Contract Administration

Question 1

Can you explain how you would implement a change control procedure in D&B?

Answer 1

Use the change control procedure set out in the contract
- D&B contractor would submit a CRF to myself and the EA
- EA agrees whether change
- I then agree cost and recommend to EA
- EA gets approval from Client and then issues an instruction for the change.

Question 2

What are the dangers of working on a bespoke contract?

Answer 2

It’s bespoke so less understood to all parties. Great care must be taken when administering

Question 3

Role of Contract Administrator under JCT?

Answer 3

• Administers the construction contract
• Must act honestly and reasonable
• Issues instructions & EOT
• Certifies sums due
• Assesses delay and grants time and cost relief

Question 4

How does the role of Employers agent differ from contract administrator?

Answer 4

• EA is seen as clients advisor
• Required to protect clients interest (CA must act impartially)

Question 5

What is Practical Completion?

Answer 5

The works are generally considered to be practically complete when there are no outstanding defects and the building can be put to its intended use.

Question 6

What would you do if the contractor has not completed by the pc date?

Answer 6

• Advide CA/EA to issue non completion cert
• Client must give notice 5 days before final payment if they intend to deduct LADs

Question 7

What is a pay less notice

Answer 7

They intend to pay less than the payment notice or contract value

Question 8

What must a contractor issue at PC

Answer 8

Operation and Maintenance Guides (O&M)
Health and Safety File

Question 9

What would you do if some defects aren’t completed at end of defects period

Answer 9

• Defect Schedule (Identifying defects)
• Contractor to complete in reasonable time
• If done, cert if making good
• If not, monies deducted from remaining retention - breach of contract

Question 10

Partial Possession challenges

Answer 10

LAD’s to be reduced accordingly
1/2 retention released for that part (could be hard)
Contractor has not programmed for it.

Question 11

What does CA do at partial possession

Answer 11

CA issued notification of partial possession

Question 12

What does CA do at Sectional Completion

Answer 12

Certificate of sectional completion

Question 13

What is a defect?

Answer 13

Works that have been completed but not to an acceptable standard

Question 14

How can an employer deal with a Latent Defect

Answer 14

• Lat defects not enforceable by contract
• Client can seek redress through breach of contract (6 or 12 years)

Defective Premises Act 1972 - Seek redress for damages through breach of contract, or for negligence

The Latent Damage Act 1986 - provides the claimant with three years, from the date when they knew or should have known or a problem, to issue proceedings.

Question 15

Expressed terms and Implied terms

Answer 15

ET - Terms expressly agreed between parties - usually wrriten in contract
IT - Not expressly agreed in contract - implied by either common law or statute

Question 16

What is risk appetite

Answer 16

Level of risk an organisation is willing to take to achieve their objectives

Question 17

Can you rescind a PC Cert

Answer 17

No, remains final and binding

Question 18

Client role under JCT

Answer 18

• Make payments
• Provide possession of site
• Not hinder contractor contractor to do works

Question 19

MC role under JCT

Answer 19

• Construct works in accordance with contract
• Carry out works dilligently
• H&S

Question 20

What takes precedence - ERs or CPs

Answer 20

ER

Question 21

On JCT, if a change cannot be agreed, what do you do?

Answer 21

Valuation of a variation in accordance with the Valuation Rules
Imposing a valuation is not a favoured option

MW - if no agreement, CA to make fair assessment