contract?

Answer 6

1.) Offer.
2.) Acceptance.
3.) Consideration.
4.) Intent to create legal relations.

Question 7

What liabilities transfer to the Employer when certifying completion?

Answer 7

1.) Liability for the works.
2.) Maintenance and Insurance.

Question 8

Following Practical Completion what commencement gets triggered?

Answer 8

1.) Defects liability / Rectification period.
2.) Warranty Periods.

Question 9

Following Practical Completion what can the Contractor not claim for anymore?

Answer 9

No longer claim for delay damages.

Question 10

What should a CA consider when a request of an EOT from a Contract is recieved and the delay is not their fault?

Answer 10

In relation to relevant events - such as adverse weather, or the employer’s failure to provide information or materials on time.

Question 11

What is a Final Account used for?

Answer 11

It confirms the final payment required under the contract, and is also used for disputes between the parties.

Question 12

What is included in a Final Account?

Answer 12

1.) Variations.
2.) Provisional Sums.
3.) Loss and Expense.
4.) Liquidated and ascertained damages.
5.) Contract Sum.
6.) Contingency.
7.) Final Sum.

Question 13

What contracts JCT contracts do you act as a CA?

Answer 13

1.) Minor Works
2.) intermediate
3.) Standard Building Contract

Question 14

Can you act as a CA under a JCT Design and Building Contract?

Answer 14

No, you act as an Employer’s Agent.

Question 15

What is the difference between an EA and CA?

Answer 15

The EA acts on the behalf of the employer/client on all matters and is only used on a Design and Build Contract.

Question 16

What are loss and expenses?

Answer 16

They are claims often associated with delays, and can be made for any event where the contractor incurs a loss due to the employer’s failure to provide information.

Question 17

What is Retention?

Answer 17

This is a sum definded by the contract as being held in trust. This supplies assurance that the contractor will complete the works as well as remedy any defects after practical completion.

Question 18

When does Retention get released?

Answer 18

Retention will be reduced to half upon practical completion and then released at the end of the retfication period.