Contract Admin

Question 1

What is the role of a Contract Administrator?

Answer 1

• 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.

Question 2

What are the main responsibilities of the CA?

Answer 2

-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
-

Question 3

What is a Letters of Intent?

Answer 3

A letter of intent is a method of instructing a contractor to proceed with the works before formal execution of the contract.

Question 4

Why might a LOT be used?

Answer 4

• 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

Question 5

What would be included in an LOI

Answer 5

• The contract parties
• Scope of works
• Contract price (if agreed)
• Key dates
• Statement of intention to enter into a formal contract

Question 6

What is a pro and con of using a LOI?

Answer 6

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

Question 7

What would you include within tender documents?

Answer 7

• 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

Question 8

What are the main certificates under JCT Forms of Contract?

Answer 8

• Payment Certificates
• Partial Possession/ Sectional Completion
• Practical completion
• Certificate of Non Completion
• Certificate of Making good defects

Question 9

What are the main certificates under JCT Forms of Contract?

Answer 9

• Payment Certificates
• Partial Possession/ Sectional Completion
• Practical completion
• Certificate of Non Completion
• Certificate of Making good defects

Question 10

What are the main forms of Contract in the JCT Suite?

Answer 10

• Minor Works
• Standard Building
• Intermediate
• Design and Build
• Major Project
• Management Building (MB
• Construction Management

Question 11

What are dispute resolutions available under the JCT Suite of Contract?

Answer 11

• Adjudication ( Third party decides the case (e.g TeSCA).

- Arbitration (Legally binding)

Question 12

What are the differences between JCT Minor Works and Intermediate?

Answer 12

Express provisions for:

• Named sub-contractor
• Collateral Warranties
• Sectional Completion/ partial possession
• Performance bonds

Question 13

What procedure take place one the rectification period ends?

Answer 13

1. The CA prepares a Schedule of Defects, listing defects that have not been rectified
2. Agrees a date with the contractor to which they are made good.
3. Issue a Certificate of making good defects, releasing any remaining retention.

Question 14

When would you issue PC and what happens one issued?

Answer 14

• 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.

Question 15

Why would you use a JCT minor works contract?

Answer 15

• The project is small and simple in nature
• Suitable for traditional or conventional procurement.
• Detailed procedures such as named subcontractors are not necessary

Question 16

What are the payment procedures under JCT Contracts?

Answer 16

1. Contract issues payment application at Valuation date.
2. CA issues Payment certificate at due date.
3. Final date for payment to the contractor is 14 days after the due date.

Question 17

What is a Variation?

Answer 17

An alteration to the scope of works in a construction contract. It can be in the form of an addition of omission.

Question 18

How would you agree the value of a variation?

Answer 18

• 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.

Question 19

What provision within a JCT Contract could be used to resolve a dispute regarding valuing a variation?

Answer 19

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.

Question 20

What are LADS?

Answer 20

Liquid Ascertained Damages are a genuine pre-estimate of loss incurred by the employer should the contacted completion date not be met.

Question 21

What might the value of LADS be based on?

Answer 21

• Loss in rent
• cost of temporary accommodation
• Removal and extra running costs

Question 22

What must occur before LADs can be claimed by the employer?

Answer 22

Under JCT Contracts the CA must issue a certificate of non completion as a pre- requisite of claiming LADS

Question 23

What is an Extension of time?

Answer 23

It can be granted to the contractor, where the completion date is adjusted, relieving them of LADs for extention period.

Question 24

How would assess an extension of time request?

Answer 24

• 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

Question 25

What is a relevant event and can you give some examples?

Answer 25

``` It is an event that entitles a contractor to EOT? Examples include: - Variations - deferment of possession - Force majeure - Statutory works ```

Question 26

What are the different types of defects?

Answer 26

- Patent (can be discovered by reasonable inspection) | - Latent (cannot be discovered by reasonable inspection such as foundation issues)

Question 27

What should you consider when selecting the type of contract?

Answer 27

- The criteria of the client - The procurement method you are going to use - Nature of the works - Timings, do works need to start quickly or do you have time to produce a robust specification.

Question 28

Where might you typically use a Design & Build Contract?

Answer 28

- Where the client wishes to minimise design risk. - technically complex project where contractors expertise would be beneficial. - Where the programme is time sensitive, since design and construction can proceed in parallel so you can save time.

Question 29

What procurement route was used for Bedford?

Answer 29

Traditional/ conventional | - The design was completed in full before the tendering process under a single stage competitive basis.

Question 30

What is a tender?

Answer 30

A submission made by a supplier making an offer to supply goods or services.

Question 31

What is PQQ (Pre qualification questionnaire)?

Answer 31

It sets out a series of questions for potential tenderers regarding: - Experience, - Capacity - Financial standing - Insurance cover.

Question 32

What is the minimum rectification period under Minor Works and Intermediate ?

Answer 32

3 Months