CONTRACT ADMINISTRATION

Question 1

1. When does the construction contract commence? When does it end?

Answer 1

The contract commences when it has been signed by both parties – owner and contractor. It ends at the date of FINAL Completion as noted in the contract (or as adjusted in the contract).

Question 2

2. What other significant dates are listed in the contract and where in the contract would they be stated?

Answer 2

Item 22: Date for PC

Item 26: Date for submitting progress claims (typically 15th of every month)

Question 3

3. How are these significant dates established? Can they be changed?

Answer 3

These dates are established through the contractor’s building program which outlines the critical path and all relevant stages of the construction process. The dates can be changed where the program schedule is not met, most often due to variations for latent conditions, change in scope, disruptive weather, delays in construction or getting materials on site…

Question 4

4. How does the contractor get paid?

Answer 4

The Contractor will submit a progress claim, in which the architect then assesses and submits to contractor and client a progress certificate to approve amount to be paid.

Question 5

5. What happens if PC is not reached?

Answer 5

Contractor must request an extension of time to the contract/PC date (with or without costs) if entitled. or a variation to the works. Client may chose to move in anyway, triggering PC. In some cases one party may chose to terminate the contract.

Question 6

6. What is the architect’s role under the construction contract?

Answer 6

To act as the independent assessor and certifier, and to administrate the contract impartially and fairly without the influence of either party (owner and contractor).

Question 7

7. Whose side is the architect on during contract administration and why?

Answer 7

The architect is on neither party’s side. The architect is there to administer the contract and ensure any claims are assessed fairly. Because the architect has no financial interest in the building, this role allows them to remain unbiased.

Question 8

9. What happens if there is a disagreement between the parties to a building contract? What happens if the dispute can’t be resolved?

Answer 8

Firstly, refer to the building contract clauses. In this case (and under the CAA), the architect acts as an advisor to the client in regards to what steps to take to resolve the dispute. The architect’s role does not extend any further than what is stated in the contracts during a dispute.
As the architect is not a party to the building contract, they have no obligation to resolve the dispute. Instead, they should advise both parties to take legal advice and refer to Section P Dispute Resolution (assuming ABIC contract is used). The contract states the parties are to meet to resolve the dispute face‐to‐face. If this does not work, the dispute can be taken to mediation. The final step (if required) will be to take legal proceedings.
Throughout this process the architect does not take any responsibility to resolve any dispute. Take a step back!

Question 9

10. What role should you take in any dispute between the contractor and the owner? How can you check the answer to this question if you are unsure?

Answer 9

It is not the architect’s role to act as the mediator between the contractor and owner. The architect can assess the situation in terms of the contract (i.e. assess if a claim is fair etc.), but should not act outside the roles stated in the contract. Refer to the contract.