Contract Administration, Duties and Professional Liability

Introduction and Context

Construction contracts do more than record an agreed price and scope. They create a working system for making decisions, communicating information, allocating risk, certifying performance and resolving disagreement. Contract administration is the day-to-day operation of that system. It includes the preparation and management of notices, instructions, approvals, certificates, records, payment processes, extensions of time, variations, claims and completion procedures.

Contract administration also has a legal and professional dimension. Parties must perform contractual obligations honestly and consistently with the contract. Professionals who design, inspect, certify or advise may owe duties not only to their employer but also to other participants and, in some circumstances, to third parties. Errors in a certificate, an undocumented instruction or an inadequate design review can produce substantial financial loss, delay, defects and safety risks.

This chapter examines contract administration as both a practical management function and a framework of legal responsibility. It uses general common-law and civil-law concepts, but construction law is jurisdiction-specific. Students must therefore consult the governing legislation, contract conditions, professional regulations and case law applicable to the project location.

Learning Objectives

By the end of this chapter, students should be able to:

• administer contractual notices, instructions, approvals, certificates and records;
• distinguish contractual authority from informal project communication;
• explain good faith, cooperation and the duty to act honestly;
• analyse the role of an impartial certifier or contract administrator;
• allocate design responsibility under common contract structures;
• distinguish breach of contract, negligence and breach of statutory duty;
• explain duty of care, vicarious liability and third-party liability;
• identify ethical, evidential and governance risks in contract administration; and
• recommend practices that reduce disputes and professional exposure.

1. The Contract Administration System

A construction project is administered through a network of documents, decisions and events. The contract usually identifies who may issue instructions, who assesses payment, how notices must be served, when claims must be submitted, and what records must be maintained. These provisions are not administrative decoration. They determine whether a right has been preserved, whether a decision is binding and whether a party can recover additional time or money.

The principal administrative actors may include:

• the employer or owner, who provides the project brief, funds the work and receives the completed facility;
• the contractor, who performs the construction work and manages labour, plant, materials and subcontractors;
• the contract administrator, architect, engineer or project manager, who may administer the contract on behalf of the employer;
• the quantity surveyor or cost consultant, who may measure work and assess payment;
• designers and specialist consultants, who prepare design information and professional advice;
• subcontractors and suppliers, whose performance affects the main contract; and
• authorities, lenders, insurers and end users, who may have statutory, financial or operational interests.

The authority of each actor comes from several sources: the express contract, an appointment agreement, a power of attorney, legislation, professional rules and apparent authority created by conduct. A project manager who has regularly approved minor changes may appear to have authority, even if the written appointment limits that authority. The employer may later be prevented from denying the apparent authority if the contractor reasonably relied on the representation and suffered loss.

1.1 Express, implied and informal communications

A formal instruction is a direction issued by a person authorised under the contract and in the required form. It may change sequence, workmanship, materials, access arrangements or other aspects of performance. An informal comment at a site meeting is not automatically a variation or instruction. Its legal effect depends on the contract wording, the speaker’s authority, the content of the communication and the parties’ conduct.

A reliable administrator distinguishes among:

1. information or advice;
2. a request for quotation;
3. a direction to proceed;
4. a variation instruction;
5. an approval or acceptance; and
6. a certification or determination.

The distinction matters because each may have different consequences for price, time, responsibility and rights of review.

1.2 A practical communication protocol

A sound protocol normally requires that each significant communication state:

• the project and contract reference;
• the date and issuing party;
• the relevant clause or authority;
• the factual background;
• the action required;
• the responsible person;
• the required response date;
• consequences for time, cost, quality or safety; and
• attachments, drawings or specifications relied upon.

The recipient should acknowledge receipt without necessarily admitting agreement. If the instruction is ambiguous, the contractor should request clarification promptly and reserve relevant rights. A reservation of rights is not a substitute for compliance with a valid instruction, especially where safety or time-critical work is involved.

