In the building environment, the most popular standard forms of contract are those published by the Joint Contracts Tribunal. They seem fairly straightforward and easily accessible.
Most of the JCT contracts involve the role of a Contract Administrator. Who is that person? Who can fulfil this role, and what are the duties that they need to know about? Let’s dive into this.
Who can be a Contract Administrator?
In theory, anyone. In practice, it’s not as simple. There is no rule of thumb as to what qualifications a Contract Administrator needs to have, or who that person can or can’t be. It’s typically decided by the owner of the building/property undergoing work (called Employer or Client). Since they are the ones appointing all the consultants, designers, and builders (called contractually a Contractor), they have the right to state their requirements, including who and how should be fulfilling the CA (Contract Administrator) role. Typically, it’s the architect, quantity surveyor, or project manager. But I have also come across projects where the sister of the Employer was administering the contract 😳 She had no background in the field, she had no knowledge or understanding of what was expected of her, but they had to put someone into the contract so they chose her 🤷🏼♀️
Does it matter who takes on the role of Contract Administrator?
If you are one of the lucky 8% out there, and your project runs absolutely spot on, with no changes, no extra costs, no delays, in and out as planned - brilliant. However, in the long term, it still matters how the work was done, whether the quality meets your expectations (and more importantly with contract specification). Having the right person administering your contract is critical.
If you’re the unlucky 92% where the project is delayed and/or has gone over budget - you need someone on your side to explain to you the implications of that overrun, regarding your contract. You could end up in dispute with the contractor who could claim more money or disagree with you about whether the project has been completed satisfactorily. The CA will be the person to objectively judge who is wrong and who isn’t. If you end up in a full fire dispute, getting lawyers involved, etc., negligent contract administration can be the nail to the coffin and deciding factor.
What are the duties of a Contract Administrator?
That usually depends on the actual contract. Typically, CA’s have to run a timely valuation, assess the works and certify those that can/should be paid for. They need to deal with notices submitted to us - that might be delay notice, extension of time, and associated loss and expense. There might be a need for us to issue a notice for non-compliance or other documents. Finally, when the project comes to completion, it’s down to the CA to prepare a snagging list and a partial or practical completion certificate, etc.
If you are about to embark on some building works in your house, and you’ve been pointed to a JCT contract that requires a Contract Administrator, it’s probably worth paying someone who knows what they are doing here. There are so many things that can go wrong, and so many issues that could have been prevented if this role is done correctly. The main aim of CA is to ensure the contract procedures are followed. These have been formulated in such a way to prevent disputes and conflict. A good CA can save you from a lot of trouble and costs. An inexperienced CA, even if free of initial costs, can generate a lot of losses.
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