Contract Administration Flashcards

Question

Practical Completion at Sectional Completion

Answer 1

The process of sectional completion is exactly the same as practical completion

Answer 2

There is no set definition in the JCT contracts. Practical completion, in terms of construction and property, refers to the stage when a building project is completed except for minor defects that can be put right without causing significant interruption to occupants RICS Black Book on Defining Completion of Construction Works

Answer 3

- Interim Valuation date specified under the contract (This contract was month or the nearest business day after possession of the site.) - Contractor submits application on IVD - Due date is 7 days after the IVD or the contractor's application, whichever happens last. - The EA has no later than 5 days after due date to submit their Payment Notice or else the application becomes due for payment. - Payment date is typically 14 days after the due date - Employer must issue a payless notice no later than 5 days before the final date for payment if they wish to do so

Answer 4

EA acts on behalf of the Client as if the EA was the employer. Impartial role. Design and Build contract CA administers the contract for the employer. Impartial role. Only exists at the point the contract is entered into. All other contracts, except D&B. EA on D&B contract only

Answer 5

The EA is a representative who administers the contract on the employers behalf only within a D&B Must act with honesty and integrity

Answer 6

Tasked with managing all aspects of a construction contract throughout Must act with honesty and integrity

Answer 7

3%, first retention release is always half of the specified amount.

Answer 8

Valuation paid at 95% before PC, 97.5% after PC. Either % can be changed independantly of the other.

Answer 9

The JCT Contract Administrator manages the construction contract on behalf of the employer. Their key responsibilities include issuing instructions, certifying payments and completion, managing variations, and assessing delays. They act impartially when administering the contract and ensure compliance with its terms throughout the project.

Answer 10

Identify change Change is instructed Cost implication? Potential EoT?

Answer 11

Consistent with values of work in CSA CSA rates pro-ratad/adjusted if required Where there is no similar work in CSA, a fair assessment is made. Last resort is to use dayworks

Answer 12

The prime cost of works together with OHP added at the agreed rate or at the all inclusive labour rates agreed D&B Clause 5.5

Answer 13

VAT Works not yet completed Materials that are not protected from weather or are on site prematurely Works that are not completed in accordance with the contract, including unagreed variations Retention to be withheld

Answer 14

They can be included if they are named as Listed Items in the contract documents and the following conditions are met: -items in accordance with contract -contractor has provided employer with proof of vesting to CONTRACTOR and insurance of the items -Items must be set aside and clearly labelled -Bond in place if required in contract particulars

Answer 15

Loss and Expense Insurances suspension costs Fluctuations

Answer 16

Practical Completion signifies the project is complete except for any minor defect that will not impact the cause significant inconvenience to the occupier. It marks the point when the contractors obligation to insure the works and liability for liquidated damages and the rectification period begins.

Answer 17

PC triggers the following: Release of retention (half) Marks the beginning of the rectification period Site possession transferred to the client Client must ensure they have the correct level of insurance Contractors obligation to pay out any LDs ends

Answer 18

The date Contract date Contract value Variation costs Agreement conditions Signatures

Answer 19

Employers address Employers agent contractors address contract dates date of practical completion date of rectification period Snagging items description of works

Answer 20

Relates to the date the contractor can access a site to start construction Deferment means that this date can be postponed

Answer 21

The employer can defer possession of the site for 6 weeks

Answer 22

Extension of time under a JCT contract is a formal notice that extends the contract period and the completion date without the contractor having to pay Liquidated Damages Usually as a result of unforeseen circumstances or change of scope from the client (relevant event)

Answer 23

Schedule of main contract documentation Legal documentation (JCT Contract) Pricing document (CSA) Preliminaries and General Conditions Employers Requirements (Design Spec / Surveys)

Answer 24

Under D&B, if a Payment Notice is not issued within 5 days of the due date, the Employer must pay the contractor the sum claimed in their interim application, subject to any pay less notices issued by the Employer.

Answer 25

Gallery Court was D&B. The contractor gave notice that the works would be delayed as soon as it became reasonably apparent. They provided explanation of the delay reasons as well as showing on a programme how the temporary postponement of works had affected the critical path. The EA reviewed the claim for extension of time and awarded an Extension of Time for 4 weeks.

Answer 26

Employer made a number of changes to the works required. 4 weeks were awarded.

Answer 27

A written notice which sets out the amount the employer considers due at the due date for payment and the basis on which it has been calculated.

Answer 28

Employer Contractor EA / CA

Answer 29

In the event the employer intends to pay less than the amount the contractor has applied for / the payment notice amount

Answer 30

Defect in the work or the standard was not as per the contract documents Or Payment Notice not issued in time and the contractor’s application becomes due to be paid

Answer 31

Change description Date Status Cost and time estimate Action Decision deadline

Answer 32

Instructed by the EA Issued in writing Clear, precise and unambiguous Comply with contract and not breach it Contractor can ask which contract provision empowers EA to issue the instruction.

Answer 33

Subject to retention: completed works (including design) Site materials Listed items NOT subject to retention: Insurance Loss and Expense Fluctuations provision

Answer 34

It could include loss of profit, storage costs, loss of rent, professional fees Local authorities can include their staff costs

Answer 35

Whilst the contract does allow for the contractor to pay back liquidated damages, it would be significantly harder to get them to do this than if the monies were deducted from valuation payments.

Answer 36

Retention bond - A retention bond is a form of insurance-backed guarantee. Employer receives a payment in event that contractor doesn't make good defects.

Answer 37

D&B - The amount claimed by the contractor in their application becomes due. Intermediate - If a Valuation Cert was not issued, the contractor's application becomes a Payment Notice (or they can issue a Payment Notice if no application was made) which is then due.

Answer 38

It would depend on the liability of the project, underhand the liability is for 6 years from PC whilst deed is 12 years from PC. I asked my company and they actually hold information for past projects for 30 years and future projects for 15 years as a requirement under Building Safety Act 2022.

Answer 39

Deed: 12 years Under hand (a standard/simple contract): 6 years

Answer 40

£2,500/week or part there of

Answer 41

£7,500.00 per week or part thereof, capped to a maximum value of £150,000.00

Answer 42

The LD's varied for each section depending on the number of bedrooms affected by the works. The lowest ward was £2,000 per week whilst the highest was £8,000 per week.

Answer 43

Section 1 - £12,000 per week Section 2 - £6,000 per week

Answer 44

Standard Intermediate Minor Works Design and Build

Answer 45

I discussed with the EA whether the items were a change or just design development. Once confirmed as a change I added the change information to the change log to be issued to the client for approval. A change control log will include: Date Description Reason Time/Cost impact Status

Answer 46

A section 278 agreement (or s278) is a section of the Highways Act 1980 that allows developers to enter into a legal agreement with the council (in their capacity as the Highway Authority) to make permanent alterations or improvements to a public highway, as part of a planning approval.

Answer 47

Section 106 (S106) Agreements are legal agreements made between Local Authorities and developers. The agreements are linked to planning permissions and can also be known as planning obligations. S106 agreements are drafted when it is considered that a development will have a significant impact on the local area that cannot be moderated by means of conditions attached to a planning decision. For example, a new residential development can place extra pressure on the social, physical, and economic infrastructure which already exists in a certain area. The most common obligations include:- Public open space Affordable housing Education Highways Town centre improvements Health Recreation disturbance avoidance and mitigation strategy (RAMS)

Contract Administration Flashcards

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