Perimeter Wall Along Playground Construction - Case Study Example

Site Report Name Institution Date Scenario for the scope of work: Construction of a perimeter wall Objective The works involves building a new perimeter wall along the children’s playing ground at the school. All the works have to be carried out in accordance with the Australia construction standards. Scope of work The contractor must demolish the existing wall which is old and at a risk of collapsing. The work area should be established and the site prepared by removing all the obstacles as well as clearing of the vegetation. The worksite has t be clearly marked and a temporary fence erected for the purposes of hoarding. Excavation as well as proper dumping of the excavated materials must be carried out. The actual perimeter wall will be 100 meters in length. The perimeter wall must be constructed in accordance with the Australia standards (AS 4000-1997) and ability to bear the self weight as well as the different types of lateral loads. To avoid catastrophic failure, the construction works must be carried out progressively (Walker, 2015). The contractor has to strictly adhere to the technical requirements that will be outlined in the design documents. Schedule It is expected that the construction works should last for a period of one month. The construction works should commence on 1st of September 2016 and completed by 1st of October 2016. Penalties will apply for late completion if proper reasons are not provided. Annexure A Annexure to the Australian Standard General Conditions of Contract AS 4000 – 1997 This Annexure shall be completed and issued as part of the tender documents and, subject to any amendments to be incorporated into the Contract, is to be attached to the General Conditions of Contract and shall be read as part of the Contract. Item 1 Principal (clause 1) ...Homeville children playing center.................................................................................................... . ....................................................................................................... . ACN ......................198567............................. 2 Principal's address .....................................0908 Sydney................................................................. . ....................................................................................................... . 3 Contractor (clause 1) .........A& N Contractors.............................................................................................. . ....................................................................................................... . ACN ...........................676904........................ 4 Contractor's address ......................7879 Sydney................................................................................. . ....................................................................................................... . 5 Superintendent (clause 1) ................Engineer Tom Holt....................................................................................... . ....................................................................................................... . ACN ..................89897................................. 6 Superintendent's address ..........82134 Sydney............................................................................................. . ....................................................................................................... . † 7 a) Date for practical completion (clause 1) OR ................1st October 2016....................................................................................... . b) Period of time for practical completion (clause 1) .........................1 Month.............................................................................. . 8 Governing law (page 5, clause 1(h)) ...........................National construction Code of Australia............................................................................ . If nothing stated, that of the jurisdiction where the site is located 9 a) Currency (page 5, clause 1(g)) ........................................................Australian Dollar.................................................. . If nothing stated, that of the jurisdiction where the site is located b) Place for payments (page 5, clause 1(g)) ....................................Investec Bank...................................................................... . If nothing stated, the Principal's address c) Place of business of bank (page 3, clause 1(d)) .............................. Sydney Australia............................................................................ . If nothing stated, the place nearest to where the site is located 10 Bills of quantities (subclause 2.2) a) Alternative applying (subclause 2.2) ............The bill of quantity forms part of the contract and its shall be priced in accordance with clause 2.2.............................................................................................. . If nothing stated, Alternative 1 applies b) If Alternative 2 applies, is the bill of quantities to be priced? (subclause 2.2) Yes (delete one) If neither deleted, the bill of quantities shall not be priced c) Lodgement time (subclause 2.3(b)) .........At least 14 days after the acceptance of the tender................................................................................................. . If nothing stated, 28 days after date of acceptance of tender 11 Quantities in schedule of rates, limits of accuracy (subclause 2.5(b)) Upper Limit .........10%............................................................................... . Lower Limit........................20%................................................................ . 12 Provisional sum, percentage for profit and attendance (clause 3) .....25........... % † 13 Contractor's security a) Form (clause 5) ...........All the securities other than in the form of cash or retention money will be transferred to the escrow............................................................................................... . b) Amount or maximum percentage of contract sum (clause 5) ...............40%........................................................................................... . If nothing stated, 5% of the contract sum c) If retention moneys, percentage of each progress certificate (clause 5 and subclause 37.2) ...................10%....................................................................................... . If nothing stated, 10%, until the limit in Item 13(b) d) Time for provision (except for retention moneys) (clause 5) .........7 days after the date of acceptance.................................................................................................. . If nothing stated, within 28 days after date of acceptance of tender e) Additional security for unfixed plant and materials (subclauses 5.4 and 37.3) .....................Deed of guarantee..................................................................................... . .............................................................. $ .400........................................ . f) Contractor's security upon certificate of practical completion is reduced by (subclause 5.4) .................40%..........................% of amount held If nothing stated, 50% of amount held † 14 Principal's security a) Form (clause 5) .................Cash............................................................................................. b) Amount or maximum percentage of contract sum (clause 5) .....................60%......................................................................................... If nothing stated, nil c) Time for provision (clause 5) .............................14 days................................................................................. If nothing stated, within 28 days after date of acceptance of tender d) Principal's security upon certificate of practical completion is reduced by (subclause 5.4) ...40%........................................% of amount held If nothing stated, 50% of amount held 15 Principal-supplied documents (subclause 8.2) Document No. of copies 1 ...........Drawings...................5 copies.............................................................................. 2 ..........Specifications...............5 copies................................................................................... 3 ..........Bill of quantities..............5 copies.................................................................................... 4 ............................................................................................................ 5 ............................................................................................................ 