The contract administration policies of the Government have been set out in the “Code of Practice for the Building and Construction Industry” and reference should be made to the Code.
Contract Administration phase commences after approval has been given by the Department to enter into a building contract. It involves the administration of the Building Contract and covers the obligations, rights and responsibilities of the Contracting parties.
The Building Contract comprises:
The key parties involved in the construction phase are:
In some larger more complex projects, the Contractor may be a Construction Manager who tenders out trade packages during the course of the construction works. However, this process generally follows the issues outlined in this guideline.
Health Services/Agencies and consultants should be aware of their legal and financial obligations and responsibilities, as failure to do so can involve costly compensation and legal expenses.
It is essential that the contract administration role be undertaken by a person having the necessary expertise and qualification to do so.
In the standard form of contract AS 2124 - 1992 the Superintendent has the specific responsibilities involved in contract administration, that is, the day-to-day administration of the contract. The Superintendent is obliged to follow the provisions of the Contract Agreement and Contract Documents, and must interpret and administer the Contract in accordance with the documents and must act with due consideration for their intent.
Throughout the General Conditions, certain clauses require the Superintendent to act as agent for the Principal, and in other clauses, the Superintendent is required to act as a certifier. In both instances, in accordance with the provisions of Clause 23 of the contract, the Superintendent is required to act fairly and reasonably, but particularly when acting as a certifier, there will be an expectation from the Builder/Contractor that the Superintendent acts impartially.
There are many matters calling for the Superintendent’s special adjudication. Some examples are:
On Government projects, the Superintendent has the additional responsibility of taking into consideration government regulations and policies, particularly in respect of OH&S and Security of Payment (SOP). The Superintendent must act in a manner consistent with those policies to ensure that the Principal/Client is not exposed to the risk of additional payment.
Examples of this additional responsibility are:
Many of the Department’s Construction projects are undertaken whilst buildings are occupied. It is essential that service delivery standards be maintained for the facility during construction. In addition to careful planning, and appropriate organisational and contractual arrangements, full co-operation between the Principal, Superintendent and Contractor is essential.
The Health Service/Agency is to note that the engagement of a superintendent is not a substitute for discharging their responsibilities in regard to the matters of OH&S and SOP. These areas are to be taken as shared duties and obligations and cannot be delegated to others. Health Services/Agencies must ensure that these items are regularly monitored and reported on and where necessary action taken to address issues as they arise.