Experience Area E - Contract Admin and Observations Flashcards

Question

What are the contrasting arguments regarding the duration of warranties for construction work?

Answer 1

On the one hand there are those who will argue that the contractor or subcontractor should be prepared to **warrant** their work for the **full durability period** required under the New Zealand Building Code. On the other hand it can be argued that as consumers have **protection under the Consumers Guarantee Act, Fair Trading Act and the Building Act** no warranties should be required.

Answer 2

ach architect preparing a list of warranties to be provided as part of a construction contract will have to make their own judgement call. Factors to consider might include: (a) What period is normally offered? (b) Client expectation (of warranties) (c) The strength of the person from whom the warranty is being sought (d) The likelihood of the warranty being called up.

Answer 3

Key items for which warranties might be considered include those relating to weathertightness, waterproofness, and others related to appearance matters. This relates to B2 durability 50,15, and 5 year dates (a) Tanking (bituminous and sheet) 15 years minimum (b) Curtain walling 5 years minimum (c) Metal cladding 15 years (d) Roofing 15 years (e) Aluminium joinery 2 years (f) Tiling 2 years (g) Timber strip and overlay flooring 1 year (h) Vinyl, linoleum and cork surfacing 5 years (i) Carpeting 5 years (j) Painting 2 to 5 years (k) Specialist protective coatings 5 years minimum (l) Plumbing systems 2 years (m) Drainage systems 2 years (n) Electrical items 1 year

Answer 4

must be executed in the manner required under section 180 of the Companies Act 1993. This will vary from company to company. However as a general guide it might be expected that two directors will normally be required to sign. Where only one authorised person may sign, a witness may also be required.

Answer 5

Be cautious in accepting warranties written by the party warranting the work. Such warranties are likely to have a generous sprinkling of pre-conditions and escape clauses. Use the standard form of Warranty Agreement and ensure that contractors and subcontractors sign only these forms with no additions or alterations

Answer 6

For example a plumber may repair a leaking pipe in the wall but who makes good the wall? This case is normally covered by insurance in relation to consequential loss. The insurer will not cover the defect but will provide cover for consequential loss and making good any area affected by the defect. Consequential damages, otherwise known as special damages, are damages that can be proven to have occurred because of the failure of one party to meet a contractual obligation, a breach of contract.

Answer 7

* Expert adviser to representative of the owner(s) * Ordering of variations * Giving directions on behalf of owner(s) * Accountable to owner(s)

Answer 8

Held monthly to determine project progress, cost status, and authorities' approvals, to confirm key design decisions, and to discuss user issues. This refers to the key stakeholders who are involved with your project.

Answer 9

* Acts as agent for owner(s) * Issues all directions or instructions * May appoint engineer’s representative * Issues Certificate of Practical Completion * Issues Defects Liability Certificate * Has power to suspend the works

Answer 10

* Impartial decision-maker * Values the work in progress * Issues Progress Payment Schedules hedules * Issues Final Payment Schedule

Answer 11

* Request from contractor * Site Instruction – identify client request items/no cost instructions * Variation Price Request – quotation, invoice requirements, dayworks, client request items * Variation Order – varies the contract sum

Answer 12

an alteration to the scope of works in a construction contract in the form of an addition, substitution or omission from the original scope of works.

Answer 13

* To facilitate regular regular and timely payments * Provide for the speedy resolution of disputes * Provide remedies for recovery of payment * Relates to residential construction contracts * No contracting out of the Act

Answer 14

* Introduction of representatives * Communication and site responsibility issues * Scheduling of Project Control Group meetings * Confirmation of start date for the works * Reviewing of contractor’s programme * Confirmation of insurance cover for the works * Reviewing Payment Schedules and processes * Review list of sub-contractors and suppliers * Outline processes for dealing with Variations * BCA liaison and inspection requirements * Site security * Health and safety matters * Design clarification or procedural issues * Owner concerns or questions

Answer 15

* Receive contractor’s progress report * Review of construction progress against programme * Relevant quality issues * Costs and comparison with budget * Construction activity issues * Unanticipated delays * Design clarifications * Contract variations * Owner concerns * Unforeseen variations * Health and safety matters * Often held two-weekly or monthly

Answer 16

* Comparison of costs against budget * Explain reasons for cost escalation * Clearly identify betterment and client request items * Clearly explain additional fee costs

Answer 17

Code Compliance Certificate - A CCC is a formal statement confirming that the council are satisfied all building work has been completed in accordance with the building consent the council issued.

