Contract Admin Flashcards
What is the role of a Contract Administrator?
- Execution of the Construction Contract
- The CA is not a party to the main contract and must remain impartial.
- They have a duty to deliver the project safely, to the specified quality standards, on time, and with in budget.
What are the main responsibilities of the CA?
-Administer the Contract
- Chair meetings
-Report to the client
- Issue certificates under the contract (e.g Extention of time, PC, Non completion)
- Authorise payment
- Give contract instructions
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What is a Letters of Intent?
A letter of intent is a method of instructing a contractor to proceed with the works before formal execution of the contract.
Why might a LOT be used?
- Where the employer needs to commence works ungently
- To carry out emergency works (i.e dismantling dangerous structures, environmental cleaning, removal of hazardous materials
- It gives parties time to negotiate the contract terms with disrupting the programme
What would be included in an LOI
- The contract parties
- Scope of works
- Contract price (if agreed)
- Key dates
- Statement of intention to enter into a formal contract
What is a pro and con of using a LOI?
Pros - It creates a moral commitment to parties involved and alleviates programme constraints
Cons- Can be a complicated legal situation and can be a risk to both parties
What would you include within tender documents?
- Form of Tender
- Non Collusion Certificate
- Preliminaries (i.e contract details, incl parties, project, site description etc.
- Preambles (Materials and workmanship clauses)
- Specifications (Schedule of works, Drawings)
- Pre- construction information
What are the main certificates under JCT Forms of Contract?
- Payment Certificates
- Partial Possession/ Sectional Completion
- Practical completion
- Certificate of Non Completion
- Certificate of Making good defects
What are the main certificates under JCT Forms of Contract?
- Payment Certificates
- Partial Possession/ Sectional Completion
- Practical completion
- Certificate of Non Completion
- Certificate of Making good defects
What are the main forms of Contract in the JCT Suite?
- Minor Works
- Standard Building
- Intermediate
- Design and Build
- Major Project
- Management Building (MB
- Construction Management
What are dispute resolutions available under the JCT Suite of Contract?
- Adjudication ( Third party decides the case (e.g TeSCA).
- Arbitration (Legally binding)
What are the differences between JCT Minor Works and Intermediate?
Express provisions for:
- Named sub-contractor
- Collateral Warranties
- Sectional Completion/ partial possession
- Performance bonds
What procedure take place one the rectification period ends?
- The CA prepares a Schedule of Defects, listing defects that have not been rectified
- Agrees a date with the contractor to which they are made good.
- Issue a Certificate of making good defects, releasing any remaining retention.
When would you issue PC and what happens one issued?
- When works are complete to an extent that the client can safely take occupation
- O&Ms have been issued
- All certificates, guarantees have been issued.
Why would you use a JCT minor works contract?
- The project is small and simple in nature
- Suitable for traditional or conventional procurement.
- Detailed procedures such as named subcontractors are not necessary
What are the payment procedures under JCT Contracts?
- Contract issues payment application at Valuation date.
- CA issues Payment certificate at due date.
- Final date for payment to the contractor is 14 days after the due date.
What is a Variation?
An alteration to the scope of works in a construction contract. It can be in the form of an addition of omission.
How would you agree the value of a variation?
- Compare the quotation provided against know rates within the tender (assuming works are of a similar nature)
- Value against BCIS rates or other project tenders that reflect the market rate.
What provision within a JCT Contract could be used to resolve a dispute regarding valuing a variation?
Under 3.6.2 the CA can set the value of work should no agreement be possible. The contractor can’t refuse to comply with an instruction simply because a price hasn’t been agreed.
What are LADS?
Liquid Ascertained Damages are a genuine pre-estimate of loss incurred by the employer should the contacted completion date not be met.
What might the value of LADS be based on?
- Loss in rent
- cost of temporary accommodation
- Removal and extra running costs
What must occur before LADs can be claimed by the employer?
Under JCT Contracts the CA must issue a certificate of non completion as a pre- requisite of claiming LADS
What is an Extension of time?
It can be granted to the contractor, where the completion date is adjusted, relieving them of LADs for extention period.
How would assess an extension of time request?
- The contractor would have to give notice identifying the relevant events that caused the project delay.
- I would assess the relevant events to determine if the EOT is applicable
