Contract Administration Flashcards
(19 cards)
What are the differences between the JCT and NEC contracts?
- NEC underlying value of collaboration
- NEC target cost contracts
- Relevant matters / events vs CEs
- Early warnings
- Programme is assessed continuously under NEC
- Traditional legal vs plain English
- Contract Administrator vs PM
Why do you have to issue a payment notice?
- Constriction Act
- Provides payment certainty
- Avoids “smash and grab”
- Morale obligation to value works accordingly
What must a payment notice contain?
- Payable Sum
- Basis of calculation
- Due date reference
- Party details
- Compliance with construction Act
What should a formal instruction contain?
- Written communication
- Date of instruction
- Details of work to be done
- Instruction number
How can we avoid disputes as a result of failing to administer the contract properly
- Better training
- Good communication
- Clear contracts and contract info
- Avoid LOIs
- Issuing instructions formally and timely
- Always keep records
What are some of the different sub contractors you managed on your Eastbrook studios project?
- Curtain walling
- Acoustic floating floor
- Fire protection
- Painting and decorating
- Flooring
- Diamond drilling
- Green roof
- Glass balustrades
What are the payment dates under the JCT?
- Due date (usually 1 month after possession
- Interim valuation date 7 days before due date
- Payment notice date 5days after
- Final date for payment 14d after
- Pay less notice date 5d before final date for payment
How did you go about assessing the valuation to be submitted to the client on Eastbrook Studios?
I would receive all of the subcontractors applications 5 days prior to the valuation date which formed the basis. On site rough measure, adjust prelims as necessary and add in any valuations or L&E for the month. Applied Gross
Give an example of a Payless you have issued and why
On the Eastbrook Stuidos project I issued a pay less to my acoustic FF S/C, their application was approved based on a fully signed vesting cert and inspected materials. When inspected not all of the materials were present and therefore a Payless had to be issued
Give an example of how you advised the client on the impact of an instruction
On Eastbrook studios I advised that renumbering the sound studios would have huge redesign costs due to the number of dwgs already produced at that time.
What is the role of a contract administrator on a construction project?
They are the person responsible for administering the contract usually the employers agent/ lead consultant. They should be impartial.
What is the difference between the Contract administrator and project manager under JCT and NeC contracts?
Under JcT the CA is responsible for administering the contract, under NEC the PM has a broader role focusing on the overall management, communication and collaboration on the project
What are the key functions of a contract during the post contract phase?
- Providing framework for dispute resolution
- Administering payments
- Instructing variations
- Termination of the contract
Can you give me 9 key sections under the JCT D&B contract
- Definitions
- Carrying out the works
- Control of the works
- Payment
- Changes
- Injury damage and insurance
- Assignment, PBs, Guarantees, Third party rights and CWs
- Termination
- Settlement of disputes
How are instructions issued under a JCT contract?
Instructions are formal directions for the contractor to carry out changes or actions
1. Issued by the CA
2. In writing
3. Dated
4. Clear description of the works
When can a contractor refuse an instruction?
5.1.2
1. No access to site
2. Limitations of working space
3. Limitations on hours
4. The execution of works in a specific order
Infringement of patent rights
Works outside of the contract that would be a fundamental change
Unlawful or unsafe
Not confirmed in writing
What is loss and expense?
Is the compensation for the default, act or omission by the client eg failure to provide access to
What are LDs?
Latent defects which are costs incurred by the client as a result of failing to complete the project by the contract completion date (this is not a penalty and must be demonstrated)
What is the difference between loss and expense and a variation?
Loss and expense is not a change that is wanted and therefore happens as a result of something. L&E does not contain profit
