Contract adminstration report - Book Report/Review Example

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Contract adminstration report

It also explains the reasons why the employer should include them in the contract. Offsite Materials Bonds: Offsite materials include all listed items in the contract which have not been delivered to or close to the site of the project. These materials are insured by offsite material bond. Therefore, the inclusion of this bond in the contract insures the employer against the losses incurred for non delivery of materials. This problem arises when the employer has made full payment to the contractor for procumbent of materials, but the contractor has failed to deliver the materials to or adjacent to the works. Hence, the bond guarantees compensation for the losses irrespective of the dispute between the employer and the contractor. This also extends to whether no action is taken against the contractor or any extension given to the contractor. Under SBC/XQ rules, the employer pays the amount of listed items in the contract prior to delivery on or next to the works. The contractor then is expected to insure these materials against losses, damages thus protecting the interest of employer. This protection begins from the time the property is transferred to the contractor to the time they are delivered to or close to the site. The amount of bond only covers the listed items which have not been delivered. Where materials are not delivered, the employer makes a claim in writing to the surety. ...Show more


CONTRACT ADMINISTRATION REPORT By Name: Course: Instructor: University: Physical Address: Date: Introduction: The Joint Contracts Tribunal’s Standard Building Contracts provides guidelines and rules for formulating and administering contracts within the construction sector in United Kingdom…
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