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Contract Admin > Tri 2 Exam Revision > Flashcards

Tri 2 Exam Revision Flashcards

1
Q

What are the key contract admin activities?

A
  • Ensuring compliance
  • Subcontract letting & administration
  • Managing variations, progress claims & disputes, accounting, invoicing and payment, ext. of time
  • Cost control
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2
Q

Risk: Contract Price

A

Lump Sum or Rate contract

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3
Q

Risk: Quantities

A

Whether principal provides estimates of quantity

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4
Q

Risk: Latent Site

A

Eg; Soil Conditions

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5
Q

Risk: Site Possession

A

Giving access to a contractor on time

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6
Q

Risk: Practical Completion

A

Balance between benefit & cost of contract period

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7
Q

Risk: Delay

A

Risk of blowout vs Tender Price

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8
Q

Risk: Variation

A

Agreement on prices prior to changes

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9
Q

Risk: Security

A

Risk of Liability vs Tender price

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10
Q

Warranties

A
  • An assurance that specific facts or conditions are true or will happen
  • May be expressly set out in the contract
  • A breech of warranty gives right to claim damages
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11
Q

Guarantees

A
  • An undertaking that one party (guarantor) gives to a second party (beneficiary) to be responsible for the debts or defaults of a third party (guaranteed party) in respect of a transaction between the second and third parties (guaranteed obligations)
  • A guarantee provides the beneficiary with security for the performance by the guaranteed party of the guaranteed obligations.
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12
Q

Security

A
  • A party provides security under a contract as a financial pledge that it will perform its obligations under that contract.
  • If the party defaults, it loses the amount pledged
  • The contractor and the principal must provide security: time for provision if nothing stated, within 28 days after acceptance of tender
  • Failure to do this within the time specified will result in a substantial breech of contract (cl.44)
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13
Q

Security - Bonds or Guarantees

A

A contract guarantee (security) in the form of cash, bonds or inscribed stock, interest bearing deposit etc is usually required to be given by the contractor in accordance with the terms of the contract for the purpose of ensuring the due andproper performance of the contract

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14
Q

Security - Retention

A
  • Retention is a percentage of the amount certified as due to the contractor on an interim certificate, that is deducted from the amount due and retained by the client.
  • The purpose of this is to ensure that the contractor properly completes the activities required of them under the contract
  • Usually between 2.5%-10% of each progress payment
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15
Q

Builders Obligations

A

CL 10.1
Warranties
-Carry out works in proper an workmanlike and in accordance with plans and specifications
-Materials are good and suitable for purposes
-Carry out works in accordance with laws
-Will achieve completion by specified date
CL10.3 - 10.4
Payment Claims
-Builder will give to owner written progress claim
-Builder will gives to owner written financial claim

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16
Q

Owners Obligations

A

CL 11.1-11.4
Evidence of financial capacity to pay contract price
Within 14 days after signing the contract, owner provide written or other evidence
-Continuing obligation until completion
-To notify builder if owners capacity reduces
Cl 11.5-11.10
Obligation to pay:
-Contract price
-Deposit
Amounts due to withdrawal within cooling period (if any):
-Progress payments
-Interest on Outstanding Payments
Cl.11.14
-Owner must not obstruct, interfere or hinder builders carrying out of works and refrain from communicating directly to builders employees etc.

17
Q

Contract Documents

A
  • Legally enforceable requirements that become part of the contract when the agreement is signed
  • Describes scope of work, establishes time frame, cost and provisions, sets obligations and relationships and minimises disputes
  • Basis for cost, time, quality (price of works, schedule of works, etc)
  • Basis for contract admin (variations, delays, progress payments)
  • Basis for dispute resolution (breech of contract, error & discrepancies)
18
Q

Tender Documents

A
  • Instructions to Tenderers
  • Tender Form
  • Form of Agreement
  • Conditions of Contract
  • Drawings
  • Specifications
  • Addendum
19
Q

Contract Documents

A
  • Form of Agreement
  • Conditions of Contract
  • Drawings
  • Specifications
  • Addendum
  • Change orders
20
Q

Difference between Tender Documents & Contract Documents?

