Technical - Contract Administration Flashcards
what are the components of a legally binding contract?
- Offer
- Acceptance
- Consideration
- Intent to create legal relation
What is Assignment?
The transfer of benefits arising under contract but not burdens
What are collateral warranties?
- Agreements that create direct contractual relationships between parties that would not otherwise exist.
- Duty of care is extended.
- May include step-in rights allowing beneficiary to step-into the role of client.
What are third-party right?
- Enables a third party to enforce terms of a contract that they are not party to.
- Must be named in the contract.
- Only contained in JCT Standard Building Contracts.
What is the role of the Contract Administrator?
- Impartial decision-making function role.
- Administering construction contracts.
- Project manager is the NEC equivalent.
- Determining instructions, valuations, extensions of time and practical completion.
What is procurement?
The acquisition of goods or services in line with client requirements.
What are the factors which influence the choice of procurement
- Cost, time and quality.
- Nature of the project.
- Scope of the works.
- Measure of required control by the Client.
What is traditional procurement?
- The design process is separate from construction.
- Clients design team provides full documentation at tender.
- Client has control over design and quality.
What are the ways of costing a contract?
- Lump sum contract (sum is determined before works start)
- Measurement contract (sum not finalized until after completion (re-measured))
- Cost-reimbursement contract (actual costs plus overheads and profits.
What are the advantages of traditional procurement?
- Tailored to meet clients needs (greater control).
- Cost and time certainty.
- Cost and programme risks sits with the contractor.
What are the disadvantages of traditional procurement?
- Longer sequential processes.
- Design risk sits with the Client.
- Design changes require variation to the contract.
What is Design and Build Procurement?
- The Client submits the employer’s requirements to Contractors.
- The Contractor completes both the design and construction.
- Often two-stage tendering.
- Client has some control over design element, but not once contract is let for full detail.
- Contractor usually has own consultants.
- No provision for independent CA.
Advantages of Design and Build procurement?
- Single point of responsibility.
- Employer’s requirements give the client some control.
- Contractor involved at design stage.
- Quicker as work can start as design is being finalised.
What are the disadvantages of design and build procurement??
- The employers’ requirements may be complicated.
- Variations may be costly.
- Cost driven so quality may fall short.
- Not competitive as design proposals vary.
- Less choice of contractors.
What is management procurement?
- All works are subcontracted by main contractor.
- Overall design is down to the client’s requirements.