FEATURE CONTRACT ADMINISTRATOR A N N ATURE NTRACT NISTRATOR R
CA skills are lacking We need experienced and independent practitioners to be CAs, says Lawyer Sarah Fox
and paid for by, the client. “Anyone who takes on the role of CA needs to understand the contract’s structure and relevant case law that tells them how to behave should a dispute arise. “They need to make hard decisions, act reasonably, and ensure their interests as a consultant do not conflict with their role as a CA.” Be contract savvy Fox says contractors need “to be savvy before they enter into the contract”, by asking the right questions. “Once the project starts and you realise the CA isn’t doing a good job, it’s too late,” Fox warns. “You’re going to struggle to get the client to change their mind, and you’ve already priced it based on the CA doing a good job. Bad CAs will cost the contractor more money.” Cost, Fox says, is important talking point with clients. “Contractors need to explain to clients that a poor CA will end up costing the client and contractor more money. “Project inefficiencies on a contract can take between one and two per cent of the overall project cost. With efficient contract administration, we can save the client money. “According to Arcadis Surveys, CAs are the single i d d ’ i l d
There’s the obvious conflict of interest arising when a contractor queries the design of the architect. Then there is the issue of skills, says Construction Lawyer Sarah Fox of 500 Words. ousconfl g when a ies the de Then the kills, says wyer Sarah Fox “Valuation of works is not the architect’s skill set, it is the role of a QS. The problem is the role of CA encompasses a lot of skills – some transferable, some technical, which architects may not have.” Fox says determining who the CA should be is less about their profession and more about who the ideal person is. “Most CA roles are tacked onto the role of some other consultant on the project because they’re already on the project. They have background and context, but it’s their secondary role and is often not already on the ve background it’s their d i ft given priority or considered important in its own right.” Not up to the job Additionally, the CA role is usually poorly paid, Fox explains, so it can end up going to someone relatively junior. “They don’t have the commercial and intellectual wherewithal to deal with conflicts, and at some point the interests of the client and the contractor are going to diverge. The CA’s role is to bring them together, and it’s a difficult job when they’re embedded with, g i k w w e works is not the et, it is the role oblem is the role sses a lot of o nsferable, some architects may s n e a mining who e is less about and more deal person is. s are tacked some other e project d s s e a v nd is often not flict a esign ere
stops them making decisions as they wait for more information. “That causes delays. CAs sometimes hide behind contractual provisions to avoid making difficult decisions or those that are unpopular with the client. CAs are better off making imperfect decisions quickly than perfect decisions too late. But they’re afraid to do that in case they get it wrong.” at in case they get What the law requires, Fox explains, is for the CA to act reasonably, with reasonable skill and care. “As long as somebody else would make a similar sort of decision, not necessarily the precise decision, then that’s good enough. “Contract administration is misunderstood. The FMB is raising the issue and that’s positive for the sector because a lot of professional bodies whose members are CAs have a vested interest in not upsetting the current way things are done.”
biggest cause of construction disputes,” Fox reveals, “and there’s no impetus to change because people don’t see the cost of it. It’s a hidden cost to the sector. But the sooner we pay and train CAs properly and make them independent, we will save costs on a project.” An effective CA understands the requirement of flexibility when interpreting contracts, says Fox, but some are often “too contractual”. “A contract is legally binding but it’s a starting point that requires discussion and flexibility. CAs sometimes get too hung up on dotting the i’s and crossing the t’s, which
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