Contract Administration - Powerpoint

Question 1

When does a design professional typically act as the owner’s agent?

Answer 1

When:
- designing,
- coordinating the designs of sub-consultants,
- liaising with the authority having jurisdiction (i.e. the municipality), giving the necessary Letters of Assurance
- providing guidance to the contractor when issues arise during construction

Question 2

What are the responsibilities and liabilities of the design professional during the Construction Phase of a project?

Answer 2

• the contract between the design professional and the owner for professional services;
• the contract between the owner and the general contractor
• any Letters of Assurance executed by the design professional.

Question 3

What impartial decisions is the design professional typically responsible for under the construction contract between owner and gc?

Answer 3

• payment
• extras
• changes in work and time extensions
• arbitrator or judge b/w owner and gc

Question 4

What are the 3 main sources for the scope of the responsibilities and liabilities of the design professional during construction?

Answer 4

• the contract between the design professional and the owner for professional services;
• the contract between the owner and the general contractor
• any Letters of Assurance executed by the design professional.

Question 5

What is the difference b/w Field Review and Supervision of Construction?

Answer 5

Field Review:
Consists of a periodic review of construction to check for substantial conformity with the design. A field reviewer cannot guarantee that all deficiencies will be identified and rectified.
A professional in their discretion must consider whether the work substantially complies in all material respects with the documents prepared by themselves.

Supervision of Construction:
The function of the contractor (typically the contractor’s superintendent), which has a full-time on-site presence.

Question 6

What does the design professional’s duty to inspect usually flows from?

Answer 6

• the design professional’s contract with the owner; and/or
• any Letters of Assurance under the 2018 British Columbia Building Code (“BCBC”), and their equivalents under the Vancouver Building Bylaw (“VBB”).

Question 7

What is meant by the “discretion of the registered professional” when talking about Field Reviews?

Answer 7

It is left to the discretion of the registered professional todetermine the number and timing of field reviews sufficient to ascertain substantial compliance (sometimes called general conformity) with the design.

Question 8

A design professional who has submitted Letters of Assurance cannot avoid the responsibility to conduct adequate____________________ on the basis that his contract with the owner does not provide for any _______________________ obligations.

Answer 8

A design professional who has submitted BCBC Letters of Assurance cannot avoid the responsibility to conduct adequate field reviews on the basis that his contract with the owner does not provide for any inspection or field review obligations.

Question 9

When is there a heightened responsibility to inspect a contractor’s work?

Answer 9

When the contractor has been previously found not to be complying with the BCBC, plans and specifications

Question 10

What 3 things should a design professional do as good practice?

Answer 10

• Record in detail his observations and instructions given during a field review
• Distribute the written field review to the contractor and owner
• Diligently follow up on all deficiencies identified

Question 11

What 3 duties does a design professional have when certifiying payments?

Answer 11

• exercise the skill, care and diligence of a reasonable professional practicing within the profession
• comply with the payment provisions in the contract
• act fairly and impartially with respect to both the owner and the contractor

Question 12

What is the difference between Interim and Final payment certificates?

Answer 12

Interim payment certificates:
Approximations of the work completed to date, and are therefore not expected to reflect with exact precision the amount of work performed. They are not final and binding as work can be adjusted subsequently

Final payment certificates:
The design professional’s conclusive determination of the amount to which the contractor is entitled. It is generally more difficult to adjust a final certificate.

Question 13

Can design professionals be held liable to the owner for negligent certification of payments?

Answer 13

Yes, if significant discrepancies are apparent which out to have been detected upon reasonable inspection

Question 14

What does the issuance of the Certificate of Completion trigger?

Answer 14

The running of time for filing of liens and release of holdbacks

Question 15

What is the steps of Certificate of Completion if acting as the payment certifier?

Answer 15

• Within 10 days of request, must determine if complete and issue Certificate of Completion
• Within 7 days of issuance, must deliver Certificate of Completion to all
• Within 7 days of issuance, must post Certificate of Completion in prominent place on site
• Must keep track of requests – ongoing obligation to advise when contract becomes complete

Question 16

What is the 3-2-1 Formula?

Answer 16

Contract is substantially performed if capable of completion at cost not more than:

• 3% of first 500,000 of contract price
• 2% of next 500,000 of contract price
• 1% of balance of contract price

Question 17

What are Exclusion Clauses?

Answer 17

Clauses in construction contracts which attempt to transfer certain risks to the contractor or to prevent particular claims from being successful against the owner

Question 18

What does it mean by the design professional acting in a “quasi-judicial capacity”?

Answer 18

The design professional is often called upon to resolve disputes between parties in a contract. They are not required to hold a trial-like hearing but should apply skill and judgement to perform an independent investigation.