Level 2 Contract Administration

Question 1

What is the PC Cert and what does is mean?

Answer 1

Practical Completion when the building has reached beneficial occupancy.
Transfers liability insurance over to the employer.
Defects period commences
Retention released 50 %
LADS no longer applicable

Question 2

When is a notice of of completion of making good issued and what does it mean?

Answer 2

Issued at the end of the defect period once satisfied all defects are closed out.
Releases the final 50% of retention.

Question 3

What is a non-completion notice for and what does it allow?

Answer 3

Issued when an EOT is not granted and the completion date is missed, allowing for the client to claim Liquidated Damages.

Question 4

What are Relevant Events and what do they allow?

Answer 4

Allow for Time Only!
Where a delay occurs impacting on the completion date, entitles the contractor to apply for an extension of time.
Must write to the EA as soon as reasonably apparent.
Usually written in the contract
- Variations
- Failure to provide information
- Changes in statutory requirements
- Adverse weather

Question 5

What clause is Relevant Events?

Answer 5

2.26 Under Adjustment of Completion Dates

Question 6

What are relevant matters and what do they allow?

Answer 6

Allows for direct loss and expense to be claimed!
- Failure to give the contractor possession of the site
- Delays in receiving instructions
- Opening up and testing which is in accordance
- Instructions relating to variations and expenditure of provisional sums.

Question 7

What clause is Relevant Matters?

Answer 7

4.21 Under Loss and Expense

Question 8

Instructions - how to check market conditions on materials?

Answer 8

Spons

Question 9

What are Liquidated Damages?

Answer 9

Set out in contract particulars, the cost lost per unit per week if the completion date is not met, meaning the client can claim for.

Question 10

Partial Possession

Answer 10

Allows for posession of part of the site - not in the contract!

Question 11

Section Completion

Answer 11

Allows for possession of the site - written within the contract with own completion dates.

Question 12

Contract Administrator’s responsibilities

Answer 12

• Required under traditional, exists at contract execution
• Independent role
• Manage information and record keeping, site inspections, attending meetings, reporting and issuing instructions and notices under the contract.

Question 13

Employer’s Agent

Answer 13

Exists under Design & Build
- Act on bhealf of the client
- Experience, competence and technical knowleddge to support the client
- Preparing ERs
- PEP
- Tendering process
- Contract docs
- Project controls
- Chairing progress meeting and minutes
- Monitoring project finance.

Question 14

Contractual Procedures

Answer 14

Payment
PC - Insurances transfer, 50% retention release, DLP commences
Non Completion - LADS can be levied
EOT - Extending Completion Date
Time @ Large - completion date missed and no EOT. Contractor entitled to complete works within reasonable time risking the client.

Question 15

Frederick Road Responsibilities

Answer 15

Assisted on valuations and issued payment notices.
Issuing change instructions, reviewing agains SPONS / referring with QS to ensure correct prices.
Attaching any relevant info to the instruction.

Question 16

Assessing Extension of Time

Answer 16

1. Understand the Relevant Event (exceptionally adverse weather, variations, instructions)
2. Notices must be issued as soon as reasonably apparant
3. JCT EA must respond within 8 weeks rather than 12 (JCT 2024)
4. EOT issued for the section

Question 17

EOT Delay Analysis

Answer 17

1. Overview of the facts: all evidence and emails, minutes etc.
2. Understand the timeline of events
3. Compare actual v planned progress
4. Critical path analysis: software showingn how the CP is delayed and issuign a formal EOT document.

Question 18

Ascertaining Loss & Expense

Answer 18

1. Claim must be made as soon as reasonably apparant
2. Restricted to direct loss and expense incurred by the contractor.
3. Relevant information to be provided to support the claim. (emails, invoices, payments)
4. Prolongation of prelims ( site set up costs & additional charges)
5. Disruption of labour (attendance registers)
6. The measured mile (comparing progress against an unaffected section).
7. Aboritve materialcs, double handling them.
8. Overheads (time diaries)

Question 19

Park Farm S106?

Answer 19

Planning obligation / agreement for the developer to provide affordable housing.

Question 20

Golden Brick Notices

Answer 20

Used for Housing Associations to certify the use of residential buildings rather than land. There is no tax contribution.
HMRC two courses of brick above DPC.
I did not provide tax advice, but confirmed when the works completed the required stage.

Question 21

Sheldon Street LADS

Answer 21

Different LAD schedules within the contract.
Time X Rate = Total.

Paid for as a debt

Question 22

Roles of the CA under JCT

Answer 22

Responsible for adminstering the contract

• Determining EOT
• Reviewing L&E
• PC Certs
• Issuing instructions
• Aministring change
• Interim payment notice

Question 23

Can you issue PC more than once?

Answer 23

No and it can’t be recinded

Question 24

What is nomination?

Answer 24

Selection of a particular subcontracot to complete the works or supply.
Often used when there is a long lead in time with the employer placing orders and prevents delays on sites.

Question 25

How are nominated subcontractorts paid?

Answer 25

Seperately via the main contract.

Question 26

Whats the difference between statutory provisions and Contract provisions?

Answer 26

S: set out by law and must be complied with C: Only apply to specific projects.

Question 27

How are LADs calculated?

Answer 27

genuine pre-estimate of the employer's likely costs, such as loss of revenue or rental income,