THE CONTRACT ADMINISTRATION STAGE

TENDERING:

1. This stage typically includes the Tendering process, the preparation of the Building Contracts, Site meeting and Site Inspections, and Contract Accounting.
2. The Tendering process for a typical new Home usually takes about 4 weeks. The Builders are invited to Tender on the Project. The list of builders can often be supplied by the Architect, who may have done other projects with them in the past and is satisfied with their ability and competency.  The Client may wish to include additional names into the Tender list. The Architect  will make his own enquiries regarding their suitability by speaking to Architects or clients they have dealt with in the past. In addition the builders registration will need to be checked to ensure their membership is current.
3. At the end of the Tendering process, the Architect will inform you of the results and show you the Tenders received. Typically there may be 3-4 tenders depending on the size of the project. The lowest two are generally asked to meet with the Architect initially to ensure all aspects of the projects have been covered, and also to discuss issues such as lead times and construction programs etc.
4. Once the Architect is satisfied with the two lowest tenderers , he may wish to organize a meeting with the Clients as an introduction to the Builders. Typically, if it is an invited Tender, then it is assumed that all tenderers are competent, and the selection should be based on cost alone. However, there may be other issues that may come to light that may change this, and so it is a good idea to meet with the lowest two tenderers.
5. Once the Builder has been selected, the Architect will prepare  Building Contracts for signing. This will typically state the starting date, the completion date, and Cost of the Construction. The Architect should take the clients through the Contracts and explain the various critical clauses and process.

CONSTRUCTION:

1. The Architect will generally organize regular site meetings with the Clients and the Builder at the Building Site with varying regularity depending on the stage of construction. At these meeting the Architect, may often take minutes of items discussed for circulation to all parties. In addition to the regular formal site meetings, the Architect will attend site as required during the course of construction to liaise with the Builder.
2. During the course of Construction, the Builder will issue claims for payment to the Client via the Architects’ office. These claims will be based either on the completion of various Stages of Construction, or will be based on the percentage of works completed.   Either way the architect will assess whether the Builder is due the payment. If so, he will issue a Certificate for Payment, which will be sent to the Builder, and then in turn issued to the Client. Once the Certificate is received by the Owner, Payment is made directly to the Builder. The Certificate will also deduct a retention amount usually 5 % of the contract amount at each claim. Alternative options are also available.
3. The Retention amount is placed in a joint account  ( Builder and Client)  and is a safeguard to ensure defects are rectified at the completion of the Project. Half the Retention amount is released at Practical Completion Stage. This is typically when the premises is ready for occupation. The remaining 2.5% of the Retention is maintained for a minimum of 13 weeks after Practical Completion. Once any defects items have been rectified, then the remaining balance is released to the Builder.