Answer 18

If you are an LBP and you have carried out or supervised restricted building work as part of a building consent, you need to complete and submit a Record of Building Work (Memorandum) as soon as possible to avoid delays issuing the Code Compliance Certificate (CCC) to the owner.

Answer 19

Warranties and guarantees should be provided prior to issue of the Defects Liability Certificate and Final Payment

Answer 20

* be in writing and be endorsed “Final Payment Claim”; * state that the due date for payment shall be **45 Working Days** after the date the final

Answer 21

The Architect must within **20 Working Days** of receiving the Contractor’s final Payment Claim issue a Final Payment Schedule to the Principal. The Final Payment Schedule must note the date received and the due date for payment which shall be **45 Working Days** from the date the final Payment Claim was received by the Architect;

Answer 22

0,5,8,10,17 (this is the same as normal) Day 0: Payment Claim recieved Day 5: Issue Payment Schedule Day 8: Principal amendments Day 10: Issue replacement payment schedule Day 17: Last day pricipal has to pay Should the issue of the Final Payment Schedule take longer than **20 Working Days**, the Architect must issue a certificate in the form of a Payment Schedule for all amounts due under the Contract that can be certified at that time. This must be done within **5 working days** Here payment will be due **12 Working Days** from the date the Payment Schedule is issued by the Architect; The Principal must notify the Architect within **3 Working Days** from the date the Payment Schedule was issued by the Architect of any amendments or deductions **5 Working Days** from the date of the date the Payment Schedule was issued by the Architect, the Architect must issue a replacement Payment Schedule with the revisions required by that notice. The Architect must continue to issue such Payment Schedules at monthly intervals until the Final Payment Schedule is issued. This is what we did for Oratia(unknowingly). There were TWO payment claims after practical compltion!!!

Answer 23

The Principal must notify the Architect within 30 Working Days of the date the Architect received the final Payment Claim.

Answer 24

not later than 35 Working Days after the date the Architect received the final Payment Claim, the Architect must re-issue the Final Payment Schedule with revisions as required by that notice.

Answer 25

The Principal must pay the scheduled amount shown in the Final Payment Schedule, along with the amount of goods and services tax payable, within **45 Working Days** of the date the final Payment Claim was received by the Architect.

Answer 26

Day 0: Payment Claim recieved Day 20: Issue Payment Schedule Day 30: Principal amendments Day 35: Issue replacement payment schedule Day 45: Last day pricipal has to pay

Answer 27

The interest rate shall be 1.5 times the Reserve Bank of New Zealand monthly small to medium-sized enterprise overdraft rate over the relevant period.

Answer 28

The Final Payment Schedule cannot be disputed by the Contractor or the Principal more than **55 Working Days** after the date the Contractor's Final Payment Claim was received by the Architect, or more than **20 Working Days** after any relevant **Adjudicator’s Determination**, whichever is the later.

Answer 29

* Technical Instructions (appliacnes etc) * As-Built drawings * Maintainance plans (SGA completion book)

Answer 30

* Gather all the proof required to establish reasons for failure * Record reasons for failure * Don’t exaggerate or over-state extent of problems * Carefully record sampling processes

Answer 31

* Attempt to work only with a specific committee * Use a committee spokesperson as your contact * Listen to their point of view * Keep spokesperson and committee fully informed * Provide alternatives where possible and involve committee in decision-making process * Identify clear and achievable goals * Don’t over-inform and confuse people

Answer 32

NO! when the client requests a property inspection and the issuance of a Practical Completion Certificate, the architect should NEVER acquiesce and provide this service – no matter how qualified the PCC is. DON'T PROVIDE A PCC FOR YOUR DESIGN PROJECT, UNLESS YOU HAVE PROVIDED FULL PROJECT ADMINISTRATION SERVICES.

