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CONTRACT ADMINISTRATION - delays and disputes (AVOID DISPUTES (THOROUGH…
CONTRACT ADMINISTRATION - delays and disputes
AVOID DISPUTES
THOROUGH DETAILED CONSTRUCTION INFO
INSPECT WORKS
DISCUSS ISSUES WITH CONTRACTOR
AGREE VALUATIONS PROMPTLY
USE PERCENTAGE'S OF BILLED RATES WHERE POSSIBLE
INFORM CLIENT OF PROGRESS AND VALUATIONS
FOLLOW CONDITIONS OF CONTRACT
INSURANCE
CLIENT AND CONTRACTOR NEED TO BE INSURED
CONTRACT ADMIN RESPONSIBILITY FOR CHECKING COVER AND DATES OF CONTRACTOR'S INSURANCE
WORKS AND / OR EXISTING STRUCTURES COVERED IN JOINT NAMES
COVERING - Public Liability Insurance, Employers liability, Latent Defects Insurance, Professional Indemnity Insurance, Plant and machinery etc
COLLATERAL WARRANTIES
PRIVITY OF CONTRACT - relation between parties in a contract which entitles them to sue each other but prevents a third party from doing so
DUTY OF CARE to third party (general public)
Defect not recoverable in TORT, therefore contract needed
DELAYS
EXTENSION OF TIME
Contractor to notify Contract Admin
For Reasons beyond their control
EoT granted by Client - Completion Date agreed and adjusted - Contractor can claim for loss and expense
Not Granted - Client can claim Liquidated Damages
NEC COMPENSATION EVENTS
affects price of work / delay in completion
Delay evaluated against programme and costs
Quick agreement should be reached
Roll up variations, extra time and prolongation costs
Final account agreed within two months of completion
BONDS
Mean of protecting against non-performance of contractor
Usually bank or insurance company holds counter indemnity
Normally 10% of CONTRACT VALUE
RETENTION OF MONIES
Normally 5% of CONTRACT VALUE
Half returned at PRACTICAL COMPLETION and other half at RECTIFICATION PERIOD
LIQUIDATED AND ASCERTAINED DAMAGES
COMPENSATION of non-breaching party
'PRE-ESTIMATE' SUM OF MONEY paid by CONTRACTOR if they do not perform
WRITTEN INTO CONTRACT
ASSESSMENT OF LOSS OF NON-TRADING or NON-USE
TRIGGERED with ISSUE of CERT OF NON_COMPLETION
SET OFF
REFUSAL by EMPLOYER to pay CONTRACTOR'S claim for payment on the grounds that the EMPLOYER has as CROSS-CLAIM that could reduce or extinguish what is owed
DISPUTE RESOLUTION
GET LEGAL ADVICE
LATENT DEFECTS
BREACH OF CONTRACT
- 6 - 12 years after completion date
NEGLIGENCE
6 years from act of negligence or within 3 years of discovery of issue
CONTRACT SUSPENSION by contractor
Client fails to pay within specified time
7 Days for Contractor to give WRITTEN NOTICE
7 DAYS for Contractor to SUSPEND WORKS
CONTRACT SUSPENSION by client
DEFAULT by contractor
Suspends work
fails to comply with CDM
fails to proceed regularly or diligently
INSOLVENCY
CORRUPTION
WORK SUSPEND more than 1 MONTH