Last edited 24 Jun 2015

Traditional contract: construction

Project plan traditional contract.jpg

During this stage the contractor takes possession of the site to carry out the works. When the works are complete, the certificate of practical completion is issued and the site is handed back to the client.

Contents

[edit] Starting the work stage.

The contract administrator arranges a handover meeting for the contractor to take possession of the site. See article handover to contractor.

Before work on site proceeds the principal contractor and the client confirm that suitable welfare facilities have been provided and that a suitable construction phase plan has been prepared.

[edit] Construction.

The lead designer co-ordinates the preparation and issue of any additional information required by the contractor and co-ordinates the review of design information prepared by the contractor.

Where there are any proposed variations, procedures for their valuation should be implemented (as described in the contract). Where variations exceed the delegated authority of the contract administrator, approval should be requested from the client.

The contract administrator co-ordinates site inspections and issues instructions as required and assesses any claims for extension of time or loss and expense with advice from the cost consultant and designers.

The cost consultant prepares regular valuation statements for interim payments (as set out in the contract). The contract administrator checks the preparation of the valuation statements and issues interim certificates (payment notices). The notices must be issued within five days of the dates for payment set out in the contract. If the client intends to pay a different amount from that shown on an interim certificate, then they must issue a pay less notice giving the basis for the calculation of the amount they intend to pay. The client makes payments to the contractor by the final date for payment.

The contract administrator holds regular construction progress meetings attended by the contractor and members of the consultant team if necessary. The contractor and cost consultant (and sometimes the consultant team) submit progress reports to the contract administrator during these meetings, and then the contract administrator prepares construction progress reports for the client.

[edit] Preparing for occupation.

The client begins preparations for occupation of the development, including the preparation of an operational policy and migration strategy setting out how they will manage the transition into and the operation of the new facility.

The client may have an 'occupation services contract' for delivering and installing equipment, fixtures and furniture (sometimes from other premises). This contract may also pick up small building changes that they consider would be too costly to be instructed under the main contract.

The client should ensure they have sufficient funds to release 50% of the retention upon certification of practical completion.

[edit] Inspections, commissioning and testing.

The lead consultant and client (generally representatives of the facilities management department) agree procedures for inspections, commissioning, testing and client training with the contractor.

If it has not already been done, the client appoints an in-house or outsourced engineering team to witness testing and commissioning and to take over the running of the services as soon as practical completion is certified.

The services engineer co-ordinates procedures for inspections, commissioning, testing and client training in relation to building services. The lead designer co-ordinates procedures for inspections, commissioning, testing and client training in relation to other aspects of the building.

The contractor rectifies any defects that become apparent during commissioning, testing and inspection procedures.

[edit] Practical completion.

The contractor prepares a draft building owner's manual and if required a building user's guide. The principal designer completes the health and safety file and the lead designer co-ordinates the preparation of the building log book.

The contractor confirms to the contract administrator that the works are complete

The contractor arranges for final inspection of the works by the building control inspector (or approved inspector) and arranges for the issue of a building regulations completion certificate. NB Within 5 days of the completion of the building, the contractor must notify building control that the works have been carried out in accordance with the specification submitted with the building emission rate (BER) calculations, or the changes that have been made (see emission rates for more information)

The contract administrator arranges a handover meeting to handover the site to the client (see article handover to client).

The cost consultant prepares a valuation statement. The contract administrator checks the preparation of the valuation statement and issues the issues the certificate of practical completion and interim certificate (payment notice). If the client intends to pay a different amount from that shown on the interim certificate, then they must issue a pay less notice giving the basis for the calculation of the amount they intend to pay. The client makes payment to the contractor by the final date for payment (this will include release of 50% of the retention)

The contract administrator prepares and submits a construction stage report for the client. The client assesses the construction stage report, and gives instructions as necessary.


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