Contract Administration - Level 1 Flashcards
(62 cards)
What are the timescales involved with an extension of time request on a standard JCT contract?
JCT contract require contractor to notify the employer “forthwith” once it becomes reasonably apparent that the progress of works is, or will be affected.
Following receipt of contractor’s notice, the employer will consider application and respond to contractor to indicate if it will award an EOT and fix a new completion date. Require employer to respond asap, within 12 weeks.
Does an instruction need to have an agreed value contained within it?
There is no proforma format for an Architects Instruction and it does not need to include an agreed value.
The contractor fails to complete the project by the completion date what measures do the CA/EA take and what are the consequences of this?
Issue a Notice of Non-Completion
The CA/EA fails to issue a non-completion certificate on an over running project what are the consequences of this?
The non-completion notice is formal written notice that contractor has failed to complete the works in the contract by the completion dates.
- triggers right for employer to levy liquidated damages
Three key documents required for employer to levy damages:
1) Non completion certificate
2) Employer written to contractor to notify them that intends to levy liquidated damages
3) Employer must issue pay less notice to recover LADs
What is your understanding of bespoke contract?
A bespoke contract is one that is drafted for a specific matter
What do you understand as the difference between a bespoke contract and standard form of contract?
A standard form of contract like JCT or NEC have been developed for use in multiple different projects by many different parties. A bespoke contract is one that is drafted for a specific project or party.
What are your views on the advantages/disadvantages of using a bespoke contract?
A bespoke contract will be designed specifically to suit a particular client or project.
The advantage is that it is made to measure and will not need to be adapted (like a standard form contract), however, other parties will not be familiar. Standard forms have been developed over many years with input of many different experts with different roles in projects. The contract has been tested in many different projects and any potential issues already tested in courts.
All parties should be familiar with interpretation, language and processes and procedures required to follow.
What are your views on the advantages/disadvantages of using a standard form of contract?
A bespoke contract will be designed specifically to suit a particular client or project.
The disadvantage is that it is not made to measure and will not need to be adapted, and other parties will be familiar. Standard forms have been developed over many years with input of many different experts with different roles in projects. The contract has been tested in many different projects and any potential issues already tested in courts.
All parties should be familiar with interpretation, language and processes and procedures required to follow.
What are the qualities of the NEC form of contract?
NEC contracts are designed to promote collaborative working, aiming to reduce conflict
What are the advantages of the JCT form of contract?
It is most popular contract form in UK, widely known and familiar throughout industry.
The language and processes have been tested in courts and used in many projects successfully.
What changes were last made to the NEC form of contract? When were these made?
What is the difference between a Relevant Event and Relevant Matter?
A relevant event is one which causes delay to a project and entitles contractor to EOT but without incurring potential loss and expense to contractor.
A relevant matter is one which causes delay to a project entitling the contractor to an extension of time and to claim for loss and expense incurred as a result of the event.
If a non-completion certificate is not issued what is the contractual effect?
Time is at large - no completion date
What guidance is there on contract administration?
RICS Contract Administration guidance has been withdrawn.
JCT publishes guidance on contract administration role.
What are the duties of a CA under JCT contracts? Do these include design?
CA duties are:
- no design responsibility, surveyor should avoid advising employer on issues relating to assembly, material choices, design or spec and shouldn’t give verbal instructions on site during early stages of project.
- determining EOT claims
- determining loss and expense claims
- issuing practical completion statements
- issuing instructions to overcome discrepancies/changes
- issuing instructions to expend provisional sums
- certifying interim payments
- administering change control procedures
- collating and issuing schedules of defects
- issuing the certificate of making good defects
- notifying partial possession
- certifying sectional completion
- certifying practical completion
When authorising payment for goods or materials stored off site what must you obtain to protect your client in the event of the contractor going bankrupt?
A vesting certificate
If you are concerned that a contractor is in financial difficulties name 3 things as CA you should do?
What key function does a contract administrator perform on a construction project?
Administering the contract provisions and procedures
Issuing certificates
Can you name three standard forms of contracts that can be used on a construction project?
What insurance provisions are in the JCT and NEC standard forms of contract?
JCT insurance provisions - option A, option B or option C
What is loss insurance?
Financial cover for losses that fall directly on the insured party.
What is all risks insurance?
Where is the minimum financial cover for the contractor’s liability for injury death and damages to property other than the works contained?
What are the three ways that benefits can be transferred under JCT contracts?
Collateral warranties
Assignment
Third party rights
