Experience E: Administration and Observation of Contract Works

Question 1

What situations may warrant an Extension of Time?

Answer 1

• Unforeseen physical conditions
• Weather
• Delays with Principal/separate contractors

Question 2

How long does the EtC have to respond to an EoT request from the Contractor?

Answer 2

10 working days from time of claim.
- A granted claim extends the date of practical completion

Question 3

How are RFI’s responded to in NZIA SCC ?

Answer 3

Architects directions.

Question 4

How are RFI’s responded to in NZS3910?

Answer 4

Responses via CAN’s and instructions via Contract Instructions

Question 5

What is a variation claim? Give an example

Answer 5

An alteration to the scope of works in a construction contract.
- Change of scope in the relocation of the GF swimming pool from SW corner to northern edge.

Question 6

What is a payment claim? How must they be issued?

Answer 6

A demand for payment made by the Contractor to the Principal which sets out their claim to be paid for construction work carried out to date under the construction contract (CLAIMED AMOUNT).
- Can be issued alongside or be incorporated into an invoice.
- Can be claimed once per month.
A payment claim must:
- Be in writing
- Contain sufficient details to identify the contract to which it relates.
- Identify the work and relevant period for which the Payment Claim relates.
- State the claimed amount and due date
- Indicate how the claimed amount was calculated
- State that it is a payment claim made under the Construction Contracts Act.

Question 7

What is an Offsite payment

Answer 7

• Payments to be made for the storage of equipment and building materials during the construction process. This is usually included as a provisional within the construction contract. Both the SCC and NZIA3910 convey a transfer of title from the Contractor to the Principal

Question 8

What is a payment schedule?

Answer 8

A schedule issued by a building client after having received a payment claim, if they dispute part or all of the claimed amount.
A payment schedule must:
- Be in writing
- Identify the payment claim to which it relates
- State an amount of the payment claim (if any) which is not disputed and which it proposed to pay.a

Question 9

What are Liquidated Damages?

Answer 9

LD’s is a predetermined compensation established by parties during contract formation. They ensure that each party upholds their obligations.
A Liquidated Damage is a pre-determined figure that will be paid to one party following a contract breach.

Question 10

What are the 3 stages of the Payment Regime in the Construction Contracts Act 2002 - Payment Claims and Payment Schedules?

Answer 10

1. A payment claim is issued by the Contractor (PAYMENT CLAIM)
2. If the amount owing under a Payment Claim is disputed, a payment schedule is issued by the Principal (PAYMENT SCHEDULE).
3. Adjudication where a dispute is not resolved between parties.

Question 11

What is a contractors bond?

Answer 11

A contractors bond is a predetermined amount set out in the construction contract and is a guarantee from a third party that if the Contractor fails to deliver on its contractual obligations the bond provider (called a guarantor or surety) will pay instead.

Question 12

What is a Producer Statement 1? (PS1)

Answer 12

• Design

Question 13

What is a Producer Statement 2? (PS2)

Answer 13

• Design review

Question 14

What is a Producer Statement 3? (PS3)

Answer 14

• Construction (often used by the installers of a proprietary system).

Question 15

What is a Producer Statement 4? (PS4)

Answer 15

• Construction review - Intended for use by a suitably qualified independent engineering construction monitoring professional who either undertakes or supervises construction monitoring of the building works where the BCA requests a Producer statement prior to issuing a Code Compliance Certificate.W

Question 16

What are Retention monies

Answer 16

Retention money is an amount held back from a payment made under a construction contract. It is usually a percentage of the amount payable of each instalment.

Question 17

What must be done/supplied by the contractor to the Principal/EtC prior to site possession?

Answer 17

• Ensure insurance certificates are signed + schedules to architect
• Organise bond + signed Schedule
• have Health and Safety plan
• 1 copy of contract documents must be kept on site.

Question 18

What happens at an initial site / Pre construction meeting agenda?

Answer 18

• Discuss health and safety plan
• Discuss contractors program
• Have evidence of insurances in place
• Building consent documents to be kept on site at all times.
• Evidence of Bond.

Question 19

What are unforeseeable physical conditions on site?

Answer 19

Conditions on site that could not have reasonable be foreseen and accounted for during the tender stage.

Question 20

What are the stages of disputes?

Answer 20

Mediation: Information, confidential negotiation with a mediator. 50-50 split cost between Principal and Contractor.

Adjudication: More formal, confidential negotiation with an adjudicator specifically in relation to the Construction Contracts Act.

Arbitration: Private, judicial determination of a dispute by an independent third party. Final and binding decision.

Litigation: Public civil court case.

Question 21

What is a Certificate of Practical Completion? (CPC)

Answer 21

Issued by the architect or contract administrator to the Principal to certify that the building works are completed and meet all the conditions states in the Construction Contract.

Question 22

What is a Certificate of Code Compliance? (CCC)

Answer 22

A requirement of the Building Act. A CC is issued when Council is satisfied the completed building works comply with the Building Consent documentation and any items or conditions to the Building Consent are met or provided, including Producer Statements, completed inspections, and warranties. The CC acknowledges the building is safe and fit for occupation.

Question 23

Under the Standard Conditions of Contract SCC, who is allowed to administer the contract?

Answer 23

The Architect, or their representative.

Question 24

Under the NZ3910 Construction Contract, who is allowed to administer the contract?

Answer 24

The Engineer is required to be ‘an expert advisor to and representative of the Principal (e.g. Project Manager, QS) in administering a contract under 3910.

Question 25

What is the NZS 3910 contract for?

Answer 25

Build only contract - Construction

Question 26

What is the NZS 3916 contract for?

Answer 26

Design and construct.

Question 27

What is the NZS3917 contract for?

Answer 27

Fixed term