Assignment 1:
This assessment excludes Occupational Health & Safety component of the
Construction Site Operations subject in Semester One (1), 2021. It is
45% of the total mark in the unit. The assessment covers five questions.
Students must attempt all. Instructions for this assessment are outlined in
Section 4. The details of the assessment follow below.
CSM80007 Construction Site Operations Assignment – SWIN BUR OPERATIONS Australia.

Where ‘Contract Administrator’ is used in this assessment, it has the same
meaning as ‘Superintendent’ used in AS4000 – GENERAL CONDITIONS
OF CONTRACT.

1.BACKGROUND:
Your company (a contracting firm) has been contracted by City of Maroonda
to construct an auditorium & associated Works as part of an upgrade to the
services provided in the area. (Ringwood).

City of Maroonda is the Client and the funding is provided by grants from the State Government. The new auditorium will assist the community to engage in leisure activities in the area – where possible, all Sub-Contractors, day labourers, relevant materials and Plant and Equipment hire are to be sourced from the local district.

During the ‘Pre-Tendering’ phase, all tenderers had adequate time and sufficient guidance to thoroughly inspect the site, fully review all the geo-
technical information and the detailed plans for the Project and access to all
relevant technical and non-technical data they needed to be fully prepared to make an informed bid. They were also given an assessment of the availability and skills of labour in the area as well as the type of material (although untested) and equipment located there. All tenderers were required to acknowledge, in writing, that they had appropriate access and professional guidance to all the necessary information they required to be able to make an informed bid.

CSM80007 Construction Site Operations Assignment – SWIN BUR OPERATIONS Australia.

2.FURTHER INFORMATION:
A. Construction time for the project was specified as 12 months. AS 4000 has been selected as the General Conditions of Contract for the project.

B.Your company has engaged a site management team (Project Manager, Contracts Administrator, Site Engineer, Site Foreman, Accounts Clerk). Client has assigned a Project Manager (Client) to act as Superintendent and a design engineer to resolve any design issues during construction. Client also has other stakeholders (local musical school; Community leader; Council Member).

c.Early in the construction several errors are found in the plans provided
by the Client. Significant redesign is required before work can continue. These errors were notified by the Contractor and Superintendent issued direction to clarify the ambiguities and corrected the errors. Contractor has submitted claims during first month for additional cost (estimated additional cost $15,000) but maintained the time for completion at 12 months.

D.During excavation and preparation of both the ‘green field’ and ‘brown
field’ areas, ‘objects of antiquity’ were uncovered in the area where
auditorium to be constructed. During second month, object of antiquity
was found and it was removed and handed over to the client. This set
back the project by 7 days. Contractor has spent $80,000 in dealing
with the removal of “object of antiquity”

E.During third month, Client decided to change the material for seating
to be used in the auditorium. Your company has already ordered the
material as per original drawing. Superintendent chose to direct the
changes under AS 4000. Estimated additional cost in respect of this
change is $100,000.

CSM80007 Construction Site Operations Assignment – SWIN BUR OPERATIONS Australia.

F.Your company has made progress and completed 50% of the original
works (earned value) in 6 Months’ time.

G.The weather is ideal for construction – the expectation, based on
previous weather records of the area, had been that up to 10% of the
time could be lost because of adverse weather. This has been built into
the contract price by your company. As at end of 6 months there
has been no claim for EOT in respect of inclement weather.

H.Expenditure Profile (AUD in thousands)

Note:
1.Actual cost during first month includes claim for resolving errors.
2.Actual cost during second month includes claim for dealing with object of antiquity.
3.Actual cost during third month includes claim for change in design for seating material.

3.QUESTIONS

Question 1: Project Risk and Communication
a. Your company has been requested by Client to prepare and submit a
communication management plan. Prepare a communication management plan involving site management team and client’s team and stakeholders.
b.Client Project Manager prepared a project risk matrix for the project to
prepare the initial project budget. Prepare a project risk for this project.

