What is the role of a contract administrator?
Administers the terms of the contract in a fair and unbiased manner, including:
- Chairing meetings
- Inspecting progress and quality of works
- Issuing instructions, e.g. variation and change orders
- Assessing claims, e.g. extensions of time
- Authorising interim payments
- Certifying the date of completion
- Agreeing the final account
- Administering contract terms during rectification period
How can the role of a contract administrator lead to potential conflict within a construction contract?
CA has a dual role:
- Administrator - represents the employer’s interested (e.g. issuing instructions)
- Certifier - acts impartially (certifying payments, assessing claims)
This can lead to potential conflicts (e.g. employer’s interest for CA to certify a narrow valuation, which would not be in the contractor’s interest)
What is the role of an employer’s agent?
- Acts as agent exclusively for the employer under design and build contracts
- Conduct Inspections
- Administer the contract through instructions, certificates etc.
- Cannot be considered truly independent, but as they are given authority to bind the employer, to avoid disputes they should act impartially
- Important to recognise the contractor’s freedom to design
What is generally excluded from the role of an employer’s agent?
- Checking and verifying the contractor’s design in terms of adequacy and efficiency
- Checking and verifying the contractor’s design in terms of fitness for purpose
What is the role of a clerk of works?
Appointed by the employer to act solely as inspector on their behalf and under the CA’s direction, including:
- Witnessing tests
- Monitoring progress against programme
- Assessing works comply with legal requirements (e.g. health and safety)
- Assessing works are carried out in accordance with the contract docs
- Keeping records (e.g. progress, delays, weather, instructions received, deliveries, significant events etc.)
- Reports / Progress meetings
NB: do not supervise works (as this may make them responsible), just inspect the works
How is the role of a Project Manager under NEC different to the role of a CA under JCT?
- Administers the NEC forms of contract and has similar responsibilities to a CA under JCT contracts
- CA has power to make certain decisions based on ‘reasonableness’, whereas PM must collaborate with employer and contractor in ‘spirit of mutual trust and cooperation’
- Variations/change - PM actively monitors change through early warning mechanism
- Practical completion - CA’s opinion when works are complete, completion is defined within NEC, so PM’s subjectivity is not required
How does the role of the Project Manager named within the NEC form differ from the role of a project manager that you might find on any project?
General project management is concerned with the programme and delivery on a project (under both JCT and NEC), rather than specific CA duties
What is the role of the supervisor under the NEC form of contract?
Same as a Clerk of Works under JCT but for NEC contracts
Outline to a client his obligations under a construction contract.
- Appoint a design team
- Appoint a contractor
- Follow the payment terms under the contract
- Give possession of site as required
- Follow insurance terms under the contract
- Comply with CDM duties
Name three things your client cannot do under a JCT Standard From of contract.
- Obstruct the works
- Dictate the programme
- Issue instructions
What is the contractor obligated to do under a construction contract?
The contractor is obligated to complete the works according to the Contract Documents / Works Information and statutory requirements (e.g. CDM Regulations)
What documentation is issued by the contract administrator under a JCT contracts?
- Contract Instruction
- Interim Payment Certificate
- Final Payment Certificate
- Practical Completion Certificate
- Certificate of Making Good
- Pay Less Notice
- Extension of Time Certificate
- Non-Completion Certificate
What documentation is issued by the Project Manager under NEC contracts?
- Contract Instruction
- Early Warning Notice
- Compensation Event
- Payment Certificate
- Defects Notification Form (Pre-Contract)
- Defects Notification Form (Post-Contract)
- Defects Certificate
- Completion Certificate
- Sectional Completion Certificate
As CA, do you have the ability to stop a contractor working on site?
Yes, by issuing a contract instruction
Who is responsible for administering the building contract?
NEC - Project Manager
JCT D&B and Major Works - Employers Agent
JCT Minor / Standard / Intermediate - Contract Administrator
How does the EA role differ from the CA role?
CA - Impartial role of administering the contract for the employer
EA - Identified in the contract acting on behalf of the employer in all matters. Should be impartial.
Can you rescind a PC Statement?
Once issued it remains final and binding on the employer and cannot be revoked.
What is a non-completion certificate?
Provides formal written notice that the contractor has failed to complete the work by the completion date.
What is an EoT?
Allows the CA/EA to adjust the completion date preventing time at large and removing the ability to claim liquidated damages.
What is the EoT Procedure?
Contractor writes to inform as soon as aware
Notification identifies the relevant event
Contractor submits all information requested
Notification of decision
All in 12 weeks of receiving the particulars.
What should you check in relations to Professional Indemnity (PI) insurance?
The insurance should be on an ‘each and every claim’ or ‘any one claim’ basis as these provide cover to the full limit of indemnity for each claim that is made against you in a fixed period. The alternative is an ‘in the aggregate’ policy
Check the notification provisions. They are generally a condition precedent of the policy.
Check the policy coverage for specific exclusions such as for external cladding and any other elements of the external envelope
What does ‘in aggregate’ mean?
The sum insured is the total amount that the insurer will pay out over a policy term for multiple claims. Each claim deducts from the total limit available.
What does ‘any one claim’ mean?
Provides cover to the full limit of the indemnity for each and every claim that is made against during the term of the policy.
What are contract instruction?
These are issues to vary the works, open up works, sanction a variation from the contractor.
I issued instructions where I sought cost approval from the contractor QS and client QS to agree a value before writing up a formal instruction detailing the works.
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2 - Procurement and Tendering39
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2 - Project Finance36
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2 - Stakeholder Management8
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3 - Contract Practice179
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3 - Programming and Planning34
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3 - Development and Project Briefs21
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3 - Managing Projects31
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3 - Leading People, Projects and Teams17
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2 - Construction Technology and Environmental Services82
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Contract Administration29
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Mandatory & Core Experience23
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Level 323
