Project Administration and Contract Management
This domain tests administration of the contract after award: delivery methods and contract types, the order of precedence among documents, changes, notice requirements, time and delay, payment, and closeout. Most exam items turn on who was required to give what notice, in writing, and when.
Contract types and documents
Lump sum, unit price, cost plus, cost plus with a guaranteed maximum price (GMP), and time and materials each allocate risk differently. The contract documents normally control in a stated order of precedence - agreement, general conditions, specifications, drawings, addenda - and the more specific document governs over the general one.
Changes and delay
A change order is a signed, priced, agreed modification. A construction change directive orders work before price is settled; keep time-and-material records and price it afterward. Delays are excusable (time only) or compensable (time and money); owner-caused and differing site conditions typically support both, weather typically supports time only. Liquidated damages compensate the owner for delay at a stated per-day rate.
Payment and closeout
Pay applications follow the schedule of values; retainage is held until substantial completion or final payment per contract. Lien waivers must match the payment actually received - never sign an unconditional waiver before the check clears. Closeout includes as-builts, warranties, O&M manuals, test reports, and punch-list completion.
Worked example
On a $1.2M school job, the owner verbally directs an added shear wall. Correct sequence: confirm the direction in writing the same day, submit an RFI for clarification, issue a priced change order proposal with the schedule impact (5 days), and keep daily records. If no agreement is reached within the contract's time limit, request a written construction change directive and proceed on T&M. Proceeding silently and billing at the end usually fails because the notice clause bars the claim.
Traps that cost marks
- Accepting verbal changes and relying on a handshake.
- Missing the written-notice deadline for delay or extra cost.
- Signing a final unconditional lien waiver before funds arrive.
- Confusing substantial completion with final acceptance.
- Backcharging a subcontractor without written notice and documentation.