6 ............................................................................................................ If nothing stated, 5 copies of the drawings, specification, bill of quantities or schedule of rates (if any) 16 Time for Superintendent's direction about documents (subclause 8.3) ................7 days...........................days If nothing stated, 14 days 17 Subcontract work requiring approval (subclause 9.2) .......................Any form of electrical installation and transportation of materials to the site may require subcontracting it has to be approved. ....................................................................................... .............................................................................................................. .............................................................................................................. .............................................................................................................. .............................................................................................................. .............................................................................................................. .............................................................................................................. 18 Novation (subclause 9.4) Subcontractor Particular part of WUC ...........Variations, remedial works and temporary works................................................................................................... .............................................................................................................. .............................................................................................................. Selected subcontractor Particular part of WUC ............The contractor must ensure that insurance policy is availble.................................................................................................. .............................................................................................................. .............................................................................................................. 19 Legislative requirements a) Those accepted (subclause 11.1) .............................................................................................................. ..........The contractor must abide by all the legislation under the direction of the superintendent of works. .................................................................................................... .............................................................................................................. b) Identified WUC (subclause 11.2(a)(ii)) ..................All the legislations in the national construction code............................................................................................. .............................................................................................................. 20 Insurance of the Works (clause 16) a) Alternative applying .................Alternative 1 applies and the contractor must insure all the property. ............................................................................................. If nothing stated, Alternative 1 applies If Alternative 1 applies b) Provision for demolition and removal of debris .............................................................................................................. .....................................................................$ .....100.................................. OR .............10.......% of the contract sum c) Provision for consultants' fees ........................................................................................... ................... .....................................................................$ .300...................................... OR ...30.................% of the contract sum d) Value of materials or things to be supplied by the Principal .............................................................................................................. .....................................................................$ ................400....................... e) Additional amount or percentage ..........................................................100.................................................... .....................................................................$ ....................................... OR ........10............% of the total of paragraphs(a) to (d) in clause 16 21 Public liability insurance (clause 17) a) Alternative applying ............Alternative 1 applies.................................................................................................. If nothing stated, Alternative 1 applies If Alternative 1 applies b) Amount per occurrence shall be not less than ...........................100................................................................................... ..................................................................... $........................................... If nothing stated, then not less than the contract sum 22 Time for giving possession (subclause 24.1) within...........7.... days of date of acceptance of tender If nothing stated, 14 days 23 Qualifying causes of delay Causes of delay for which EOTs will not be granted (page 3, paragraph (b)(iii) of clause 1 and subclause 34.3) ............Errors by the contractor will not be a ground for granting an extension................................................................................................... .............................................................................................................. .............................................................................................................. .............................................................................................................. † 24 Liquidated damages, rate (subclause 34.7) .......................................................................................................... ......................................................per day $...........100............... per day † 25 Bonus for early practical completion (subclause 34.8) a) Rate .....10%................................................................................................................................ ......................................................per day $................100........... per day b) Limit ...........300.......................................................................................................................... ................................................................................ $ ........................................... OR ....................30............................. % of contract sum If nothing stated, there is no waiver † 26 Delay damages, other compensable causes (page 1, clause 1 and subclause 34.9) ...No waiver will be provided by damages as a result of the activities related to the construction process. ........................................................................................................... .............................................................................................................. .............................................................................................................. .............................................................................................................. 27 Defects liability period (clause 35) ........................................8 months..................................................................... . If nothing stated, 12 months 28 Progress Claims (subclause 37.1) a) Times for progress claims ........4 months.............................................. . done to the ..........20th........................... day of each month for WUC day of that month OR b) Stages of WUC for progress claims ..................Signing the contract........................................................................................... . ....Demolishing the existing fence......................................................................................................... . ............Exacavation................................................................................................. . ............Disposal of material ................................................................................................. . .............Actual construction ................................................................................................ . .................Completion of works............................................................................................ . ............................................................................................................. . 29 Unfixed plant and materials for which payment claims may be made (subclause 37.3) ............................................................................................................. . .........The principal will not be liable for payment of unfixed plant and material.................................................................................................... . ............................................................................................................. . 30 Interest rate on overdue payments (subclause 37.5) .................An interest of 10% will be paid after the date of default in the payment..........................................