2. Notices, Instructions, Approvals and Certificates

2.1 Notices

A notice is a formal communication that activates, preserves or responds to a contractual mechanism. Common notices concern delay, disruption, defects, variations, payment, suspension, termination, extensions of time and claims. Notice clauses frequently specify the recipient, delivery method, address, time limit and required content.

The legal effect of a notice depends on the contract. Some clauses make timely notice a condition of entitlement; others treat notice as an administrative requirement that does not defeat a claim unless prejudice is shown. Courts and tribunals may also distinguish between a notice that is late, one that is sent to the wrong person and one that fails to describe the event sufficiently. Administrators should not assume that a general email satisfies a detailed notice clause.

A useful notice register records:

2.2 Instructions and variations

An instruction should be tested against four questions:

1. Was it issued by an authorised person?
2. Is it within the scope of the contract administration power?
3. Does it alter the contractor’s obligations or merely explain an existing obligation?
4. How will its effect on price, time, quality and risk be assessed?

A variation may be initiated by a written instruction, a change to drawings, an employer’s requirement or, in some contracts, an omission and substitution. The administrator should establish a baseline scope before valuing the change. The evaluation may use contract rates, analogous rates, agreed quotations, cost records or reasonable valuation, depending on the contract.

A dangerous practice is to instruct work first and attempt to reconstruct the commercial agreement months later. Emergency action may be necessary, but the parties should document the instruction, reasons, assumptions, temporary valuation method and later reconciliation.

2.3 Approvals and acceptances

An approval may confirm that a submission satisfies a specified review requirement. It does not necessarily transfer design responsibility or guarantee that the work is free from defects. The legal effect depends on the wording and context. For example, approval of a shop drawing may mean only that it is coordinated with the design intent; it may not mean that the contractor is relieved of responsibility for dimensions, fabrication or installation.

Administrators should state the scope of review. Useful qualifications include “approved for construction subject to the contractor verifying dimensions and coordination” where such a qualification is consistent with the contract. Qualifications cannot, however, defeat an express obligation that the professional must perform a substantive design review.

2.4 Certificates

Certificates may concern payment, practical completion, sectional completion, extension of time, defects, testing or final account. A certificate can have contractual consequences even when it is not conclusive. For example, an interim payment certificate may create a payment obligation subject to later correction, while a final certificate may have stronger finality provisions.

Certification requires attention to evidence, timing and reasons. A certifier should identify the work measured, deductions made, retention, approved variations, previous payments and any permitted withholding. A certificate should not be used as a punitive device to pressure a party on an unrelated dispute unless the contract expressly permits the deduction.

Where the contract requires independent or impartial certification, the certifier must not act as a mere advocate for the appointing party. The certifier may owe contractual duties to the employer while also exercising a decision-making function that requires fairness and impartiality. The exact legal characterization differs among jurisdictions and contract forms, but the practical requirement is consistent: assess the material objectively and avoid predetermined outcomes.

3. Records, Evidence and Information Management

Records provide the factual foundation for payment, claims, delay analysis, defect investigation and dispute resolution. A party that cannot demonstrate what happened may lose an otherwise valid claim or defence.

Important records include:

• the executed contract and amendments;
• drawings, specifications and revision histories;
• programmes and updates;
• daily reports, labour and plant returns;
• delivery tickets and test results;
• photographs and geolocation data where appropriate;
• requests for information and responses;
• meeting minutes and action registers;
• inspection, nonconformance and corrective-action records;
• payment applications and certificates;
• notices, instructions and approvals; and
• correspondence concerning delay, access, design and risk.

Records should be contemporaneous, accurate, attributable and protected from unauthorised alteration. A retrospective note may be useful, but it should identify when it was created and distinguish recollection from contemporaneous observation. Digital systems improve searchability and version control, but they also create risks involving access permissions, metadata, cybersecurity and accidental deletion.

