2021 TOPIC 2 Contract Administration Functions

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Contract Administration Functions

Lecturer : DR. MAZLINA ZAIRA BINTI MOHAMMAD

Group member :

1) Muhammad Alif Haiqal Bin Sahidin 2018288022


2) Muhammad Danial Hafiz Bin Mohd Radzi 2018639368
3) Muhamad Firdaus bin Hisam 2018467378
4) Muhammad Faiz Bin Aminorashid
2018224386
Contract Administration Functions

ü Planning for contract

ü Putting Contract in Place

ü Managing Contract

ü Enforcing Provisions/Procedure of Contract

ü Managing Parties to the Contract

ü Implementing Sanctions to Ensure Performance

ü First line Dispute Resolution

ü Linkage between Project and Construction Management



Involves the control and
administering of the legal

Definition
arrangement entered into
between the parties to a contract


Contract Administrator Responsibilities

Who is a Contract
Administrator ?

Architect Surveyors Engineers

What is a Contract
Administrator job?

• Managing the legal arrangement between parties to a


contract.
• Act as an agent of the employer
• To make an impartial decision between parties
involve.
DEFINE THE PARTIES INVOLVE
PROJECT IN A PROJECT
Project Definition

1 2 3 4

Define Scope Sort Out Working Plan


Date Timeline
and Delivery Finances
• Pricing • Detail of Project
• Expectation at • Start and end Structure of Work Plan
the end of dates of Contract
Project Project. • Assign Parties
and Fund
Owner and Developer
Client
of Project

Parties Designing the


Project

Parties
Involved In Contractor and
Consultant
Construction Subcontractor
Contract

Constructor of
Project
Parties who supply
Supplier
construction material
• Define the Objective of Project
Client • Choosing Parties Involved in Project

• Designing the Construction Project


Consultant • Provide cost estimates, draw budgets

Contractor • Carry out the construction work on site


• Hire Sub - Contractor for completing seperate part of
work.

• Provide Reasource or Service for Project


Supplier • Can provide directly or indirectly ( Supply Chain)
Putting Contract in Place

Regulating the relationship between the parties as to their future performance.

Necessary to have absolute clarity and certainty as to the terms agreed by


having right contractual documents in place.

To ensure :

No dispute Agreement in
Agreement in payment terms
between scope of
and duration of project
parties works
Managing The Contract
The management of formal legal framework or agreement
reached between the parties

Example of job description to be manage

- Objective of the contract

- Parties involve
Enforcing provision/procedures of contract
• Enforcing provision, procedures and practices as agreed from parties involve as agreed in
the contract.

Effective Contract Support from Legal Alternative dispute


Enforcement. Institution. settlement.

• A mechanisms are required to • Presence of an independent • Allows each parties to resolve


ensure each party stick to the and competent judiciary, the the problems without the legal
terms of contract. : legal profession, enforcement system.
1. Self enforcement services and the legislation
2. Reputation process is a crucial influence
3. Third-party-audit in the equality treatment
4. Technology to monitor between each parties involve.
work.
Managing Project
Parties

Responsibility of Project Parties

Its is required that


parties carries out their
obligation to best as
possible and acquire
skill to accomplish Express
that.

There two type term of


contract:
Implied
Type of Contract Term

Implied
Express

• They are expressly or specifically


stated, either orally (at the initial
• These are not expressly or explicitly
interview, say) or in writing.
stated. (obvious to both parties)
• Express terms must be put in writing
• Courts will imply a term in a contract of
and handed to the employee in the
employment .
form of a written statement of
particulars.

Acts Protect
Amount Pay Hour Holiday Equal pay Duty Care
party
How contract end ?

For Convinience By Agreement


• both parties agree to end contract before the work
• the contract allows a party to terminate at any time by
is completed
providing notice to the other party

Frustration of Contract
• Legal termination of a contract due to
Breach of Contract unforeseen circumstances
• Parties to a contract fails to deliver that
which they had agreed to deliver.
• The contract impossible to be deliver.

• Defective work delivery is not breached of Third Party Change in


contract only if faulty solved within specific Involve Law
time.
Implementing Sanctions To Ensure
Performance
Taking legal action against any faults with any clients is very
necessary to :
• manage and control quality of the work
• monitoring the time schedule

Client/Employer
has authority to
apply these type Termination of Contract
Include penalty : for delay beyond of sanctions. (with or without fault of
deadline of contract (ex : LAD)
contract)

Compensation for damage. Withdraw the work from contractor.


First Line Dispute Resolution

Problems Resolution

• Delays in work • Alternative dispute settlement allows


each parties to resolve the problems
• Errors in design without the legal system.
• It is design to handle the dispute in a
• Quality and workmanship timely and fair manner.
• Example :
• Variation Orders 1. Mediation.
2. Conciliation hearings.
Linkage between project and construction
management.
• To provide necessary linkage between project management and construction
management elements of a project where such agreement are apparently absent.

Project management Construction management

Ø Deals with the project from the beginning to the Ø More focuses on the physical construction.
end. Ø Budgeting of the physical construction.
Ø Budgeting of the project expand to construction,
marketing, clients meeting and etc. Ø Job description :
Ø Job description : 1. Checking plans with consultant.
1. Commencing the project. 2. Planning work schedules.
2. Build, analyse and manage CPM 3. Monitoring progress and cost.
schedule. 4. Reporting to clients.
3. Interpret, analyse and negotiating details 5. Maintaining and promoting health and
on the contract. safety.
4. Monitor contractor performance.
5. Oversee contract administration.
Thanks!

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