Contract Administration

Question 1

Who administers the contract?

Answer 1

• JCT Design & Build - Employer’s Agent
• JCT - Contract Administrator
• NEC - Project Manager

These roles are crucial in managing and overseeing the contract throughout its duration.

Question 2

What are the responsibilities of a contract administrator?

Answer 2

• Issue instructions
• Assess extension of time and loss and expense claims
• Issue payment notices
• Issue practical completion statements

The contract administrator plays a key role in ensuring compliance with the contract terms.

Question 3

How does the Contract Administrator role differ from the Employer’s Agent?

Answer 3

• CA - solely responsible for administering the contract and exists once the contract is in place
• EA - acts on behalf of the client in all matters throughout the project duration

Understanding the distinction is important for project management and accountability.

Question 4

What are the implications of issuing a Practical Completion certificate?

Answer 4

• 50% of retention is released
• Defect period begins
• Responsibility for insurances and security transfers to client
• Ability to impose LADs is over

Issuing this certificate marks a significant milestone in the project lifecycle.

Question 5

What is an Extension of Time?

Answer 5

Enables the Contract Administrator to adjust the completion date, used in the instance where the contractor is not at fault for the delay

This mechanism helps manage unforeseen delays in project timelines.

Question 6

When assessing an Extension of Time, what factors do you need to consider?

Answer 6

• The cause of the delay
• The information provided to substantiate the claim (is it a relevant event)
• What the proposed date for completion is going to be
• Has the contractor demonstrated that they have tried to mitigate the delay

These considerations are vital for fair assessment and decision-making.

Question 7

What are the timescales imposed by JCT when valuing changes?

Answer 7

There aren’t any.

However, Valuation Rules and RICS guidance advise that the cost should be agreed prior to the works being carried out. If works are done and cost isn’t agreed, this could lead to dispute.