Answer 33

No - strongly advised against by the NZACS

Answer 34

PS1 - Design PS2 - Desing Review PS3 - Construction (often used by the installers of proprietary systems) PS4 - Construction Review

Answer 35

a producer statement is a document prepared by a Registered Architect confirming his/her professional opinion. This opinion is based on stated reasonable grounds that aspects of design of a building achieve compliance with the building code, or that elements of construction have been completed in accordance with the approved building consent. A producer statement is a professional opinion based on sound judgment and specialist expertise. It is not a product warranty or guarantee of compliance. A PS gives evidence that design or building work complies, or will comply, with the Building Code and helps teh Council make a decision to issue a building consent or a Code of Compliance Certificate (CCC). The producer statement system is intended to provide Building Consent Authorities (BCAs) with reasonable grounds for the issue of a Building Consent or a Code Compliance Certificate, without having to duplicate design or construction checking undertaken by others. Producer statements are typically used for specialist work, such as engineering, or where there is a proprietary product which is installed by appointed contractors.

Answer 36

NZIA advice to members is that we do not believe that a PS1 is required. If you have to, you should only sign a PS1 for the elemental part of the building work that the PS1 refers. If there are a number of elements that the BCA requires a PS1 for, you should a separate PS1 for each element. Do not sign a PS1 that covers everything in the documentation as complying with the building code. A PS1 should not be required for RBW as a Memorandum of Design Work must be signed by the architect in its place.

Answer 37

The NZIA recommends that only highly qualified practitioners with a high level of competence in the area of the building work to be reviewed consider signing a PS2. PS2 is intended for use by a suitably qualified, independent, competent design professional (i.e. Registered Architect) as a statement of opinion, based on a review of design documents (w**hich have been prepared by others**) and on stated reasonable grounds, that certain aspects of proposed building work will comply with the building code, if the work is constructed in accordance with the referenced documentation.

Answer 38

This PS3 is generally signed by the building contractor and sub-contractors and should not be signed by an architect.

Answer 39

The NZIA recommends that you **do not sign** a PS4. If you have to, you should only sign a PS for the elemental part of the building work that the PS1 refers and look to other suitably qualified people to supply supporting information. Refer to the PS1’s that you have signed at building consent stage. These are the only elements you should sign a PS4 for. An engineer might provide this Intended for use by a suitably qualified independent design professional who undertakes **construction monitoring** of the building works where the BCA requests a producer statement prior to issuing a Code Compliance Certificate. This must be accompanied by a statement of completion of building work (Schedule 6).

Answer 40

Producer statements have no statutory status under the Building Act 2004.

Answer 41

a producer statement is not a product warranty or guarantee of compliance. It is a professional opinion.

Answer 42

A BCA can reasonably request a PS1 producer statement to accompany an application for building consent. However if the consent applicant doesn’t want to or isn’t able to provide this, then the BCA must consider other options for establishing code compliance. (e.g. engage its own engineer to undertake a review). A BCA may reasonably request a PS2 producer statement to accompany an independent Design Review, if it is to accept that review. A BCA may also reasonably request a PS4 producer statement for Construction Review of specifically designed elements and some will seek to make it a condition of granting consent. A BCA cannot refuse to issue a building consent or code compliance certificate simply because it cannot be provided with a producer statement. In this situation the BCA will need to assess compliance in another way (e.g. engage its own engineer to undertake a review or inspection).

Answer 43

The author of a producer statement must be a natural person (rather than a corporate/legal entity) because the value of the statement is dependent on the individual competence of the author. Nevertheless, the author’s affiliation to a legal entity (such as an employee of a company) is a relevant matter in relation to risk mitigation information. Authors should ensure they have legal/contractual authority to commit the design firm/entity to the liabilities implicit with the issuing of producer statements.

Answer 44

Because producer statements are not provided for in the Building Act 2004, information about professional indemnity insurance on producer statements is not a legislative requirement (either Building Act 2004 or BCA accreditation regulations). As such the level of insurance cover should have no direct relevance to the statutory decision to determine compliance with the building code or approved building consent.

