Thursday, November 20, 2025

CONTRACT ADMINISTRATION Q&A FOR RICS APC INTERVIEW

 

SECTION 1 — CONTRACT BASICS (JCT / NEC / FIDIC)

  1. Q: What is the role of a Contract Administrator?
    A: To administer the contract impartially, issue instructions, certify payments, manage variations, and ensure compliance with contract terms.

  2. Q: What is the difference between JCT and NEC?
    A: JCT is more prescriptive; NEC is proactive, collaborative, and uses early warnings and compensation events.

  3. Q: What is a contract notice?
    A: A formal notification required by the contract to communicate claims, delays, or changes.

  4. Q: What is privity of contract?
    A: Only parties to a contract can sue or be sued under it.

  5. Q: What is a condition precedent?
    A: A requirement that must be met before a party gains an entitlement, such as a claim or payment.

  6. Q: What makes a contract valid?
    A: Offer, acceptance, intention, consideration, and certainty of terms.

  7. Q: What documents form a typical building contract?
    A: Conditions, drawings, specifications, schedules, pricing documents, addenda.

  8. Q: What is precedence of documents?
    A: A clause that defines which document prevails if there is a conflict.

  9. Q: What is a deed vs a simple contract?
    A: A deed requires no consideration and has a longer limitation period.

  10. Q: What is the difference between an instruction and a change order?
    A: Instruction = direction by the CA.
    Change = instruction altering scope for which the contractor is entitled to payment/time.


SECTION 2 — PROCUREMENT & TENDERING

  1. Q: What is the purpose of procurement?
    A: To secure the most suitable contractor/supplier based on cost, quality, risk, and programme.

  2. Q: Name common procurement methods.
    A: Traditional, Design & Build, Two-stage, Management Contracting, CM at Risk.

  3. Q: What is two-stage procurement?
    A: Contractor engaged early to assist design, then a final negotiated sum later.

  4. Q: What is tender addendum?
    A: A clarification or update issued during tender for bidders.

  5. Q: What is a tender query?
    A: Contractor question during tender requiring client response.

  6. Q: What is a tender return analysis?
    A: Comparison of bids to evaluate compliance, risk, and value.

  7. Q: What is a contract award recommendation?
    A: Formal advice recommending which contractor should be appointed.

  8. Q: Why use a pre-qualification process?
    A: To ensure only competent contractors are invited to tender.

  9. Q: What is a tender exclusion clause?
    A: Statement that tenders may be rejected if non-compliant.

  10. Q: Role of CA during tendering?
    A: Issue documents, answer queries, analyse tenders, advise client.


SECTION 3 — CONTRACT ADMINISTRATION DUTIES

  1. Q: What is a site instruction?
    A: A written direction given by the CA to the contractor.

  2. Q: What is a confirmation of verbal instruction (CVI)?
    A: Written confirmation of verbal direction on site.

  3. Q: What should the CA check before issuing an instruction?
    A: Authority, cost impact, programme impact, necessity.

  4. Q: What is a variation?
    A: Change to the scope, quality, quantity, timing, or sequence of works.

  5. Q: When can a variation be refused?
    A: If it fundamentally changes contract scope or violates contract terms.

  6. Q: What should be included in an instruction?
    A: Description, location, reason, reference, date, and impact request.

