What is Contract Administration
Once you appoint a contractor and the build begins, our role shifts but never stops. Contract Administration is the process of managing the build contract, protecting your investment and ensuring the design you approved is what gets built.
Contract Administration is the formal management of a construction contract between you and your contractor. It covers every financial, technical and administrative decision from the first day on site through to final handover.
During this stage, we act as the impartial administrator of the contract. We do not side with the client or the contractor. Instead, we apply the contract terms fairly and transparently. This protects both parties from exposure, dispute and costly misunderstandings.
Our role during the build
We make regular site visits at key construction stages. During each visit, we inspect the work against the construction drawings and contract specifications. We check quality, progress and compliance with the design intent. After every visit, we issue a site report confirming what we have seen and what happens next.
Furthermore, we chair and minute regular site meetings with the contractor. These meetings keep the programme on track and ensure all parties stay informed. We also manage requests for information, or RFIs, from the contractor. When they need a detail clarified, we respond promptly to keep the build moving.
Throughout the process, we serve as your ongoing architectural support. We ensure the contractor delivers and implements the design as intended. If a detail needs resolving on site, we work through it with the contractor rather than leaving it to interpretation.
Managing payments and retention
Construction contracts typically use interim payments. The contractor submits a payment claim at regular intervals, usually monthly. Our job is to assess each claim against the actual progress on site.
First, we review the claim and compare it to the work completed. Then, we issue a Payment Certificate confirming the amount we consider due. This is not a rubber stamp exercise. We scrutinise every claim to ensure you only pay for work that is genuinely complete.
Importantly, we apply retention to each payment. Retention is a percentage of the payment, typically three to five percent, that we withhold until the end of the contract. The first half is released at practical completion. The second half follows after the defects liability period, usually twelve months later.
This retention protects you. If the contractor fails to finish the work or put right defects, the retained money is available to cover the cost. It also incentivises the contractor to complete the project properly and return to fix any issues.
Valuing and signing off variations
A variation is any change to the scope of works after the contract starts. Changes happen on almost every project. Some arise from unforeseen site conditions. Others come from client requests or design refinements.
We manage variations through a formal process. First, the contractor submits a variation quote with a cost and time impact. Then, we assess whether the variation is necessary and whether the price is fair. We compare the quote against the contract rates and current market rates.
If we are satisfied, we sign off the variation and issue a Variation Order. If not, we negotiate with the contractor on your behalf. You always see the cost and programme impact before any variation is instructed. Nothing proceeds without your approval.
Consequently, you maintain full cost control throughout the build. The contract sum adjusts only when you agree a variation in writing. This transparency prevents disputes and protects your budget.
Protecting both parties
Contract Administration exists to protect both the client and the contractor. For clients, we ensure you only pay for completed work, that the design is built correctly and that any issues are resolved fairly. For contractors, we provide clear instructions, prompt responses and fair assessment of their work.
Moreover, we maintain a full paper trail throughout the project. Every instruction, every certificate and every variation is documented. If a dispute arises, the records provide the evidence needed to resolve it quickly and fairly.
As the build nears completion, we conduct a final inspection with the contractor. We compile a snagging list of any incomplete or defective items. The contractor then rectifies these before we issue the Practical Completion Certificate.
At this point, you take possession of the building. The first half of the retention is released. The contractor remains responsible for any defects during the liability period, typically twelve months. After the liability period ends, we carry out a final inspection. If all defects are resolved, we issue the Final Certificate. The remaining retention is released and the contract is formally closed.
Our commitment throughout
Construction is complex and unpredictable. However, with proper Contract Administration, the risks are manageable. We stay engaged from the first site visit to the final certificate, protecting your investment and your design vision at every stage.