Answer 45

– used to establish the cost of proposed Variations – Not a direction to carry out the work – Architect assesses, Client approves Variation Price Requests (VPRs) are not referred to in SCC1 and must not be confused with Variations or other Architect’s Directions. A VPR is a request to the Contractor to price (and, if applicable, claim an extension of time) for a contemplated change in the contract works. It must be made clear to the contractor that a VPR is simply a request for a price and that they are not to precede with the work unless further directed.

Answer 46

– Directions to carry out work that makes changes to the contract with respect to: * Cost * Time – Extensions of Time * Cost and time – Extensions of Time

Answer 47

If they are not admistering the contract this means the Architect-CLient agreement is a limited services agreement. The Architect can only advise. The project manager or client will have to give variation orders

Answer 48

You need to include: * Documents provided by your Licensed Building Practitioners or registered professionals, e.g. Memorandum: Record of Building Work * Warrenties and User Manuals from the Contractor * Schedule of Inspections/Conditions of the Building Consent (i.e. PS1’s, PS3’s, Energy Works Certificate, etc.) * Final PASSED Inspection from Building Inspector * Additional documents requested during inspections.

Answer 49

Schedule E1 Clause 4.7 of SCC: "Documents required at Practical Completion" * Warranties and other information required from the Contractor which are essential for the Principal’s use of the Contract Works. * Documentation required for Certificate For Public Use application. * Documentation required for Code Compliance Certificate application. At Apple Shed we asked for (but I think most of these are more relevant for CCC: Schedule E1 Schedule G1 Contractors Warranty Agreement Warrenties and User Manuals from the Contractor Schedule E2 (this is no longer a thing I think) Schedule of Inspections/Conditions of the Building Consent (i.e. PS1’s, PS3’s, Energy Works Certificate, etc.) Final PASSED Inspection from Building Inspector Documentation for Code of Compliance

Answer 50

Certificate of Design Work – submit with consent application (to do with design) Records of Building Work – submit with application for a code compliance certificate at the end of the project (to do with construction)

Answer 51

The Architect issues all Directions to the Contractor (Rule 4), which includes Variations to change the Contract Works (Refer 9.0 Variations). SCC1 Section 19 defines “Direction” to cover a wide range of matters. Attached is a pro forma for general use in matters, which do not constitute a Variation.

Answer 52

seek legal advice as you may be able to have another tradesperson repair the work and have the contractor pay the costs From SCC: If the Contractor does not correct a defect or complete deferred work on time, the Principal may employ another Person to correct the defect. The Architect must give the Contractor 5 Working Days notice of this intention. The Contractor must pay the Principal’s cost for correcting the defect. The Principal can deduct any cost for correcting the defect from money owed by the Principal to the Contractor. This is similar under CGA

Answer 53

If you want to let the public use a building before we issue a code compliance certificate, you must apply for a Certificate for Public Use. Public premises can only be occupied if a Code Compliance Certificate (CCC) has been issued or a CPU is in place A CPU maybe applied for at the same time as the building consent, if the proposed work involves alterations or additions to an existing building and this work affects public access to the premises. Work cannot commence until such time as a CPU is in place. In the case of a new building, if a CCC has not been issued, the premises cannot be occupied unless a CPU is in place.

Answer 54

Form 15 Building consent applicants must provide information about how the public will be protected whilst building work is underway Plans showing the relevant areas for CPU List of Active Specified Systems/Compliance Schedule Relevant producer statements (structural, fire, access etc) How the public will be protected can include but not limited to the following issues: • What parts of the building are occupied and or will the public have access too? • What access / egress routes will be compromised by the building work (walking near or through building work)? • What hazards will the public potentially face as a result of the building work? • What protection measures can be put in place to protect the public? • What safety systems are in place to protect the public or building occupants (i.e. will specified systems be operational during construction)? • What mitigation measures can be implemented to ensure the safety of the users where life safety features have been disconnected / decommissioned? • What alternative safety features can be utilised to provide the same or better security in terms of the health and safety of the public, where safety features are not operational? • What protection measures are in place? o Paving and ramps o Fencing off the construction area o Hoardings - protection from falling objects

