Contract Administration

Once a Contractor has been appointed, as a result of the Tender procedure, then it is normal Practice for you the client, and the Contractor to enter into a Building Contract. The type and complexity of the Contract will be dependant on the size, cost and complexity of the project.

In essence, the Contract protects both the Client and Contractor, and is generally administered by (but not necessarily) the Architect, and determines the following agreed items:

Who the Contract is between… Client and Contractor
What the works are to be
Who the Administrator of the Contractor is
Who the CDM Co-ordinator is
What the Contractor is to do and for what price
Who is to arbitrate should there be a dispute
Contractors Obligations
Architects Duties
CDM duties
Commencement and Completion dates
Control of the Works
Payment
Statutory Obligations
Injury Damage & Insurances
Determination
Settlement of Disputes
Contribution, Levy & Tax Charges

In administering the Contract, we would issue the necessary Certificates and Instructions as and when required, as well as carrying out periodic site ‘Inspections’ to ensure that the works are being carried conform to the approved/issued drawings, that the materials and workmanship are of a reasonable standard and appropriate, and to address any queries that may arise as building works progress.

It must be appreciated that not every event can be foreseen at the design stage, and that things do change on site, which require deviation from the original design requiring, hopefully, only small minor changes. This is inevitable bearing in mind the complex co-ordination and co-existence of a labyrinth of structure, pipe work, ducting and wiring, all of which are evident in all buildings these days.

We would attend official regular site meetings, as well as other impromptu meetings as and when required.

If a Quantity Surveyor is not appointed, we would prepare regular valuations for payment to the Contractor from you the Client, and agree costs for any variations as well as finalising the Final Account. If a Quantity Surveyor is appointed, then they would carry out this task.

Whether a Quantity Surveyor is appointed or not, we would issue Certificates for payment to the Contractor from you the Client.

Generally any payments made to the Contractor are based on work carried out as well as any materials he may have ordered and paid for. The figure issued for payment is 95% of this value, the remaining 5% being a retention held back by the client.

There are Clauses within the Contract that addresses issues relating to late and non-completion of the works. Unfortunately, in most instances, building contracts do not finish on time, whether it is because of inclement weather, difficulties in obtaining materials on time, additional works either unforeseen or for other reasons, and we need to ascertain and agree if an extension of time should be granted.

Once works are complete, we would make a final inspection of the works, and produce a list of items requiring the Contractors attention prior to the building being handed over to the client. This is termed Practical Completion.

When we are satisfied that the works are complete to an acceptable standard, then we can hand over the building from the Contractor to the Client, at which point the Client is responsible for Insuring the building and for the payment of any utilities bills from that day on.

At this stage, the Client pays the Contractor 971/2% of the certified amount, the remaining 21/2% being a retention held back by the client, for period of six months.

Generally, the client is given copies of all necessary instructions, manuals and guarantees for fixtures + fittings included. On larger schemes a Document is issued to the Client via the CDM co-ordinator which includes in effect is a maintenance manual outlining everything included with in the building which will enable the correct items to be fitted should there ever be a need to replace items. This manual should be updated through out the life of the building.

Within the 6 month period after the date of the Practical Completion of the building, the Contractor has to attend any defects that occur, and only when all the defects have been rectified to a satisfactory standard will we issue a certificate to release the 21/2% retention.

During this six month period, the Final Account is usually agreed and settled, and certificates issued to cover this.

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