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AIC AO: Project Administration

AIC AO · Work through your exam, one topic at a time.

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Project Administration

Project Administration tests contract administration from award through closeout: submittals, RFIs, changes, payment, documentation, claims, and completion. The exam rewards procedures that protect both schedule and legal position.

Core rules

  • Follow the contract's order of precedence for documents and the notice requirements for changes, delays, and claims.
  • Submittals show products and methods for review; an approved submittal does not relieve the contractor of contract responsibility.
  • A change order modifies scope, price, or time by agreement. A field order or construction change directive may direct work before final pricing.
  • Payment applications are supported by schedule of values, progress, stored materials, and lien waivers. Retainage is withheld per contract.
  • Substantial completion triggers punch list, warranties, and closeout; final completion releases retainage.
  • Keep records: daily reports, meeting minutes, correspondence, photos, test reports, and as-built documents.

Worked example. A pay application shows $250,000 of completed work, $20,000 of stored materials, 5% retainage on completed work, and $200,000 previously paid. Current payment = ($250,000 x 0.95) + $20,000 - $200,000 = $57,500, assuming the contract does not retain stored materials. Confirm lien waivers and approved submittals before certifying.

Traps

  • Proceeding on a verbal change without written authorization.
  • Releasing payment without lien waivers.
  • Missing a contractual notice deadline for delay or claim.
  • Certifying payment for unapproved submittals or unverified stored materials.