Contract Administration: Triple Constraint Model

Topics: Project management, Contract, Construction Pages: 8 (2191 words) Published: April 3, 2014

Contract Administration (EC305C)
(2013-14)

Assignment 1

Coursework Prepared for: Brian Price

27th February 2014

Contents
1.0 Professional Practice2
2.0 Understanding the JCT IC Contract2
3.0 Areas of conflict between the Contract Administrator and the Client2 4.0 Difference in the relationship of the CA with the client and the contractor5 5.0 Request for variation orders6
6.0 The likely effects of the increase in the pit size6
7.0 Data Warehouse Modelling6
8.0 References6

1.0 Professional Practice

RICS practice standards 2011 recommends to “avoid personal appointments” (contract administration. 2011) by referring to the CA as a professional practice. For this reason the Contract Administrator (CA) appointed for scenario two will be ‘Claret & Blue Ltd’ figure one illustrates claret and blues company logo.

Claret & Blue Ltd
Delivering projects on time, to budget and to the required quality Figure 1 CA company logo.

2.0 Understanding the JCT IC Contract
Brian Price (2014) insists that the CA must understand the relevant contractual provisions and know how to apply them to the specified contract. The Joint Contracts Tribunal (JCT) represents a wide selection of the construction industry (Taylor, J. 2008) 3.0 Areas of conflict between the Contract Administrator and the Client

As a consequence of the fragmentation of the construction industry, all projects will inevitably have disagreements (H.Y. Chong and M.Z. Rosli 2009, S.O. Cheung and T.W. Yiu 2007) Firstly the fact that Professor A Biggs (client) “has no idea” of the role of the CA sets alarm bells for numerous potential areas of conflict, such as incorrect and unrealistic expectations of what the CA should do during the project. To mitigate these potential conflicts the CA should make it clear on appointment exactly what their role is under the JCT IC contract.

The following three objectives of good contract administration is to deliver the project On time
To budget
To the required quality
(Brian Price 2014)

Projects irrespective of their size will all have numerous different constraints, the term triple constraint refers to the three main interdependent constraints for every project being; time, cost and scope which naturally conflict with each other. (Tutorialspoint.com. 2014)

Figure 2 triple constraint model (Tutorialspoint.com. 2014)

Figure 2, the Triple Constraint model

Brian Price (2014) acknowledges that the CA concern is with establishing and managing a clear and functional relationship between the client and the contractor

Brian price (2014) suggests numerous duties to be carried out by the CA, the following listed CA duties have been selected as high risk confliction with the client in scenario two:  Chairing meetings – From the initial assessment of the client it appears professor Biggs may attempt to take control during meetings. The CA must make it clear before and during the Initial Meeting that the CA chairs the meetings. Periodically inspecting the works-but normally only for purposes of certification – From reading the brief, it could be interpreted that the client will view these inspections by the CA as a process to disallow costs. Furthermore the CA should make sure the purpose of inspections is made clear to all parties concerned (contract administration. 2011) Instigating client variations - the contractor shall be explicitly made aware at the Initial meeting that only the CA can instruct the contractor to carry out variations. Agreeing interim payments- the statement from the client “aggressively disallow costs” could restrict the CA in Issuing payment certificates and practical completion certificates which may give reason to the contractor to down tools which in turn could delay the whole project. In addition if the CA constrained in Settling the final account by the client, then the contractor my choose to...


References: Jctltd.co.uk. 2014. Category. [online] Available at: http://www.jctltd.co.uk/category/intermediate-building [Accessed: 19 Feb 2014].
Tutorialspoint.com. 2014. Project Management Triangle. [online] Available at: http://www.tutorialspoint.com/management_concepts/project_management_triangle.htm [Accessed: 26 Feb 2014].
Program Success. 2011. Scope, Time and Cost - Managing the Triple Constraint. [online] Available at: http://programsuccess.wordpress.com/2011/05/02/scope-time-and-cost-managing-the-triple-constraint/ [Accessed: 26 Feb 2014].
Keatingchambers.co.uk. 2014. Contract Administrators. [online] Available at: http://www.keatingchambers.co.uk/resources/publications/2006/contract_administrators.aspx [Accessed: 27 Feb 2014]
Mcgarryassociates.com.au
contract administration. 2011. RICS practice standards, 69 (1)
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Sherman, S. N. (1996). Government Procurement Management.Germantown, MD: Worderafters Publications.
Davison, B. and Sebastian, R. J. 2011. A DETAILED ANALYSIS OF THE RELATIONSHIP BETWEEN CONTRACT ADMINISTRATION PROBLEMS AND CONTRACT TYPE. Journal of Public Procurement, 11 (1)
Davison, B., & Wright, E
Thai, K. V. (2004). introduction to Pubiic Procurement (iPP). Herndon, VA: National Institute of Government Purchasing Inc
National Institute of Government Purchasing (NIGP)
Institute, C. S. 2011. The CSI Construction Contract Administration Practice Guide. Hoboken: John Wiley & Sons, Inc
OFFICE OF FEDERAL PROCUREMENT POLICY
Brewer, Geoff. (2003). Determining employment clauses. Contract Journal. 420 (6443)
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Taylor, J. 2008. JCT building contracts: What ’ s new?. Building Appraisal, 3 (4), pp. 259-266. Available from: doi: 10.1057/jba.2008.7
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