A
  • Both are a form of agreement and include the conditions of the contract, drawings, specifications and addendum
  • Tender documents are instructions to tenderers whereas contract documents include change orders
21
Q

Quality

A

Cl.29.1 & 29.2

  • Unless stated otherwise, contractor uses suitable new materials and tradesmen like workmanship
  • If contract requires quality assurance: contractor must plan, establish & maintain quality system whilst ensuring superintendent has access quality system for monitoring & auditing
22
Q

Defective Work

A

Cl.29.3 & 29.4

  • Superintendent gives contractor written details, upon becoming aware of defective work
  • Superintendent may direct contractor to remove material from site, demolish the work, reconstruct or not deliver to the site.
23
Q

Latent Conditions

A

Cl. 25.1

  • Physical conditions on site and near surround, which differ materially from those which should reasonably have been anticipated by a competent contractor at tender if:
  • All written info made available
  • All info for risk allocation obtainable by enquiries
  • Site and its near surround had been inspected
24
Q

Extention of Time: Qualifying cause of delay

A
  • Default or act of superintendent, the principal or its consultants, agents or other contractors
  • Other cause of delay other than breech or omission by contractor, industrial conditions or inclement weather occurring after the date for practical completion.
25
Q

General Excusable Delays

A
  • Fires, floods & acts of god
  • Owner directed changes
  • Errors, omissions in the plans/specs
  • Differing site conditions or concealed conditions
  • Unusually severe weather conditions
  • General labour strike
26
Q

General Non-Excusable Delays

A
  • Late performance of contractor, subcons or suppliers
  • Faulty workmanship by contractor, subcons or suppliers
  • Contractor cash flow problems
  • Accidents on the site caused by negligence
  • A project specific labour site
27
Q

Extension of Time

A
  • A party becoming aware of anything that will”probably” cause delay is to give written notice of the cause and the estimated delay
  • Entitlement of extension of time when the delay is due to qualifying cause of delay, contractor is to give written claim evidencing the cause and delay within 28 days
  • Superintendent to give written direction within 28 days after receiving the claim
28
Q

Conditions for grant

A

General Conditions:
-Contractor is not responsible for event occurrence
-Event delays completion off project
Consequential Event:
-Contractor may not be entitled for extension, when a delay by event that is beyond its responsibility but the delay is concurrent with another delay of its responsibility

29
Q

Progress Payment Process

A
  1. Contractor submits a progress claim, with evidence
  2. Claim verification
  3. Progress certificate within 14 days after the progress claim receipt
  4. Progress certificate starting the payment to be made to contractor
  5. Payment to contractor within 7 days after receipt of certificate
30
Q

Security of Payment BCISPA (2002) Key Features

A
  • Provides rights to progress payments through payment claimf for completed work
  • Requires early notice to be given on any disputes pay claim
31
Q

Security of Payment Act - Adjudication

A
  • Adjudication process is designed to resolve payment disputes
  • Adjudicator is a person agreed between the claimant & respondent or nominated by the ANA to determine a payment dispute
  • An adjudicator may request further submission from either party, set deadlines for further submissions, call a conference and/or carry put an inspection.
  • ANA (Authorised Nominating Authority)
32
Q

Procedure for payment recovery

A
  1. Claimant delivers a payment claim
  2. Respondent provides a payment schedule
  3. Respondent pays as per contract, but within 10 business days
    - If no response, or no payment received: claimant may recover unpaid portion as debt in court or give notice to suspend construction work
33
Q

What are contract admin skill requirements?

A
  • Great knowledge of tender packages
  • Ability to finalise and manage contracts along with any changes
  • Latest software and local knowledge is useful
  • Ability to identify desired outcomes and deliverables and devising a sequence to achieve these goals

Contract Admin (2 decks)

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