CON103 - Contract Administration for Valuing Building Works

Assignment Task

Task 1: Post-contract administration

The new apprentice on site is learning about post-contract administration.

a. Explain the key features of the following to the apprentice:

• Variations

• Cost fluctuations

• Extensions of time. For each, ensure you outline:

• What they are

• What their purpose is

• Under what circumstances they are used (provide examples).

b. Which sections and clauses of NZS3910 explain what the key features given above are?

Task 2: Variations for the architect

1. For each of the following situations identify whether a variation between the client and the main contractor exists and state who pays for the variation if applicable. Include a brief explanation to support each of your answers.

a. Your company proceeded with procurement of the subcontract trades in the three weeks prior to the start-up meeting. Knowing that the architect wasn’t issuing the For Construction documents until the start-up meeting, you requested the structural steel subcontractor to immediately commence the shop drawings, based on the tender issue documents. You are hoping to mitigate any delay to the programme from the late issue of the For Construction documents. When you do review the For Construction drawings you notice that there is additional steel along the north elevation. You contact the structural steel subcontractor about this, and they advise that they have already completed the shop drawings for that section of the building and will need to redo the drawings. 

b. Setout of the Phase 1 building is completed, and the excavation of the footings has begun. Rather than boxing the large foundation pads, your company has decided to pour the concrete ‘to country’, which will save time and costs as the formwork labour and materials is deleted. The engineer has approved this method of construction.

c. You have received a variation price request that changes the materials to be used for lining the distribution warehouse. 

2. For each of the contract instructions below, prepare a variation ready for submission to the architect. Carefully read each of the contract instruction extracts, and consider the information provided. Follow any communication protocols that apply. Adopt the rates from the Schedule of Rates (SOR) extract. Note: The rates within the SOR are exclusive of overheads and margin. The overheads and margin percentage is 7.5%.

Task 3: Progress claim

Prepare a simple progress claim for each of the situations below and arrive at the value of the net monthly claim (GST exclusive). Determine retentions (these are as per clause 12.3.1 (a) of NZS 3910:2013).

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