The contract administrator is responsible for administering construction standard contracts in the construction industry. The contract administrator could also be the project architect, lead consultant, cost consultant, specialist consultant, client representative or employer’s agent, project manager, or engineer.
On a construction management contract, the position of contract administrator may be assigned to the construction manager, whereas on a management contract, the role of contract administrator will be fulfilled by the management contractor.
Contract administrators are appointed by the client, but when certifying or making an assessment or decision, they must operate in an honest and reasonable manner, and their decisions are subject to challenge through the dispute resolution system unless the contract stipulates otherwise. In this article, role of contract administrator, we take a look at the process involved and the options available to you.
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What is the role of a contract administrator?
It is the responsibility of the contract administrator to manage the terms of the construction contract between the parties. The employer delegates to the contract administrator the administration of a construction contract. Essentially, the contract administrator serves a dual purpose. The contract administrator is the employer’s agent and, at times, the sole decision-maker between the employer and the contractor. Employers will typically appoint a contract administrator. In instances where the contract administrator is obliged to provide an appraisal or make a decision in this latter function of decision-maker, the contract administrator must act independently. A contract administrator is consequently obligated to behave impartially when resolving disputes between the customer and the construction contract. Additionally, the contract administrator’s professional position may need impartiality.
The role of contract administrator begins with the awarding of the contract and continues throughout its duration. Technically, the role of contract administrator does not begin until the employer and the contractor have signed a building contract. However, there may be an implied requirement for the contract administrator to perform pre-contract services, which will be covered by a formal or informal arrangement with the employer.
The role of the contract administrator is typically decided by the manner of procurement, while the duties of the contract administrator are derived from the type of building contract. Typically, the level of care to be practised by the contract administrator will be outlined in the professional appointment for the contract administrator.
When does the role actually begin?
Technically, the position of contract administrator does not begin until there is a building contract between the employer and the contractor. However, in practise, the contract administrator’s tasks will have begun prior to the existence of the construction contract.
There may be an implied obligation for the contract administrator to conduct pre-contract services, which will be covered by either a written or informal arrangement with the employer. Typical examples include selecting the procurement process, calculating liquidated damages, and determining the type of construction contract.
How do I appoint a contract administrator?
Once you have found a company with the appropriate qualifications and experience to serve as contract administrator or employer’s agent, you should determine the extent of services necessary to guarantee they satisfy your requirements. There are industry-standard service schedules that may be acquired and assessed to help you determine your needs, such as RICS contract administration services. At this time, you should examine any project-specific requirements, the potential need for services outside the normal scope of the contract administrator, and the required amount of professional indemnity insurance.
If you are unsure of your precise needs or some of the technical components of hiring a contract administrator are unclear, ask the prospective organisations to walk you through the process to ascertain what services you are likely to require,
what levels of insurance are recommended for the value of your project, and whether collateral warranties are required given the form of your project.
This will allow the company you are speaking with to present you with a quote for contract administration services and provide you the assurance that this service will meet your needs. Consider appointing your contract administrator using a document that conforms to an industry standard, such as the RICS Standard or Short Form of Consultants Appointment or the CIC Consultants Contract Conditions.
How we can help
We have a proven track-record of drafting building contracts and advising on professional appointments. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
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How to Contact Our Construction Solicitors
It is important for you to be well informed about the issues and possible implications of appointing a contract administrator. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Construction solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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