What is Construction Contract Administration?
It is important to understand the difference between Project Management and Contract Administration;
Project Managers are on a building site all day, every day. They order materials, hire tradesmen and arrange the sequence of construction
Capital A do not provide project management services. We provide contract administration services.
If you engage Capital A we typically use JCT/SBCC Contracts. These agree the construction budget and the completion date at the outset, before building begins. The quality of finish is controlled by the Architect, if it isn't to a reasonable standard, the contractor must re-do the work or be financially penalised. The JCT is fair, it splits responsibility equally between the contractor and the property owner. The construction budget and the completion date can be changed during the contract but only if the contractor can demonstrate that the delay is caused by events beyond their control. If the contractor does not finish the building by the completion date, and doesn't have a relevant event to explain this, they will pay damages to the property owner at a pre-agreed rate. These damages are based on a real loss, such as renting alternative accommodation until the building is ready.
Under this system it is the building contractor who is the Project Manager. Capital A will be the Contract Administrator, carrying out inspections of the building site regularly, usually once per week, and reporting on progress, costs and quality issues to the client. At regular intervals, usually once per month, Capital A value the work that has been properly carried out and issue a payment certificate to the client. This certificate details the amount of money the contractor is owed by the client and it ensures that the contractor is never paid for more work than they have done. While Capital A will always be happy to help the contractor resolve any technical issues that might arise during construction, it is the contractors responsibility to ensure these are carried out correctly and on time.
Six Stages of a Project
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