The Role of Contract

Administrator in
Administering the JCT SBC
2011(Without Quants)
BE254 Contract Administration
Star Shakti Hart 1386675

University of Brighton
School of Environment and Technology
Built Environment and Civil Engineering Division
Academic Year 2014/2015
Module Leader: Noel Painting

Table of Contents
1. Introduction.................................................................3
2. Definition of Contract Administrator...........................3
3. Contract Administrators role in dealing with:..................3
3.1. Payment and cash flow from the Employer to the Contractor..............3
3.2. Defective workmanship........................................................................3
3.3. A case of non-payment by the Employer..............................................4
3.4. Ensuring adequate and timely flow of information from Designers to
Contractors.................................................................................................. 4
3.5. Delays in the work schedule.................................................................4

4. Conclusion....................................................................5
5. References and Bibliography..........................................5
6. Appendix......................................................................6
6.1. Figure 1. Traditional Procurement Map.................................................6
6.2. Figure 2. Design and Build Procurement Map.......................................6
6.3. Figure 3. Management Procurement Map.............................................6

The Role of Contract Administrator in Administering the JCT SBC

2011(Without Quants)

1.Introduction
In this document the role of Contract Administrator will be
defined, considered and discussed in relation to the administration
of the JCT SBC 2011 (, 2011, JCT SBC 2011 (without quants )
(referred to in this report as: JCT) contract during the Construction
Phase of a construction project.

2.Definition of Contract Administrator

The Contract Administrator is a professional in the building industry
who is employed by the Client (Employer) to act as the agent of the
Client during the construction process (Murdoch and Hughes, 2008.
pg352). Traditionally the Contract Administrator was an Architect or
Engineer as one of the key attributes of a Contract Administrator is
to be able to read and communicate the information from the
contract drawings to the Contractor, and to ensure the Bill of
Quantities matches the Contract Drawings as this can often be the
root cause of discrepancies and disputes (Illingworth, 2000. pg6).
The Contract Administrator can have a secondary role of over-seeing
the certification of works properly carried out which holds decisionmaking functions that must be carried out in a fair way balancing
the rights of both the Client and the Contractor in an independent
manner (Murdoch and Hughes, 2008. pg249).
See appendix, figures 1, 2 and 3, for maps depicting the positions of
the Contract Administrator.

3. Contract Administrators role in dealing

with:
3.1. Payment and cash flow from the Employer to the
Contractor
According to the JCT the Employer must pay the Principle Contractor
the Contract Sum at times and amounts agreed and written into
the contract particulars. This figure is exclusive of VAT.
Although this figure is fixed and written into the contract there are
clauses that allow for operational changes to the schedule due to
change orders or variations in materials or methods of construction
and the Contract Administrator is responsible for overseeing such
changes and ensuring the changes are correctly charged (Ashworth,
2012)

The Role of Contract Administrator in Administering the JCT SBC

2011(Without Quants)

3.2. Defective workmanship

In clause 2.3.4 it is stated that it is the Contractors obligation, upon
request, to provide the Employer with proof that works carried out
are to the standard specified in the Contract Documents. The JCT
makes clear that the Contract Administrator is entitled to inspect all
works carried out (Murdoch and Hughes, 2008. pg256) and clauses
3.17-20 cover the procedure for opening up and testing of works
carried out and materials used. JCT clause 3.17 states that if the
works or materials are defective or below the quality stipulated in
the Contract Documents, without written reasons or requests from
the Contractor to the Employer, then the contractor will bear the
cost of opening up and of making good. The main Contractor will
also be held liable for any defective works carried out by SubContractors unless written in to the contract or unless it is a
nominated Sub-Contractor (Murdoch and Hughes, 2008. pg291)

3.3. A case of non-payment by the Employer

Non-payment or late payment by the Employer is not normally
treated as a sufficient breach in the contract to justify a termination
of the contract by the other party, unless specifically written in to
the contract, however repeat non-payment may become grounds
upon which to do so (Murdoch and Hughes, 2008. pg335). Clause
4.15.7 of the JCT states that in the case of non- payment by the
payer reasonable interest shall be added to the payment sum until
the date of payment. If the Employer intends to withhold payment it
states in section 111 of the Housing Grants, Construction and
Regeneration Act 1996 that a written notice specifying the amount
to be withheld and the grounds for withholding must be given before
the final payment date stated in the contract (Murdoch and Hughes,
2008. pg318). If the Employer becomes insolvent under clause
8.10.1 the contractor may by notice terminate their employment
under the contract.

3.4. Ensuring adequate and timely flow of information

from Designers to Contractors
Clause 2.8.2.1-3 of the JCT states that it is the responsibility of the
Contract Administrator to provide the Contractor with the contract
documents, contract drawings and un-priced specification/work
schedules. It is the Contractors obligation however to ensure the
information provided is adequate before commencing work. The
Contractor can provide the Employer/Architect with an Information
Required Schedule which lays out in accordance with the Contract
Documents, when the Contractor requires information pertinent to
different stages of the build (Illingworth, 2000. pg375). If the
Contractor finds the information to be inadequate or untimely, they
can request in writing further clarification of the drawings from the
Client/Architect/Contract Administrator stating in the request that
The Role of Contract Administrator in Administering the JCT SBC
2011(Without Quants)

5
any costs incurred due to delay in receiving the information and
commencing work will be borne by the Client (Chappell, 2012).

3.5. Delays in the work schedule

Delay for various reasons are common in building projects, for this
reason it is standard practice in building and civil engineering
contracts to state in advance the cost of delay by specifying a sum
of money to be due for every day, week or month that the project
over runs the completion date, these are known as LADS- Liquidated
and Ascertained Damages (Murdoch and Hughes, 2008. pg193).
Clauses 6.6-6.8 of the JCT refer to the Contractors insurance. The
insurance covers the Contractors liability in the face of excepted
risk, which if they occurred would cause delays in the work
schedule.

4. Conclusion
The role of Contract Administrator is an important and influential
position within the structure of any construction project and can
influence decisions and dictate the mood of relations between the
Contractor and the Employer for better or worse depending on the
nature of their methods of communication, work ethic and
operational procedures.

5. References and Bibliography

Ashworth, A., 2012, Contractual procedures in the construction
industry, Harlow: Prentice Hall.
Chappell, D., 2012, Understanding JCT Standard Building
Contracts, Routledge Ltd.
Illingworth, J. R., 2000, Construction methods and planning,
London: E & FN Spon.
JCT Standard Building Contract 2011 (Without Quants).
Murdoch, J. R. and Hughes, W., 2008, Construction contracts:
law and management, Abingdon: Taylor & Francis.

The Role of Contract Administrator in Administering the JCT SBC

2011(Without Quants)

6. Appendix
6.1. Figure 1. Traditional Procurement Map

Client/Empl
oyer
Contract
Administrat
or

Domestic
SubContracors

Main
Contractor

Design
Team

Nominated
SubContractors

The Role of Contract Administrator in Administering the JCT SBC

2011(Without Quants)

6.2. Figure 2. Design and Build Procurement Map

Client/Empl
oyer

Contract
Administrat
or

Design&Buil
d Contractor

Design
Team

SubContractors

6.3. Figure 3. Management Procurement Map

Client/Empl
oyer

Contract
Administrat
or

Managemen
t Contractor

Works
Contractor

Design
Team

Works
Contractor

The Role of Contract Administrator in Administering the JCT SBC

2011(Without Quants)