Contract Administrators Guidance Note, 1st ed.

Question 1

What is a contract administrator?

Answer 1

An individual appointed by the employer to administer the contract between the employer and the contractor.

Question 2

What is the difference between the contractor administrator and project manager?

Answer 2

Impartiality - CA is has an impartial decision making function while the PM acts as the agent of the employer.

Question 3

When does the role of the CA begin?

Answer 3

The role of contract administrator does not technically commence until a building contract is in place. However, in practice the responsibilities of the CA will have commenced before the building contract exists and may include

• selection of procurement method
• calculation of liquidated damages
• deciding on the type of building contract

Question 4

What are the key tasks of the CA?

Answer 4

chairing meetings

periodically inspecting the works

giving instructions, including variation or change orders

determining any applications for extensions of time by the contractor

authorising interim payments to the contractor

certifying the date of completion

setting out the adjusted contract sum (final account)

Question 5

How should the CA identify themselves in the building contract?

Answer 5

using the name of the professional practice, not their personal name.

Question 6

What should be included in terms of appointment?

Answer 6

Confirmation of terms and conditions of appointment

Details of services to be provided

Confirmation of the basis of the fee to be charge

Identifying that a complaints handling procedure exists.

Level of PII to be provided

Question 7

What records should the CA keep?

Answer 7

Notes of site inspections: recording the date, time and duration of the visit, the weather, persons on site, progress and status of the works, any defects.

Office files: emails, notices, certificates, telephone notes, drawings, instructions.

Photographs

Question 8

How can the CA monitor progress against programme?

Answer 8

The contractors programme

The portion of the works valued to date as part of the whole

Experience of the CA

Checking with specialist suppliers

Question 9

When instructions are issued to expend provisional sum, the CA should be mindful of the two types. What are the two types of provisional sums?

Answer 9

Defined - where the provisional sum given is for defined work the contractor will be deemed to have made due allowance in programming, planning, and pricing preliminaries.

Undefined - for undefined work the contractor will be deemed not to have made any allowance in programming, planning and pricing preliminaries.

Question 10

What is ‘time at large’?

Answer 10

A situation where there is no date for completion. The contractor is no longer bound to complete the project by a certain date.

Question 11

What are typical pre-requisites for PC?

Answer 11

Health and safety file produced

the production of all necessary testing and commissioning certificates.

Question 12

How would you determine a loss and expense claim?

Answer 12

check the contract for the list of relevant matters

The loss and expense must be actual as evidenced by the contractor

contractor must make written application to the CA ad soon as possible

Any loss and expense ascertained should be included in the next interim certificate.

Question 13

If defective workmanship or materials are suspected, what powers does the CA have under the contract?

Answer 13

request the contractor to prove that works are in accordance with the spec

issue instructions for opening up

issue instruction to remove work, materials or operatives from site

Question 14

What statutory obligations should the CA be aware of?

Answer 14

Town and country planning; including consent conditions and planning agreements under Section 106 of the Town and Country Planning Act 1990

Tree preservation orders

The Building Regulations

The Party Wall etc. Act 1996

Question 15

What should a CA include in an inspection?

Answer 15

Basic info such as date, time, weather, number of operative on site and progress of works.

Review of quality of workmanship

Progress in relation to programme

A check on materials being used and delivered to site

A general awareness of the health and safety arrangements

Question 16

What might be included in the agenda for a pre-commencement meeting?

Answer 16

Team introductions

Emergency contact arrangements

Access arrangements

Party Wall

Enabling works such as asbestos removal or scaffolding

Working hours

Welfare

Identity of proposed sub-contractors

Insurance obligations of the contractor and employer

Statutory matters such as CDM, planning and building regs.

Programme and timing

Question 17

What should the CA report to the client?

Answer 17

Keep the employer up to date with what is happening generally

identify obligations of the employer under contract and provide employer with an overview

advise of risks in relation to cost, time and quality.

Cost reporting on progress against projected cash flow and running record of adjusted contract sum.

Question 18

How can the CA value specialist works such as MEP equipment?

Answer 18

In such cases CA should seek advice of the relevant specialist consultants to determine if the works have been ‘properly executed’.

Question 19

How can the CA value materials off site?

Answer 19

The CA should be certain the legal title for the materials will pass to the employer if the items have not been fixed and are included in the valuation.

For this, the CA may need to see evidence of receipted invoices to confirm the contractor has paid for them.

Question 20

when the contractor requests payment for materials off site, what security can the employer obtain?

Answer 20

vesting certificate

advanced payment bond

Question 21

What should be included in a vesting certificate?

Answer 21

certify that ownerships of the goods listed in the schedule will transfer from one party to the other upon payment and confirm that

• they will be properly identified
• separately stored
• insured
• free from incumbrances such as retention of title

Question 22

When might the CA issue instructions?

Answer 22

issuing detailed drawings with clarifications

additions, omissions and variations to the works

instructions for expenditure of provisional sums

Question 23

What is the difference between partial possession and sectional completion?

Answer 23

Sectional completion is considered at the outset of the project and each section is given separate PC dates, retention amounts and LADs.

Partial possession is unplanned and agreed during the project. The works taken over do not need to be completed prior to partial possession, whereas for sectional completion the works must have achieved completion before being handed over to the employer.

Partial possession amounts to a variation and may have cost and time implications if as it affects the contractors ability to use the full site.

Question 24

What are typical pre-requistes for PC?

Answer 24

Works completed in accordance with the contract

Principal designer satisfied that sufficient information has been provided by the contractor

The production of all the necessary testing and commissioning certificates.

Question 25

Can you issue PC with snagging items outstanding?

Answer 25

Snagging is not referenced within the contract however the CA should consider whether an item is a snagging items or could be classed as ‘outstanding works’, or where there are enough snagging items that they are no longer de minimis and PC cannot be granted.

Question 26

What is the purpose of loss and expense?

Answer 26

Loss and expense provides for the contractor to be reimbursed for deferment of possession or the regular progress of the works having been affects by certain specified circumstances.

Question 27

Does a loss and expense claim always give rise to an extension of time?

Answer 27

Although a loss and expense claim may give rise to an extension of time being awarded, there is not direct relationship between the two sets of provisionsl.