Introduction This Practice Note sets out how contracts are typically administered on construction projects. It focuses on what the contract administrator does and the differences in how contracts are administered depending on the procurement route followed and form of contract used (focusing primarily on the JCT, NEC ECC and FIDIC contracts). What is contract administration? In simple terms, contract administration is the oversight and monitoring of a construction project with the aim of ensuring that the project is successfully delivered. This includes both practical oversight of the project as it is commencing (eg inspecting the works, checking progress and carrying out tests) and the management, issue and review of the documentation (including both payment notices and assessment of claims) required under the contract. In this Practice Note, we have referred to ‘contract administrator’ as a generic term: note however that different standard form contracts use different terminology to describe the person carrying out the contract administration role: this is discussed further in Who is responsible for the administration of building contracts? A summary of what the contract

Continuing significance of domicile Note that in the context of the succession of a deceased individual’s assets on death and English private international law, the concept of domicile remains a crucial factor despite the move to a residence-based regime for assessing liability to inheritance tax (IHT) with effect from 6 April 2025. For information on the tax position relevant for the administration of estates containing foreign assets, see: Tax in relation to foreign assets. Common law and civil law principles affecting foreign estates Personal representatives (PRs) will come across foreign estates in the context of assets located abroad, the deceased having been located or having had connections abroad (ie through their nationality, residence or domicile) and beneficiaries located abroad. PRs affected by cross-border issues will need to know about the principles that apply in practice to the administration of an estate of a foreign domiciliary with property in the UK and the key issues where the estate of an individual domiciled in England and Wales includes foreign property. For information on the administration of estates

Personal representatives (PRs) will come across cross-border estates in the context of the deceased having held assets located abroad, the deceased having been living abroad or having connections abroad (ie nationality, residence or domicile) and beneficiaries being located abroad. For those PRs affected by cross-border issues, they will need to know about the principles that apply in practice to the administration of an estate of a foreign domiciliary with property in the UK and the key issues where the estate of an English domiciliary includes foreign property. This Practice Note considers the implications for the administration of an estate where the deceased was domiciled abroad with property in the UK. For further information on the administration of estates comprising foreign situs assets, see Practice Note: Administration of estates—foreign assets. Residence-based IHT regime Before 6 April 2025, an individual’s domicile determined the extent of their liability to inheritance tax (IHT) amongst other things. Finance Act 2025 (FA 2025) replaces domicile with long-term residence in the UK as the key factor in establishing liability to IHT. See Practice Note:

This Practice Note answers some frequently asked questions about issues arising in the administration of a financial guardianship. Please see Office of the Public Guardian (Scotland)—Your duties as financial guardian for summary guidance. Q1. I have been appointed financial guardian—What do I do first? You will receive the court interlocutor which should also have been sent by the Sheriff Court directly to the Office of the Public Guardian (OPG) in Scotland. If caution is required you will need to arrange that as a first step. The interlocutor will state the level of caution required. Once you have received the Bond of Caution this should be sent to the OPG (although the insurance company issuing the caution may intimate directly to the OPG for you) who will issue your certificate. This certificate will contain a certificate number and a case reference number. It will also have a red seal appended. This certificate is your authority to formally act and will need to be circulated to any asset holders or any agency with whom you need to interact

Applicable legislation The winding-up of a limited partnership proceeds in the same way as the winding up of an ordinary partnership which basically follows the winding-up of an unregistered company (see SI 1994/2421, art 8 and Sch 4 and Practice Note: Winding-up a general partnership as an unregistered company). The winding-up of any corporate partner and the bankruptcy of any individual partner proceeds in accordance with the usual insolvency provisions, subject to modifications provided for in the Insolvent Partnership Order 1994 (IA 1986, s 136(4) as modified by SI 1994/2421, Sch 4). The Insolvency (Miscellaneous Amendments) Regulations 2017, SI 2017/1119 apply to modify the regimes applicable to limited partnerships to bring them into line with the insolvency procedures that apply to other entities under various reforms. Importantly for limited partnerships, under SI 2017/1119, the Insolvent Partnerships Order 1994, SI 1994/2421 (IPO 1994) is updated to replace references to ‘the Insolvency Rules 1986’ with ‘the IR 2016’ and also includes amendments to the Company Directors Disqualification Act 1986 (CDDA). For further details,

Increasingly, UK trustees hold foreign assets as part of trust property. This may be because: • they have been put into trust by the original settlor • they form part of the testator’s estate or • the trustees have acquired them Reasons why foreign assets may be held in trust An individual with a sizeable global investment portfolio may place foreign assets in trust during their lifetime with the aim of, for example: • alleviating problems on death • protecting assets from outside claims • avoiding forced heirship rules Investing in foreign assets If UK trustees are considering investing overseas, the following points should be considered: • whether the trustees have power to invest overseas—the investment powers conferred by Trustee Act 2000 (TrA 2000) permit trustees to invest in foreign assets subject to any express powers within the trust instrument. Note that the statutory provisions under TrA 2000 relating to investment in land apply only to land situate in the UK. Where the investment power does not permit what is proposed, the trustees may consider applying

