Rise And Fall Amounts For Medium Rise Commercial - Building Industry Contract Case Study - Business Law Assignment Help

Assignment Task -                 
 

Task -                 

Background to the project

A private developer who has recently moved to your city has recently purchased the property described by the Master Builders Medium Rise Drawings, with the Development Approval and the Building Approval already in place.  They have instructed mc design architects to immediately tender the proposed works to a pre-selected tender list and award the contract to the lowest tenderer.  Your construction company is the successful tenderer for a lump sum of $780,780 ex GST.  With a nominated percentage for overheads and profit of 12%.  Allowance for 20 Days of rain over the contract duration.

Project

The project takes a dilapidated and disused site to create 3 shops and 2 apartments.  The Developer through a local real estate agent has pre-leased all 3 shops, and apartment 2.  The developer intends to live personally in apartment 1.

Shop 1 and 3 will lease for the equivalent of $400 per week and shop 2 for $250 per week.  Apartment 2 will lease for $250 per week and the developer is currently leasing a similar-sized Apartment to number 1 for $400 per week.  The developer is extremely eager to take possession of the completed project.

Architect

The firm mc design architects have just won a major contract to project manage the design and construction of an urgently needed immigration detention center in your city.  To enable your contract to be put in place, for the construction of the medium-rise building, they have asked that you prepare the contract for signature by the relevant parties.

Contract Details Issued with Tender

Security is two be in the form for 2 un-conditional guarantees for 2.5% of the contract sum each.
The payment period for certificates shall be 14 days.
The contractor is to provide Public Liability ($20M) and Contract Works Insurance over the works.  Excess for both shall be no more than $1,000.

Task 1:

Complete the table below, by calculating the difference between the actual and budgeted cost (including total difference), and identifying whether the difference represents an increase (Rise) or saving (Fall) for the customer.

Project Financial Management

Cost Centre                                           

Budget ($)                 

Actual ($)                

Difference ($)                   

Increase or Saving?             

Excavation

$40,000

$42,000

2000

Formwork

$10,000

$8,800

1800

Concreting

$35,000

$35,000

0

Carpentry

$68,000

$75,000

7000

Hebel Installation

$35,000

$28,000

7000

Renderer

$28,000

$27,000

1000

Painter

$25,000

$22,000

3000

Gyprocker

$18,000

$16,000

2000

Roof Tiler

$12,000

$16,000

4000

Totals

$271,000

$269,800

Difference/badget

$14800

Difference/Actual

$13000

Question 2:

What documents should a builder provide when making a progress payment claim under a cost-plus contract?

Question 3:

The cost of the floor coverings comes in at $32,000 and there is no allowance in your project budget for floor coverings. Your agreement margin with the client is 20% on cost  How much additional cost will you be adding to your construction contract?

 

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