Contract Administration Flashcards
(35 cards)
Provide some examples of construction contract suites?
- JCT
- NEC
- FIDIC
When would you use JCT?
The majority of construction projects.
What does JCT stand for?
Joint Contracts Tribunal
What does NEC stand for?
New Engineering Contract
When would you use NEC?
Civil engineering projects
What is the role of a Contact Administrator?
To administer the terms of a construction contract fairly and impartially.
Provide examples of some contract mechanisms?
Variations
Extensions of Time
Liquidated Damages
What are liquidated damages?
Pre-determined estimates of loss that the contractor must pay to the client upon failure to complete works by the contract completion date.
What’s a certificate of making good defects?
A certificate which confirms that all defects highlighted during the rectification period have been rectified.
How long does a project need to be for interim payments to be a requirement?
More than 45 days.
How many days is a standard payment term under a JCT Intermediate Contract?
14 days.
If you wanted to amend the standard terms of a JCT Contract, how would you do this?
Append a Schedule of Amendments to the contract.
How would you assess whether an Application For Interim Payment is an accurate valuation of the works?
I attended the site to compare the submitted valuation against the works completed
How much was the retention for the Hodgkin building job?
5% during the construction phase which reduced to 2.5% during the rectification period.
What is the payment timetable for interim payments?
valuation date, the due date, the issue date and the final date for payment
How would you review an extension of time request?
I would assess whether a relevant event had occured which would contribute towards a delay in completion date.
What is the difference between a relevant event and a relevant matter?
A relevant event is an neutral or client caused event that causes delay to the completion date such as a contract variation or adverse weather conditions.
A relevant matter is a matter which occurs the client is responsible that materially effects the progress of the works. This enables the contractor to claim direct loss and / or expense that has been incurred.
How would you formalise the approval of an extension of time request?
Issue a change order approving the revised completion date
What information is included within an interim payment certificate?
Valuation date, due date, issue date, final date for payment, address, summary of the project.
What is the difference between sectional completion and partial possession?
Section completion is stated within the contract and follows normal completion methods for each section, partial possession is something which happens during the works.
Why is sectional completion preferable to partial possession?
Follows the typical completion procedure such as snagging, release of retention and start of the rectification period. Partial possession could mean that areas that have been finished could be damaged by the occupant before snagging has occured and also disturbance caused to the occupant if that area of work hasn’t completed.
What would you consider to be the value limit of a Minor Works contract?
There aren’t formal limits, however I would consider it to be £500,000.
What are the Valuation Rules?
Please explain the procedures for procuring and receiving a Contractor’s design under the JCT Contract