Meeting minutes should not silently convert discussion into agreement. Draft minutes should identify attendees, decisions, unresolved issues, actions and responsible persons. Participants should correct inaccuracies promptly. Silence may be relevant evidence, but it is not automatically acceptance.

4. Good Faith, Cooperation and Honest Performance

Good faith is a central but legally variable concept. In some systems it is a general contractual principle; in others it arises through specific doctrines, implied terms or statutory provisions. It should not be treated as a universal obligation to sacrifice legitimate contractual interests. Rather, it commonly requires honesty, consistency with the contract’s purpose and avoidance of conduct that deliberately frustrates contractual performance.

Construction contracts require practical cooperation because one party’s performance often depends on another’s access, information, approvals or payment. Examples include providing site possession, responding to design queries, coordinating interfaces and giving access for inspection. A party may breach an express obligation or an implied obligation of cooperation by preventing the occurrence of a contractual condition that it was required to facilitate.

Good faith and cooperation do not eliminate adversarial rights. A contractor may submit a claim, reserve rights or challenge a certificate while continuing to cooperate operationally. An employer may enforce quality requirements while responding reasonably to clarification requests. Administrators should avoid:

• withholding information to gain commercial leverage;
• issuing misleading records;
• manipulating completion or certification dates;
• concealing known defects;
• imposing impossible response periods without justification; or
• using discretionary powers for an improper purpose.

The safest approach is transparent administration: identify the relevant clause, disclose material facts, provide a fair opportunity to respond and record the reasons for decisions.

5. Impartial Certification and Professional Judgment

The contract administrator’s role often contains a structural tension. The administrator may be appointed and paid by the employer, yet required to certify payment or decide entitlement fairly. This does not necessarily make the administrator an arbitrator. It does mean that the administrator must understand the function being performed at each moment.

When administering the employer’s contractual rights, the administrator may act as the employer’s agent. When evaluating entitlement, certifying work or making a determination under a contract mechanism, the administrator may be required to exercise independent professional judgment. A failure to distinguish these roles can produce biased decisions and personal liability.

An impartial decision should be based on:

• the contract and incorporated documents;
• relevant facts and reliable records;
• submissions from affected parties;
• applicable technical standards;
• consistent valuation or assessment methods; and
• a reasoned conclusion.

Bias may be actual, apparent or institutional. Financial incentives, repeated appointments, personal relationships and pressure from senior management can affect perceived independence. A professional should disclose conflicts and follow the appointment and professional code requirements. If independence cannot be maintained, withdrawal or reassignment may be necessary.

6. Design Responsibility and Allocation of Risk

Design responsibility must be identified rather than assumed. Traditional procurement commonly places substantial design responsibility on the employer’s consultants and construction responsibility on the contractor. Design-and-build procurement transfers more design responsibility to the contractor, but the employer may still retain responsibility for performance requirements, reference designs, surveys, site information or design decisions expressly reserved to it.

A responsibility matrix is useful:

A “review,” “approval” or “consent” by the employer or consultant does not automatically transfer the underlying design obligation. Conversely, a contractor cannot be made responsible for design matters that the contract clearly reserves to the employer’s designer merely by inserting a general obligation to check drawings.

Design obligations may be expressed as a duty to exercise reasonable skill and care, a fitness-for-purpose obligation, compliance with a performance specification or a combination. These standards differ substantially. Reasonable skill and care is commonly assessed by reference to competent professionals in the relevant field. Fitness for purpose may impose a more stringent obligation to achieve the stated result, subject to governing law and contract wording.

7. Negligence and the Duty of Care

Negligence generally requires analysis of duty, breach, causation and loss. The precise test differs by jurisdiction, but the following questions are widely useful:

1. Was the claimant within a category to whom the defendant owed a duty?
2. Was the risk reasonably foreseeable?
3. Was the relationship sufficiently proximate or otherwise legally significant?
4. Did the defendant fall below the applicable standard of care?
5. Did that failure cause legally recoverable loss?
6. Are there defences, exclusions, contributory negligence or limits on damages?

