Overview of Contract Administration
Contract administration is the structured process of managing the rights, duties, and obligations under a building contract.
For young architects, understanding this is critical — not only for proper project execution but also for protecting yourself and your client throughout the construction process.
1. Types of Building Contracts
There are various types of contracts used in the Singapore construction industry, depending on the project scale, delivery method, and party relationships. Here’s a breakdown:
By Mechanism
Measurement Contracts Payment is based on actual quantities of work done, typically measured from drawings and site progress. Suitable when the scope is not fully defined. Contractor prices per item or work unit (e.g., per m² of tiling). Final contract value depends on actual work.
Lump Sum / Fixed Price Contracts A single contract price is agreed upon for the entire project. Variations can still occur, but the base price remains unchanged unless adjusted. Common for traditional SIA contracts or Design & Build.
Design & Build (D&B) A single entity (contractor) is responsible for both design and construction. Employer sets out Employers’ Requirements (ERs) and Employers’ Notional Design, which contractors use as a basis to bid a lump sum price. Faster delivery but less design control for the architect unless engaged directly.
By Standard Form
SIA Building Contract (Singapore Institute of Architects) Commonly used for private-sector projects. Architect is the contract administrator and impartial certifier.
PSSCOC (Public Sector Standard Conditions of Contract) Standard for government projects (HDB, LTA, BCA, etc.). Typically used with measurement contracts and more procedural requirements.
REDAS Design & Build Contract Used by private developers for design-and-build developments. Prioritises speed and single responsibility through the contractor.
Subcontract Agreements Used between main contractor and subcontractors (e.g., M&E trades). Architects typically do not administer these.
Minor Works Contract For projects with smaller scopes (e.g., under $1M). Simpler terms and processes, fewer formalities.
Check out my list of building contracts here:
Contract Types (Singapore)2. Key Contract Mechanisms (Chronological Order)
Here are the main mechanisms and milestones that occur in a typical project timeline. The list is not exhaustive.
Commencement of Works Contract signed, site handed over, and Notice of Commencement issued.
Submittals and Approvals Contractor submits shop drawings, material samples, and method statements for approval by consultants.
Progress Claims and Payment Certificates Contractor submits monthly claims. Architect or QS assesses and certifies payments via interim certificates.
Variations (VOs) Any change to the contract scope or specifications. Can add or omit works and affect cost/time.
Extensions of Time (EOT) If delays are not the contractor’s fault (e.g., weather, late approvals), they can apply for more time. Usually within 14 days of the event (check contract clause).
Retention Sum A portion (commonly 5-10%) of each payment is withheld to ensure the contractor completes outstanding works and fixes defects. Half is released upon Practical Completion, the rest after the Defects Liability Period.
Delays and Liquidated Damages (LDs) If the contractor delays the project without approved EOT, LDs are imposed as pre-agreed damages (e.g., $5,000/day).
Disputes Arise from payment issues, rejected variations, or EOT claims. Resolved through mediation, adjudication (SOPA), arbitration or litigation depending on contract.
Practical Completion Architect certifies the project is substantially complete and usable. Triggers start of the Defects Liability Period (usually 12 months).
Defects Rectification Contractor fixes any defects noted before and during the DLP. Owner can use retention money if the contractor fails to rectify.
Final Account and Completion Certificate Final cost of project tallied. No further claims allowed once this is signed off.
3. Appointment of Architect: Employer vs Contractor
The architect’s role and duties differ based on who appoints them:
Traditional Contract (e.g. SIA) The Employer appoints the architect directly. The architect acts as designer, lead consultant, and impartial contract administrator. You certify payments, assess variations, grant EOTs, and issue practical completion.
Design & Build Contract (e.g. REDAS D&B) The Contractor appoints the architect, usually as a Consultant Architect to help fulfil the Employers’ Requirements. The architect has no impartial role and acts more as a technical designer. The Employer may separately engage an independent Employer’s Representative to oversee compliance.
4. Design and Build vs Measurement Contract
Design Responsibility
Contractor (based on ERs & Notional Design)
Architect/Consultant
Tender Basis
Based on Employers’ Requirements and outline drawings. Contractor submits a lump sum offer.
Based on fully detailed drawings and BOQ. Contractor prices per unit rate, contract sum varies.
Architect’s Role
Consultant to Contractor (no admin role)
Architect as contract administrator and certifier
Speed
Faster
Slower due to full design first
Cost Certainty
Higher (fixed sum)
Variable (measured quantities)
Design Control
Lower (unless tightly specified)
Higher
5. Things to Note for Architects Administering Contracts
Whether you’re certifying claims, assessing delays or evaluating defects, here are some must-know practices:
Timelines and Notices For example, under SIA, EOT claims must be submitted within 14 days of delay events. Late notices = no entitlement.
Proper Documentation All variations, approvals, and instructions should be in writing. Meeting minutes, site memos and photographs are your best defence in disputes.
Impartiality Even if appointed by the Employer, the architect must act fairly under the contract. Biased decisions can be challenged legally.
Dispute Resolution Path
SIA Contract: Arbitration
PSSCOC: Adjudication (via SOPA)
REDAS: Mediation > Arbitration
Common Pitfalls
Delayed VOs or EOT assessments
Certifying payments without site verification
Issuing instructions without cost/time implications considered
Conclusion
Understanding contract administration helps architects safeguard project quality, timelines, and relationships. Whether under a traditional SIA contract or a Design & Build delivery model, your ability to interpret and apply contract terms fairly is essential to your credibility and success.
Recommended References (Singapore)
SIA Building Contracts 9th Edition – Singapore Institute of Architects
PSSCOC Standard Forms – Building and Construction Authority (BCA)
REDAS Design & Build Standard Form – Real Estate Developers' Association of Singapore
Security of Payment Act (SOPA) – https://sopa-bca.gov.sg
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