% per annum If nothing stated, 18% per annum 31 Time for Principal to rectify inadequate possession (subclause 39.7) ...................7 .......................................days If nothing stated, 14 days 32 Arbitration (subclause 42.3) a) Person to nominate an arbitrator ............................................................................................................. . .......President of the institute of Arbitration 7 and Mediators Australia...................................................................................................... . ............................................................................................................. . If no-one stated, the President of the Institute of Arbitrators & Mediators Australia b) Rules for arbitration .................................................................................................... ........ .........................Rules.5-18 of the Rules of The Institute of Arbitrators, Australia will be applied................................................................................ . ........................................................................................................... . ........................................................................................................... . ........................................................................................................... . If nothing stated: a) rules 5-18 of the Rules of The Institute of Arbitrators, Australia for the Conduct of Commercial Arbitrations; OR b) if one or more of the parties are nationals of and habitually resident in, incorporated in, or where the central management and control is exercised in, different countries as between the parties, then the UNCITRAL Arbitration Rules shall apply and the appointing authority shall be the person provided in Item 32(c) c) Appointing Authority under UNCITRAL Arbitration Rules .................. President of the Institute of Arbitrators & Mediators Australia ......................................................................................... . If no-one stated, the President of the Institute of Arbitrators & Mediators Australia Part B: entry of four items Bill of quantities The bill of quantity forms an important aspect of the contract and it was entered based on clause 2.2. According to the clause, the bill of quantity forms part of the contract. The bill of quantity provides vital information that is related to the cost that will be incurred during the construction process (Sears, Sears, Clough, Rounds & Segner, 2015). It is for this reason that the 1st alternative was selected. Ina building project, a high percentage of the amount is usually used for the purchase of the raw materials. This also informed the decision of entering the information regarding the bill of quantity. A lot of accuracy will, be maintained when the bill of quantity forms part of the contract. The pricing of the bill of quantity is 14 days after the lodgment period. This is fort the purposes of allowing adequate time to the parties involved to carry out their research. The rates that have been used in the pricing of the bill of quantity are based on the local data. The local market rates are fair to all the parties involved in the contract. This included the contractor as well as the principal. The superintendent was also involved in the process of pricing the bill of quantity. Contractor security In a construction project, the parties are entitled to a security for the purposes of ensuring that the work is guaranteed (Fewings, 2013). The security is important in ensuring that the contractor is able to fulfill their obligations within the required time. The security amount can also be used for hiring and paying another contractor incase of failure to complete the work or abandoning the construction works. In filling the annexure, the percentages for security were mainly based on the overall quality of work as well as the contact sum. The percentages were also based on the local rates and the amount of work that the amount can be used to carry out. A reduction on a gradual basis will have to be carried out depending on the quality and amount of work done. The percentage that was put in pace was also reasonable for the contractor as well as the principal. Principal supplied documents The principal supplied document was entered in the annexure with a view of providing clear information about the documents. This was mainly for the purposes of ensuring that the contractor is able to use only the approved documents. The construction process of a perimeter wall requires specific information which can only be available in specific documents. The documents provided to the contractor also ensure that assumptions are eliminated when carrying out the construction activities. All the documents supplied to the contractor remains the property of the principal and it has to be returned after the completion of the contract. This is useful in ensuring that the document is not replicated by the contractor (Kerzner, 2013). The contractor was not involved in the design process but is only required to implement the specifications and hence the need for providing the documents. A total of 5 copies are adequate for the contactor to carry out all the activities as it may take place at different times. Arbitration In the implementation of a contract, conflicts may arise (Alzahrani & Emsley, 2013). In some instances, the parties to the contract which involves the contractor and the principal may not be able to solve the conflict or disputes. This requires the involvement of a third party agreed upon by all the parties. In the case of the contract, President of the institute of Arbitration 7 and Mediators Australia have been selected to nominate the arbitrator. This was chose as it is the fairest way of ensuring that the arbitrars appointed are neutral and working in the best interest of both parties. Rules.5-18 of the Rules of The Institute of Arbitrators, Australia was selected due to its ability to solve the disputes in a fair manner. The rules have been successfully used to solve conflicts among other parties in a fair and impartial manner. Part C: Plausibility of items from annexure B to the scenario Deletion For the sake of the project, clause 9.1 and 9.2 has to be deletes since they are not plausible. The clause mainly deals with the issue of subcontracting. It requires the contractor to seek the approval from the superintendent in order to subcontract. The implementation of the project has to be carried out within a short period of time. The approvals may take long in some instances. Due to time constrain, the clause has to be deleted. It is also fair for the contractor and it will provide them with more flexibility in terms of carrying out their works within the shortest period possible. Other activities that need subcontracting in the project are quite minor and may only require a day. The deletion of the clause is therefore important in enabling the contractor to carry out their works effectively without any delays. The work of the contractor may be affected by the presence of some of the clauses or conditions (Harris & McCaffer, 2013). Amendment Clause 38.3 which deals with direct payment should be amended in order to meet the goals and objectives of the project. The clause requires the principal to pay the workers or subcontractors in some of the instances for the works carried out. This has to be amended in order to ensure that the contractor is responsible for the payment of such amounts. This is for the purposes of ensuring that the matters related to payment are only carried out between the contractor and principal. The principal should not be involved in any way with the third parties where not contract exits. This will also ensure that conflicts are minimized due to unpaid amounts. The amendment is also for the purposes of supporting the deletion where the contractor will be subcontracting without necessarily involving the principal through the superintendent. Conflicts between the third parties and the principal may end up affecting the working relationship with the contractor (Alzahrani & Emsley, 2013). Addition The nature of the works at the site may be overwhelming and it requires a lot of supervision in order to ensure that the required standards are met. The superintendent alone may not be in a position to effectively carry out the supervision process. An addition is therefore required in order to allow for the principal to have an inspector of works who will be responsible for making some of the approvals on behalf of the superintendent. This will ensure that that contract fully complies with all the provisions as well as the specifications. The inspector of works must also write daily reports. The quality of work in most projects depends on the ability to reduce variations (Alzahrani & Emsley, 2013). References Walker, A. (2015). Project management in construction. John Wiley & Sons. Sears, S. K., Sears, G. A., Clough, R. H., Rounds, J. L., & Segner, R. O. (2015). Construction project management. John Wiley & Sons. Fewings, P. (2013). Construction project management: An integrated approach. Routledge. Kerzner, H. R. (2013). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons. Alzahrani, J. I., & Emsley, M. W. (2013). The impact of contractors’ attributes on construction project success: A post construction evaluation. International Journal of Project Management, 31(2), 313-322. Harris, F., & McCaffer, R. (2013). Modern construction management. John Wiley & Sons. Read More