Professionals are normally expected to exercise the competence and care of a reasonably competent member of their profession, taking account of the information available at the time. A later failure does not automatically prove negligence. Expert evidence may be required to establish the professional standard, although a court may draw conclusions from obvious facts or statutory requirements.

Contract and tort claims may overlap. A designer may be liable to the employer for breach of a consultancy agreement and, in some circumstances, to another person in negligence. Contract terms may allocate or limit risk, but statutory controls may restrict exclusions, particularly for death, personal injury, consumer protection or professional regulation.

Causation must be analysed carefully. A defect may have several causes, including inadequate design, poor workmanship, late information and improper maintenance. The claimant generally must show that the breach materially caused the loss, subject to jurisdiction-specific tests. Loss may include repair costs, delay-related loss, diminution in value or consequential financial loss, but remoteness and contractual limitations may restrict recovery.

8. Vicarious Liability and Organizational Responsibility

Vicarious liability is the principle that an organization may be liable for torts committed by an employee in the course of employment. It is distinct from the organization’s own negligence. A company may also be directly liable for poor supervision, inadequate systems, negligent appointment, failure to manage risk or failure to maintain competent procedures.

The relationship between principal and worker is important. Employees are the classic case, but modern law may consider the practical nature of the relationship rather than labels alone. Independent contractors are generally not automatically covered by vicarious liability, although the engaging organization may owe its own non-delegable duties or may be liable for negligent selection and supervision.

Construction organizations should therefore manage both individual and system risks. Policies should address competence, checking, escalation, document control, site safety, conflicts of interest and lessons learned. A company cannot rely on the fact that an individual administrator acted outside instructions if the organization created inadequate controls or ignored warning signs.

9. Third-Party Liability

Third parties may include neighbours, visitors, future owners, tenants, road users, utility operators and members of the public. They may not be parties to the construction contract, but project activities can affect their property, safety or economic interests.

Potential claims include:

• personal injury caused by unsafe access or falling materials;
• property damage caused by excavation, vibration, water ingress or fire;
• nuisance or trespass;
• negligent professional advice relied upon by a non-contracting party; and
• statutory breaches involving building control, safety or environmental protection.

The existence of a duty depends on factors such as foreseeability, proximity, assumption of responsibility, statutory purpose and policy. A disclaimer may reduce risk but does not always defeat a third-party claim. For example, a consultant who knows that a report will be supplied to a lender or purchaser may need to consider the scope of intended reliance.

Contractors and consultants should control third-party risk through site security, traffic management, public protection, insurance, accurate warnings, competent temporary works and clear limitations on the circulation of reports. They should also preserve evidence after an incident and notify insurers in accordance with policy conditions.

10. Ethical, Regulatory and Governance Considerations

Contract administration involves power over payment, time, information and acceptance. Ethical failures may therefore cause direct economic harm. Professionals should avoid conflicts, gifts that influence decisions, concealment of defects, discriminatory conduct, falsification of records and certification without adequate evidence.

Regulatory duties may concern building safety, occupational health, environmental protection, licensing, accessibility, anti-bribery and data protection. Contract terms cannot authorize conduct that violates mandatory law. A direction that appears commercially convenient must be rejected or escalated if it creates an unlawful or unsafe condition.

Governance controls include:

• delegated-authority schedules;
• segregation of approval and payment functions;
• conflict-of-interest declarations;
• independent review of major certificates;
• audit trails for document changes;
• escalation thresholds for claims and safety issues; and
• periodic review of design and construction risk registers.

11. Technology and AI in Contract Administration

Common data environments, electronic signatures, mobile inspection applications, building information modelling and automated workflows can improve coordination and evidence. They do not remove professional judgment. A system may route a notice to the wrong person, apply an incorrect deadline or classify a design revision incorrectly.