Answer 55

Mediation focuses on helping parties find their own solution through negotiation, while arbitration involves a third party making a decision on the dispute. If both parties agree to it, you could try mediation, where both parties try to come to an agreement with the help of a mediator. Often the contract will include a requirement for early mediation of disputes. Like mediation, arbitration requires both parties to agree to participate and also agree on the arbitrator. The building contract may require that disputes are resolved through arbitration. The arbitrator’s decision (called an Award) is binding and enforceable by a legal court. However the process is less formal than court. Adjudication is an alternative dispute resolution process for resolving construction and build disputes. During adjudication, a neutral third-party or adjudicator will resolve the conflict which arrises under the construction contract. This outcome reached by the adjudicator is termed a determination. Adjudication happens under CCA

Answer 56

Eg a retaining wall like they did in Oratia. Or cabinetry like in England Street Is it exempt under Building Act Schedule 1? Do they have an owner builder exemption? If working alongside a builder how does this work in regards to their insurance. If client contract works insurance the insurance company would need to be informed Will this work affect the integrity of the building. RBW What is the contract works, this this included? Are you reviewing it (don’t)?

Answer 57

No - even if it may be deemed unfair

Answer 58

No, but it does indicate A contact but not the conditions of the contract. I believe you would therefore default to common law/unlimited liability/tort

Answer 59

Timeline of construction sequencing - deviation from critical path will cause delays and hence may affect practical completion date

Answer 60

A national non-profit origination that promo sites improved H&S culture in NZ. Education and resources Offers training Courses Resource material Issues voluntary qualification. Consultant passport, contractor passport

Answer 61

Noted on the inspection booklet given with your approved RC. Can include: pre-pour (before concrete is poured, for example, for piles, footings, slabs, in situ walls or blockwork infill) tanking/waterproofing (before back-filling retaining walls, covering membranes on decks or laying tiles in wet areas such as showers) pre-clad (before wrapping the building in building paper or building wrap and installing the cladding) post-clad (before applying coatings to fibre cement or polystyrene systems, possibly including inspections during plastering) pre-line (with insulation installed but before installing internal linings. This inspection may include checking the plumbing installation under pressure test) drainage (before filling in trenches and covering the in-ground pipework). Pipework should be under test for this inspection. Drainage testing can include smoke, air or water testing final inspection for plumbing, building and drainage work (once the work described in the building consent is complete).

Answer 62

Residential tenancies Act 1986 Building Owner - Landlord Insurance Tenant - Contents Insurance

Answer 63

Annual Run-off: Cover continues until the completion of the project Annual Cut-off: Cut-off means that the policy lapses T the expiry date of the policy unless specially renewed

Answer 64

An online noticeboard where details of security interests in personal property can be recorded and searched The PPSR is effectively an online noticeboard where you can register a legal claim to personal property, and check if there is any debt or obligation attached to goods you may wish to buy. In relation to Personal Properties Securities Act 1999

Answer 65

RFIs Recorded and tracked through an RFI register RF1#, date received, due date, response date

Answer 66

Payment recommendation/progress evaluation

Answer 67

Structural steel, pre cast concrete, window systems, cabinetry

Answer 68

Refer to contract. SCC notes that principal may end Contract Get legal advice Call up bond Guarantee may be useful in this scenario Secure site

Answer 69

Usually 10 working days Shop drawings should be stamped with NZIA disclaimer Architects only should review shop drawings and not approve

Answer 70

Contractor on behalf of the principal

Answer 71

Either; Perform services on a ‘time charge’ basis. Hourly rates defined in AAS Part C. identify Contract’s completion date and advise Client that overruns will be dealt with on a ‘time charge’ basis. percentage based on ‘Adjusted Cost of Contract Works’ NB: 15% default for Admin/Observation in typical fee structure is deemed insufficient in today’s climate refer to recent NZIA webinar 25.08.18 (20%+).