Question 2: Application of AS 4000
a. AS4000 details specific lines of communication for the effective processing of all progress payments (Monthly). Detail this process as
outlined by AS4000, specifically identifying all relevant clauses that
authorise the process. Explain security of payment act and its
application in your claim.

b.Explain how your company submitted the claims for dealing with
ambiguities and errors in the documents with relevant clauses from AS
4000.

c.Your company decided to make ‘Claims for Variation’ for the additional
works arising from the re-design of the seating. Your claim should
include possible surplus material or other alternative ways to deal with
your order. What is the relevant clause under which Superintendent
must have issued the direction to change the seating material? Explain
with reasons.

d.Explain how your company dealt with discovery of ‘object of antiquity’
and how the Superintendent dealt with the claims for additional cost
and time.

e.Your company noticed that the handrails shown on the drawings in the
auditorium were specified as galvanized iron handrails. Your company
advised the Client that stainless steel handrails would be appropriate
to avoid corrosion. Superintendent is considering your company’s
suggestion. Explain how the Superintendent and your company go
about implementing the change of material for handrails.

Question 3: Earned Value Analysis
a.Based on the information provided in section H and other sections
under “Further Information” carry out earned value analysis at the end
of 6th month and calculate PV; EV; AC; CV; SV; CPI, SPI; BAC
b.Estimate the cost at completion (EAC) using different methods;
I. If the Cost Performance Index (CPI) is expected to be the same for the remainder of the project,
II. If future work will be accomplished at the planned rate; and
III. If both the CPI and SPI (Schedule Performance Index) influence
the remaining work;

Question 4: Report

a.Prepare a draft monthly report to the client detailing the status of the
project as at the end of 6th month.

Question 5: Estimating VOWD (Value of Work Done) and Accruals
In a water pipeline project, following information has been provided to the
Contract administrator.
Contract Scope: Procure, deliver, install and test 3 Km long 600mm dia
pipeline from point A to point B as shown in the drawings and specification.
Contract period: 8 Months Bill of Quantities

Rates are inclusive of overheads and profit.
At the end of 4th month into the project,
1.30% of pipes have been delivered to the site and accepted by the
Superintendent as complying with the specification.
2.Contractor has laid 20% of the pipes and tested 50% of the laid pipes.
3. Invoices for 20% of delivery of pipes (3KM total); 10% of pipe in place;
0% for testing have been paid at the end of 3rd month.

Exchange rate for the end of 3rd month; 1AUD = 0.75 USD as paid in
invoices.

Exchange rate for the end of 4th month (as provided by finance department);1 AUD = 0.80 USD

a. Estimate the VOWD (in AUD) as at end of 4th month and accrual
(accounting) (in AUD)

4.INSTRUCTIONS
Please read the paper and the questions carefully. Each of the five (5) questions must be answered – specific marks are allocated to each question and, if relevant, to the elements of each question. Therefore, it is imperative that you read all the ‘Background’ and ‘Further Information’ carefully, at least a couple of times, before you commence your responses to any
of the questions. Background and further information are relevant for first four questions and question 5 is to be attempted without reference to the background and further information.

1.You may wish to create additional background material and/or assumptions about your company’s Project to assist in developing your responses. However, if you do so, you must clearly outline what additional background information you have created at the very beginning on Page 1 of your response prior to answering any of the questions.

2.The response should be no more than 1500 words including any Appendices.

3.References are to be used with the author and source clearly stated and included as either a ‘bibliography’ at the end of your paper or in ‘footnotes’ at the bottom of the relevant page.

CSM80007 Construction Site Operations Assignment – SWIN BUR OPERATIONS Australia.

4.Submission and due date: An electronic copy of the response should be submitted not later than 29 th March 2021 via canvas.

f. The assessment is to be done in your own time and no collaboration is to be entered into with any other person, particularly your fellow or past students. Plagiarism and/or copying of any form are considered seriousm offences by Swinburne University of Technology and, if detected, usually
result in immediate disqualification.