Subject Code & Title :- CON102 Tendering Administration Processes For Construction Projects
Assignment Type :- Assessment 3
Weighting :- 40%
Instructions :-
• Submit all of your answers in one document.
• Label your answers with the task reference and heading
• Provide a footer for each page with your name, student number
• See Appendix 1 for necessary information to complete the assessment
CON102 Tendering Administration Processes For Construction Projects Assessment 3
Learning outcomes :-
This assessment covers the following learning outcomes:
LO3: Explain the purpose of the range of tender documents, in relation to the laws and regulations.
LO4: Discuss the tender process.
LO5: Evaluate tenders for category 2 buildings.
CON102 Tendering Administration Processes For Construction Projects Assessment 3
Task 1 :-
During the course of carrying out the contract work, Birdwood have issued variations orders in accordance with the contract conditions. They have also received requests from the contractor to issue variations in relation to certain issues. The table below Potential Variation Issues lists a range of potential variations. With reference to the Conditions of contract, consider each variation issue and determine whether a variation should be issued. Briefly explain the reasons for your decisions.
Task 2 :-
Answer the following 10 question relating to fluctuations:
1. Explain the purpose of including a fluctuation clause in a contract.
2. Describe an example of a large construction project where a fluctuation clause would be used.
With reference to NZS3910:2013 Appendix A – Cost Fluctuations Adjustment By Indexation answer the following:
1. Explain what clause A1 means.
2. Explain what clause A3 means and provide an example of an excluded cost.
3. Explain what the term 0.4 x (L- L’)/L’ represents in equation 1, clause A2.
4. Explain what the term 0.6 x (M- M’)/M’ represents in equation 1, clause A2.
5. Explain how the term V is obtained.
6. Explain how the fluctuations value C is used to adjust the current valuation V.
7. Explain the time period which is used in Equation 1.
8. Describe an alternative method to Equation 1 to adjust for the effects of inflation.
CON102 Tendering Administration Processes For Construction Projects Assessment 3
Task 3 :-
Calculate the fluctuation value C using the following data:
Prices for the contract were tendered in June 2013
The current claim related to the period June 2015
The value V of the current claim = $100,000.00
Hint: Data for Equation 1 do can be sourced from StatsNZ. For older statistic you may need to review the archive
CON102 Tendering Administration Processes For Construction Projects Assessment 3
Task 4 :-
Answer the following 10 questions relating to extensions of time:
1. State the reason that a contractor would be exempt from a claim for liquidated damages assuming they are a condition of contract) although the contract wasn’t completed until after the due date.
2. Identify additional costs the contractor may be entitled to claim although the contract wasn’t completed until after the due date.
3. Give 3 reasons for granting an Extension Of Time for completion of a contract where the contractor is not entitled to compensation.
4. Give 2 reasons for granting an Extension Of Time where the contractor is entitled to compensation.
5. What is the period during which a contractor must give a notice of an EOT claim?
Determine whether each of the following claims would be entitled to an Extension Of Time by stating True or False and providing a brief explanation
6. During excavations of the footing for the new library building, an engineer’s soil bearing test’ resulted in the footing size being increased.
7.The colour of the vinyl flooring to be installed in ‘K’ block is changed prior to installation.
8. Practical completion is delayed for 3 days because the new locks which must be operable with’ the existing master key were not ordered within the required 15 business day’s lead time.
9. A section of the grey water system had not passed pressure testing.
10. A variation required by Birdwood added 2 days to the construction program’s critical path.
Task 5 :-
Answer the following 3 questions relating to Prime Cost (PC) sums:
1. Identify which of the following costs are NOT allowed for in a Prime Cost sum: the cost of materials the Contractor’s expenses and profit the material installation costs.
2. If any cost in question 5.1 is not paid out of the Prime Cost sum how is the cost allowed for?
3.True or false: The contractor may supply material to which a Prime Cost Sum relates provided no additional cost in incurred by Ngake School BOT. Justify your answer.
CON102 Tendering Administration Processes For Construction Projects Assessment 3
Task 6 :-
The following letter from the Contractor, sets out 4 points that the Contractor is seeking adjustment for. You are required to decide how to respond to each request. Where variations are required use your own Variation Order form (using Word) or the Variation Order form is provided in the assignment 3 page.
Note :-
Make sure you have copies of the Ngake School priced schedule of quantities and the quote from Custom Joinery. Item numbers refer to items in the SOQ. Check NZS 3910:2013 Conditions of Tendering to confirm if the rates quoted in the SOQ are fully inclusive of all the contractor’s costs and profit. Where applicable, allow 3% contractor’s profit margin and 7.2% preliminary and general adjustment and 15% for GST.
CON102 Tendering Administration Processes For Construction Projects Assessment 3
1.Prepare a variation order for point 1.
2. Prepare a variation order for point 2.
3. Prepare a variation order for point 3.
4. Explain what is meant by the following terms: time-related costs and contractor supervision.
5. The heating system testing and repairs have delayed completion and occupancy by 3 days. The work involved the use of the Contractor’s facilities but not supervision due to the specialist nature of the work. Prepare an extension of time claim from the preliminaries break down provided in the SOQ.
CON102 Tendering Administration Processes For Construction Projects Assessment 3
NOTE: Assume that the contract is operated on a 5 Working Days per week basis and has a 16 week duration.
Task 7 :-
Reaching the Practical Completion stage in the Ngake School project triggers a number of contract requirements.
1.Describe the meaning of practical completion.
2.List all the criteria that would allow a defect to be remedied following practical completion.
3.List 4 documents that the contractor has to produce as part of the practical completion process.
4.Describe the reason for As-Built drawings.
5.Describe the purpose of the Defects Liability Period.
CON102 Tendering Administration Processes For Construction Projects Assessment 3
Task 8
The assignment is to comply with the Assignment Specification provided.
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