Contract Administration and Law
Scope
Contract administration is the discipline of enforcing the agreement you signed. The exam tests formation (offer, acceptance, consideration), the documents that make up the contract, the authority of each party's representative, and the procedures that preserve rights - notices, submittals, change orders, payment applications, and closeout.
Concepts to know
Know the hierarchy of contract documents and how conflicts are resolved (usually the more specific or later-issued document governs). Understand change order mechanics: scope, price, time, and written authorization. Distinguish substantial completion from final completion and know how each triggers retainage, warranty, and lien deadlines. Understand indemnity, flow-down clauses, backcharges, and the difference between pay-if-paid (owner payment is a condition precedent) and pay-when-paid (timing only). Utah lien and notice statutes are short and strictly enforced; calendar every deadline at contract signing.
Traps
Questions frequently test notice provisions - a valid claim lost because notice was late or sent to the wrong party. Another trap is assuming a field representative or inspector has authority to direct extra work. Watch for clauses that shift risk silently, such as no-damage-for-delay, and for warranties that survive final payment. Do not confuse a warranty obligation with a maintenance agreement.
Worked example
A subcontractor performs $40,000 of extra work on a verbal request from the superintendent. The contract requires written change orders signed by the owner. Absent written authorization or a ratified directive, the sub's claim is weak regardless of the work being performed.
Rule of thumb
If it is not in writing and signed by someone with authority, it is not a change. Document daily and confirm every direction by email the same day.