E Administration and Observation

Question 1

Define Liquidated Damages

Answer 1

An actual amount specified in the contract of the loss to the client if the construction is late.
Not for the architect to determine, but to advise the client to get further help if needed.
Needs to be for the actual loss suffered.

Question 2

When to use Performance Bonds

Answer 2

If the value is greater than $1.5M then consider using them to protect the principal from contractor default.

Question 3

How often should observation be carried out?

Answer 3

Depends on the type of building, the speed at which work is being done. Minimum average one per week.

Question 4

What to do if the client doesn’t want observation?

Answer 4

Don’t accept responsibility for construction work you never see. Under no circumstances agree part way through construction to undertake observation or issue a PC certificate.
Don’t go to site.

Question 5

What if you are engaged for observation, but not administration?

Answer 5

Clearly document all examples of defective and incomplete work and report in writing to the client and contract administrator.

Question 6

What should the specification say in regard to observation?

Answer 6

That the contractor should notify the architect when the main architectural elements of the design are ready for inspection. The architect should list the critical items in the specification, and require two days notice for observation.

Question 7

What are you observing?

Answer 7

Materials and components for general compliance with the contract docs.
Reviewing samples of critical construction work.
Reviewing samples, standards, goods off site.

Question 8

What to do if the contractor is not delivering an acceptable standard of work?

Answer 8

Inform the client/administrator in writing.

Inform the client that you may need a more intense level of observation, and therefore adjustment of your fee.

Question 9

Guiding Principal of the HSWA 2015

Answer 9

Workers and other persons should be given the highest level of protection against harm to their health, safety, and welfare from work risks so far as is reasonably practicable

Question 10

What is the dispute resolution process under SCC?

Answer 10

Architect’s Decision
Mediation
Arbitration

Question 11

What is the dispute resolution process under the CCA?

Answer 11

Adjudication

Arbitration

Question 12

What is the dispute resolution process under AAS?

Answer 12

Mediation
Arbitration
Adjudication - of fees

Question 13

Describe Mediation

Answer 13

Mediator helps parties reach agreement - assisted negotiation.
The process is voluntary.

Question 14

Describe Adjudication

Answer 14

Under the CCA

Independent person decides a dispute based on evidence. The outcome may not be final.

Question 15

Describe Arbitration

Answer 15

Independent person decides a dispute based on available evidence. The outcome is enforceable, final and binding. It may overturn an adjudication.

Question 16

Name of the Act created by government in response to leaky claddings.

Answer 16

The Weathertight Homes Resolution Service Act 2006

Question 17

What are VPRs?

Answer 17

Variation Price Requests

A request to the contractor to price for a contemplated change in the works. Price ONLY.

Question 18

What is an AD?

Answer 18

Architect’s Direction

Architect issues to contractor. Can include variations.

Question 19

Under SCC, when should the contractor begin work?

Answer 19

The date that the contractor is given possession of the site should be stated in the contract - time in days after notice of acceptance of Tender. The contractor must start within 5 days of this.

Question 20

How can you assess progress on site in regard to programme?

Answer 20

1. Rule 11.3 - contractor to supply programme.
2. As for this to be in simple bar format so it is easily legible.
3. Include ‘Progress of Work’ on every meeting agenda.
4. Request contractor to supply updated programmes showing actual progress achieved - critical in assessing EOTs.

Question 21

When is the contract complete?

Answer 21

When all of the items on the defects liability list have been remedied.

Question 22

Who is responsible to decide if Practical Completion has been achieved?

Answer 22

The architect.

Question 23

Tricky situation: Builder called back during defects period to fix some work and damages the painting while fixing. Who pays for the re-paint?

Answer 23

The issue is not whether the architect was right, but whether the architect acted in an appropriate manner.
Look through the conditions of contract, look carefully, don’t be rushed into a wrong decision.
The builder was required to make good the painting.