Answer 72

* Contractor to lodge a extension of time using general conditions (11.5 claims for an extension of time in SCC as a reference) * Architect to review scenario and evaluate whether there are suitable grounds to grant a EOT * If required get contractor to substantiate the claim in greater detail with reference to items critical to achieving PC * Important for contractor to submit regular updated programmes * Discuss critical path * Discuss with Principal * Confirm any extension of time in writing * Use NZIA proforma What is the process for an extension of time request /claim? Contractor lodges Notice of Delay (NOD) i.e. caused by ‘inclement weather’ or variation has ‘time implications’ or has resulted in ‘concurrent delays’ Extension of Time (EOT) NZIA **SCC** 2016; 11.0 ‘Time for Completing the Contract Works.’ (5 Working Days Contractor to apply for EOT + 10 Working Days for Architect to respond). NZS **3910**; 10.0 ‘Time for Completion’ (20 Working Days for Contractor to submit EOT +20 Days Engineer to respond).

Answer 73

What is acceleration and under what conditions could the contractor claim them? Refer to NZS3910:2013 General Conditions 10.3.6 i.e. likely if strict opening date (Hotel or public event). “Acceleration – Whenever the Contractor may be entitled to an extension of time, then in lieu of granting a time extension for all or part of the delay, the Engineer, following consultation with the Contractor, may require the Contractor to, (if practicable in the reasonable opinion of the Engineer), overcome all or part of the delay by applying additional resources, working longer hours or in whatever manner is required, at a cost to be determined as a Variation.”

Answer 74

Yes - NZIA SCC 2016 Clause 14.11.1 ‘Bonus for Early Competition.’ (Clause 14.10 Liquidated Damages*). NZS3910 Clause 10.6 ‘Bonus for early completion.’ (Clause 10.5 Damages for late completion*).

Answer 75

Practical Completion Certificate Defect Liability Certificate Warranties/Guarantees As-built documents Operation & Maintenance Manuals Consent Compliance (CPU/CCC preferably)

Answer 76

NZIA SCC 2016 Clause 12.4 ‘Early Occupancy’ NZS3910 Clause 10.7 ‘Occupation by the Principal’ Residential - not recommended. Principal must have correct insurances in place, and agreement with Contractor regarding H&S, strategy to complete defective works period and ‘record’ the Contractor’s scope of works (i.e. photo evidence recommended as potential for accidental damage by Principal). Commercial - only if ‘Certificate of Public Use’ granted by Council.

Answer 77

Principal – Contractor on their behalf

Answer 78

Yes - but only if Building Consents have been staged. i.e. foundations in groundwork season or demolition, then fast-track build. Example; “A household unit being built specifically for sale cannot normally be transferred without a code compliance certificate. However, the owner or builder can stage the [building] consents so that a code compliance certificate can be obtained for each unit.”

Answer 79

Same as other paymernt claims but have to note "final payment claim" and that due in 45 days

Answer 80

Communicate with both the client and contractor Refer to contract. The contractor must complete the works to the architects satisfaction

Answer 81

3910 notes that Schedule 14 (offsite goods) cannot be used for deposits. No comments about this in SCC

Answer 82

Based on contract - often contractor will provide how many days they need.

Answer 83

In an arbitration setting when the Arbitrator needs to become fully familiar with the problem

Answer 84

AAS - refer PN 3.119

Answer 85

Prepare adequate Contract Docs Administer according to conditions Keep accurate records Be clear on your and your clients responsibilities Act promptly in consultation with client and client legal advisers CONFRONT PROBLEMS EARLY

Answer 86

Receivers are commonly appointed by debenture holders such as banks. Receivers in these circumstances: * Fight to get their client's money back * Pay themselves, any outstanding wages, holiday pay, GST, PAYE * Pay debenture holders * Move out Liquidators are: * Appointed by the High Court * Divide what is left of the company after the receiver has taken its share * Sell assets * Pay rest of creditors according to rank

Answer 87

Advice principal that you feel uncomfortable dealing with these matters and cannot continue as administrator. Legal advice should be sought Section 16 of SCC

Experience Area E - Contract Admin and Observations Flashcards

(116 cards)