This practice note relates to two of the ways in which trustees can limit their personal liability arising from their roles: • indemnities • exoneration clauses in trust instruments Indemnities Trustees have a right to indemnify themselves from the trust fund in respect of expenses they have incurred in discharging their trustee duties. This includes administration costs, taxes relating to the trust fund and contractual liabilities. It may also cover the costs of proceedings against third parties and trust proceedings, although care must be taken to ensure that such litigation costs are payable from the trust fund (and not personally). However, a trustee is only entitled to indemnification to the extent that such costs have been incurred by them: • properly, and • acting in their capacity as trustee In FMA v BBA, which concerned compromised trust proceedings, the trustees were not entitled to an indemnity from the trust fund for costs incurred in their own interests rather than the beneficiary’s interests. Distribution Where assets are distributed to a beneficiary, the trustees

Powers to invest Trustees' powers to administer a trust are set out in statute, mainly the Trustee Act 1925 and the Trustee Act 2000 (TrA 2000) as supplemented by the terms of the trust instrument. Trustees are often given extended powers of investment by way of express provision in the trust instrument. Express powers give the trustees more flexibility in their choice of investment and, in the past, were often used to avoid the complex administrative provisions of the Trustee Investments Act 1961 (which was substantially repealed by TrA 2000). Trustees’ statutory powers of investment are set out in TrA 2000, s 3 (commonly known as the general power of investment) and apply in addition to powers conferred on trustees by the trust instrument but subject to any restriction or exclusion the instrument imposes (TrA 2000, s 6). The general power of investment applies to trusts and Will trusts created both before and after the commencement of TrA 2000. The general power of investment is very wide; a trustee may purchase ‘any kind of investment that

Trustees are decision makers. Trustees will have a range of powers under the terms of the relevant trust instrument(s), common law and statute, and they will owe duties in relation to the exercise of any decision making powers. This note sets out an overview of the: • decision making process • option of applying to court where there are doubts about a decision • potential remedies available to trustees where decisions have been made and issues have subsequently arisen Trustee duties When considering whether to exercise their powers (and if so, how), a trustee must: • observe the terms of the trust (or, otherwise, the relevant act is liable to be set aside as void) • act in the best interests of the beneficiaries • act impartially as between the relevant beneficiaries • act personally (unless they have validly delegated powers) • where the trustee body comprises of more than one trustee, act unanimously, unless permitted to do otherwise For further information, see Practice Note: Trustees—duties. A trustee must not profit from the trust

Duty to act personally The starting point is that a trustee must act personally since an individual who is appointed a trustee has been personally chosen by the settlor for their particular expertise or knowledge of the beneficiaries and their affairs. The Trustee Delegation Act 1999 (TDA 1999) permits individual delegation by trustees in certain circumstances. The Trustee Act 2000 (TrA 2000) sets out the powers of collective delegation the trustees have in default of wide express powers being conferred by the trust instrument. The general effect is that trustees are able to delegate most administrative functions, but not dispositive powers. Agents, nominees and custodians TrA 2000 provides that the management of trust assets can now be delegated and that trustees may also appoint certain persons as nominees. Collective delegation TrA 2000, Pt IV (ss 11–27) provides for the delegation of administrative powers and discretions by trustees. This is subject to any restriction or exclusion imposed by the trust instrument or by any enactment or provision of subordinate legislation. Agents TrA 2000 permits the trustees

Commercial property Commercial property is intended to produce a financial return for its owner by being used or occupied by businesses. That return can be in the form of rent paid to the owner by a tenant(s) or from a change in the capital value of the property, realised when the property is sold. There are a number of differences between investing in residential property and commercial property, eg: • Costs—the cost of large, high-quality commercial property tends to be much greater than residential property • Valuation—the uniqueness of many commercial properties makes it difficult to get an accurate valuation without access to professional advice, whereas it is fairly easy to compare house prices • Commercial leases—these tend to last much longer than residential leases, traditionally contain clauses that are upward only (ie the rent cannot be less after a review than it was before one) and place responsibility on tenants for repairs and maintenance The decision to invest in commercial property Trustees may invest in commercial property indirectly or directly. Indirect

Court Reference No. [number]. [IN THE HIGH COURT OF JUSTICE BUSINESS AND PROPERTY COURTS [OF ENGLAND AND WALES OR IN [location]] INSOLVENCY AND COMPANIES LIST (ChD) OR IN THE HIGH COURT OF JUSTICE CHANCERY DIVISION [location] DISTRICT REGISTRY OR IN THE COUNTY COURT AT [location]] [The Honourable Mr(s) Justice OR [His OR Her] Honour Judge] [name] Dated [date] IN THE MATTER