AI tools may assist with document comparison, clause retrieval, risk flagging, progress-photo classification and draft correspondence. However, outputs can omit context, misread amendments or reproduce confidential information. A professional remains responsible for checking the source documents, verifying conclusions and protecting personal and commercially sensitive data. AI-generated text should not be issued as a certification or legal determination without competent human review.

Good digital governance requires controlled access, version history, retention rules, backups, cybersecurity, validation of automated rules and a record of human approval. The question is not whether technology was used, but whether the administration remained accurate, explainable and contractually compliant.

12. Applied Case: The Unrecorded Design Change

The following is an illustrative case, not a report of an actual dispute.

Background

A contractor is constructing a university laboratory under a design-and-build contract. The employer’s laboratory consultant identifies a revised ventilation requirement after construction begins. During a coordination meeting, the consultant tells the contractor’s site manager to relocate ductwork and increase the size of a plant-room opening. The project manager attends but does not issue a formal variation.

The contractor proceeds because the change is necessary to avoid delay. The revised work increases cost and requires additional ceiling coordination. Six weeks later, the contractor submits a claim for additional payment and an extension of time. The employer rejects the claim, arguing that no valid instruction was issued and that the contractor accepted the change without protest.

Problem analysis

Several questions arise:

• Did the consultant have authority to instruct a variation?
• Did the project manager’s presence and conduct create apparent authority?
• Was the meeting statement an instruction, a request for design development or merely coordination advice?
• Did the contractor provide notice under the contract?
• What records show the scope and consequences of the change?
• Who retained responsibility for the ventilation design?
• Did the employer benefit from the revised work and know that it was being performed?

The contractor’s position is strengthened by contemporaneous minutes, revised drawings, delivery records and evidence that the employer’s representatives observed the work. It is weakened if the contract expressly requires written instructions from a named authority and the contractor failed to provide the required notice.

Appropriate approach

The project manager should have issued a written instruction identifying the revised requirement, authority, design responsibility and valuation method. The contractor should have responded with a notice stating that the instruction appeared to change the scope, identifying anticipated cost and delay, and requesting confirmation of the responsible designer. If urgent work had to proceed, the parties could record that the work would be valued on agreed rates or demonstrable cost pending final agreement.

After the event, the administrator should not simply reject the claim for lack of paperwork. The administrator should investigate authority, reliance, prevention, contractual notice requirements, actual benefit and evidence of cost and delay. The final decision should explain the reasoning and separate entitlement from valuation.

Outcome and learning points

Assume the contract tribunal finds that the consultant lacked express authority but that the employer knowingly allowed the change, benefited from it and failed to correct the contractor’s reasonable understanding that the work was required. The contractor receives payment for the demonstrated additional work, but the extension-of-time claim is reduced because the contractor did not provide timely programme evidence.

The case illustrates that:

• informal communications can create significant evidential risk;
• authority and apparent authority must be managed actively;
• entitlement, valuation and delay are separate issues;
• design responsibility should be recorded at the interface; and
• accurate contemporaneous records may determine the result.

13. Challenges and Limitations in Practice

Contract administration is difficult because projects operate under pressure and information is incomplete. Common challenges include conflicting drawings, compressed programmes, multiple communication platforms, inexperienced administrators, commercial pressure, unclear authority and inconsistent records.

Legal analysis also has limits. General principles cannot replace the governing contract or local law. A clause may alter the usual position on notices, certification, design responsibility, liability caps, dispute procedures or third-party rights. Courts may interpret the same words differently depending on the factual setting. Students should therefore distinguish a general risk-management principle from a jurisdiction-specific legal conclusion.

Another limitation is the gap between formal entitlement and practical recovery. A party may have a strong legal claim but insufficient records to prove quantum or causation. Effective administration therefore begins before a dispute: document the baseline, notify events, preserve evidence and make decisions while facts are available.