The percentages were also based on the local rates and the amount of work that the amount can be used to carry out. A reduction on a gradual basis will have to be carried out depending on the quality and amount of work done. The percentage that was put in pace was also reasonable for the contractor as well as the principal. Principal supplied documents The principal supplied document was entered in the annexure with a view of providing clear information about the documents. This was mainly for the purposes of ensuring that the contractor is able to use only the approved documents.

The construction process of a perimeter wall requires specific information which can only be available in specific documents. The documents provided to the contractor also ensure that assumptions are eliminated when carrying out the construction activities. All the documents supplied to the contractor remains the property of the principal and it has to be returned after the completion of the contract. This is useful in ensuring that the document is not replicated by the contractor (Kerzner, 2013).

The contractor was not involved in the design process but is only required to implement the specifications and hence the need for providing the documents. A total of 5 copies are adequate for the contactor to carry out all the activities as it may take place at different times. Arbitration In the implementation of a contract, conflicts may arise (Alzahrani & Emsley, 2013). In some instances, the parties to the contract which involves the contractor and the principal may not be able to solve the conflict or disputes.

This requires the involvement of a third party agreed upon by all the parties. In the case of the contract, President of the institute of Arbitration 7 and Mediators Australia have been selected to nominate the arbitrator. This was chose as it is the fairest way of ensuring that the arbitrars appointed are neutral and working in the best interest of both parties. Rules.5-18 of the Rules of The Institute of Arbitrators, Australia was selected due to its ability to solve the disputes in a fair manner.

The rules have been successfully used to solve conflicts among other parties in a fair and impartial manner. Part C: Plausibility of items from annexure B to the scenario Deletion For the sake of the project, clause 9.1 and 9.2 has to be deletes since they are not plausible. The clause mainly deals with the issue of subcontracting. It requires the contractor to seek the approval from the superintendent in order to subcontract. The implementation of the project has to be carried out within a short period of time.

The approvals may take long in some instances. Due to time constrain, the clause has to be deleted. It is also fair for the contractor and it will provide them with more flexibility in terms of carrying out their works within the shortest period possible. Other activities that need subcontracting in the project are quite minor and may only require a day. The deletion of the clause is therefore important in enabling the contractor to carry out their works effectively without any delays. The work of the contractor may be affected by the presence of some of the clauses or conditions (Harris & McCaffer, 2013).

Amendment Clause 38.3 which deals with direct payment should be amended in order to meet the goals and objectives of the project. The clause requires the principal to pay the workers or subcontractors in some of the instances for the works carried out. This has to be amended in order to ensure that the contractor is responsible for the payment of such amounts. This is for the purposes of ensuring that the matters related to payment are only carried out between the contractor and principal. The principal should not be involved in any way with the third parties where not contract exits.

This will also ensure that conflicts are minimized due to unpaid amounts. The amendment is also for the purposes of supporting the deletion where the contractor will be subcontracting without necessarily involving the principal through the superintendent.

Read More