  7. Q: What is a contract programme?
    A: The contractor’s planned sequence and timing of works.

  8. Q: Who owns float in a programme?
    A: Generally the contractor, unless contract states otherwise.

  9. Q: What is an early warning (NEC)?
    A: A notice that a risk may impact cost, time, or quality.

  10. Q: What is risk reduction meeting?
    A: NEC meeting to tackle identified risks collaboratively.


SECTION 4 — PAYMENTS & VALUATIONS

  1. Q: What is an interim valuation?
    A: Assessment of work completed to date for payment.

  2. Q: What is a Payment Notice?
    A: Notice stating the amount the payer intends to pay.

  3. Q: What is a Pay Less Notice?
    A: Notice reducing the amount due, giving reasons and calculations.

  4. Q: What is retention?
    A: Sum withheld to ensure completion and remedy of defects.

  5. Q: What is practical completion?
    A: Stage when the works are complete except minor defects.

  6. Q: What triggers final payment?
    A: Issue of Final Certificate after final account is agreed.

  7. Q: What is the valuation of variations?
    A: Based on contract rates, similar rates, market rates, or dayworks.

  8. Q: How are provisional sums valued?
    A: Actual cost of work instructed, replacing provisional allowances.

  9. Q: What is measured works payment?
    A: Payment based on remeasurement rather than fixed quantities.

  10. Q: What is daywork?
    A: Labour, materials, plant priced by time sheets for unforeseen work.


SECTION 5 — DELAYS, TIME, EOT & DISRUPTION

  1. Q: What is an extension of time?
    A: Additional time granted for delays not caused by the contractor.

  2. Q: What are contractor delay events?
    A: Weather, variations, late information, force majeure, employer delay.

  3. Q: What is float?
    A: Spare time in programme sequencing before delaying critical path.

  4. Q: What is concurrent delay?
    A: Two simultaneous delays: one contractor‐risk, one employer‐risk.

  5. Q: What is critical path?
    A: Longest sequence determining overall project duration.

  6. Q: What is a delay analysis method?
    A: Impacted-as-planned, as-built vs planned, time slice.

  7. Q: What is disruption?
    A: Reduced productivity due to events not extending time.

  8. Q: Evidence required for delay claim?
    A: Programme updates, records, notices, productivity logs.

  9. Q: What is a notice of delay?
    A: Formal notice triggering EOT entitlement assessment.

  10. Q: What are LDs (liquidated damages)?
    A: Pre-agreed delay costs payable by contractor if works late.


SECTION 6 — VARIATIONS & CLAIMS

  1. Q: What makes a variation valid?
    A: Issued by authorised person and within contract scope.

  2. Q: Types of variation?
    A: Change in design, quantity, quality, method, sequence, or timing.

  3. Q: How do you value a change?
    A: Contract rates → similar rates → build-up → dayworks.

  4. Q: What is a claim?
    A: Contractor request for additional money/time.

  5. Q: What is substantiation?
    A: Evidence supporting a claim (records, photos, logs).

  6. Q: What is a loss and expense claim?
    A: Compensation for additional cost due to employer events.

  7. Q: What must a claim include?
    A: Notices, cause, effect, entitlement, quantum.

  8. Q: What is “betterment”?
    A: Contractor cannot claim for improved conditions that benefit them.

  9. Q: What is acceleration?
    A: Measures taken to complete earlier—sometimes instructed, sometimes voluntary.

  10. Q: What is omitted work?
    A: Work removed from contractor’s scope via variation.


SECTION 7 — QUALITY, DEFECTS & TESTING

  1. Q: What is a defect?
    A: Work not in accordance with the contract.

  2. Q: What is the defects liability period (DLP)?
    A: Period after completion when contractor must remedy defects.

  3. Q: What is a snagging list?
    A: List of small items needing completion or correction.

  4. Q: What is latent defect?
    A: A concealed defect discovered after DLP.

  5. Q: What is the CA role in quality control?
    A: Inspect works, issue defects notices, ensure compliance.

  6. Q: What is remedial work?
    A: Work done to correct defective construction.

  7. Q: What is a certificate of making good defects?
    A: Confirms defects have been rectified.

  8. Q: What is performance testing?
    A: Tests required to demonstrate system compliance.

  9. Q: What is non-conformance report (NCR)?
    A: Report issued for work that doesn’t meet specification.

  10. Q: What is quality assurance?
    A: Systematic processes to ensure quality (ISO standards).


SECTION 8 — COMMUNICATION & RECORDS

  1. Q: Why keep site records?
    A: Evidence for payments, claims, delays, and disputes.

  2. Q: What are key project records?
    A: Diaries, photos, RFIs, as-builts, notices, programmes.

  3. Q: What is an RFI (Request for Information)?
    A: Query from contractor requiring design clarification.

  4. Q: Why are meeting minutes important?
    A: Create an agreed record of decisions and actions.

  5. Q: What communication channels must follow contract rules?
    A: Notices, instructions, applications, certificates.

  6. Q: What is a document control system?
    A: System for managing project communications and records.

  7. Q: What are site diaries?
    A: Daily logs of labour, weather, progress, delays.

  8. Q: What should a progress report include?
    A: Programme status, risks, cost, quality issues.

  9. Q: Why is traceability important?
    A: Ensures evidence is available for contract decisions.

  10. Q: What is project correspondence protocol?
    A: Rules on writing style, formats, and communication routes.


SECTION 9 — RISK, INSURANCE & HEALTH & SAFETY

  1. Q: What is risk allocation?
    A: Assigning risks to the party best able to manage them.

  2. Q: Key contractor insurances?
    A: Public liability, employer’s liability, CAR insurance, PI insurance.

  3. Q: What is indemnity?
    A: Legal responsibility to compensate for loss.

  4. Q: What is force majeure?
    A: Unforeseeable event beyond parties’ control.

  5. Q: What is collateral warranty?
    A: Contract between contractor/consultant and third party.

  6. Q: What is CDM (UK)?
    A: Construction Design & Management regulations for H&S.

  7. Q: What is a risk register?
    A: Document listing risks, owners, and mitigation actions.

  8. Q: What is insurance reinstatement value?
    A: Cost to rebuild the asset in event of total loss.

  9. Q: What is a bond?
    A: A guarantee by a third party (e.g., performance bond).

  10. Q: What is professional indemnity insurance?
    A: Covers consultants for design/ advice liability.


SECTION 10 — DISPUTE RESOLUTION & FINAL ACCOUNTS

  1. Q: What is adjudication?
    A: Fast-track dispute resolution (28 days).

  2. Q: What is arbitration?
    A: Private, formal dispute resolution with binding decision.

  3. Q: What is litigation?
    A: Court-based dispute resolution.

  4. Q: What is mediation?
    A: Non-binding facilitated negotiation.

  5. Q: What is a final account?
    A: Final agreed sum of contract costs including variations.

  6. Q: What is the CA role in final account?
    A: Validate claims, negotiate, certify final payment.

  7. Q: What is “without prejudice” correspondence?
    A: Communication that cannot be used as evidence in court.

  8. Q: What is estoppel?
    A: Prevents a party from contradicting earlier actions/statements.

  9. Q: What is repudiation?
    A: One party showing intent not to perform contract obligations.

  10. Q: What is termination for default?
    A: Ending the contract due to contractor breach (e.g., non-performance).

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