Flashcards in Contract Administration Deck (116)
What are the certificates in the Intermediate contract? (5)
1 - Interim Certificate
2-Certificate of making good defects
3-Certificate of practical completion
4 - Final Certificate
5-Certificate of non-completion
What is the process for making good defects? (3)
1-These should be notified by the CA/Archi to the Contractor
2-The CA should issue a schedule within 14 days of PC.
3- When CA is satisfied all defects are made good only then can 'Certificate of making food defects' be made.
What is the criteria for Practical Complete? (2)
1-Practical Completion of the works is achieved
2-contractor has sufficiently complied with clause 3.18 (supply of information required for Health and Safety File'.
What is the procedure for PC in the Intermediate contract?
There is no procedure it is however for the CA to issue the certificate i the criteria for PC is met.
What is the procedure if practical completion is not met?
The CA must issue certificate, this is a prerequisite for deduction of Liquidated Damages.
Once certificate is issued the contractor is in 'Culpable Delay'.
When are Liquidated Damages claimed and how?
Subsequent interim valuation or reclaim sum as debt.
What are the preconditions for claiming Liquidated Damages? (4)
1-Contractor failed to complete works by date of completion
2- CA must have issued cert for non completion
3-CA must have fulfilled all duties with respect to the award of an extension of time
4-Employer must give contractor written notice of its intention prior date of final cert
Why would a CA issue CAI?
1 - Discrepancies in contract docs
What are the five underpinning requirements to create a contract?
5-Competency and Capacity
What is traditional Procurement?
Design and construction is separate
Full documentation provided to contractor at RIBA stage 4.
Competitive tender process
Valuation/Payment obligated by employer
What are the advantages of traditional procurement?
Certainty of design
Clarity on project requirements
flexibility through variations
What are the disadvantages of traditional procurement?
No contractor involvement for complex build issues
What is design and build?
Contractor is responsible for both design and construction of work in return for a lump sum
What are the advantages of Design and Build?
Speed as design and construction overlaps
Early start on site
Increased cost control
Increased time control
What are the disadvantages of Design and Build?
Contractor may exploit quality
Design variations have significant cost and time implications
When is the Intermediate Contract Suitable?
When works are simple
When works are designed on behalf of the employer
Where CA/Archi is required to monitor the works
Where partial possession/sectional completion required
Where collateral Warranties are required
What are the clients key drives?
What was the clients key driver for Liberation House remediation?
In relation to a JCT contract, what mechanisms impact on time?
What is a relevant event?
Incidents which can create a delay for a contractor who can then be entitled to an extension of time. (e.g impediment by the client / late information from consultant).
Why is it important that a contractor gets an extension of time?
Additional costs to the contractor (prelims, labour)
Name some relevant events?
Impediment by employer
Exceptionally Adverse weather
In relation to relevant events, what is 'Deferment of Possession'?
This is when the client does not handover site on contracted date.
L1 - You note that the contractor was not paid on time, what is this called and what is process the contractor can apply in this situation?
Suspension by contractor (if contractor has not been paid by employer)
Contractor must notify CA/Archi
Not paid within 7 days he can suspend the works.
If that causes a delay he is entitled to an extension
For LW4 you note that the deflection caused the works to stop? What contractual mechanism deals with this?
Relevant events - Variation / impediment by employer
What is the process if the contractor is in delay?
Notice in writing (recorded delivery)
Sent when it becomes 'reasonable apparent'
Identify relevant event
Is there a time bar on relevant event claims?
No only when it becomes reasonably apparent - they can be late but it is good practice to have these done early
What should the CA do if it receives notice of contractors extension of time request?
Give if reasonable
give reasons within 12 weeks
State extension of time relating to each relevant event
Fix new completion date
What are liquidated Damages and are these penalties?
pre determined loss a client would incur as a result of project completing late - this is not a penalty