Oct 062021
 

The construction contract should impose strict compliance with the plans and specifications and give the facility manager and others the right to observe the work at any time. The contract should provide a guarantee that the work will be performed with a good finish and compliant materials. (This guarantee should not, however, be explicitly the only recourse of the school authority for defective or non-defective work.) In case of suspicion of failures, the facility manager should be allowed to suspend the work in order to continue the observation. If defects are detected, the contractor is obliged to eliminate them without further compensation. If this is not the case, the contract should allow the school authority to terminate the contract for a significant reason, to order the performance guarantee, to fill and remedy all deficiencies and to impose other remedies. Another significant risk is the delay in the closure of the project. Since schools have to adhere to a pre-veterate school calendar and generally have only a limited place of substitution, delays are particularly troublesome. Therefore, contracts should explicitly set the completion date and could set interim deadlines for key milestones. They should require the contractor to provide an initial schedule with regular updates, both based on sound planning logic. These updates, if correct, will inform the school authority of the delay in completion and the need to secure other facilities. This contract is based on the construction industry standard NZS 3910:2013 Contract with the Ministry Special Conditions. The following contracts are standard contracts for all work providers entering into new agreements for ministry-led projects. At its meeting on June 26, 2017, the State Allocation Board (SAB) approved a model grant agreement and compliant rules of the School Facility Program (SFP) following the passage of the kindergarten by the Community College Public Education Facilities Bond Act of 2016 (Proposition 51) and accountability measures in the Governor`s 2017-18 budget.

Certain provisions of construction and design contracts can minimize performance risks. For example, the design contract should clearly express the wishes of the school authority for the design, offer the facility manager several possibilities for revision of the design, expressly ask the designer to take into account all legal requirements and clearly specify the responsibility of the designer in the inspection of the work. Given the importance of these obligations for the success of the project, the design contract should not limit the designer`s liability. Consider whether you should keep an experienced project manager at an early stage. While we know that a school typically turns to an architect when a project is first considered, we think a school should consider early on whether it is more appropriate to keep a project manager in front of another advisor. Normally, an architect has a conflict of interest, as the architect`s fees are based on the cost of the project. Even if there are architects who perform the project management role well and cheaply, it is better to have the independence of a project manager who can monitor contracts for all consultants. A school should refrain from asking the executive director or Bursar to act as project manager. It takes enough time to represent the school at project meetings, let alone complete its normal daily tasks. It is a false economy for a school to add the role of project manager to the tasks of a busy general manager or burar. To give confidence and security to the construction industry, it is important that government authorities adopt a consistent approach.

This guidance document has been designed to assist project teams working on ministry projects, while examining legal and business issues related to the lockdown time. . . .

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