Contract Administration
Contract administration is managing the agreement from award to completion: instructions, variations, payment, time, quality, and claims. Know the standard roles: the employer (client), the contractor, and the contract administrator or engineer who certifies. Understand the common contract families at a high level-lump sum, remeasurable, cost-plus, and design-and-build-and how risk allocation differs.
Core processes: issuing instructions in writing; valuing variations using contract rates or agreed rates; interim payment certificates with retention; extension of time (EOT) for excusable delay; and loss and expense claims where the contract allows. Distinguish an EOT (time only, often no cost) from a claim for additional money. Delay damages (liquidated damages) apply only to culpable delay not covered by an EOT.
Traps in questions: verbal instructions-confirm in writing; notices-many contracts make time-barred claims invalid if notice is late; set-off and withholding; and the difference between completion and practical completion (defects liability period follows practical completion).
Rule of thumb: for every event, ask three questions-was notice given in time, is it a variation or a claim, and does it affect time, money, or both?
Worked example: A 10-day delay caused by the employer. The contractor gives timely notice. An EOT of 10 days is granted, and delay damages for those 10 days are not applied; the contractor may also claim proven additional cost if the contract permits.