14. Best-Practice Framework

A professional administrator can use the following sequence:

1. Know the contract: prepare a clause map covering authority, notices, payment, variations, time, completion, defects and disputes.
2. Map responsibilities: identify design, inspection, approval, certification and safety responsibilities.
3. Control communications: use authorised channels and distinguish information, instruction, approval and certification.
4. Record contemporaneously: maintain registers, minutes, revision histories, photographs and decision reasons.
5. Assess impartially: consider both parties’ submissions and avoid predetermined conclusions.
6. Manage interfaces: identify dependencies among employer, designer, contractor, subcontractors and authorities.
7. Escalate risk: refer safety, conflicts, suspected fraud, major claims and uncertain authority promptly.
8. Protect information: apply document security, retention and privacy controls.
9. Review technology: validate automated workflows and require human review of AI-assisted outputs.
10. Close the record: reconcile certificates, variations, defects, warranties, as-built information and final account at completion.

Chapter Summary

Contract administration is the operational management of contractual rights and obligations through notices, instructions, approvals, certificates, records and decisions. Its effectiveness depends on authority, clarity, timely communication and reliable evidence. Formal notices may preserve claims, while instructions and approvals must be distinguished from informal discussion. Certificates require objective assessment and, where the contract demands it, impartial professional judgment.

Good faith and cooperation support honest and practical performance without eliminating legitimate contractual rights. Design responsibility depends on the procurement model and precise contract wording; approval does not automatically transfer or remove responsibility. Professional liability may arise through breach of contract, negligence, breach of statutory duty or third-party obligations. Duty of care requires analysis of foreseeability, proximity, standard of care, causation and loss. Organizations may be liable for employees’ conduct and for their own inadequate systems, while contractors and consultants must manage risks to members of the public and other non-contracting parties.

Digital systems and AI can improve administration but cannot replace professional verification, ethical judgment or compliance with the contract. The most effective risk control is disciplined administration: clear authority, accurate records, impartial decisions, timely notices and transparent reasons.

Key Terms

Contract administration: The management of contractual procedures, communications, decisions and records during project performance.

Notice: A formal communication that activates, preserves or responds to a contractual right or obligation.

Instruction: An authorised direction concerning performance of the works or services.

Variation: A change to the contracted scope, quality, quantity, sequence or method.

Approval: Confirmation that a submission satisfies a specified review requirement.

Certificate: A formal document recording a contractual assessment or status.

Impartial certification: Objective assessment by a certifier required to act fairly rather than as an advocate.

Good faith: Honest and contract-consistent conduct in performance and administration.

Cooperation: Conduct reasonably necessary to enable the other party to perform its contractual obligations.

Design responsibility: Allocation of responsibility for preparing, coordinating and achieving design requirements.

Reasonable skill and care: The standard expected of a reasonably competent professional in the relevant field.

Fitness for purpose: An obligation to achieve a stated functional result, subject to contract and governing law.

Negligence: Failure to exercise the legally required standard of care, causing recoverable loss.

Duty of care: A legal obligation to take reasonable care toward persons within a legally protected relationship.

Causation: The connection between a breach or negligent act and the claimant’s loss.

Vicarious liability: Liability imposed on an organization for certain wrongs committed by a worker in the course of work.

Third-party liability: Responsibility owed to a person who is not a party to the construction contract.

Apparent authority: Authority reasonably represented by conduct, even when actual authority is limited.

Contemporaneous record: A record created at or near the time of an event.

Common data environment: A controlled digital system for sharing and managing project information.

Review Questions

Short Answer Questions

1. What is the difference between a formal contractual instruction and informal project communication?
2. Why is a notice register valuable in contract administration?
3. What does impartial certification require in practice?
4. How may design responsibility differ between traditional and design-and-build procurement?
5. Identify the principal elements commonly considered in a negligence claim.

