Contract Administrators Guidance Note, 1st ed. Flashcards
What is a contract administrator?
An individual appointed by the employer to administer the contract between the employer and the contractor.
What is the difference between the contractor administrator and project manager?
Impartiality - CA is has an impartial decision making function while the PM acts as the agent of the employer.
When does the role of the CA begin?
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
What are the key tasks of the CA?
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)
How should the CA identify themselves in the building contract?
using the name of the professional practice, not their personal name.
What should be included in terms of appointment?
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
What records should the CA keep?
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
How can the CA monitor progress against programme?
The contractors programme
The portion of the works valued to date as part of the whole
Experience of the CA
Checking with specialist suppliers
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?
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.
What is ‘time at large’?
A situation where there is no date for completion. The contractor is no longer bound to complete the project by a certain date.
What are typical pre-requisites for PC?
Health and safety file produced
the production of all necessary testing and commissioning certificates.
How would you determine a loss and expense claim?
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.
If defective workmanship or materials are suspected, what powers does the CA have under the contract?
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
What statutory obligations should the CA be aware of?
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
What should a CA include in an inspection?
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
What might be included in the agenda for a pre-commencement meeting?
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
What should the CA report to the client?
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.
How can the CA value specialist works such as MEP equipment?
In such cases CA should seek advice of the relevant specialist consultants to determine if the works have been ‘properly executed’.
How can the CA value materials off site?
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.
when the contractor requests payment for materials off site, what security can the employer obtain?
vesting certificate
advanced payment bond
What should be included in a vesting certificate?
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
When might the CA issue instructions?
issuing detailed drawings with clarifications
additions, omissions and variations to the works
instructions for expenditure of provisional sums
What is the difference between partial possession and sectional completion?
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.
What are typical pre-requistes for PC?
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.
Can you issue PC with snagging items outstanding?
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.
What is the purpose of loss and expense?
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.
Does a loss and expense claim always give rise to an extension of time?
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.
