In a construction management contract, the role of contract manager can be assigned to the construction manager, and in administrative contracts, the contractor assumes the role of contract manager. The roles of the employer`s contract agents and administrators share a number of similarities, but they can often be confused – but these roles have important differences. Although the two roles are similar, for example, issuing certificates during the life cycle of a project and enforcing the terms of the contract, the fundamental difference is the obligation to act impartially as a contract administrator when acting as a decision-maker. Contract managers acting as decision-makers must act independently, impartially, honestly and fairly (Sutcliffe v. Thackrah, 1974, AC 727). In addition, CA may request details of valuation and interim payment dates, which may be requested from the Client`s PQS, which may also provide the Contractor`s latest cash flow forecasts, if any. To ensure that there are no business issues, HQ may require the client to provide a copy of the direct debit schedule that they have agreed to with their funder to ensure that everything is properly aligned from a financial perspective. It is important to ensure that a construction contract is well managed. This is where the role of contract administrator comes into play. The role of contract administrator has existed for centuries, although the term was not officially introduced until 1987 with Amendment 4 of form JCT 1980. Essentially, the contract administrator manages the contract between the employer and the contractor.
Once a contractor has been selected for a project, the HQ is responsible for managing the contract between the parties and working primarily as an agent for the employer. However, it is crucial that HQ act impartially in all decisions it makes under this «agency function». This is an important requirement for the role of the certification body, as the ability to make decisions on projects in a fair and reasonable manner, without showing bias towards either party, is crucial for the smooth running of projects. The decisions made by it are derived from its main tasks, which are summarized below. There are many ways in which conflicts can arise between the client and the CA that arise from this unique situation in which the CA must be impartial while representing the client in other functions. Professionals should always be fair and reasonable, but this dynamic can sometimes be difficult to understand, especially for clients when CAs make decisions that don`t seem to be in their favor. The contract usually provides a mechanism through which the employer can challenge a decision of the CA, which can further increase the tension. The role of contract management is assumed during the construction and delivery phase of a construction or construction project. When managing a construction contract, there are several financial aspects to consider, for which the CA needs a certain level of commitment from the client if there is to be a minimum of complications.
For example, items such as notices pay less, which must be issued by the customer in accordance with the deadlines set out in the contract. The CA requires the customer to provide assurance that all obligations they have under the contract are in their hands and will be met in order to avoid problems such as the limitation period. The contract manager role can add real value to a construction project and ensure that the construction contract is managed fairly and efficiently. The key to a successful contract administrator relationship is the selection of an experienced contract administrator and the clear delineation of responsibilities from the outset. The contract administrator usually has a number of responsibilities and duties. These responsibilities and obligations include, on the whole, compliance with the envisaged contractual procedure and the management of the day-to-day operation of the market. The extent of the responsibilities and obligations incumbent on the contract administrator varies depending on the contract between the parties. For example, according to the YCW contract form, the contract administrator may be asked to determine when practical completion is achieved, to approve the quality of the materials to be used, or to give instructions in the event of a discrepancy in the documentation.
In the NEC contract form, the contract administrator is the project manager and the role therefore extends to proactive project management. The contract administrator is responsible for managing the terms of the construction contract between the parties. The employer delegates the administration of a construction contract to the contract administrator. Essentially, the contract administrator plays a dual role. The contract administrator acts as the employer`s representative and sometimes also as a decision-maker between the employer and the contractor. Typically, a contract administrator is appointed by the employer. However, in the exercise of the latter decision-making role, where the contract manager is required to make an assessment or decision, the contract administrator must act independently in those circumstances. A contract administrator therefore has an implicit obligation to act impartially when deciding matters between the client and the construction contract (Sutcliffe v. Thackrah). The professional appointment of the contractual director may also require him or her to act impartially. The role of a contract administrator (CA) is broad, but the most basic definition is contract management between the employer and the contractor. Contract management is always necessary when it comes to contracts and traditionally starts with the award phase and lasts until the conclusion or termination of the contract.
A contract administrator is responsible for managing the terms of a construction contract between the parties involved. While the role is quite broad, a contract administrator requires a high level of accountability and accountability. The day-to-day tasks and requirements of a contract administrator can vary depending on the type and size of the project and location. Contracts may also differ in complexity and in-kind, although the general requirements of a contract manager typically include: a) Ensuring that work progresses in accordance with the contract program and that the completion date is therefore met by the parties. (b) report to the employer on the progress of the work. (c) the management of the commissioning of installations. (d) supervision of the works and inspection of the works. (e) Instruct the contractor.
f) Treatment of defects. (g) identification of requests for extensions of time. h) Management of contract price adjustments. (i) record keeping. This could include keeping records of site visits, correspondence, etc. (j) Certification of work and issuance of practical certificates of completion. In the construction industry, the contract administrator is the person responsible for managing standard construction contracts. .