Long Answer Questions

1. Explain how notices, instructions, approvals and certificates interact in the administration of a construction contract.
2. Discuss good faith and cooperation in construction contracts, including their limits.
3. Analyse the relationship between contractual design responsibility and professional negligence.
4. Explain vicarious liability and distinguish it from an organization’s direct negligence.
5. Evaluate the benefits and risks of digital systems and AI in contract administration.

Analytical / Application Questions

1. A contractor receives a verbal direction from a consultant to change façade materials. The consultant attends weekly meetings but the contract requires written instructions from the employer’s project manager. Analyse the contractor’s immediate steps and the factors affecting entitlement.
2. A certifier is pressured by the employer to reject a payment application because the contractor has threatened a claim. Explain the professional, contractual and ethical issues and recommend a proper response.
3. A neighbouring property develops cracks during excavation. The contractor followed the employer’s drawings, but the design consultant failed to specify adequate monitoring. Analyse the possible contractual, negligence and third-party liabilities.

Multiple Choice Questions with Answers

Question 1

Which statement best describes a contractual notice?

A. An informal discussion that has no evidential value

B. A formal communication that may activate or preserve a contractual right

C. A certificate proving that the works are complete

D. A design drawing issued by a subcontractor

Correct Answer: B. A formal communication that may activate or preserve a contractual right

Question 2

What is the principal purpose of a notice register?

A. To replace the executed contract

B. To record communications, deadlines, events and status systematically

C. To authorize every payment automatically

D. To transfer design responsibility to the contractor

Correct Answer: B. To record communications, deadlines, events and status systematically

Question 3

An approval of a shop drawing generally means that:

A. All contractor design responsibility is eliminated

B. The work is guaranteed to be defect-free

C. The submission has satisfied the specified review requirement, subject to the contract

D. The contractor no longer needs to verify dimensions

Correct Answer: C. The submission has satisfied the specified review requirement, subject to the contract

Question 4

When an administrator is required to certify impartially, the administrator should:

A. Always support the appointing employer

B. Assess the relevant evidence objectively and give a reasoned decision

C. Reject disputed applications without review

D. Allow the contractor to determine the certificate amount

Correct Answer: B. Assess the relevant evidence objectively and give a reasoned decision

Question 5

Which factor is most directly associated with design responsibility?

A. The colour of the site office

B. The procurement model and express allocation of design obligations

C. The number of workers on site

D. The frequency of progress meetings alone

Correct Answer: B. The procurement model and express allocation of design obligations

Question 6

Which sequence most accurately represents a typical negligence analysis?

A. Price, programme, retention and completion

B. Duty, breach, causation and loss

C. Notice, tender, award and novation

D. Design, procurement, insurance and taxation

Correct Answer: B. Duty, breach, causation and loss

Question 7

Vicarious liability most commonly concerns:

A. An organization’s liability for certain wrongs committed by an employee in the course of employment

B. A contractor’s right to an extension of time

C. A certifier’s calculation of retention

D. A subcontractor’s payment application

Correct Answer: A. An organization’s liability for certain wrongs committed by an employee in the course of employment

Question 8

Which practice best protects the evidential value of project records?

A. Creating records only after a dispute begins

B. Deleting superseded documents without retaining revision history

C. Making accurate, attributable and contemporaneous records

D. Recording decisions only in private conversations

Correct Answer: C. Making accurate, attributable and contemporaneous records

Question 9

Good faith generally requires a party to:

A. Abandon all contractual rights

B. Act honestly and consistently with the contract’s purpose

C. Accept every claim submitted by the other party

D. Avoid issuing any notices

Correct Answer: B. Act honestly and consistently with the contract’s purpose

Question 10

A contractor’s best immediate response to an ambiguous verbal change instruction is to:

A. Ignore it completely

B. Proceed without records and claim later

C. Request written clarification, identify likely effects and preserve relevant rights

D. Terminate the contract immediately

Correct Answer: C. Request written clarification, identify likely effects and preserve relevant rights