Contract Administration
Contract Administrator
A person who administers a building contract. They impartially ensure all the relevant processes are adhered to and all relevant documentation is issued to all parties.
Payment Certificates
Certificates state an amount to be paid to a contractor at various stages of a project following a valuation.
Valuations
An analysis of the value of works at a specific time on a project.
Defect Liability Period (DLP)
An agreed period of time following practical completion where a contractor is responsible for rectifying any defects which become apparent. A sum of money is withheld by the client during this period.
Contract Administration
Contract Administration plays an important part in the delivery of a construction project. A building contract is required to ensure all parties to the contract understand and fulfil their obligations to each other as agreed. It also sets out the payment structure and time frames for payments to be made.
In essence, contract administration is the ‘management’ of the contract between the employer and contractor. There are various types of building contracts with different aspects to each, and it is the contract administrator’s role to ensure the contract is administered fairly and impartially.
Although there are standard contracts that can be used, such as the JCT contract suite, each project is different. Standard contracts are often used but tweaked and amended to suit each individual project. Part of the contract administration service is to negotiate with all parties to agree on the terms and conditions of the contract before signing.
Silver Grey Associates can undertake contract administration services for you on your construction project. Please contact us if you require any further advice or would like to book in a Contract Administration.
Common Questions on Contract Administration
What is Contract Administration?
Contract Administration is the management of all aspects of a building contract between an employer and contractor.
Why is a Contract Administrator necessary?
There are many different aspects to a building contract that requires sufficient knowledge and experience to ensure there are no unnecessary problems that arise between an employer and contractor. For example, payments can be a contentious issue at certain times during a construction contract, and a contract administrator will fairly assess any application for payment and ensure the relevant procedures are followed.
Other important processes that are applicable to a building contract concern delays, practical completion and the defect liability period, and it is important that these are assessed fairly and impartially to ensure full compliance in accordance with the building contract.
What type of contract should I have for my project?
This depends on many factors and is specific to the requirements of each client and project. For example, if there is a need for a contractor to take responsibility for the design of certain elements of work, such as the electrical or plumbing and heating system, this could be incorporated into the contract.
Also, If the client wishes to have the entire project designed and built by a contractor, a specialist contractor can be drafted to cover this. If a client wishes to use a specific sub-contractor, a contract can be drafted to allow for this also. A suitable contract can be recommended by understanding the client’s requirements as early as possible.
How much does Contract Administration cost?
Contract administration services are calculated on a percentage of the contract value.
