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Registration > Section E > Flashcards

Section E Flashcards

1
Q

What are the key aspects of Contract Administration?

A
  • Progress reporting
  • Programme
  • Budget/Cost
  • Quality
  • Compliance
  • Issue resolution
  • Variations
  • Document Management
  • Occupation & Handover
  • Health & Safety
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2
Q

What should you be wary of when inspecting shop drawings?

A
  • Do not use terms “check”,”approve”, verify correctness etc. GREATER LIABILITY. Use Review as per NZIA recommendation.
  • From an architectural perspective only - do not indicate approval other than in conforming with design concept and in principle with the specification + drawings.
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3
Q

What might be a valid reason for an Extension of Time under 3910?

A
  • Effect of any variation
  • Weather
  • Strike, lockout or industrial action
  • Loss or damage to the Construction Works or Materials
  • Flood, volcanic or seismic events
  • Circumstances not reasonably foreseeable at the time of tendering and not due to contractors fault
  • Default by the Principal, or Persons who Principal responsible, which is not a Variation.
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4
Q

What is the timing for a Payment Claim under the SCC?

A

5 + 10
Architect issues provisional schedule: 5 working days
Principal review: 3 working days (8 working days)
Replacement schedule: 2 working days (10 working days)
Payment: 17 working days from receiving of claim

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5
Q

What is the timing for a Payment Claim under 3910?

A

7 + 12
Engineer 7 working days
Principal review: 3 working days (10 working days)
Replacement schedule: (12 working days)
Payment: 17 working days from receiving claim

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6
Q

What is the percentage for retentions released at practical completion under the SCC and 3910?

A

SCC: 40% at PC
3910: 50% at PC

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7
Q

What is the timing for the final payment claim under SCC?

A

Act and SCC no stated period for submission of final claim.

Arch issue final payment schedule: 20 working days
Principal review: +10 working days (30 working days)
Replacement Schedule: +5 working days (35 working days)
Principal pay: +10 working days (45 working days)

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8
Q

What must payment claims include for them to be valid under the CCA?

A
  • Identify the construction contract, construction work and period the payment relates to,
  • Clearly state a claimed amount and date payment is due,
  • Explain how the claimed amount was calculated,
  • State that request for payment is made under CCA,
  • Includes Form 1 Notice (explains process for responding to the claim, and the consequences of not responding to the claim or paying the claimed or scheduled amount in full)
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9
Q

How would you assess off site goods?

A

Inspect the materials to verify they are:
- Separated
- Identified
- Labelled
- Secure
- Of quantity claimed

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10
Q

What is a Provisional Sum?

A

A work or item monetary allowance, for carrying out specific part of the Contract Work, includes contractors expenses & margins.

Examples: Joinery supply + install
Telecommunications, data and audio visual cabling
Security system

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11
Q

What is a Prime Cost sum?

A

A material related monetary allowance, provides for purchase and supply. Does not include install. Sum includes net purchase price and allowance for contractors expenses & margin.

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12
Q

What is one effect of Extensions of Time?

A

Insurance - ensure all insurances cover the period to the new date

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13
Q

How long does the contractor have to claim an EoT?

A

SCC - 5 working days, or as soon as practicable, after the delay begins.

3910 - As soon as practicable or 20 working days after circumstances arise

Must be in writing

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14
Q

What might be a valid reason for an Extension of Time under SCC?

A
  • Consent or approval not obtained
  • Unforeseeable physical conditions
  • Contract Works are suspended in a way allowed under the Contract
  • Loss or damage to any part of the Contract Works
  • Variations
  • Weather that interferes with progress
  • Strike, lockout or industrial action
  • Arch does not give a Direction within a reasonable time after being asked by the Contractor in writing to do so,
  • Principal does not supply, work or services on time,
  • A seperate contractors act or omission,
  • Something else of significance beyond the Contractors control
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15
Q

What is the dispute resolution steps & timing under NZIA SCC (general condition 17)?

A
  1. Refer Contract
  2. Arch 10 WD from date of receipt of dispute formal written decision
  3. 30 WD after arch formal decision - notice to mediation
  4. 30 WD after mediation, appoint arbitrator within 15 WD
  5. Arbitrators award is final and binding. Entitled to court proceedings for some items - refer contract.
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16
Q

How should you address defects in relation to practical completion?

A

Major defects should be rectified before PC - or could become Deferred Works.
Minor defects can be listed prior to PC - but money cannot be withheld.

