Contract Administration
Contract administration is the day-to-day running of a signed construction contract. We help with payment claims, instructions, changes to the work and the contract price.
Overview
When you need contract administration
Contract administration is the work of looking after a signed contract day to day. We take care of the quantity surveying side: assessing payment claims, dealing with instructions and variations, and tracking the contract price. Property owners, developers, body corporates and contractors use it. It's one of our post-contract quantity surveying services.
You might want someone on the contract from day one of a project. You might also need help part way through, when the person who was running the contract has moved on.
What we handle
What contract administration covers
The work falls into four areas, and we can help with each one.
Letters and records
We keep an organised record of the letters, instructions and decisions that pass between the parties.
Payment claims
A payment claim is a request for payment for work done. We assess each claim you send us.
Variations and instructions
An instruction is a direction given to the contractor under the contract. A variation is a change to the agreed work, such as extra or omitted work. We look at each one against the contract.
Contract price
The contract price is the total amount payable under the contract for the work. It includes any changes to that amount that the parties have agreed.
In New Zealand
NZS 3910 and the Construction Contracts Act
NZS 3910 is a New Zealand Standard that sets out conditions of contract for building and civil engineering construction. The 2013 edition uses an Engineer to the Contract. In the 2023 edition, two roles take its place: the Contract Administrator and the Independent Certifier.
The Construction Contracts Act 2002 sets payment rules for construction contracts. Those rules include deadlines for answering a payment claim, which our payment claims page explains.
What you get
Payment recommendations and the contract price
For each payment claim, we recommend how much to pay. We also tell you where the contract price stands.
Completion paperwork
Around practical completion, we can check that the paperwork the contract asks for is in place.
Who this is for
This service suits property owners, developers and body corporates who are paying for the work under the contract.
It also suits main contractors and subcontractors who carry out the work and make the claims.
It works alongside our financial reporting and payment claims and variations services, and all three can run at the same time.
How it works
How contract administration runs
- 01
Send the contract
You send us the signed contract, and any claims, instructions and variations so far.
- 02
Get up to speed
We read through the contract and the file, and work out where things are up to.
- 03
As the job runs
We work through claims and instructions as they come in.
- 04
Talk it through
You can ask us what's behind a recommendation, or what's changing the contract price.
Why AMS
How we approach contract administration
Grounded in the contract
Because each recommendation is based on the terms of your contract, you can stand behind your reply to a claim.
More time for the project
While we keep up with the commercial side of the contract, you can spend your own time on the project itself.
A clear record
If a decision is questioned later, you have the paperwork to show what was agreed.
Frequently asked questions
What is the difference between a Contract Administrator and an Independent Certifier?
The Contract Administrator acts for the client, while the Independent Certifier acts fairly between the two sides. Under NZS 3910:2023, the Contract Administrator gives the contractor instructions. The Independent Certifier makes decisions where the contractor and the Contract Administrator can't agree, and issues payment schedules. The contract names who holds each role. Our contract administration work doesn't include the Independent Certifier role, or the 2013 edition's Engineer to the Contract role.
Does the Construction Contracts Act apply to my contract?
Yes, if it's a contract for construction work in New Zealand, unless one of the Act's exceptions applies. It covers written and oral contracts, and ones that are partly both. It applies even where the contract is governed by another country's law. This is general information, not legal advice.
What is practical completion?
It's generally the point where the work is finished, apart from minor omissions or minor defects. Your contract sets the exact test, so check what it says about completion. On an NZS 3910:2023 contract, the Independent Certifier signs off practical completion.
What is a defects liability period?
It's a set time after completion when the contractor has to fix defects they're told about. For residential building work, there's a 12-month defect repair period from the date the work is complete. Defects notified in writing in that time must be put right within a reasonable time. On other work, the contract sets the period.
Need a quantity surveyor for your next project?
Send through your plans or a short description of the project and we will come back to you.