CON102 Tendering Administration Processes For Construction Projects Assessment 3 – Australia.

Subject Code & Title: CON102 Tendering Administration Processes For Construction Projects
Weighting: 40%
• 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 – Australia.

CON102 Tendering Administration Processes For Construction Projects Assessment 3 - Australia.

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.

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The successful tenderer has been awarded the Ngake School project. The
contract is being administered by Bird wood Architects. The job file includes the following documents:
• NZS3910:2013 Conditions of contract for building and civil engineering
• NZS3910:2013 Schedule to Conditions of Tendering, Contract
Agreement, Schedule 1 –Special and Specific Conditions of Contract.
• The priced Schedule Of Quantities Ngake School.
• Custom Joinery quotation

(NOTE: Make sure that you download a copy of the CON102/A3 Marking

Task 1:
During the course of carrying out the contract work, Bird wood 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.

Potential variation issues:
1. Bird wood amended a detail which involved the addition of a moulding
2.A week before tenders closed, Ngake School asked Bird wood to notify tenderers that the width of the entry path should be increased by 200 mm to improve access
3.After signing, the parties later agreed to a change in the specific conditions of contract.
4.During the tender period a tenderer noted via GETS that the type of timber decking did not meet Code slip resistance requirements
5.After seeing a sample of the vinyl floor covering, prior to the contractor ordering it, the client requested an alternative colour
6.After seeing the vinyl floor covering as it was being installed, the BOT decided that the original colour was more suitable and asked for it to be changed back
7. Ngake School sought confirmation that the 500 E reinforcing mesh was to be used in the 100 mm thick concrete path
8.The contractor discovered that they had overestimated the amount of 140 x 45 mm timber framing required for the new works by 10%
9. NTT 4 changed the specification of the heat pump type based on performance only, to require that Mitsubishi or Fujitsu products were to be used
10. Bird wood required an item of extra work to be undertaken that did not affect the critical path

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.

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 Stats NZ. For older statistic you may need to review the archive

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.

CON102 Tendering Administration Processes For Construction Projects Assessment 3 – Australia.

CON102 Tendering Administration Processes For Construction Projects Assessment 3 - Australia.

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 Bird wood 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.

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.

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

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.

CON102 Tendering Administration Processes For Construction Projects Assessment 3 – Australia.

CON102 Tendering Administration Processes For Construction Projects Assessment 3 - Australia.

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.

Task 8:
The assignment is to comply with the Assignment Specification provided.

Assignment 3 Marking schedule

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