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17
Q

What is the defects notification period under the SCC? State purpose, date, timing (general conditions section 13)

A

Defects and minor omissions must be fixed.
Starts date of PC
Normally 3 months.
Work can be deferred to this period.
MBIE has guidance on what constitutes a defects
Contractor pays for costs to correct defects.

18
Q

How does the defects liability period end?

A

Contractor notifies Arch period has ended.
Arch inspects work within 5 working days after receiving notice.
Arch issue Defects Liability Certficate to Principal and copy to Contractor when:
- period ended
- deferred work and omissions complete
- defects corrected

19
Q

What is considered Practical Completion under SCC?

A

When the Contract Works are
- able to be used for the intended purpose WITHOUT MATERIAL INCONVENIENCE
- Built generally in accordance with the contract documents
- Complete except for minor defect, omissions or deferred work
and warranties and information listed in specific conditions have been provided

20
Q

What are alternative to standard retentions and rates?

A
  • Bonds
  • Lower rates
  • Flat rate
  • Retentions on last payments
  • Increase practical completion release %
21
Q

When is final completion achieved?

A

At the end of the defect notification period once the architect has issued a Defects Liability Certificate.

22
Q

What is arbitration?

A

Contractually agreed formal dispute resolution. Arbitrators decision is binding and enforceable by a legal court.
Normally try mediation first.

23
Q

How would you assess an EOT?

A
  • Check if claim submitted in allowable timeframe
  • Is the basis of the claim allowable under the contract
  • Is sufficient evidence provided to substantiate the claim?
  • Is the claim fair & reasonable?
  • Can ask to mitigate effects after claim granted by agreement ie. more resources
24
Q

What happens at the end of the defects notification period? SCC

A

Final completion, remaining monies released.
Contractor should submit the final payment claim.

25
Q

How would you assess fluctuations under the SCC?

A

Check Contractor submitted basic costs and items qualify under the Contract. Statement includes:
- Materials affected
- Date of purchase
- Dare fluctuations occurred
- When materials were used in the contract works
- % of overheads as per C1

Verify by independent QS unless otherwise agreed, paid by contractor by adding 10% to the claimed amount.
5% to subcontractor for admin.

26
Q

What are disadvantages of principal supply items?

A
  • Principal may order incorrectly
  • Additional time and input required by architect and principal
  • Product may not be available or may be defective

Principal has responsibility for items at all times

27
Q

What are you assessing at Practical Completion?

A

Built generally in accordance with the contract documents

28
Q

Can the Architect issue a payment claim as a Tax Invoice?

A

Yes, can issue Buyer Created Tax Invoices but only if both parties are GST registered

29
Q

What is a Romalpa clause?

A

A terms of trade clause - ownership doesn’t pass into possession of the buyer until paid in full

30
Q

What is the Architects role under the SCC?

A

Appointed by the Principal
- Represents the Principal
- Issues Directions to the Contractor
- Administers the Contract impartially
- Has no authority to relieve the Contractor obligations under the Contract

31
Q

Can a contractor suspend work under the SCC Contract?

A

Only with relation to payment claims as per the CCA.

32
Q

Who has copyright for the contract documentation under SCC?

A

Principal

33
Q

What are the categories for shop drawing stamps? SPA version

A

Reviewed - work may proceed
Reviewed - work may proceed subject to comments
Reviewed - work may proceed subject to comments but revise and resubmit for record purposed
Reviewed - work may NOT proceed. Revise and resubmit.

34
Q

Do drawings or spec take precedenece?

A

SCC = Drawings

35
Q

What is the timing for an architect to respond to a contractor RFI?

A

3910: Within a reasonable time
SCC: The architect must not improperly withhold or delay giving any direction

36
Q

Do you need an EOT request to change the end date/programme?

A

No, this can be changed with agreement between the client and contractor. Ensure parties are compensated if there are impacts of this that unfairly affects them.

37
Q

Can the Principal do early occupation?

A

Yes, but suggest sectional completion or CCC with deferred works to ensure suitable for occupation.
At minimum need to do a defects inspection to ensure liability for damage is clear.

38
Q

How long should you keep your records?

A

Min 10 years under longstop, recommend 15 years

39
Q

Do architects offer “fitness for purpose”?

A

No, contractor does. I.e leaking room must be fixed
Architect offers reasonable duty of care.

40
Q

What should you check before issuing final payment?

A
  • Client isn’t aware of any outstanding matters that require attention
  • All known defects have rectified
  • No new defects have emerged since you carried out your last inspection
  • the contractors have met all their obligations under the contract

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